Rent or buy? My views on the housing market in Locks Heath / Western Wards
By CannyKenny | Tuesday, July 06, 2010, 11:04
To rent or to buy? These are my views on the housing market
To rent or to buy? Housing market in Locks Heath / Western Wards
in Locks Heath / Western Wards. Be interested to know what others think.
For nearly 15 years investing in property looked like a
‘sure thing’. All you had to do was fill out a self-certification mortgage
application claiming to be earning any random sum of money you fancied, then
buy a property and sit back and watch it soar in value. Then you could use this
perceived value to fund your new millionaire lifestyle, flash
cars, holidays etc. For those of you of a certain age - like myself - the Harry
Enfield character ‘Loads-A-Money’ sprang to mind as a symbol of this
generation’s buy-to-let investors.
Then came the great crash of 2007. For a while, it seemed as
though prices would never stop falling. Some areas reported falls of over 15%
in the first eighteen months. But now it seems they have stopped - at least
according to Leaders - Estate Agent in Fareham. I spoke to them last weekend
while renewing my rental agreement. ‘According to most measures,’ the agent
said, ‘house prices are starting to tick higher again so I would think about
buying if I were you’.
Other housing pundits even expect prices to end this year
higher than when they peaked in 2007. So should I get back into the market?
NO. The current rebound is simply a ‘dead-cat bounce’. Even
though several factors may point to the crash restarting in the near future,
the simple fact is that houses are still just too expensive.
The average salary in Hampshire is £28,000 per year and the
average house in Hampshire is £266,000. Now that mortgage lenders are reverting
back to safe lending levels of 3.5 times salary – well, do you think they have
further to fall?