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Superb piece on Yahoo Money following on from -55% prediction
skap7309
Posts: 874 Forumite
http://uk.biz.yahoo.com/18032009/389/house-prices-recover.html
Glad to see the media for once telling it how it is. Not pretty, but just what this country needs to get over the false 'wealth' that does not exist.
''Britons are among the most indebted people on the planet, and now we won't have the assets to back it up.''
''And what if property prices don't bounce back for years, or even decades? It could happen. The massive wealth implosion of recent months won't be reversed in a hurry.''
''Property will no longer be seen as an investment, let alone as a pension. Most people will see their home as a place to live instead.'' :T
We will stop feeling rich off unearned property wealth....
The buy-to-let market will return to what it always should have been, a niche investment for professional landlords, rather than a fast-track to millionaire status. One and two bed flats will be sold to the people they always should have been sold to: first-time buyers.
Glad to see the media for once telling it how it is. Not pretty, but just what this country needs to get over the false 'wealth' that does not exist.
''Britons are among the most indebted people on the planet, and now we won't have the assets to back it up.''
''And what if property prices don't bounce back for years, or even decades? It could happen. The massive wealth implosion of recent months won't be reversed in a hurry.''
''Property will no longer be seen as an investment, let alone as a pension. Most people will see their home as a place to live instead.'' :T
We will stop feeling rich off unearned property wealth....
The buy-to-let market will return to what it always should have been, a niche investment for professional landlords, rather than a fast-track to millionaire status. One and two bed flats will be sold to the people they always should have been sold to: first-time buyers.
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Comments
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Yeah I saw it too this morning its laughable isn't it, it does redeem itself though by saying near the bottom:
Cheer up you lot
This is the doomsday scenario, but it probably won't come to this. There are still some signs of life in the market. Buyer enquiries have risen for the last four months, and stocks of unsold properties have now fallen to a 12-month low of 26%. Halifax sees signs that activity is beginning to stabilise, although at a very low level.
What's more, the housing stock is still low, Britons are still hooked on property, it's just that they can't get the finance. Only time will tell whether these are the final death throes of the old system, or signs of continuing life.0 -
Yeah I saw it too this morning its laughable isn't it, it does redeem itself though by saying near the bottom:
Cheer up you lot
This is the doomsday scenario, but it probably won't come to this. There are still some signs of life in the market. Buyer enquiries have risen for the last four months, and stocks of unsold properties have now fallen to a 12-month low of 26%. Halifax sees signs that activity is beginning to stabilise, although at a very low level.
What's more, the housing stock is still low, Britons are still hooked on property, it's just that they can't get the finance. Only time will tell whether these are the final death throes of the old system, or signs of continuing life.
lol, pity the enquiries do not get further than valuation and mortgage approval.
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lol, pity the enquiries do not get further than valuation and mortgage approval.
I think the point you have overlooked is that the writer of your link is saying it won't happen, almost as if it's a wind up. Did you not read it all before you posted it?Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »I think the point you have overlooked is that the writer of your link is saying it won't happen, almost as if it's a wind up. Did you not read it all before you posted it?
I don't think he did read it all, it's almost as if the article is a parody, it comnpletely rejects all of what it says at the bottom of the article. A sort of a bear trap.0 -
Yeah I saw it too this morning its laughable isn't it, it does redeem itself though by saying near the bottom:
Cheer up you lot
This is the doomsday scenario, but it probably won't come to this. There are still some signs of life in the market. Buyer enquiries have risen for the last four months, and stocks of unsold properties have now fallen to a 12-month low of 26%. Halifax sees signs that activity is beginning to stabilise, although at a very low level.
What's more, the housing stock is still low, Britons are still hooked on property, it's just that they can't get the finance. Only time will tell whether these are the final death throes of the old system, or signs of continuing life.
.........and what did it say at the very bottom of the article?But so much of our economy was built on the illusion of endlessly increasing house prices. You don't have to be as pessimistic as Numis to see that this model has been shattered, and won't be pieced back together for at least a decade.
And nor should it be. Look what happened last time.0 -
mystic_trev wrote: ».........and what did it say at the very bottom of the article?
Yes and it's bang on. We won't be anywhere near to where we were for another 10 years at least (personally I think about 12-14 years).
The speculators that thought HP just rose were idiots. Surely you don't need an article to tell you that, do you?
EDIT: Actually I better qualify what I mean by recovery, I persoannly do not think house prices will reach 2007 levels agian (in real terms) but I think 90% of is achievable but not for 12-14 years0 -
chucknorris wrote: »I think the point you have overlooked is that the writer of your link is saying it won't happen, almost as if it's a wind up. Did you not read it all before you posted it?
Yes, i read the 4-5 long paragraphs explaining how it could happen prior to posting....
Hardly a 'wind up'.
A small point to make (lets base this on facts) - the writer does not mention anywhere in that article that it would not happen, more probably will not happen. Even i agree with that - 55% further to fall ontop of the 21% already 'suffered' is serious bear talk and im not that bad! I was keen to point out the false wealth that many, many people seem to think can carry them through a very easy life will not be around forever.
This article provides a good insight into how the dinner party 'look at my false wealth' brigade may find it is not quite that easy.0 -
This article provides a good insight into how the dinner party 'look at my false wealth' brigade may find it is not quite that easy.
As I said above to Trev surely you don't need an article to tell you that HPI wasn't forever, just look at the 70's and 80's/90's HPC's.
In the same way HPC isn't forever too it's a cyclical market take a step back and look at the wider picture.
But if anyone on here thinks the hpc will fall another 55% I would be happy to lay you 6/4, let me know how much you want to bet, we can let Martin hold the stakes.
Martin if you do this I will donate 10% of my winnings to a charity of your choice.0 -
Yeah I saw it too this morning its laughable isn't it, it does redeem itself though by saying near the bottom:
Cheer up you lot
This is the doomsday scenario, but it probably won't come to this. There are still some signs of life in the market. Buyer enquiries have risen for the last four months, and stocks of unsold properties have now fallen to a 12-month low of 26%. Halifax sees signs that activity is beginning to stabilise, although at a very low level.
What's more, the housing stock is still low, Britons are still hooked on property, it's just that they can't get the finance. Only time will tell whether these are the final death throes of the old system, or signs of continuing life.
In other-words, loads of "wealth" in the system has been destroyed.
Falling house prices, falling values, have already seen trillions wiped off assumed wealth. Trillions of pounds wiped in to the void from stock market crashing from peak. Houses are only worth what people will, and are able to, pay for them.
I think I'll buy a house at 1982-83 price levels.0 -
In other-words, loads of "wealth" in the system has been destroyed.
Falling house prices, falling values, have already seen trillions wiped off assumed wealth. Trillions of pounds wiped in to the void from stock market crashing from peak. Houses are only worth what people will, and are able to, pay for them.
I think I'll buy a house at 1982-83 price levels.
So are you taking me up on the 6/4 offer? if so how much?0
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