How long will this last?

Dan:_4

2016

Radiantsoul wrote: »

Yeah it is a fair point that only some people are really affected by the fall in house prices. Those in work who continue to repay their mortgage are probably not really going to be any worse off, unless they are looking to sell and leave the property market. Perhaps the ability to remortgage to finance consumption has gone.

Regarding job losses it seems unemployment may rise from 5 to perhaps 10%. But that still leaves a lot of people in work. And the fall in prices, VAT and interest rates means many people in jobs are actually likely to be better off.

I have an IO mortgage without an endowment policy of such. I enjoy the flexibility to make over payments as when I feel like it and when IM in a position to. It does take discipline and the outstanding balance should never be ignored.

Dan:_4

2016

lethal0r wrote: »

nice idea but why start it at 2010!?

I dont know????

1echidna

2014

Just to take one example of someone not forgetting a property crash. My grandfather was wiped out early last century by a property crash in Australia where property was changing hands at what would be regarded now as loose change. My father never forgot this and never bought property until well advanced in life, though he could well afford to. He invested in shares and fortunately was an astute investor buying largely on a low market and selling at higher prices. You can't do this with your home, although quite possibly he would have done as well with property over the long term. When I inherited a share of the estate two years ago fortunately I was distrustful of the market and put most into cash deposits.

Dan:_4

2016

1echidna wrote: »

Just to take one example of someone not forgetting a property crash. My grandfather was wiped out early last century by a property crash in Australia where property was changing hands at what would be regarded now as loose change. My father never forgot this and never bought property until well advanced in life, though he could well afford to. He invested in shares and fortunately was an astute investor buying largely on a low market and selling at higher prices. You can't do this with your home, although quite possibly he would have done as well with property over the long term. When I inherited a share of the estate two years ago fortunately I was distrustful of the market and put most into cash deposits.

I'm sure people that get badly hurt in a crash will be cautious, in fact everyone who lives through this current recession/crash will be very cautious in the future. Problem is we have another generation of 'have nows' on the way and the banks will be back in business throwing credit at them. We will, of course all advice them of what will happen but will they listen - of course not.

whathavewedone

2016

The 2.5x joint salary calculations go back to the days when women had "little" jobs that they gave up as soon as they had children.

I don't agree with a one size fits all set of criteria. If you have a couple earning 100k each in stable professional jobs (doctors say) why should they be tied to such restrictive lending criteria?

I think what's needed is more due diligence on a case by case basis. Look at bank statements, look at how long people have been employed, where they are employed, whether they have any other debts etc.

I also don't agree with an outright ban on interest only mortgages. If people want to take them out for 2-5 years because for example one parent wants to stay at home with the children while they are young then I think they should be allowed that flexibility. Again it should be looked at on a case by case basis. If the parent that stays at home for a while is qualified and experienced in a stable profession then I see no reason why that cannot be agreed on a short term basis.

ad9898_3

2019+

whathavewedone wrote: »

The 2.5x joint salary calculations go back to the days when women had "little" jobs that they gave up as soon as they had children.

I know quite a few wives/girlfriends and a few blokes who would love 'little' jobs so that they can bring up their children instead of the local nursery, unfortunately they have been pushed into full time work to service the mortgage.

whathavewedone

2016

The point is that 30 plus years ago not many women had careers and women didn't get equal pay. Now a lot of women do have careers and earn just as much or more as their partners. Therefore I believe that multiples introduced at a time when women did not have careers are obsolete.

I've chosen to stay at home with my children while they're young but plenty of people don't. It's not that great being at home up to your eyes in tears, tantrums and poo, trying to get the ironing done with two little people jumping around demanding your attention. I don't blame women for wanting to go back to work at all. I know this has been covered in the thread about women but there is a world of difference between having a career that you have worked hard for and enjoy and doing a mundane and repetitive job.

geoffky

2019+

I think it will be like the second world war..."It will be over by christmas"
Anyone who thinks this is short term is in for a rude awakening..

itsallagame_2

geoffky wrote: »

I think it will be like the second world war..."It will be over by christmas"
Anyone who thinks this is short term is in for a rude awakening..

Just as ‘Peace in our time’ was triumphantly announced by PM Neville Chamberlain,

the next day Germany invaded Poland

mbga9pgf

itsallagame wrote: »

Just as ‘Peace in our time’ was triumphantly announced by PM Neville Chamberlain,

the next day Germany invaded Poland

The recent announcements that the FSA are going to regulate salary multiples will put pay to boom and bust. Wait and see. If a person can only borrow 3.5X single salary, for both residential and Buy to let, how do you bulls reckon there will be another boom?


Without the profligate lending, it doesnt matter how much people want to borrow (themselves into oblivion) prices will not explode.