Will house prices drop anymore?

London Irish

james finn wrote: »

we the people made the demand for houses which made them inflated, the banks are not to blame for this, it happens every few years. now is the time to buy why dont you????

the dead money 50.000euro you gave the landlord and the 100.000 you say you have would buy a house now with out a loan.

I agree with you that the demand came from the people, but demand only means something if you have the means to buy, that is, have credit. So I do see the banks having to take some blame for lending without control. They are supposed to be businesses and they were badly run. In the end, it's the government who should have applied some brakes to the whole thing...

Anyways, back to your point. You're wrong. That 50k either had to go into (1) rent or (2) a mortgage over that time. If I had bought in 2000, when houses were, if I remember correctly, already 4-5 times my salary at that time then that 50k would have gone to pay down the mortgage.

Except it would mostly have gone to pay down the interest in the first few years, and I would have probably actually have spent up to 100k by now on the mortgage - only some of which would have paid down the actual capital price of the house.

But today my house would be worth so much less than I bought it for. Maybe I'd break even. Maybe not.

Now I can choose from a much larger range of houses to buy. Why don't I buy, you ask? Because houses are dropping faster in price than I'm paying in rent. Also, interest rates are an all time low and I'd like to wait until they rise to see the effect on the market. And that while I'm waiting, building up my deposit and watching houses come down faster than my rent, I can also see how the whole thing will play out on my own job prospects.

That's my own personal situation. I've nothing to lose and everything to gain.

That's just me. Others who are waiting to buy will have different wants, needs and strategies.

London Irish

james finn wrote: »

if your a happy home owner it upsets some people, even the moderator sent me a post to warn me, you put some figures on the table and you dont abuse people and you get warned because the moderater might not agree, what type of site is this anyway

Well, I just want to say I'm not upset! I'm glad you're happy.

I think it's the "rent is dead money" and "why don't you just go buy a house?!?" that people have issues with.

London Irish

james finn wrote: »

rent is dead money, rent pays for my house, i gain not the tenant? fact

In the current market,you and tenant both gain.

You gain by having your mortgage paid down.
The tenant gains by seeing house prices drop by more than his/her rent. Either the tenant is saving a deposit to buy - or they are not trapped in NE.

The_Conductor

Ok guys- thread closed.