House prices down to at least 115K... Thans FSA! 3X here we come!

ad44downey

mbga9pgf wrote: »

:beer:






Taking the bulls imaginary average wage of 36K (Yeah, right....)
plus the 5% deposit, prices WILL crash to at least 115,000 average... this is before the effects of any recession (depression) are factored in.

I agree. Excessive lending should be outlawed. You shouldn't be able to borrow more than 3 times your salary. And you've got to actually prove you salary not just make it up as before.

whathavewedone

I think there is going to be a catch to this.

For example it doesn't say 3 x single income. Maybe it's 3 x joint?

Plus which they've given themselves a get out by saying that 3 x mortgages will be the norm apart from in exceptional circumstances. I wonder what those exceptional circumstances are and how easy it will be to prove that your circumstances are exceptional. If you have more than a 5% or 10% deposit?

Frankly I think that this is just an attempt by GB to look as if he is being responsible prior to the election.

Be interesting to hear from someone like Conrad. I bet there will be 101 ways around this rule.

Graham_Devon

smartn wrote: »

1st time buyers probably shouldn't be able to afford an average house anyhow.

Err, no comprende? Wot?

whathavewedone wrote: »

I think there is going to be a catch to this.

For example it doesn't say 3 x single income. Maybe it's 3 x joint?

Plus which they've given themselves a get out by saying that 3 x mortgages will be the norm apart from in exceptional circumstances. I wonder what those exceptional circumstances are and how easy it will be to prove that your circumstances are exceptional. If you have more than a 5% or 10% deposit?

Frankly I think that this is just an attempt by GB to look as if he is being responsible prior to the election.

Be interesting to hear from someone like Conrad. I bet there will be 101 ways around this rule.

I'd imagine exceptional circumstances would mean the same as it always has. Such as a doctor in training, who does not have an income at the time big enough to buy a house, but given that they are a doctor basically, just with a couple of years training before them, need somewhere to live and can prove they have an income coming to them. That kind of thing.

Graham_Devon

http://www.guardian.co.uk/business/2009/mar/15/fsa-mortgages-regulators

Another report to back this up.

House prices will simply tank. I'm still hedging 50-70% from peak.

Do I think they will actually DO this? I.e. Put it in as a regulation? Not a chance. If it does, there will be the usual loopholes allowing you to get round it. Last thing Gordon wants is house prices tanking in his last year.

ad9898_3

We will see if this ever gets off the ground, if Brown is behind it, I have my doubts, everything he touches turns to cac.

In response to Stevetodd, I have read a lot of your past posts on here, and you certainly aren't one the 'desperate crew' of BTL'rs, the issue is, it isn't people like you who have proped the market up for the last 5 years, it's the total amateurs who by chinese whisper from a 'friend' have heard there is a killing to be made in property. It's these people who are dead in the water, not the canny professional who have been in the game for donkey's years.

There is nowhere near enough LL's like you out there anymore to keep property on this level.

On the other issue made by th OP, I do agree it would be good news indeed in the long run if there was a cap. Why do people want their children to be enslaved by debt ? Surely lower prices are better for society and the economy in the long run, as people can buy things with real money instead of loans and CC's, where as now, they enslaved with huge mortgage debts, so have little choice other than to 'stick it on the card'

It's a weird perception that everyone wants cheaper prices on everything they can buy..... bar the most expensive thing you will ever buy..... a house. Crazy.

System

What about people who already have 100% mortgages or people fallen into negative equity?

Is it just for new mortgages?

mbga9pgf

Theyre screwed.

luvpump

Common sence seems to have prevailed ... Perhaps now we wont have any more threads like the current "Its Over" one ..... House prices have a long way to go..& it isn't upwards either !!

ad9898_3

Joeskeppi wrote: »

What about people who already have 100% mortgages or people fallen into negative equity?

Is it just for new mortgages?

I would imagine that if, it became law, and lets face it, with it being a sensible measure, it's probably unlikely to:rolleyes:, I would guess it would for everyone across the board.

ukcarper

mbga9pgf wrote: »

:beer:

Taking the bulls imaginary average wage of 36K (Yeah, right....)
plus the 5% deposit, prices WILL crash to at least 115,000 average... this is before the effects of any recession (depression) are factored in.

I don’t Know why people keep saying the average house price is 3 or 4 times average salary + 5% or 10% they never have been. In the early seventies house prices almost doubled in 18 months and multipliers were 3 to 4 times then.