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Debate House Prices
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The High Street is really suffering...
Comments
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lemonjelly wrote: »People can't cope with it Dan.
Some can, but I'm afraid they're in a minority.
Credit has been far too easily accessible over the past 12 years. As a result, the levels of consumer debt are ridiculously high.
The average joe owes in excess of £25k (excluding mortgages).
Bankruptcies are escalating year on year.
Some commentator on radio fivelive yesterday was saying it is a good thing that CML have downgraded their expectations of repossessions from 75,000 to 65,000, & that is a good thing! How? 47,000 last year, so still a massive increase. How anyone can see 65,000 losing their home as anything resembling good is beyond me!
You are correct Really2. Thing is, creditors have more power over homeowners comared to those you list. However, as consumers, with this credit crunch so many now have significant debt but difficulties in paying. Further, the lifestyle to which they had become accustomed is no longer accessable due to credit withdrawal.
In addition, the number of non-homeowners out there with colossal debts really does increase the level of toxic debt out there. I mean, if they've no assets, how will the banks recover what they're owed?
Quality post! Though part of me wonders if reality is being denied by some out there.
Thanks.
I think the main point of this is people have P!ssed money up the wall if they have a house or not.
I would say for everyone securing a debt by mew. There as been an equivelent renter doing it on card.
it is not a owner/renter problem.
It is a lifestyle problem and the people who spend it are renting, owning, or are already bust.0 -
Any proof on this?
When I heard it, it was some debt action woman on radio 5 saying about young peoples debt and it being worse than ever.
There was a 21 year old girl with over £30K and a 24 year old guy with i think nearly £100K.
I don't think the 65 year old's have IO mortgages and no equity worse case is they sell up.
What does the young person do?
I think we have a generation growing who have only ever known debt. I'd prefer not to go over the university fees arguement all over again, but they're not the only sector of society who've been sold the myth.
The under 25's are massively in debt - their unsecured borrowing is too high. Mainly because they've not fully developed the budgeting skills to deal with the situation, and aren't fully aware of the consequences of their debts.
Many over 55's are also massively in debt (mainly due to equity release). I've commented before regarding 67 year olds buying a right to buy property in the 80's, and in 2008 asking for council housing due to their unaffordable mortgage of £200k, with remortgaging having occurred 3 months earlier.
Think about modern consumer behaviour. Technically, you cannot form a contract with a person under the age of 18, as it is unenforceable. However, kids under 18 can get contract mobile phones, and accordingly massive bills. & I have seen cases where there was no guarantor, and the network were looking at legal action against the kid.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Is that the same reality that house prices would bottom July-Dec 2011 as per your prediction?
http://forums.moneysavingexpert.com/poll.html?do=showresults&pollid=4155
The reason I pushed out so far is down to interest rates. They potentially could rise significantly in the medium term. A conservative view ( with a small c).
May push a whole generation of BTL investors over the edge........ Fire sales only result in one thing low low prices.
On the plus side this may the correction thats required to put the property market onto a more normal footing. Giving everyone confidence to buy and sell.0 -
lemonjelly wrote: ». I've commented before regarding 67 year olds buying a right to buy property in the 80's, and in 2008 asking for council housing due to their unaffordable mortgage of £200k, with remortgaging having occurred 3 months earlier.
Not disbeliving you but how do they get a mortgage? or is it one of those equity release companies?0 -
Thanks.
I think the main point of this is people have P!ssed money up the wall if they have a house or not.
I would say for everyone securing a debt by mew. There as been an equivelent renter doing it on card.
it is not a owner/renter problem.
It is a lifestyle problem and the people who spend it are renting, owning, or are already bust.
Agree wholeheartedly Really2.
As a nation, we need to re-accept more responsibility for our actions. This includes saving up for stuff, being frugal where the time dictates this.
However, it also highlights a massive importance for this site. Companies have no morals, as far as I'm concerned. They are focussed on seperating us from our hard earned. However they realistically see fit, with maximum profit. They have lost their obligations to customers (a really bad thing IMO). Society needs to take more responsibility for its actions, both collectively, and individually.
Many of my clients won't suffer too bad to go a few years without some of the "essentials" they thought they needed.
The ones I feel sorry for, are the young naive ones, who may never be able to get a mortgage in later years as the mistakes of youth have shot their credit to bits. Not because of greed, or avarice, purely because they weren't aware, & didn't have the skills/knowledge to deal with it.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Not disbeliving you but how do they get a mortgage? or is it one of those equity release companies?
Plenty of lenders were around to advance money against secured assets. Second , third , fourth secured loans not mortgages.
Easy to meet repayment on 20 year loan periods.
Until your income drops or the value of your asset drops.0 -
Always amazes me that house owners are the only ones that spend money.
I presume they are the only ones saving money now then?
The rise in consumer credit, whether for home owners or otherwise, was possible only because of rising house prices.
Credit card companies and loan providers all took part in the "securitisation" business which fuelled the debt fuelled consumerism of recent years."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
Not disbeliving you but how do they get a mortgage? or is it one of those equity release companies?
Generally yes, or one of the less "savoury" lenders.
It will also be remortgaging from an original equity release which has grown & grown. Plus, pensioners do have regular incomes (state/private pensions, pension credit etc).It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
lemonjelly wrote: »Agree wholeheartedly Really2.
As a nation, we need to re-accept more responsibility for our actions. This includes saving up for stuff, being frugal where the time dictates this.
Agree, I have a large-ish mortgage (but paid down 7% in the last year)
But good LTV and no other debts.
people have been sold the want it now idea, the you will never fail, reach for the stars mentality and now the bill as arrived.
I still think though the vast majority of the country have been fairly sensible, but may be that is because i am.
But those that have not been sensible have really over done it.0
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