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  • FIRST POST
    • Marine_life
    • By Marine_life 9th Oct 16, 7:50 PM
    • 785Posts
    • 1,376Thanks
    Marine_life
    Is a 20% fall in house prices a crash?
    • #1
    • 9th Oct 16, 7:50 PM
    Is a 20% fall in house prices a crash? 9th Oct 16 at 7:50 PM
    ......if you compare peak to trough on the GBP: EUR exchange rate over 12 months they have actually fallen 22%.

    In November 2015 the EUR to Sterling rate was 1:43, last Friday is was 1:11 which is around a 22% fall. I am transferring my hard earned EURO as fast as I can!
    Something witty goes here
Page 1
    • bigfreddiel
    • By bigfreddiel 9th Oct 16, 7:55 PM
    • 4,225 Posts
    • 1,953 Thanks
    bigfreddiel
    • #2
    • 9th Oct 16, 7:55 PM
    • #2
    • 9th Oct 16, 7:55 PM
    Euro to sterling

    House prices

    What's the connection

    Basically if house prices drop 20% and you have a house it doesn't really matter.

    If you're a first time buyer then I guess a 20% reduction is quite handy.

    Cheers fj
    • Pincher
    • By Pincher 10th Oct 16, 10:25 AM
    • 6,516 Posts
    • 2,490 Thanks
    Pincher
    • #3
    • 10th Oct 16, 10:25 AM
    • #3
    • 10th Oct 16, 10:25 AM
    I assume the whole world is converging on the UK,
    to pick up a bargain at 20% discount.
    No hurry, as the expectation seems to be GBP1:USD1.1 by end of 2017.
    • Malthusian
    • By Malthusian 10th Oct 16, 10:28 AM
    • 2,404 Posts
    • 3,340 Thanks
    Malthusian
    • #4
    • 10th Oct 16, 10:28 AM
    • #4
    • 10th Oct 16, 10:28 AM
    ......if you compare peak to trough on the GBP: EUR exchange rate over 12 months they have actually fallen 22%.
    Originally posted by Marine_life
    Only if you're carrying a load of Euros around to buy a UK house with. Or if you want to sell your UK house in order to buy some stuff priced in Euros.

    As I have no intention of selling my house and if I did it would be to buy another house priced in Sterling, the fall in Sterling makes no difference to me.
    • HouseBuyer77
    • By HouseBuyer77 10th Oct 16, 11:28 AM
    • 853 Posts
    • 803 Thanks
    HouseBuyer77
    • #5
    • 10th Oct 16, 11:28 AM
    • #5
    • 10th Oct 16, 11:28 AM
    Basically if house prices drop 20% and you have a house it doesn't really matter.
    It does if pushes you into negative equity and your current mortgage deal reverts to a standard variable rate after a certain time. You'll be stuck on the SVR unable to remortgage. Most deals on the market revert to SVR after a time, your mortgage could go from around 2% to 4% or 5% overnight.
    • Malthusian
    • By Malthusian 10th Oct 16, 12:19 PM
    • 2,404 Posts
    • 3,340 Thanks
    Malthusian
    • #6
    • 10th Oct 16, 12:19 PM
    • #6
    • 10th Oct 16, 12:19 PM
    It does if pushes you into negative equity and your current mortgage deal reverts to a standard variable rate after a certain time. You'll be stuck on the SVR unable to remortgage.
    Originally posted by HouseBuyer77
    The OP is talking about a 20% drop in the value of UK house prices in Euros, so this only applies if your mortgage is in Euros and you're trying to obtain another mortgage priced in Euros. Which is pretty unlikely.
    • HouseBuyer77
    • By HouseBuyer77 10th Oct 16, 1:30 PM
    • 853 Posts
    • 803 Thanks
    HouseBuyer77
    • #7
    • 10th Oct 16, 1:30 PM
    • #7
    • 10th Oct 16, 1:30 PM
    The OP is talking about a 20% drop in the value of UK house prices in Euros, so this only applies if your mortgage is in Euros and you're trying to obtain another mortgage priced in Euros. Which is pretty unlikely.
    Originally posted by Malthusian
    Indeed, it's not really relevant to the OP's question.

    I was replying to bigfreddiel who was saying a 20% house price drop isn't of immediate consequence to home owners, which is not the case.
    • Third Age
    • By Third Age 10th Oct 16, 2:18 PM
    • 14 Posts
    • 0 Thanks
    Third Age
    • #8
    • 10th Oct 16, 2:18 PM
    • #8
    • 10th Oct 16, 2:18 PM
    It is if you are from overseas looking to buy here but if you already have your money in sterling there has not been a price crash at all.
    • steampowered
    • By steampowered 10th Oct 16, 3:22 PM
    • 1,396 Posts
    • 1,381 Thanks
    steampowered
    • #9
    • 10th Oct 16, 3:22 PM
    • #9
    • 10th Oct 16, 3:22 PM
    In November 2015 the EUR to Sterling rate was 1:43, last Friday is was 1:11 which is around a 22% fall. I am transferring my hard earned EURO as fast as I can!
    Originally posted by Marine_life
    You are doing it the wrong way round!

    With investments you make money by buying when they are low (i.e. they have fallen) and sell them when they are high (i.e. they have risen).

    If you panic sell when your assets decrease in value, that is a sure way to lose money!
    • Ray Singh-Blue
    • By Ray Singh-Blue 10th Oct 16, 3:27 PM
    • 317 Posts
    • 413 Thanks
    Ray Singh-Blue
    Marine Life is doing it the right way round. But he has written "Sterling to Euro conversion rate" the wrong way round to throw us off the scent
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