Boom, Boom, Boom, Bust, Bust, Bust

skap7309

ess0two wrote: »

Yeah even cranks on here expecting 50% drops,its hilarious.

Please, why is it hilarious? I can understand it possibly will not but '86-'87 saw a 32% rise in one year, '02-'03 saw a 25.8% rise in one year. Please explain why a 50% drop over the entire length of this monster crash is not possible.

skap7309

Heyman wrote: »

Good Lord.

It's all just discussion and you pick what you want to discuss and what you don't. If there's nothing worth discussing then start your own thread.

Hardly rocket science is it?

You have possibly missed the point. Good discussions begin and then mindless trolls ruin them. I have started discussions and then someone :rolleyes: will post a needless addition and then thats the end of that.

Realy

Turnbull2000 wrote: »

Well, it would take house prices back to more typical levels for a start. All it takes is a 30% crash in prices (nearly half-way there already), and roughly 4 years of salary growth. Not that far-fetched.

Oh so I can't use adjusted figures to argue that prices won't drop 50%, but you can.:rotfl: .
I think the word is hypocrite.

Realy

skap7309 wrote: »

Please, why is it hilarious? I can understand it possibly will not but '86-'87 saw a 32% rise in one year, '02-'03 saw a 25.8% rise in one year. Please explain why a 50% drop over the entire length of this monster crash is not possible.

Please explain why they are?

skap7309

Realy wrote: »

Please explain why they are?

Sorry???

If you read my post you will see i put ''i understand it possibly will not'' therefore have no reason to explain why they will but if people intend on laughing off possible drops and mentioning the word 'impossible' then it would be nice to have an explanation...:rolleyes:

Realy

skap7309 wrote: »

Sorry???

Trying to guess where prices will be at the end of the crash is nearly impossible now as it all depends on what happens in the credit markets.

I can not see any good arguments for falls of 15%-99% as I think now no one as a clear picture of what is going to happen. Everything is changing daily.

PS I posted this before you edited.

Turnbull2000

Realy wrote: »

Oh so I can't use adjusted figures to argue that prices won't drop 50%, but you can.:rotfl: .
I think the word is hypocrite.

Because adjusted figures are relevent to my post, whereas your comment on negative equity doesn't make sense. Adjusted house prices have no bearing on nominal mortgage debt.

What did you say again? Oh aye, 50% crash would mean negative equity for those who bought in the last 25 years lol

Realy

Turnbull2000 wrote: »

Because adjusted figures are relevent to my post, whereas your comment on negative equity doesn't make sense. Adjusted house prices have no bearing on nominal mortgage debt.

What did you say again? Oh aye, 50% crash would mean negative equity for those who bought in the last 25 years lol

But 50% drops would put the majority of motgage holders in negative equity would it not? do people not move house or increase borrowing?

PS neither does yours as it would still be a 30%. If they purchased last year and it drops 30% that is still a thirty percent drop not 50% their mortgage is not effected by inflation.lol.

Turnbull2000

Realy wrote: »

But 50% drops would put the majority of motgage holders in negative equity would it not? do people not move house or increase borrowing?

Nope, you're still miles off. Average equity levels are above 50%, and the majority of poeple bought before prices trebled from 1997 onwards.

Realy wrote: »

PS neither does yours as it would still be a 30%. If they purchased last year and it drops 30% that is still a thirty percent drop not 50% their mortgage is not effected by inflation.lol.

You're doing a great job of cornering yourself Realy. This last quote really does show you haven't got a clue. If they purchased last year and actual prices fell 30% in 12 months, this would equate to a 34% fall (house price fall + RPI inflation). Their mortgage would remain the same, less any capital repayments.

blisk

Don't panic peeps, eveythings going to be ok.