Why I Love House Prices Crashing

Dan:_4

Graham_Devon wrote: »

I don't love it, I'm being effected by it and getting poorer because of it, through neg equity.

However, I do believe the pain will be worthwhile if it means people can live a nicer, easier life, rather than being a slave to a mortgage and the inevitable stress, debt and relationship breakdown that comes with it.

I have seen a fair few people's relationships and lives totally destroyed through trying to live, many my age, all with jobs paying well above minimum wage. They were not spend freaks, they were just trying to live a normal life when a baby comes along and all of a sudden one wage will not stretch enough to provide enough money to live on and it's downhill from there.

I don't see why good, hard working people, who just want to get on with their lives, look after themselves and their family should be torn apart by massive rent and mortgage costs.

"I'm alright Jack" is fine. But my generation have had it damn rough. I don't want to see the next generation have it as hard, or harder, while generations before us enjoy virtual wealth through HPI.

I often hear off people who have enjoyed their final salary pension schemes, their state pensions, their massive equity etc saying they do not understand "we had it just as bad". That annoys me, as not only will any pension I get be less favourable, but myself and my generation are unlikely to get a state pension or have to work longer, get less in pension benefits, and the next 20 years is going to be damn hard.....and we've just spent the last 10 years aimlessly saving for a deposit where every month, the percentage of that deposit got smaller and smaller, and the cost of moving, even when adding on things like stealth tax HIPS packs, gets ever increasing.

So thats my thought process. Yes, it will hurt me personally. But I do not see how the country could have possibly continued, or even continue at todays prices. It's simply unaffordable, and has destroyed many, emotionally and financially.

Im on a final salary pension scheme - why would it annoy you?

Graham_Devon

And just as an add on to the above. I remember a conversation with someone twice my age who simply could not understand or comprehend what peoples problems were with affording a life.

It was when I explained just how much life now cost that he finally clicked.

So heres a very simple (non accurate) example.

2-3 bed house in 2006 when I was looking, £700 per month rent. Add on council tax, roughly £1250 a year.

JUST those 2 expenses would require you to earn £12,000 per year before tax.

So add on £800 for utilities (and thats generous).

Suddenly you need £13,000 before tax per year. At 39 hours a week you already need to earn over minimum wage, roughly £6.50 per hour JUST to be able to afford utilities, council tax and rent.

We haven't even got to food, clothes, maybe a car and all that that goes with it (if you want any kind of prospects outside of a city), insurances, any kind of leisure. So let's just add on food and neccesities, at a very VERY conservative £100 a month.

Suddenly, you need to be earning £14,400 a year before tax. Or, £7 an hour.

On top of that, you are supposed to be saving for a pension. You are probably supposed to have some sort of rainy day savings. Maybe, just maybe, you will need something like a washing machine, or a fridge, you know, lifes essentials that pop up every now and again. Maybe you will even need to buy a car to enable you to work. But at £14,400 a year we have only covered food, rent, council tax and utilities.

And then, even when we need to add on all the things I have not yet mentioned, you are called all manner of names for using a credit card to pay for said washing machine by the "oh so wise, I'm alright jack" brigade.

And don't forget, we haven't even talked about having a baby or kids. That isn't even in the equation yet.

Recently we saw a list of the governments poverty guidelines and what a person should be able to have. At £14,400 a year, or £7 per hour, you were WELL under the poverty line.

Now, some people may say "well they should get a better job". And thats easy to say. But as pointed out above, I have missed a hell of a lot of expenses we all occur from my wage requirements. Getting a better job, when you cannot afford the means to buy such thng as a car, in order to enable you to go get that better job leads to stress and breakdown of families.

So to me, when someone needs £14,400 a year to pay just for their humble existance, based on shoestring amounts, something is very very wrong.

ess0two

shakerbaby wrote: »

Okay folks time for a little something to cheer us all up on a slow Wednesday afternoon. Name your 3 top reasons why you just love house prices crashing.

I'll start:

a) It will enable 'first time buyers' to buy something bigger than a slave-box rabbit hutch; :beer:
b) There will be an end to 'liar loans' with mortgage lending returning to sensible levels; :j
c) Saving and prudence will be seen as the new spending and mewing. :T

Just for fun what are your own top 3 reasons for sitting back, watching, and enjoying the housing market crashing? :eek:

Whats a rabbit hutch,2 bed terrace?flat?

shakerbaby

cogito wrote: »

It was meant to be. You don't think that the gloating tone of the OP is nasty and pointless too then?

Why is cheaper affordable housing for all nasty and pointless?

shakerbaby

IveSeenTheLight wrote: »

Your right, Scotland is a big place and you really need to look closer at local areas as they will react differently.

You say there are large falls to come, yet all indicators show that Scotland has one of the best affordability ratios.

This was also shown during the last crash when some areas fully recovered the price drops within one year

Ah well, keep on dreaming if it makes you happy

Yup Scotland sure is a large place but the UK is even larger and being a renter :T with zero debt :j and modest savings :beer: for a deposit I am free to move wherever and whenever to get the house I want when I see fit so don't get so hung up on chunkys Renfrewshire. :rotfl:

chucky

shakerbaby wrote: »

Yup Scotland sure is a large place but the UK is even larger and being a renter :T with zero debt :j and modest savings :beer: for a deposit I am free to move wherever and whenever to get the house I want when I see fit so don't get so hung up on chunkys . :rotfl:

you were looking at property in Renfrewshire but was a bit expensive for you wasn't it?

how predictable... another one with a massive 'deposit'... :rolleyes:

purplevamp

cogito wrote: »

It was meant to be. You don't think that the gloating tone of the OP is nasty and pointless too then?

No __________

shakerbaby

chucky wrote: »

you were looking at property in Renfrewshire but was a bit expensive for you wasn't it?

how predictable... another one with a massive 'deposit'... :rolleyes:

Do you always try to put words or other things into other peoples mouths; :eek: exactly where did I say "massive deposit"? Mind you size is all relative and my debt is a big fat zilch. :T

chucky

shakerbaby wrote: »

Mind you size is all relative and my debt is a big fat zilch. :T

well done - a chocolate watch is your winning prize :T

wolfman

ess0two wrote: »

Whats a rabbit hutch,2 bed terrace?flat?

A small 1 bed flat from £170k+ in London in a less than desirable area. A single earner or family having a child, would need a salary of around £50k, and a first payment of £35k to get a good mortgage.

I'm around those figures, and want a place, but not at that cost, especially for what it is. Just means I keep saving.