Property vested interests are still spinning irresponsible advice, just like at the following.
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If you are considering buying property, of know someone who wants to buy property in the current climate, if there is an ounce of intelligence left get the m to read this...
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090125130520956 Missing the bottom of a housing market is not dangerous.
" wrote in message news: snipped-for-privacy@e1g2000pra.googlegroups.com...
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Very few knew the precise trigger or time for this correction (as a guy called Tumbleweed on here kept telling me) most of those on here expected a correction at sometime, so it will be very difficult to tell when we have hit the bottom. If you look at page 3 graphs....
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what is shown there is that the bigger the peak the bigger the trough that follows.... that last one in the early nineties took 6 years. However, the only way to be sure is that wait for the market to start rising, the 3 month on 3 month change graph should show that early... also expect a few false dawns... october ish and march ish always create a little surge, and is well expected by all estate agents. Another indicator is house price/earnings ratio (also shown on the nationwide hpi) which has historically been about 3.5, however in 1996 I noticed it got down to 2.7 ish and there still seemed very little increases in sales or prices. What you need is to get an overall picture...to know someone who work in the mortgage section of building soceities to get a view on when lending starts again, when the earnings ratio is about 3.4 - 4, and keep your eye on those graphs from Nationwide HPI, but always consider that local situations may be different from the national picture. A sudden new industry being developed in an area will trigger house price sales. Leeds was one example....20 years ago it was like Sheffield..no-one wanted to live there, but in the recent past it sold itself as a financial centre, with the consequential house price increases beyond the norm...it even affected my area in the travel to work distance of 50 miles. Nationwide hpi also provides a quarterly survey which includes local area trends.
However, to buy at the bottom of a rising market is ideal, especially if you have another house to sell, as long as you don't buy at the top like some have done in 2007/2008. And if your a first time buyer, same thing applies, just get saving and keep saving because loan to value ratios will be higher as a natural consequence of all the recent shit....I doubt if 100% mortages will ever be seen again.... until the next generation of bankers come into their post and all that knowledge of this will have been forgotten!
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