Gaps between selling and asking prices

carolt

Kez100 wrote: »

Yes, that's what I meant. I do not wish any debt to be written off.

Whilst I would love to see a very quick acceptance of big drops - help possibly to kick start not growth and not high profit, but maintenance of the building sector and all the sectors that thrive off of that, I don't want to see people trapped for what could be decades.

We had NE you see in 1994 but it was £6k so perfectly possible to save ourselves out to move. However, that's peanuts compared to today's figures with at least a 0 on. I DO think people must take responsibility but I also think the Government are going to have to pay to some extent one way or the other (maybe through bank aid following more bankruptcies or extra benefit for more unemployed). I'd prefer to see them helping at the bottom of the triangle rather than the top. To that end I do agree with you in that the measures required are more portability than the word I used 'coping'. Wrong term, I accept.

I'd also prefer the bottom to be helped in this way as I can see a lot of lives could be lost through suicide if prices fall as much as they are likely to and don't recover due to a correction in lending practices.

I think I've come up with the solution to the world's economic headaches - do you think I'll get my knighthood?

Agree with you that giving money to the bankers is (a) morally wrong and deeply unpopular with the electorate, and (b) not having any effect whatsoever (except possibly making things worse).

So - and this is the clever bit - we give the money to me. Well, not only me, obviously - people like me, who are solvent and hard-working, but were too sensible to buy a house at the inflated prices they were selling for. Govt gives each and every one of us (all the bears on this board) a cash leg up plus an interest-free loan, to ensure we do our national duty and go and buy someone's overpriced house from them at asking price.

House prices stay stable, we all get to own our own homes without bankrupting ourselves - simple.

Obviously, some steps - such as making new BTL illegal - would have to be taken.

It might have teensy weensy effects on inflation.

But sure got to be better than some of the tripe they're suggesting.

And before you mention it - yes, I do have a vested interest in this idea.

So whaddya think?

IveSeenTheLight

dopester wrote: »

Hey ISTL,

Can't recall seeing you on the forums in recent days. You and mitchaa are usually around this time each month to hold up the shield of Nationwide's stats for Aberdeen.

How did this month grab you and your crash-proof regional variance theories ? :rotfl:

Aberdeen -7%

http://news.scotsman.com/scotland/Scottish-housing-sector-joins-the.4555236.jp

Pretty much a double post, not unusual as you have repeatedly trolled me.
Heres a link to my response on the other thread
http://forums.moneysavingexpert.com/showpost.html?p=14765225&postcount=47

I've never said any area is crash proof, you really have to stop making things up or puting words into other peoples mouths

Regarding not seeing me here for a while, I have been extremely busy, having taken up a new position. This new position offered myself a 35% pay increase. A formar colleague of mine has been offered 20% to move as well and counter offered 25% to stay. The reason I mention this is that you so often gloat about impending unemployement meaning people cannot afford houses / rent and in some areas.
While it is unfortunate if some industries have to pay off and you have shown many instances, some are also still very strong.

IveSeenTheLight

carolt wrote: »

So whaddya think?

So effectively you'll be happy if there is a solution for yourself.

What about all the future FTBers (including your children)?, your solution would not help them. That's okay though cause you'd get your house

You often refer to a requirement to make society better, but in reality you just want it for yourself.

I was involved in a discussion the other day and a very interesting point was made. Referring mainly to the sub-prime in America, the root cause was blamed at the lending facilities (not BTL) making properties available to those that otherwise would not have been able to afford via no deposit, 125% mortgages, higher salary multipliers etc i.e. Someone ale to buy a $600,000 property when they could only afford $250,000 or someone who could not afford property at all, suddenly able to get mortgages for a $250,000 mortgage.

Therefore it seems to reason, if there is a reversal to an earlier time of lending (some say living conditions will be back to the 50's), then there are going to be a lot more people unable to afford a home or a home of less substantial means.

dopester

IveSeenTheLight wrote: »

Pretty much a double post, not unusual as you have repeatedly trolled me.

That isn't true. I simply pointed out reasons why you might consider selling one of your BTLs about 6 months ago, but we differ to outlook, which is fine.

No; you didn't say Aberdeen couldn't crash, but if I could be bothered looking, I'm sure you said a few times that HPI in Scotland has not been as intense as England so it was unlikely you'd see a similar downturn in house prices. All wrapped up in "regional differences".

And mitchaa as well. She was always banging on about a theory England would drop and Scotland wouldn't, so there would be more of a parity between prices - and has some crazy theory about how affordibility for lending purposes should be calculated on the basis of 2 top-earning adults x whatever multiple.

Well done on your career advancement/pay awards.

IveSeenTheLight

dopester wrote: »

That isn't true. I simply pointed out reasons why you might consider selling one of your BTLs about 6 months ago, but we differ to outlook, which is fine.

To me both posts were exactly the same with an addition in this thread which I responded to.

dopester wrote: »

No; you didn't say Aberdeen couldn't crash

Thanks you, so why gloat when you show one set of figures showing a -6.9% YOY drop?

dopester wrote: »

I'm sure you said a few times that HPI in Scotland has not been as intense as England so it was unlikely you'd see a similar downturn in house prices. All wrapped up in "regional differences".

I've never said HPI in Scotland has not been so intense.
I have said that house prices in Scotland are more affordable.
Here's a link to back that up showing Scotland has the lowest House Price - Earnings Ratio
http://www.hbosplc.com/economy/includes/25_07_08Affordability.xls

dopester wrote: »

And mitchaa as well. She was always banging on about a theory England would drop and Scotland wouldn't, so there would be more of a parity between prices - and has some crazy theory about how affordibility for lending purposes should be calculated on the basis of 2 top-earning adults x whatever multiple.

I'm not Mitchaa so can't comment on they're posts, but I do believe that affordability can be calculated on a basis of two adults in a household. Some households have more than one earner.
Each households affordability is unique and needs to be assessed on its own merits.