We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The 70% club
Comments
-
OK a few weeks ago i would disagree with 70% falls but the following may just put it all into perspective by the great Merryn Somerset Webb. It goes on about how Japan struggled with a complete block on lending, low rates and previously rampant HPI. BTW house prices dropped 90%. Now....where have those ingredients been mirrored?
...regardless of what base rates are, if the banks don’t fancy lending they won’t lend – at any price. I was reminiscing with a colleague from my stock-broking days about how when we first arrived in Japan and found interest rates below 1 per cent, we couldn’t understand why everyone didn’t buy houses. Only later did we see that cheap mortgages were only available to a few risk-free customers – middle-aged men of a certain status and income level. Everyone else was excluded from the market: if they wanted to borrow money, they had to do so via the consumer finance companies at 20 per cent-plus.
The longer this credit cruch lasts it seems to get worse and worse. While 70% is a optimistic figure it certainly is not laughable anymore.
anyone who dismisses this out of hand is very very STUPID.0 -
anyone who dismisses this out of hand is very very STUPID.
Anyone who dismisses any who dismisses this out of hand is very very very STUPID, in fact senior lecturer in stupidity at stupid university (Sorry Rowan). Hi Dervish how is it going?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
ad44downey wrote: »I think StevieJ's keyboard is faulty. Every 2nd keystroke he makes produces a smilie. He'd want to take it back to the carboot sale and ask for his money back!
Hey Downey, is this you? :mad:'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
I sense fear with the over use of the ROTFL smiley on this thread.
It still amazes me that should there be house price falls on this scale, people think it would happen in a vacuum. Everything would remain as we know it now, we'd have an average wage of £25,000, low unemployment, low interest rates, etc.
Lets make it quite clear that 70% falls in house prices are not impossible. It happened in another country that faced very similar circumstances to us not long ago. Unlikely, I'd agree, and as a country we'd have to be in a whole heap of crap, including high unemployment, and in the grip of long lasting deflation.
One obvious scenario is if investors turn on the UK (more than they're already doing) and abandon the pound. Gordon wouldn't have the money to sustain his borrowing and spending. He'd either has to raise rates to encourage investment in the pound, or be forced to raise rates after being bailed out by the IMF. And this when in the grip of deflation mostly outside the government's control. That is not an impossible scenario. Britain went bankrupt before. We can only hope that we DO in fact do more in this country than max credit cards down the high street and sell expensive houses to each other.
But it is amusing seeing all the rolling smileys out because I seem to remember them being deployed when people mentioned falls in house prices of 20%. :rotfl: (couldn't resist).
Nothing is impossible, but you are comparing the UK to the 70's three day week, dramatic oil price increases, union militancy and sky high inflation you really are clutching at straws . We have a credit crunch, banks are nervous, things will change, Libor is reducing gradually (3mth = 4.2 today) Please look beyond the end of your nose. :rotfl::rotfl::rotfl:(couldn't resist)'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Nothing is impossible, but you are comparing the UK to the 70's three day week, dramatic oil price increases, union militancy and sky high inflation you really are clutching at straws . We have a credit crunch, banks are nervous, things will change, Libor is reducing gradually (3mth = 4.2 today) Please look beyond the end of your nose. :rotfl::rotfl::rotfl:(couldn't resist)
You got one thing right there, things WILL change. And there only really appears to be one particular person on this thread not looking beyond the end of his nose!
Oh and :rotfl: :rotfl: :rotfl: :rotfl: (one better)0 -
You got one thing right there, things WILL change. And there only really appears to be one particular person on this thread not looking beyond the end of his nose!
Oh and :rotfl: :rotfl: :rotfl: :rotfl: (one better)
Sorry not praise Vince praise Paul N
You will have the miserable Downey on your case with all those :rotfl:'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Why thankyou. You'll come round eventually.
Hey don't get me wrong I would love them to drop 70% (apart from the effect on people who have bought recently, I would feel sorry for them). Just don't see it.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards