Grauniad: Prices could be 40% off peak by 2010

Dan:_4

The blokes getting desprate. He's even admitted he's thinking of buying on another thread.

WTF?_2

dopester wrote: »

The article is way too optimistic.

We're fast approaching where people realise the country is skint, so deep in debt, and with so very few profitable generators left of wealth in any sector.

I've got private banking facilities and they are on alert for me, for the type of house I want in a current price range, from what will be many over-extended and in-distress debtors. House prices are spectacular over-priced, and more so in this failing economy. I'm not even sure if I'll have to pay for the house I want, except for a token payment.

We're entering uncharted territory. Our government is so desperate - and will have to face an election within 2 years - that they could embark on any number of loony policies to get a short term boost and some popularity.

I would expect house prices to fall at least as much again as they already have as the most probable outcome but the 'panic-nomics' of the last couple of days lead me to think that the borderline risk of all-out inflationary wipeout is now more likely to happen than before.

Keep an eye out, especially on the bond markets.

WTF?_2

pickledpink wrote: »

Talk about contradict yourself!!!:rotfl:

You said in the 3rd paragraph:

"It means that when the time comes to buy, should I decide to go for a really nice property I'll be able to stretch myself with a low interest rate mortgage without too much trouble,"


And then you said in the last paragraph:

"It's just that these loony policies on cutting rates will wreck the general economy (even more) in the longer term and will end up hurting people more than they help them.

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

Heloooooooooooo????:j

Didn't you get any sleep last night, !!!!!!? You're not stressed by an chance?:D

Do try to read what I say.

Most would be borrowers won't get anything like a decent rate for borrowing because deals for new borrowers are requiring much higher LTVs, trackers being repriced upwards etc.


However, for people with a large wodge of cash and wanting to borrow with a low LTV and low salary multiple things are looking pretty decent.

Yeah, I think the economy is going to take a lot longer to recover than it would otherwise have done because of the govt. desperatately trying to bail everyone out (jap style) but for those of us not burdened by debt it's going to be a lot easier than most of the debt slaves out there.

For a lot of the population, even with low interest rates if there really is deflation (the rationale behind the rate cuts) they are screwed. Their capital debt (something bulls never like to consider) is going to weight heavier and heavier, low interest rate or not.

StevieJ

May as well read the original thread.

http://forums.moneysavingexpert.com/showthread.html?p=15003873&highlight=Andrew+Clare#post15003873

No wonder they keep coming up with all those articles.

WTF?_2

StevieJ wrote: »

May as well read the original thread.

http://forums.moneysavingexpert.com/showthread.html?p=15003873&highlight=Andrew+Clare#post15003873

Good stuff - I missed that.
Sorry Carol, props to you.

Austin_Allegro

I too am concerned that the government is going to debase our currency in some way in order to mask the effects of the recession.

The sad thing is, judging by the jubilant response to the interest rate cut this week, most British people will probably think they're richer if we get hyperinflation. 'Ere - I've got five million quid in me wallet. Loadsamoney! Good old Gordon!'

StevieJ

Austin_Allegro wrote: »

I too am concerned that the government is going to debase our currency in some way in order to mask the effects of the recession.

The sad thing is, judging by the jubilant response to the interest rate cut this week, most British people will probably think they're richer if we get hyperinflation. 'Ere - I've got five million quid in me wallet. Loadsamoney! Good old Gordon!'

Strange that the currency has strengthened.

PasturesNew

!!!!!!? wrote: »

Good stuff - I missed that.
Sorry Carol, props to you.

No you didn't.
You were post #13 in it

http://forums.moneysavingexpert.com/showthread.html?p=15003873&highlight=Andrew+Clare#post15003873

Don't you hate it when that happens?

dopester

Suddenly I feel guilty for a little fib. My bank did "upgrade" me to private banking, but it seems only the same as my existing account was, with no flashy benefits, other than occasional fancy letters to get me to come in to the branch to review products which I fear is an earner for them instead of me.

However they aren't really on alert for me for distressed property at near free prices - I made that bit up - but I can half-imagine that those with a bit of cash will call the shots.

StevieJ

There are some great comments there.

I said

' Wrong, bad news for anyone who takes this seriously, futures contract are subject to the same variability as anything else, look at forward Libor rates I can assure you that is going to change'

And Carol said

'Oh come in Stevie, you don't really believe that any more than I do'