How does losing a fifth of your wealth feel?

moggylover

FungusFighter wrote: »

Hon, noone will say it but your absolutely right

Sez to me your to sensitive a flower for one of my threads, best take cover babe before the crapola starts a flyin:eek:

I'm tougher than I seem:D I shall survive:D .

May I add that I am waiting for exchange on one property (still:rolleyes: ) and trying to sell another one and have seen my paper "worth" deteriorate by something more like 25 - 30% in this area. It doesn't bother me, as the houses I would want to buy with the proceeds will also be seeing drops of the same percentage which probably makes an even nicer house available to me than might have been possible at the peak.

I do, however, have some sympathy with those who were hoping to downsize and have the benefit of some equity to assist with their retirement as well as those who are facing negative equity. I have equal sympathy though, for those who could not afford to get on the ladder at all, and even greater sympathy for those who were paying rents in excess of what a mortgage would have cost due to the bad lending practice of the BTL market.

Personally want to see BTL loans restricted to those who can present with a minimum of 50% deposit (and not tied equity to use for this either) so and renting rightly become cheaper than buying. This might not make me seem so flower like OP:D

chopperharris

House price not moved and erased any gains from when bought in 2004...not gained but hey not lost neither unless I sell it.No mortgage to pay too.

Portfolio is down 25 percent , lost the price of a finca so to speak , it is balanced , low risk , and long term based.I dont think we will see that back for a few years instead of the yearly gain we were wanting of 6-8 percent...but hey who could have seen the credit crunch and thank god for diversified portfolios.

Strictly speaking though we havent really lost money , until we sell holdings or they go maddoff.

But a few hundred k and a bit knocked off our investments for future wealth and financial safety means cutbacks to maximise the recovery speed.No finca , second car , less expensive holidays , no eating out and only one takeaway a week.

Instead its spare money into our bricks n slate to make our house the faster selling one on the street and with the best price for both buyer and seller alike come any recovery.Its do up to sell and not developing for profit

Wookster

FungusFighter wrote: »

So what you saying here mate? Are you luvvin it or what?

I think you're missing the point here.

HPI has the effect of transferring wealth from FTBs (young people) to older people as they sell their houses. If this happens on an insignificant level its not a bad thing, but when it happens on the scale it has done over the last 10 years its appallingly bad for both wealth distribution and the economy as a whole.

Rochdale_Pioneers

FungusFighter wrote: »

That lanimate flooring just aint considered quite as classy as it once was:rolleyes:

the way I lay it its never classy......

Cannon_Fodder

Rochdale_Pioneers wrote: »

If its a theoretical value of your house if you sold it, then its not "wealth" - you can't lose a 5th of what you don't have.

A house like any other item is only worth what someone is willing to pay for it. If someone thinks that a notional value of something they haven't sold makes them rich then more fool them.

Unfortunately, the Government allowed the "wealth we never had" to underpin the economy, which is why so many people/jobs/companies are now feeling the effects of what were supposed to be notional and theoretical changes.

Wookster

Cannon_Fodder wrote: »

Unfortunately, the Government allowed the "wealth we never had" to underpin the economy, which is why so many people/jobs/companies are now feeling the effects of what were supposed to be notional and theoretical changes.

Spot on.

(bhah why is "Spot on" too short!)

Teacher2301

The thing is we have all grown accustomed to getting in now - the I want it economy so I'll have it. Houses should be seen as long term investiments - over time they will grow but so will other house prices - you don't make that much money - you just have to spend less on a new house (unless down-sizing - where you probably do make money).

Losing a fifth is theoretical cash that we never had (unless you paid cah and sold at the peak but when do you know when the peak is in any business?) and will always be put back into bricks and motar.

Conrad

Mortgage criteria is getting tougher by the week. Lenders are routinely requesting income proof even after completion now.

Conrad

OP

Most LLs I know dont seem perturbed. The stick answer is they aren't planning to sell until the tenant has cleared the mortgage for them. Ok, not a great investment prehaps, but these LL's state they would just other fritter the money away - B2L is a savings straight jacket with and end point - end of really.

ukcarper

FungusFighter wrote: »

If houses have crashd 21% from peak, how are those who bought at the peak feeling?



Pickles anyone?:beer:

how will someone feel when they are trying to pay £750 rent when they are on a low pension