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!
House price falls may well accelerate in 2009
Comments
-
Hey that is a great idea. Just because we can afford it.. we should buy it. Brilliant logic.
If we'd thought that way in peak 2007 and bought a house in our area, then we would have spent, or got in to extra debt for £30,000 to £100,000... as that is what many houses we've been monitoring have since fallen in asking price from peak.
You go purchase at these levels if such money to spend or debt to service is so easy for you, and such a big laugh. I'd rather have less to pay from our savings, and less debt to service.
Why I'm going to buy a house now when I think asking prices for the houses I'm interested in will drop a further £30,000 to £100,000 in the next couple of years?
Yes we want a home, but not at any price, and not when we think they will be considerably cheaper in not too distant future.
I bet your mum will be glad when the market bottoms
'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 -
As the previous writer mentioned I think there is a danger of things going badly the other way with hyper inflation later on.
If that happens then the financial economy will be destroyed. The fabric of society too. Government control and law and order would be very very weak.
House prices aren't exactly going to matter. If people wanted a house.. it would be more likely the young and strong and ruthless (of which I would be one) would just seize it. Some might do that even if property already occupied.
Hyperinflation is not going to save the economy or people with debt or those who just have all their wealth in property.0 -
There is no shortage of money to lend. If for example you go to your local bank and ask for a 30% mortgage, they will snatch your hand off.
At the heart of the credit crunch is a communication gap between borrowers and lenders. Lenders are trying to tell home owners that a more realistic price for property is somewhere between 25 and 40% of 2007 prices. Home sellers can complain all they like but this is a battle that the lenders will ultimately win. Don't forget the golden rule (he who has the gold makes the rules).
Let me get this right, the banks are trying to reduce the security that is backing the loans they have given out over the last few years by 40% DOH no wonder they are in trouble. Sack the managment '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 -
Let me get this right, the banks are trying to reduce the security that is backing the loans they have given out over the last few years by 40% DOH no wonder they are in trouble. Sack the managment
Not quite. Banks are making massive adjustments to their lending strategies at the moment. To this end they are:
(1) Raising mortagage rates for many borrowers even as base rates fall.
(2) Charging big arrangement fees.
(3) Forclosing on defaulters as early as possible.
(4) Setting big premiums for BTLs
(5) Restricting new lending at much lower valuations (hence new lending falling off a cliff)
(6) Raising fresh money
As for security on the loans, the banks are to a large extent treating this as the borrower's problem (which ultimately it is). Providing they can get the majority of borrowers to keeping paying the mortgage, the problem of negative equity will remain a risk/problem for the home owners.0 -
Hey that is a great idea. Just because we can afford it.. we should buy it. Brilliant logic.
If we'd thought that way in peak 2007 and bought a house in our area, then we would have spent, or got in to extra debt for £30,000 to £100,000... as that is what many houses we've been monitoring have since fallen in asking price from peak.
Or your might have bought a rare little gem in a road that rarely comes on the market, in a school catchment area to die for, at an interest rate that others can only dream off, a house that will last you for ever,.....
Every decision is individual there are no rules... There might be (and probaly are) bargains out there RIGHT NOW. There is no perfect time. I HAVE BOUGHT AT THE BOTTOM TWICE. Don't get caught up believing there is the perfect time...0 -
Not quite. Banks are making massive adjustments to their lending strategies at the moment. To this end they are:
(1) Raising mortagage rates for many borrowers even as base rates fall.
(2) Charging big arrangement fees.
(3) Forclosing on defaulters as early as possible.
(4) Setting big premiums for BTLs
(5) Restricting new lending at much lower valuations (hence new lending falling off a cliff)
(6) Raising fresh money
As for security on the loans, the banks are to a large extent treating this as the borrower's problem (which ultimately it is). Providing they can get the majority of borrowers to keeping paying the mortgage, the problem of negative equity will remain a risk/problem for the home owners.
Are you saying that distressed sales are unlikely to be a problem for the banks? What is this foreclosing as early as possible? Raising interest rates, certainly not for the majority. Are you also saying that valuers are not valuing properties at a true level (pressure from banks)?'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 think there are 2 types of buyer ...
The first buys a house with purely financial head on they will most likely rent it, or live in it for a while and move on trying to make a killing along the way.
The second buys a home .. as a home to live in,
I think you're over-simplifying things there. You can want to buy yourself a home to live in and also have a financial head on, I would've thought that's what most sensible people do?0 -
setmefree2 wrote: »So a house came up for sale on an Avenue on which few houses come to market (only every couple of years) and we went for it (there was no competition!).
Do you not think that sort of consideration is important too or is it just about price for you?
For me location is important, but not that important. Living on a particular road isn't crucial for me.
On the other hand, my parents wanted to buy a particular house, and waited 10 years for it to be for sale. And bought it sharpish....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
I think there are 2 types of buyer ...
The first buys a house with purely financial head on they will most likely rent it, or live in it for a while and move on trying to make a killing along the way.
The second buys a home .. as a home to live in,
Isn't it a mix of the two? Finding somewhere you like, can be happy in, make a home out of, but not wanting to be paying over the odds for it?...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Dithering_Dad wrote: »My interpretation is that if people cannot get mortgages, home owners and renters will stay put and the housing market will remain static.
How can prices fall if no one can buy them?
becuase those wanting to sell will cut prices so they can sell.
What an idiot! :mad:
Ignore htis muppet.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245K Work, Benefits & Business
- 600.6K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards