UK housing market falling faster than last recession, says Bellway - Telegraph

[Olly]

Originally Posted by Rishek

Hi, it's my first time on this forum so I'm a little unsure of how it all works. Apologies if I've come through the wrong channel.

I'm moving from Auckland, New Zealand to work for my employer in London for the next 5 years commencing April 2009. Probably living somewhere in Oxfordshire and travelling to work in Slough, West London.

My wife and I own 2 houses in Auckland with a loan to value ratio of 66%. One is negatively geared whilst the other is cashflow positive. Total value of properties is 1.2million NZD (ie.425,000 pounds). Total borrowings are 810,000 NZD (ie. 287,000 pounds).

We have an overdraft loan available from our NZ bank of 60,000 NZD (ie. 21,000 pounds).

It seems cheaper and smarter to take on a mortgage given our 5 year stay in the UK rather than simply renting. The monthly payments are similar but will it be a difficult exercise trying to obtain a mortgage if we can only put down a 5-10% deposit?

Could we even find anything around 200,000 pounds in one of the villages in Oxfordshire?

My UK salary will be 40,000 pounds per annum and my wife is an ESOL teacher and would probably work part time (ie. 10,000-12,000 pounds per annum).

What would you suggest?

Rishek, Hi

First, wish you and your wife every success for your future employment & lifestyle.

Second, suggest you check: Rightmove - UK's number one property website for properties for sale and to rent to see what might meet your price options and, second, visit: unbiased.co.uk and using the postcode for your new employers offices or, one from the homes on RightMove, find an Independent Financial Adviser. You can select one who will work on commission or by fees.

These guys will be able to provide you unbiased, 'sound' advice taking your present situation into full account also.

Again, wish you every success...

Olly

[artursw]

Wait, keep you deposit in your pocket (cash in king now) once people panic and start selling cheaply. People go mead because of media, don't, read, listen just calculate, observe real statistics, factors.

[UKand Singapore]

I think we have all experienced that it is impossible to catch the bottom of any down turn, property or otherwise.....unless by pure luck.

I understand your point, but the key is actually being able to buy at a price point that make sense economically, allows for maybe some further down turn, but with cash-flow, yield and capital gain calculation, actually makes financial sense in the term of investment you are looking at.

One man's meat is another man's poison (although of course we all want the best cut at the best possible price!).

[Prop-erty]

Now in the New Year, what are everyone's predictions on this?

[zanis]

Another article here on the UK recession - click here

[web2dude]

Originally Posted by Damian George

We are far from the bottom.

Watch mortgage approvals! that is the key. If people cant borrow they cant buy! At the moment the Banks havent the funds to lend to individuals.

How many poeple if they have had a mortgage approved have had the mortgage valuation come back 10/20% lower than the agreed price?

Personaly i would right off 2008 and look to buy in summer 2009.

I think we're being overly optimistic if we think the market has bottomed out. Think beginning of 2010, rather than 2009 if I were you. There are lots of people wanting to offload houses and the market is still declining. It's all speculation, but I reckon, 10% less, followed by a year of no growth is realistic! Doom and gloom

[Hot Key]

The amount of deposit for first-time buyers is now about 18% - the largest in 35 years. Wow.

[zanis]

UK like the USA will be in a world of pain this year (2009) - if you read the media reports this recession is a big one. Some even forecast that we will not recover until 2015! Though I have to think the media helps to make a bad situation even worse!

Here is another good article here on the UK recession - click here..

[ComRoute]

It's not all doom and gloom now though, since the interest rates have fallen.

[web2dude]

Originally Posted by ComRoute

It's not all doom and gloom now though, since the interest rates have fallen.

Yes, let's look on the bright side. In about 9 months will be when the market starts to bottom out....