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I think that the situation of decreasing of prices is temporary and I'm sure this problem will be solved very soon. Experience shows that such events never last long. I think we shouldn't succumb to the panic and the words someone said that it will last for the next two or three years. I'm sure that this is not true because there are people who'll prevent it from staying this way so it can't become a bigger problem. Real estates have always been a good investment and it will be so for future too. I think that the people who sell now are losing and i think now's the time to buy. This is not only for The UK, but for Bulgaria too and all countries that are members of the EU. I'll be glad if someone asks why i'm thinking like this and I'll be happier to see people that share my oppinion.
Please think long and hard before buying in the UK. Prices are dropping in all areas, regardless of the claims of some to be in immune from this.
It is not even the level of losses you might sustain, but the fact that you will be unable to find any buyer at any price due to the unavailability of credit.
However, having said all that, population levels are rising rapidly due to immigration, with house building levels at an all time low. So if you can wait a couple of years for the market to bottom out, and are in property for the long term, it could still be a good investment.
Over the years I have made good money on a few houses in the UK however right now I have a flat in London SE1 and have dropped it 20% and still cannot sell. Friends are in the same postion. Rents have also dropped in London. Do not buy in the UK right now, houses are way overpriced and heading down fast. I would think a 25% drop is on the cards at least between now and 2010. Anyone who buys now will get destroyed short to medium term (less than 5 years). Ireland, Spain etc are in even worse shape. Vested interests may tell you otherwise but do some due dilligence before making a bad decision...........
I also almost fell out of my chair at a poster in this thread saying that a return of 371% is to be expected over the next 10 years. If that was true then we might as well all give up work and just buy houses. Fact is that the " bigger fool" years are over in the UK property market and I for one would not recomend anyone being the last fool entering the room.
Anyone who doubts this check out this link www.housepricecrash.co.uk especially the recent anecdotal evidence forum.
Last edited by blackrabbit; 10-06-2008 at 08:00 PM..
The UK property market is declining for houses that are greatly over valued. The tightening of mortgages, higher unemployment, and lack of bonuses and pay raises as businesses fall will only exacerbate the drop in prices. Inventory is increasing as people cannot afford to live in the houses which decrease the prices of surrounding properties. There are many neighborhoods in different towns in the UK I have been in where you see row after row of forsale signs, you would think you are standing at the United Nations building with rows of flags.
The fact is that its over, and people just have to accept it. All the speculators need to leave the market as gaining 25% in one year will not happen anymore. Look at the mess the world is in financially!
Scotslass, I sugest you go to google news and enter "Scottish house prices" before advising people to invest in property. Seriously. Unless you are one of those numerous people who think their area is immune from the global financial crisis.
I think 6 months form now Scotland will be following England down.
Well my house is worth £300,000 it was valued not long ago. Surely not.
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