Please read the contributions from our subscribers as they attempt to overcome all the usual hurdles. Choosing the right property, dealing with the vendor, the agents, finding the right mortgage product, through to completion. Without a doubt It is now a buyers market and we look forward to sound fundamentals driving the housing marketplace in the right direction enabling many more to achieve the satisfaction of owning their first home.
Mortgage rates are low and there will be plenty of vendors wanting to exit the market for a variety of reasons. This time last year the market was a desert of opportunity for first time buyers.
The climate is now completely different.
There is more than anecdotal evidence that signs of panic are beginning to take hold, possibly from the over leveraged BTL marketplace.
We envisage plenty of success stories over the coming months as the froth disappears from the marketplace, hopefully we can share these with you.
After watching a item on the London news about two people who had never met before getting a joint mortgage in order to 'get on the property ladder', and another about people who are being priced out of the housing market and are taking to living on boats instead, I thought to myself if ever there's been an indication of an impending housing crash, then these two stories are it . It's just getting ridiculous. Mass hysteria feeds booming property prices, and the nation's denial reaches ever increasing depths.
It is saddening that the press and those in positions of responsibility - journos, Banks and Building Societies are so irresponsible with their information.
I was sitting on the tube last night and I picked up one of those free papers, its called The London Paper, or something similar, and on the centre pages a story about people getting shared mortgages as a means to get on the property ladder. It stated that people couldn't afford starter homes on their own, or with a partner, so going four ways with mates allowed them to get on the ladder and pay less rent as a result.
Of course everyone loves the idea of getting on the property ladder, because the value of property always goes up (well as far back as most people can remember anyway). Well history says no it doesn't. And we've seen it all before if we care to remember.
It's a shame the people who keep the market moving up; first time buyers like myself, don't remember the slump of the early nineties because housing just wasn't on my radar, I was more interested in drinking cider, girls and rave music. Now I, and my peers have the power to keep the market going and have no recollection of any other situation than housing on the up. Irresponsible behaviour from banks and mortgage lenders doesn't help, and the VI's seem to have no ideas of letting up either.
If they can keep the market moving up then it won't stagnate (ahem...
. crash). Problem is they don't get shafted when it all goes pear shaped, the consumer does.
Joe Bloggs on the tube reading his free propagnda has a seed planted and before long he's buying with his mates. The herd believe that the value of property always goes up, so investing in bricks and mortar is essential for a prosperous life, and so it is so.
I think Mortgage lenders should be regulated to prevent this kind of swelling of the market.
The value of your house is only what somone is prepared to pay for it, and if the bank make it affordable for the general public, then this coupled with the idea that the value always rises leads to a continuation of prices to rise which puts houses even further out of touch. If the mortgage lenders were regulated, the markets would not get to such a state where people have to choose a barge instead of a house.
What's the big deal about big housing prices anyway?
Surely it benefits everyone (apart from those who have borrowed against the value of their house) if the prices are low. The distance between the rungs of the ladder are smaller and so moving up to a bigger house is easier. As has been said many times before, the only people who benefit from high house prices are those who are selling to rent and those downsizing to a smaller house (which happens rarely).
So what's all the hype about. Well, when people are encouraged to unlock the value of their homes then they generally spend the money, and this is good for the economy. Don't worry about it because the value of property always goes up.
In this consumer crazy society where everyone wants the next best thing or newest car or latest gadget, this debt is easily taken on. But, what happens when it all goes the other way?
There's talk of a global recession in 2010.
I must say the signs don't look good. People are stretched to untold levels of debt, and the Bank of England has no option but to raise interest rates as the cycle swings the other way. As a first time buyer (potential, yet to buy my first home), I feel it is my responsibility, nay my Duty to stop this nonsense by not getting involved - oh, and not putting myself and future finances in massive jeopardy.
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