poppet2 Posted August 7, 2014 Share Posted August 7, 2014 http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/11015301/UK-homeowners-start-to-panic-sell-in-the-face-of-house-price-uncertainty.html But unless you are down-sizing, what is the point? "This drop in the growth of property values is a result of interest fears, tighter mortgage rules and aggressive rhetoric from the Bank of England that a "hot" UK housing market, in the south east, is the biggest threat to the economic recovery. More stringent lending criteria was introduced in April in the form of the Mortgage Market Review making harder for prospective buyers to qualify for a home loan. New filters include future interest rate stress testing and a cap on high value-to-income loans. Such standards have been designed to curb the "reckless" lending practices seen in the build up to the last housing market, according to Mark Carney, the Governor of the Bank of England". Link to comment Share on other sites More sharing options...
truman Posted August 7, 2014 Share Posted August 7, 2014 http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/11015301/UK-homeowners-start-to-panic-sell-in-the-face-of-house-price-uncertainty.html But unless you are down-sizing, what is the point? Sell up, get a nice wedge of cash,rent somewhere, spend your cash...save some for a deposit for a new property when prices have fallen..? Link to comment Share on other sites More sharing options...
Bonzo77 Posted August 7, 2014 Share Posted August 7, 2014 http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/11015301/UK-homeowners-start-to-panic-sell-in-the-face-of-house-price-uncertainty.html "This drop in the growth of property values is a result of interest fears, tighter mortgage rules and aggressive rhetoric from the Bank of England that a "hot" UK housing market, in the south east, is the biggest threat to the economic recovery. More stringent lending criteria was introduced in April in the form of the Mortgage Market Review making harder for prospective buyers to qualify for a home loan. New filters include future interest rate stress testing and a cap on high value-to-income loans. Such standards have been designed to curb the "reckless" lending practices seen in the build up to the last housing market, according to Mark Carney, the Governor of the Bank of England". To newer your original, deleted question; to increase your investment. As for stricter lending criteria....good. It shouldn't be easy to borrow tens, or hundreds of thousands of pounds. Link to comment Share on other sites More sharing options...
hyper Posted August 7, 2014 Share Posted August 7, 2014 Sell up, get a nice wedge of cash,rent somewhere, spend your cash...save some for a deposit for a new property when prices have fallen..?would this work? Assuming you rent modestly @ £600/month = £7k p.a. And that significant house price movements are fairly long term so for 5 years that's £35k, or for 10 yrs = £70k you are spending on rent. And while you rent, it's not your home, so you are not at liberty to develop or change things to suit you. It would need a massive price movement to convince me to your idea. Link to comment Share on other sites More sharing options...
tzijlstra Posted August 7, 2014 Share Posted August 7, 2014 The point is that a lot of people have been stuck where they were whilst prices were too low to effectively sell. Now that prices are going up they need to sell and buy before it gets out of hand. What it means is that the market is going into hot mode again. A few of my friends in London have been waiting to bail ship, they just sold a 2 bed apartment they bought in 2007 for a whopping 70% more than they paid for it, they will be moving back to Wales where they can now afford a 6 bedroom house in the country. Long live UK property. Link to comment Share on other sites More sharing options...
poppet2 Posted August 7, 2014 Author Share Posted August 7, 2014 Sell up, get a nice wedge of cash,rent somewhere, spend your cash...save some for a deposit for a new property when prices have fallen..? How long will people have to wait while they are paying £1k a month rent for JUST a 1 bedroom flat in London, let alone if they have a family? Link to comment Share on other sites More sharing options...
truman Posted August 7, 2014 Share Posted August 7, 2014 How long will people have to wait while they are paying £1k a month rent for JUST a 1 bedroom flat in London, let alone if they have a family? You don't have to rent in London......why did you completely change your original post? Link to comment Share on other sites More sharing options...
poppet2 Posted August 7, 2014 Author Share Posted August 7, 2014 The point is that a lot of people have been stuck where they were whilst prices were too low to effectively sell. Now that prices are going up they need to sell and buy before it gets out of hand. What it means is that the market is going into hot mode again. A few of my friends in London have been waiting to bail ship, they just sold a 2 bed apartment they bought in 2007 for a whopping 70% more than they paid for it, they will be moving back to Wales where they can now afford a 6 bedroom house in the country. Long live UK property. Now that is ideal, but how many people will be moving elsewhere in the country where prices are cheaper? Link to comment Share on other sites More sharing options...
truman Posted August 7, 2014 Share Posted August 7, 2014 would this work? Assuming you rent modestly @ £600/month = £7k p.a. And that significant house price movements are fairly long term so for 5 years that's £35k, or for 10 yrs = £70k you are spending on rent. And while you rent, it's not your home, so you are not at liberty to develop or change things to suit you. It would need a massive price movement to convince me to your idea. I'm not trying to convince anyone..just answering poppet's original post .If I sold now I'd have about 300k in cash available to me.... I could probably rent a home similar to mine for not far off the same amount as my mortgage...I could put half my cash away for a future deposit (for when prices have dropped) and enjoy myself with the other 150k... Link to comment Share on other sites More sharing options...
poppet2 Posted August 7, 2014 Author Share Posted August 7, 2014 You don't have to rent in London......why did you completely change your original post? How many people would leave a secure job, waste TIME and money on high transport fares, take their kids out of school and move away from family and friends? I merely highlighted some important points for those too lazy to read the link. Original question is now back. ---------- Post added 07-08-2014 at 11:46 ---------- I'm not trying to convince anyone..just answering poppet's original post .If I sold now I'd have about 300k in cash available to me.... I could probably rent a home similar to mine for not far off the same amount as my mortgage...I could put half my cash away for a future deposit (for when prices have dropped) and enjoy myself with the other 150k... Where would you move to? Also, what makes you think you could pass the new stringent terms to get another mortgage in the future? Link to comment Share on other sites More sharing options...
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