Property market

[UglyFace]

What do you guys think will happen to the property market in the UK over the next few years? My property is on the market right now and I'm thinking about renting rather than buying for a while in the hope that prices go down.

[derbyram]

You'd be risking a potential small gain against a optential big loss. Not wise to play the property market like this unless you have more than one property.

[WoWo]

UglyFace, we had this discussion a few days ago. I have done exactly what your suggesting. Is it risky ? yes but I'd say its more risky to buy a new property now. It all depends where you live if its London or the south east then its worth considering. I'd disagree with derbyram, it could be a huge gain. Have a look here for like minded people to discuss the issue with.

http://www.housepricecrash.co.uk/index.html

[justinhughes]

It's it a fact that property prices always double every 10 years... they can only go one way! If you then factor in the cost of buying another house (rather then keeping your current one) e.g. stamp duty, conviencing, you are bound to lose out. You best bet to play the property game is to improve the value of your current house. I bet the �3-4k that you would spend on buying a new house could add a lot of value to your current one.

[UglyFace]

The way I look at it, all markets are cyclical. We may not know what's going to happen to property prices but one thing is for sure - no market in the world ever kept on going up! Interest rates are on the up and coupled with record levels of consumer debt (credit cards, personal loans, store cards) you only need a proportionately lower increase in rates to feel the squeeze (as you have a much larger debt to service). As rates increase Buy-to-Let investors will firstly stop buying new properties (due to lower yields) and secondly start to take profits on their portfolio. With nothing to fuel the bottom end of the market (no first time buyers or investors) this must work it's way up the chain. I don't think there will be a crash unless something major happens to the world economy but I think a correction of 10 - 20% is a fairly good bet.

[UglyFace]

WoWo - didn't realise there was already a thread for this. Where is it? Thanks for the link by the way - great site!

[Dollybird]

Well, I am in the opposite position to you I'm afraid and I am praying that house prices will fall. I actually think that it depends upon where you are in the country though. I friend of mine has recently sold his house and he had to drop the price, in order to get a quick sale. Sorry to be the bearer of bad tidings but I reckon you should either sit tight or, if you have to move, rent.

[WoWo]

I think it was in the news section earlier this week. I won't bother with going into the full argument, but I wouldn't disagree that house prices go up in the long term. Thats not what this question is about. Its about speculating in the short term for mid term gains.

[twiglet4frog]

houseprices are about to drop significantly within 12 to 18 months!!!

[Canib]

The real estate market lock steps but lags the stock market. Watch the stock market and when it drops, real estate prices will drop soon. Remember in America, the stock market crashed in 1929 and hit bottom and reversed in mid 1930, but the depression peaked in 1932 and continued for years after that.