House prices on the up

[gilo]

I think relief is coming for 1st time buyers house prices are dropping and will drop further as government cuts take hold

[Chris Gough]

What do you think is the biggest impediment for first time buyers, getting a deposit big enough or being able to get a mortgage?

[brian]

Property prices being too high I think is the biggest problem - they've gone up far in excess of earnings and needs to see a correction.

[PrincePersis]

The intersting thing is, who actually rising prices of selling houses first? by seller or goverment, and why? anyone know?

[builder66]

Yes house prices are a little to high. At the moment the average first time buyer on a 30K salary can borrow 100K. the average flat where I live is 180K. that's an 80K deposit.

[Dan S]

It's a very stressful and frustrating time for first time buyers at the moment. We've seen historically affordable mortgages come at the same time as unreasonably large deposit requirements.

It'll be interesting to see where we're at in a year's time.

[PaulRibbons]

It’s difficult to predict this year’s price index and it depends on certain indicators. There are two scenarios and the first is heavily dependent on the European and worldwide banking crisis. There is talk amongst the economic world that we could be heading for similar times, from the summer onwards, equivalent to those of 2008 within the banking industry. If this occurs I believe we could see a sharp dip in prices in certain areas. Price drops could be as much as 10% over a period of 3-6 months. I then believe it could happen quite quickly as a result of the cash flight from European to British banks as it seems a safe haven. The second scenario is due to a lack of supply and extremely low interest rates if the banking crisis doesn’t affect us our market will remain stable and nationwide could be as low as -1 to +1%. Unless we see a substantial increase in repossessions (which will only happen if rates rise dramatically and this is unlikely in 2012) and we have that nightmare scenario as mentioned earlier I see things remaining stable. I don't have a long hold strategy, I trade. I don't have to worry about whether house prices are rising or falling! This lucrative strategy is really simple. If you're interested I've written some blog posts on the subject and have a free download available from my blog.

[michaelb4348]

house prices will fall fast when interest rates go up and how any fool may think prices are on the rise is crazy they are going down down down and will continue to as trying to get a deposit these days for your average couple is a joke as for first buy schemes they are the biggest con of all time and its not fair for these companys to be selling them.

house £180,000
deposits 5%
loan amount from goverment between 20-40k
pay back mortgage
pay back loan within 5 years interest free --- ha yea ok no problem

The advice i was given was dont pay the loan and re mortgage in 5 years to pay the loan off..... So mr mortgage advisor you think i will get that much equity in 5 years its a massive scam

[Rose-Red]

Originally Posted by michaelb4348

house prices will fall fast when interest rates go up and how any fool may think prices are on the rise is crazy they are going down down down and will continue to as trying to get a deposit these days for your average couple is a joke as for first buy schemes they are the biggest con of all time and its not fair for these companys to be selling them.

house £180,000
deposits 5%
loan amount from goverment between 20-40k
pay back mortgage
pay back loan within 5 years interest free --- ha yea ok no problem

The advice i was given was dont pay the loan and re mortgage in 5 years to pay the loan off..... So mr mortgage advisor you think i will get that much equity in 5 years its a massive scam

But I thought such a scheme is being sponsored by the government, so how can a government scam people? Not in Britain surely

[michaelb4348]

Originally Posted by Rose-Red

But I thought such a scheme is being sponsored by the government, so how can a government scam people? Not in Britain surely

I really dont understand why people have not looked in to this it would be nice to hear from anyone who is in this exact situation at the moment