Some of you are vultures

SingleSue

Could we, just for once, keep things nice.

Please...it is Sunday after all.

dazco

Broken_hearted wrote: »

You really are slow.

I'm finished with you, now shut up.

This is a thread about house prices if you want a match against me then start another thread somewhere else.

Then I can ignore that too.

Broken_hearted

dazco wrote: »

I'm finished with you, now shut up.

This is a thread about house prices if you want a match against me then start another thread somewhere else.

Then I can ignore that too.

The last thing I want to do is anything with you.

chucky

neas wrote: »

this is armageddon... 2012.. the end of days!

neas wrote: »

I dont believe this but worringly a few friends believe this 2012, doomsday armageddon theories.

so why post something that you don't believe in?

beingjdc

Broken_hearted wrote: »

The money would be the only income so it would go pretty fast and wouldn't be there in a few years to buy it back.

Well yes, obviously owning a house and having a job is financially better than renting and being unemployed, I don't think anyone's arguing against that (except on a capital basis over the last year, then you're better off as an unemployed renter, which I think says a lot about how severe the crash has been).

Paul_M_5

Broken_hearted wrote: »

the taxpayer mainly

Well in that case your situation is unusual in that you're better off having fewer liquid assets (cash, bank savings, etc) as possible.

I wonder how things would change if you were to sell up and buy something like gold, which as an asset is pretty liquid, but may not count as such as far as government aid goes (I don't know the rules having never received any benefits).

Not that I would advocate doing such a thing, as it's at least morally, if not legally, fraudulent. But it would certainly change your calculations in favour of renting then.

mr.broderick

[quote=the_ash_and_the_oak;17286061]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[/quote]


http://forums.moneysavingexpert.com/showpost.html?p=10652759&postcount=206

the_ash_and_the_oak

Exactly! The idea that it was going to play out any differently didn't make any sense. For a price crash to occur there must be low volume. Low volumes means no buyers. It also at least partially explains why any crash takes years to play out. The minute it becomes easier for buyers then one of the drivers of the price drops will slow up. Anyone at bottom of ladder even thinking of buying has got a long wait (ie - we'll have to see a large increase in volume before anyone can even think about price stabilization)

neas

i think you forgetting the psychological factor there.

We arent just mindless machines... we are irrational and as a whole dont think fully with logic. If someone told you, your house was making 2000 pounds a month you'd be over the moon, happy and consider taking an extra holiday or something.

If they told you it was losing 2000 pounds a month... and has been for last 12 months... you'd be scared, worried, desperate, cancel holidays, work harder.

If they then told you we were entering one of the worst recessions... you'd poo a brick.... literally.

Sure supply and demand and all that, but the fear that you may lose your home, get tons of unneccessary debt and lose your job will certainly have a bigger impact than you have mentioned.

b0rker

Yeah,

Rengting is the way to go:

http://forums.moneysavingexpert.com/showthread.html?t=1390887