Why I Love House Prices Crashing

wigglebeena

Both sides must be jolly clever to be so certain. I'd sooner bet my all (hah!) on the 3.30 at Kempton. Either way.

ad9898_3

Well I don't particularly think 'I love prices crashing' as others suffer too, but here's my two penneth

1. Society.... society is suffering on the back of a huge debt burden mostly made up from mortgages. The type of house currrently available for a average single income family is pathetically small or in some areas non-existent compared to years gone by. This means 2 peoples income is absolutely required in a lot of areas for an average family home, although some couples love working, many would like to have 1 person to stay at home to look after children/home or whatever. This is not possible today.

2. Debt.... small debts are much preferable to large debts, yes ?

3. Surely if mortgages and rents were smaller, there would be much more money to spend in the economy, instead what as happened to is huge amounts of money have been paid in loans and mortgages back to the banks over the last decade....... and they have.... well..... snorted it all up their noses haven't they ?, in other words the money has been wasted and left us in an huge mess.

Dan:_4

nearlynew wrote: »

You probably think I'm a right !!!! anyway, so it doesn't matter.

I think some of your posts are slightly far fetched, but your not my enemy list just yet. :beer:

shakerbaby

IveSeenTheLight wrote: »

I think you commented on the wrong post.
You should have clicked the quote for the post below Dan's for it to make sense with your original views

No worries I can wait either way to see who is correct. I just hope you and others aren't mortgaged up to the tts or drowning in debt. :eek:

asharon

wigglebeena wrote: »

Both sides must be jolly clever to be so certain. I'd sooner bet my all (hah!) on the 3.30 at Kempton. Either way.

But then you find out one side works at McDonalds and the other on the tills at Tesco. (Nothing wrong twith this at all, just most people who offer opinions on the net are full of *!*!*!)

Dan:_4

ad9898 wrote: »

1. Society.... society is suffering on the back of a huge debt burden mostly made up from mortgages. The type of house currrently available for a average single income family is pathetically small or in some areas non-existent compared to years gone by. This means 2 peoples income is absolutely required in a lot of areas for an average family home, although some couples love working, many would like to have 1 person to stay at home to look after children/home or whatever. This is not possible today.

I dont buy this "2 incomes are required for an average home" arguement. One salary probarly could service the mortgage (it is likley to be very tight in the early years but this is nothing new) but families want much more then just a mortgage these days such as new cars, playstations, flash furinture, holidays abroad, home improvements etc - this is why 2 incomes are required.

ad9898_3

Dan: wrote: »

Anyone who thinks prices will fall another 20-30% have their heads well and truly in the sand.

I think we can all agree that prices will be somewhat lower in 12 months time...... even if it's only 1%. My thoughts now are turning further afield, 2-4 years on from now, things look increasingly misty the further we look.

There will be an effect somewhere down the line when the tax hikes, public sector cuts and the borrowing of money to keep things afloat has stopped, what that effect will be is uncertain, but it's bound to be negative on house prices, by how much, no idea, but logic suggests that when less money is available to spend, it will have a negative impact on the value or the amount of sales of the commodity in question, most probably both.

Just to edit..... and I'll probably get flamed for this but I think 2009 can be written off as not being realistic in the large scheme of things, borrowed money (£13 billion just last month) is being used hand over fist in every single month of this year, far, far more than has ever been used. As we all know, anyone can borrow money and look healthy and wealthy for a time..... but at some point it's going to have to stop, it will be then when we see if the country and house prices can stand on their own two feet.

IveSeenTheLight

shakerbaby wrote: »

No worries I can wait either way to see who is correct. I just hope you and others aren't mortgaged up to the tts or drowning in debt. :eek:

Thanks for your concern, but I believe I am neither mortgaged to the hilt or drowning in debt.
In fact for the past 2 1/2 years, I have been massively overpaying my mortgages (Very MSE ) reducing the LTV ratio and interest paid to the banks:T

All in scheduled to be mortgage free on three properties (1 home, 2 BTL) in the next 8 years. All before I am 43.

Good times

Dan:_4

ad9898 wrote: »

I think we can all agree that prices will be somewhat lower in 12 months time...... even if it's only 1%. My thoughts now are turning further afield, 2-4 years on from now, things look increasingly misty the further we look.

There will be an effect somewhere down the line when the tax hikes, public sector cuts and the borrowing of money to keep things afloat has stopped, what that effect will be is uncertain, but it's bound to be negative on house prices, by how much, no idea, but logic suggests that when less money is available to spend, it will have a negative impact on the value or the amount of sales of the commodity in question, most probably both.

I would agree with this. However, I don't think it will cause a second house price crash but more likely to keep prices around the same level and prevent any HPI.

chucky

shakerbaby wrote: »

No worries I can wait either way to see who is correct. I just hope you and others aren't mortgaged up to the tts or drowning in debt. :eek:

let's just hope that you can buy that dream home in Bridge Of Weir.

YOY, Renfrewshire is only down 12%... still expecting that extra 40%... dream on... :rotfl: