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Author Topic: Property prices over the next 5 years...  (Read 2486 times)

Offline rich83

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Property prices over the next 5 years...
« on: April 25, 2011, 12:30:34 pm »
..... discuss.

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Offline ub7rm

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Re: Property prices over the next 5 years...
« Reply #1 on: April 25, 2011, 12:37:28 pm »
Upward trend but nothing too dramatic would be my prediction.  Certainly for the next couple of years, could accelerate up more quickly after that.

As ever depends on the area ...
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Re: Property prices over the next 5 years...
« Reply #2 on: April 25, 2011, 02:21:26 pm »
They will steadily rise IMO.

I want to move in 5 years or so, depending on the secondary school I want my daughters to attend. My aim for the moment is to pump as much as possible into my current mortgage, so that in 5 years I can remortgage this property and use that money as a deposit for another, without having to sell this place. That way, I get my new property to move into, while keeping this one (maybe with a large mortgage though) to put on rent. As long as the rent covers the mortgage payments Im not too bothered with how big the mortgage is on this property once Ive moved.
Hence, Im hoping they dont increase too much, but Im pretty certain they will climb, although very gradually.

Offline andrewparker

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Re: Property prices over the next 5 years...
« Reply #3 on: April 25, 2011, 02:36:37 pm »
Likewise, they'll increase steadily. Mortgages are very cheap now, so if you've got cash now is a good time to buy, although only if it's a reasonably long term proposition.

Offline SRC

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Re: Property prices over the next 5 years...
« Reply #4 on: April 25, 2011, 05:06:47 pm »
Slight tangent here (apologies)...
I'm thinking a fixed rate.  There's only so long these rates can last, and they've already pulled most of the lowest fixed-rate loans.


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Re: Property prices over the next 5 years...
« Reply #5 on: April 25, 2011, 07:50:08 pm »
Slight tangent here (apologies)...
I'm thinking a fixed rate.  There's only so long these rates can last, and they've already pulled most of the lowest fixed-rate loans.

Yes it sounds good but.............you have a fixed low rate for what 5 years, then it starts creeping up so while the people on variable are adapting gradually you come out of the fixed and are hit with trying to find a massive monthly fee.

Wouldn't work for me I like to spend my money as you only live once and I would spend it and not save as it was rising before anybody says to do that!


Offline garrardrj

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Re: Property prices over the next 5 years...
« Reply #6 on: April 25, 2011, 09:19:35 pm »
I would wager a interest rate rise come next week..what is it 5th May. House prices will be fairly falt for a while to come until the amount to value percentage increases for first time buyers. They still need 20% deposit with most banks. This is what has held the market back for the last 18 months or so.
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Offline Lee01

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Re: Property prices over the next 5 years...
« Reply #7 on: April 25, 2011, 09:53:54 pm »
Reading the papers and talking to my father who is a property developer himself, the biggest problem is supply or more to the point lack of it, coupled with the lack of banks lending money.
The rental market is very strong indeed, which is a side effect of the banks not lending money. People are struggling to get approval for mortgage therefore forced into the rental market.
Within the big 'players' Barrett Homes, George Wimpey etc when the recession took hold they sold off and liquidated a lot of the land banks to inject capital back into the businesses and strengthen the balance sheets, now they are trying to acquire land ear marked for future development (read into that as you will).
Developers builders and investors believe the market will return, but it is unlikely to be degree pre recession and of course the whole market is pivotal to the banks lending money. Perhaps when they start to easy up and just adopt some good old fasioned lending practises i.e. not 25 - 30 % deposits then the market and recession for that matter will start to recover!!!!!

But hey I am just a no one!!!

Offline Frodo-anni

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Re: Property prices over the next 5 years...
« Reply #8 on: April 26, 2011, 10:29:05 am »
I would wager a interest rate rise come next week..what is it 5th May. House prices will be fairly falt for a while to come until the amount to value percentage increases for first time buyers. They still need 20% deposit with most banks. This is what has held the market back for the last 18 months or so.

Will be interesting to see.... having seen the rate of inflation correct itself recently i think the pressure to increase rates has reduced, there has still only been 3 people from the panel voting for a rate rise. If and when it moves, can only see it being a small 0.25-0.5% rise, too much would siginificantly harm the ecconomy.

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Offline rich83

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Re: Property prices over the next 5 years...
« Reply #9 on: April 26, 2011, 12:49:34 pm »
Some food for thought there.

I have one friend who is really up on financial goings on. His take on it is that whilst people can afford their low rate mortgages now, once things start to rise, a lot of people who are on tight budgets will struggle to make their repayments leading to an influx of houses on the market bringing prices down.

Depends who you speak to as to what there view is i suppose.

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Offline garrardrj

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Re: Property prices over the next 5 years...
« Reply #10 on: April 26, 2011, 01:50:30 pm »
Trouble with interest rates now is that the difference between the base rate and what you are charged by the bank has risen alot.
Look at personal loans as an example.....when base rate was 4.5-5% they were lending as low as 5.9% (Alliance and Leicester) now the base rate is 0.5% they are loaning at 7.4% ! So to simplify it they make a profit of 6.9% now compared to 09.% - 1.4% . The Banks are making more profit out of those who borrow money. We should be grateful for them for being some helpful durind these difficult times................. NOT 
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Offline Frodo-anni

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Re: Property prices over the next 5 years...
« Reply #11 on: April 26, 2011, 08:06:08 pm »
Trouble with interest rates now is that the difference between the base rate and what you are charged by the bank has risen alot.
Look at personal loans as an example.....when base rate was 4.5-5% they were lending as low as 5.9% (Alliance and Leicester) now the base rate is 0.5% they are loaning at 7.4% ! So to simplify it they make a profit of 6.9% now compared to 09.% - 1.4% . The Banks are making more profit out of those who borrow money. We should be grateful for them for being some helpful durind these difficult times................. NOT  

Banks borrow money daily from the money markets in order to balance there books etc.. but also to lend out. The reason rates on loans & mortgages have risen is that the interbank lending rate has risen therefore it gets passed on to the lender in the form of higher rates. The interbank rate is certainly not 0.5% the same as the BoE base rate.
« Last Edit: April 26, 2011, 11:19:00 pm by Frodo-anni »
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Offline garrardrj

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Re: Property prices over the next 5 years...
« Reply #12 on: April 26, 2011, 08:29:37 pm »
The LIBOR rate you refer to was 5.5% in January 2008......it is now about 0.8%. Thats not risen significantly in my books !

http://www.thisismoney.co.uk/libor

« Last Edit: April 26, 2011, 08:32:53 pm by garrardrj »
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Offline Frodo-anni

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Re: Property prices over the next 5 years...
« Reply #13 on: April 26, 2011, 11:18:06 pm »
The LIBOR rate you refer to was 5.5% in January 2008......it is now about 0.8%. Thats not risen significantly in my books !

http://www.thisismoney.co.uk/libor



Cross wires my point was that the two rates are not the same... the general perception of people i talk with believe the rates to be the same and can not understand why they are different.
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