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Question of the Day: What's the most interesting small town you've visited in South Africa?
House prices
- Thread starter boramk
- Start date
LancelotSA
Banned
WHAT!!??!!! Now is the best time to buy if you had the money!
Jabberwocky
Expert Member
i`m no expert but imo house prices will plummet further. Everyone has to sell, 1st time buyers can't afford to buy, and the baby boomers are retiring.
Simple matter of supply and demand.
they don't call it a bubble for nothing
Simple matter of supply and demand.
they don't call it a bubble for nothing
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LancelotSA
Banned
You do start off by letting us know that you are not an expert which is appreciated but then you next few words are really over the top. I do not think the word "plummet" can be used with any sort of confidence. The interest rate cycle is about to turn and when interest rates start to come down people will start feeling "wealthy" again.
Jabberwocky
Expert Member
Thats why you dont have to take it so seriously.
imo = in my opinion
i`m no expert = i`m no expert
If you read about what caused the 700billion thing that happened in the USA you will realise that much of that happened here, luckily we have better banks. But that doesn`t make it less of a bubble
LancelotSA
Banned
Jabberwocky giving opinions is fine but then also remember that people read these forums and are influenced by these opinions so if you say something that I, in my opinion, which I hope is slightly more educated in this field, feel is not totally accurate I will correct it. If you think this is taking things too seriously then fine and dandy but this is not the off topic section.
And I am fully aware of the cause of the global financial crisis which you will find if you read elsewhere on this forum.
And I am fully aware of the cause of the global financial crisis which you will find if you read elsewhere on this forum.
LancelotSA
Banned
Just to correct something which may start getting taken out of context now. I did not say that house prices will start to rise dramatically in the next year or less I merely said that now would be as good a time as any to buy. Yes, the trend for the next year may still still be slightly downward but then buying a house is not a short term investment. If you got in now you'd be getting in near the bottom. Further to this people are feeling the pinch and needing to sell for less than they were hoping for. If you had the money then buy!
Now is a better time to buy than it has been in the last couple of years... the post I initially responded to said the exact opposite.
Now is a better time to buy than it has been in the last couple of years... the post I initially responded to said the exact opposite.
rwenzori
Honorary Master
Well, you can explain things to people, but you can't learn for them. You might think you are better educated but I've seen you give highly debatable opinions ( remember your RAs? ).
Personally, on the topic, I'd say about 6 months after the first rate drop. But then, I'm not certified, nor certified as a financial adviser.
semiautomatix
Honorary Master
I do agree with Lancelot. I think the housing market is bottoming out. There may be a slight recovery already with the mere mention of interest rate cuts. But leave it past February or March and you'll miss out!
I think that they'll stay where they are for about 18 months ~ 2 years after which they'll make a slow recovery.
I just bought a property that was advertised for R1,675,000 for R1,300,000
If you don't have property to sell as a condition on any offers you make, which was the case with me, then you can bargain even harder.
I just bought a property that was advertised for R1,675,000 for R1,300,000
If you don't have property to sell as a condition on any offers you make, which was the case with me, then you can bargain even harder.
Jabberwocky
Expert Member
Thats why you dont have to take it so seriously.
imo = in my opinion
i`m no expert = i`m no expert
If you read about what caused the 700billion thing that happened in the USA you will realise that much of that happened here, luckily we have better banks. But that doesn`t make it less of a bubble
I have read several articles lately stating that house prices will continue to fall until the second quarter of next year. So don't wait too long...
If only I made 50k pm then maybe I could also buy a house, they are so unnecessary pricey.
If only I made 50k pm then maybe I could also buy a house, they are so unnecessary pricey.
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only a mug would buy into an overpriced asset class which is dropping in price by the day.
banks have pulled 100% mortgages (fin24.com) and now require up to 20% deposit, so ftb have to save a bit, bubble-mania is over.
here is an idea...with the amount required for deposit as a total of the purchase price increasing, and with the (alleged) interest rate decreases, what will happen to that pot of money sitting in a bank earning interest that these ftb have? answer: it will take longer to get the required deposit.
i have a vested interest in that i hate hate hate people who confuse shelter with investments. a house is first and foremost shelter, everything else is secondary. the value of your investments may go up and may go down, everybosdy knows that. now, it will go down until such time as renting money=purchase money and people have deposits.
none of this insanse lending of the last 5 years will remain.
oh, p.s. recession coming, enjoy the next two years, the big one, part deux, will spare a few of you, but once the redundancies kick in and the xmas/new year happy happy vibe wears off and you wake up to the stark reality of 2009 you will find house price declines accelerate.
and yes, i do have a tinfoil hat etc. doesnt make me wrong though.
banks have pulled 100% mortgages (fin24.com) and now require up to 20% deposit, so ftb have to save a bit, bubble-mania is over.
here is an idea...with the amount required for deposit as a total of the purchase price increasing, and with the (alleged) interest rate decreases, what will happen to that pot of money sitting in a bank earning interest that these ftb have? answer: it will take longer to get the required deposit.
i have a vested interest in that i hate hate hate people who confuse shelter with investments. a house is first and foremost shelter, everything else is secondary. the value of your investments may go up and may go down, everybosdy knows that. now, it will go down until such time as renting money=purchase money and people have deposits.
none of this insanse lending of the last 5 years will remain.
oh, p.s. recession coming, enjoy the next two years, the big one, part deux, will spare a few of you, but once the redundancies kick in and the xmas/new year happy happy vibe wears off and you wake up to the stark reality of 2009 you will find house price declines accelerate.
and yes, i do have a tinfoil hat etc. doesnt make me wrong though.
LancelotSA
Banned
Care to point out the issues with the RA discussion as I appear to recall things panning out totally differently to what you obviously do (ie your personal experience, or was it that of your father, resulting in your making sweeping generalisations)? Perhaps start a thread to do it or dig that one up as we wouldn't want to take this one off topic.
LancelotSA
Banned
I could not understand the just of most of that but the first line alone was enough to get me rolling my eyes.... I should really take DJKs advice and not even bother commenting in these financial related threads.....
One thing for sure is that time will tell.
LancelotSA
Banned
To get back to your query Boram
Remember house prices have still been growing up until now in nominal terms. It is only when you factor in inflation that growth in real terms has been negative. A drop in interest rates will affect this as with the same monthly payments people will be able to afford a more expensive property.
I also heard that by the 2nd quarter of next year, house prices will start rising again.