House prices are close to affordable levels, reveals survey... BUY!! BUY!!! BUY!!!

Max_Headroom_3

Conrad, how likely do you think it is that prices will go no lower or even are about to go back up, would you say?

Max_Headroom_3

chucky wrote: »

please tell me where I said "it'd be be daft to get on the property ladder soon with prices going down," this imagination that you have is getting really rampant - what's up with you today duchess?

just to add context and not pick one small peice of what i said and try to turn it aropund - here you go Multi Max "12 years is a long time to make a financial decision - if you haven't managed to make it yet, you'll never do it because you'll have retired and will still be paying rent; big question here is - do you think that your pensions cover the rent? The way that the Index's and Equities are performing it doesn't look that way..."

so going back to about 3 posts backs that you obviously didn't read - it was the 12 year decision making period that was in question not the fact that it was a good time to buy or not.

it's not crazy to get on the property ladder at any time. if the circumstances are right - there are always opportunities to make a profit even in a falling market - just like you have been discussing with Conrad on another thread. this is obviously something that you obviously already know though, isn't it Princess?

Chuckyducky, I don't think there's any point in you or I debating this one any further. You were very clearly and rather ineptly attempting to goad Carol with your comments and were trying to insinuate that she was stupid not to buy then and is stupid not to buy now.

Deny it if you like, I've pulled you up on it and you're refusing to admit it which is fine, we'll let everyone make up their own mind as to your insinuations and actions.

Pobby

Well the way I am looking at things right now is that property has every chance of going a lot lower.

If Carol jumps in now my thoughts are she would regret the decision. I see no reasoned argument that doesn`t point to further pretty extreme price drops. The current house I have could have been bought on 3.5 x a pretty low single income. Some 9 years later it`s increased by 400% valued at last years prices.

Does that make sense????? Seriously think about it. If the stock market increased by 400% in 9 years would you not question it? Do you not think it would have a long way to fall?

So my feelings are that we are at the beginning of a sharp correction. For goodness sakes. Should my home fall by 50% top to bottom, it would still reflect a doubling of price from purchase. Have peoples wages gone up by that amount?

chucky

Max_Headroom wrote: »

Chuckyducky, I don't think there's any point in you or I debating this one any further. You were very clearly and rather ineptly attempting to goad Carol with your comments and were trying to insinuate that she was stupid not to buy then and is stupid not to buy now.

Deny it if you like, I've pulled you up on it and you're refusing to admit it which is fine, we'll let everyone make up their own mind as to your insinuations and actions.

Pretty Boy - entertaining you has been fun.

You trying to say and imply things that I have said but didn't say has also been fun. It wasn't debating it was just you trying to imply and make something up that I didn't say. This has been pretty obvious and shows your intentions and is more than visible for all to see.

Being Carol's knight in shining armour must be so cool too...

Carol is not stupid as you say - any coments that I made were to give her different angles that she may not have realised. These are exactly your words to Conrad on the other thread aren't they?

I'm glad that I was a release for you yesterday afternoon. It will probably best if you PM then we can take your Lancelot character privately.

Have a good day

chucky

Pobby wrote: »

So my feelings are that we are at the beginning of a sharp correction. For goodness sakes. Should my home fall by 50% top to bottom, it would still reflect a doubling of price from purchase. Have peoples wages gone up by that amount?

Poppy - I agree with all of what you have said but just wanted to say the below in addition to what you have said.

peoples wages have not gone up by the prices that property has gone up by.
people have had more equity in property to balance this HPI and lack of wage increases. my question here is where has the equity come from (we all know the answer here) - if it is through creating debt elsewhere then there is a big problem, but i don't think everyone has done this - there are people that have saved just like people are doing now to get a house bargain and have invested wisely to reduce their debt. this is only my opinion.

I don't think that the correction will be 50% nationwide. 50% in some areas is not out of the question and i couldn't argue about that but there will be areas that this price drop will be much, much less. but we don't know this and it's one of those numbers that we have to guess. again only my opinion though and could be very wrong.

Pobby

Frankly I don`t even regard my 100% equity as very important. It doesn`t make me feel richer as such but having an income which is very changeable, it does bring a bit of peace of mind.

The equity that home owners have, imho, is based on a heady brew of fear, greed and panic fueled by what I can only describe as market hysterics. This has been further distorted by ``teaser`` deals and fixed rate mortgages. Add to that the scant regard that lenders had toward the viability of the loans they had created and you get a very unpleasant combination of factors.

With regard to how areas may see different price corrections I certainly see arguments for that. For example Cornwall which I and PasturesNew have some experience of. It`s one of the lowest wage areas but outside of London it`s one of the most expensive. I suspect that many of the second home owners will be feeling the pinch shortly and this will have a downward pressure on prices. I suspect the same for the Gower and other regions that sport second homes.

I am also amazed how people have taken on further borrowing on their homes as second mortgages to fund high living. I was talking to a relative who has been earning over £100,000 a year and now work is drying up. It`s amazing how little savings they have and they also have a second mortgage.

Often I see people who are earning an OK wage driving expensive cars that would of taken years to save up for funded, I am sure, by borrowings.

For me it has been strange and also rather scary to see peoples relationship with money become so distorted.

Well it looks like pay back time has come. I dread to think how people will cope. Someone asked me recently, knowing that my income has dropped a lot, how am I coping with reducing my life style. I replied that it`s not been a problem as the good days were for saving not spending. In consequence I see no difference apart from my saving rate being reduced.

chucky

you are right the equity in property has no value and is un-important.

it is only realised when sold or when debt is assigned to it.

baby_boomer

I know what you mean.

But the "value" of unsold properties was instrumental in persuading Gordon Brown to change the inheritance tax rules in 2007.

Pobby

The only way, and I have done this once, is to release equity to make money such as start up funding for a business. Wouldn`t be too keen on the idea right now tho.

chucky

the difference before this year was that if things did get a little tight, there were a numerous ways to get yourself out of the cashflow problem.

in today's market these ways of helping a business or an individual along have been reduced drastically.