Some of you are vultures

dopester

breadlinebetty wrote: »

Property will start to rise again in about 12 months so I don't see what everyone's running around like headless chickens for.

neverdespairgirl wrote: »

What makes you state that as fact? Could you explain your thinking?

Kirstie would like it to be so - but I suspect even she now knows selling houses will be a hard slog.... if people remain too stubborn to drop prices (cmon EAs, learn basic business.)

In-between all the pampering she gets, constantly on her blackberry doing productive work as ever, naming her child "Oscar Hercules" rofl, she dreams of us lining up, ready to pounce in to buy at her order.

Property remains a passion, and her faith in the importance of owning your own home is undiminished by the current financial crisis that has seen house prices dive. ‘We are 70 per cent owner-occupier in the UK, with a population that has gone up by five million in the past 15 years, and we have never, since the First World War, built as few new houses as we are building now. The market has got to pick up.

'But the current situation is hard on first-time buyers who can’t borrow. I would like all would-be first-time buyers lined up on an imaginary starting line and the second it becomes easier to borrow while prices are still down I will fire an imaginary starting pistol,’ she says, throwing up one hand like a gun while still managing to control her BlackBerry with the other.

Kirstie’s advice to anyone trying to sell a house in these difficult times is to ‘re-fall in love’ with your home by redecoration, redecoration, redecoration (which is one of the reasons for her involvement with mydeco.com), making it both more marketable and more pleasant to live in while you wait (and she warns of a long wait) for it to sell.

http://www.dailymail.co.uk/home/you/article-1102984/Property-expert-Kirstie-Allsopp-8217-s-home-truths.html

The money isn't out there Kirstie. It's all been spunked away in the boom. Drop your prices to match the new reality. House prices are just opinions, debt is real.

dazco

Really2 wrote: »

Yet to see any proof of any inflation never mind hyperinflation is that not over 50% per year inflation?

Why when this happened (HPC) in Japan and they did QE why did they not have hyper inflation?

There is no direct sign of inflation to us underpigs but the UK cannot cope with the lack of international confidence, which will force the Chancellor to raise interest rates.

The UK economy needs saving before Olivia and Tarquins townhouse, there have beeen plenty of shots across the bows, by the government, to homeowners but most seem content to see it out.

IF I was a homeowner, and had equity in my home, then I would have heeded all the governments not subtle warnings and got every penny out of my house and rented immediately.

dopester

dazco wrote: »

IF I was a homeowner, and had equity in my home, then I would have heeded all the governments not subtle warnings and got every penny out of my house and rented immediately.

What warnings? A government that has ruled over an economy where house prices near tripled in 11 years. No more boom and bust. What warnings, and when were these warnings you interpret issued?

dazco

dopester wrote: »

What warnings? A government that has ruled over an economy where house prices near tripled in 11 years. No more boom and bust. What warnings, and when were these warnings you interpret issued?

LOL

Erm, when the government took control of the nations biggest mortgage lender.

knock knock

dopester

dazco wrote: »

LOL

Erm, when the government took control of the nations biggest mortgage lender.

knock knock

Whilst still encouraging people 6 months later, about how great Shared Ownership schemes are? Even up to a few months ago.

Yes, STR, great. Even now at a big discount, because I reckon 3 to 5 years you'll look back at the price you sold for and be astonished by just how expensive property was.

Just don't try and persuade me to believe the authorities did anything other than want people to keep buying property at these levels. They didn't encourage STR at all.

pickledpink

dopester wrote: »

Kirstie would like it to be so - but I suspect even she now knows selling houses will be a hard slog.... if people remain too stubborn to drop prices (cmon EAs, learn basic business.)

In-between all the pampering she gets, constantly on her blackberry doing productive work as ever, naming her child "Oscar Hercules" rofl, she dreams of us lining up, ready to pounce in to buy at her order.

http://www.dailymail.co.uk/home/you/article-1102984/Property-expert-Kirstie-Allsopp-8217-s-home-truths.html

The money isn't out there Kirstie. It's all been spunked away in the boom. Drop your prices to match the new reality. House prices are just opinions, debt is real.

dopester: House prices are just opinions, debt is real.

Aren't price tags on most things just opinions????

Some people will pay £20M for a painting, or £10k for a handbag...........because in their opinion it's worth it. Some people will spend a few thousand pound on a bottle of wine.................because in their opinion it's worth it.

Broken_hearted

dazco wrote: »

IF I was a homeowner, and had equity in my home, then I would have heeded all the governments not subtle warnings and got every penny out of my house and rented immediately.

But surely then you would lose money as the rent is higher than the mortgage was and any profit would dissapear.

mbga9pgf

Broken_hearted wrote: »

But surely then you would lose money as the rent is higher than the mortgage was and any profit would dissapear.

You are forgetting house prices are dropping 4K per month at the mo. You would have to be renting a pretty big house to be losing money in this market.

Say 10 times in mirror "RENT IS NOT DEAD MONEY"

the_ash_and_the_oak

It was pointed out prior to the crash that 'be careful what you wish for' because when prices dropped it would not mean that it was going to get much easier to buy. To me this is pretty much what has happened. Once it becomes easier to buy the rate of the falls will drop. But most young people at the bottom of the market remain priced out. They cannot be vultures as access is still ruled out.

It is only when they have the ability to be 'vultures' that price drops may slow a little. Presently the only 'vultures' are cash buyers and there just aren't enough of those to provide any support to the market at any level.

The "if prices drop I'll just buy more" idea may even be true, but such people have to exist in significant number to make a difference. The low transactions level suggests there aren't enough of them

dopester

the_ash_and_the_oak wrote: »

It was pointed out prior to the crash that 'be careful what you wish for' because when prices dropped it would not mean that it was going to get much easier to buy.

All true Woody, and you've helpfully spelt out exactly why prices have to crash a lot more in price. Prices have to come down to meet the new market conditions.