House Price Crash Website

EagerLearner

As a FTB I can't even get on the housing ladder at the mo in Brighton unless we pay £700-£750 a month for a mortgage. Currently our rent is just £560, so massive difference there. Plus, the kind of property FTB can afford are not even on the 1st rung of the property ladder, they are under it - they are the detritus sludge and germs that dangle from the 1st rung of the property ladder.

These 'sludge' properties will be harder to sell anyway and *IF* there is a crash, buyers will leapfrog the 'sludge' property to get a far batter one for their money.

The future for us FTB is bleak but I will continue to eyeball the news & see what the winds will blow our way...

EagerLearner

movieman

If you'd bought in 2004 against their advice, you'd actually no whave a buffer against a crash

That would depend on where you live. Around here, prices seem to have peaked by 2004... if anything they're probably 10% lower today, not higher.

What does amaze me is that people were still paying 350,000 pounds for a two-bed 'executive apartment' near here in 2005. Now that is a real recipe for disaster.

Plus, the kind of property FTB can afford are not even on the 1st rung of the property ladder, they are under it - they are the detritus sludge and germs that dangle from the 1st rung of the property ladder.

There is no property ladder for FTBs anymore: the whole 'property ladder' idea requires that wage increases destroy your debts over the course of a few years so you can afford a larger house, and that's not happening today.

dudleyboy

happenstance wrote:

Of course we are, hence why I'm saving and renting cheaply at the moment. The current mess of house prices is caused by media attention and the 'i must get on the property ladder now or I never will' thought.

I'm with you on this... although i'm also renting because, like every other FTB, I just can't afford to raise the mortgage / meet the repayments either.

...And I live in the Midlands as well, nicola1982 (!!! - "Heaven forbid, people actually want to live in that sh*thole?!" ... err... yes please.. so don't sound so surprised that prices are rising here too.... :rolleyes: )

dander

I think the house price crash people are a bunch of idiots living in a peculiar fantasy world. They seem to think that by posting on an internet forum they somehow prevent themselves being affected by the economic conditions that affect everyone else.

House prices will crash if people have problems affording the prices and there's a major loss of faith in property as a purchase. Fine. That happened in the late 80s when interest soared, people couldn't afford their mortgages and got reposessed and no-one else could afford to take out mortgages on the properties.

But Housepricecrash people seem to have this dream that they will then swoop in and buy all the properties cheap. But if they can't afford to buy now, they won't be able to afford to buy then. If interest rates triple and house prices drop by 2 thirds they still have to pay the same amount in mortgage repayments each month. And they still can't afford it!

Equally if the economy hits major problems and unemployment soars, why do they think it'll be all the homeowners that lose their jobs and HPCers will magically keep theirs?

They think a crash will make property more affordable, but actually a crash is a sign that property has become LESS affordable.

nmiah786

Woby_Tide wrote:

so we may as well start a www.housepricesrising.co.uk forum as well because at some point in the future prices are going to rise(probbaly a lot sooner than they crash)

The point that people were making is not that they've incorrectly predicted a crash, yes it could happen, but it's hardly going to highlight the forum as home of Nostrodamus is it. the point is that they said in 2004 it would crash. They said it would crash in 2005. They say it will crash in 2006.

If you'd bought in 2004 against their advice, you'd actually no whave a buffer against a crash, i.e. if prices had gone up 10% since then and then crash 25% you've lost 15%, if you buy now and it crashes, you lose 25% (crap figures I know but just pointing out a theory as you don't lose or gain anything unless you sell up)

Just like to add;

If they keep guessing/predicting then they are bound to be right sooner or later, its the law of average!!! Then they can really say "WE TOLD YOU SO, SVCKERS"!!!

dander

And the weird thing is that people on here don't actually sit here saying prices will go up. But they seem to want to argue us into making a point we're not making.

tomstickland

Well, I've finally bought out of boredom of waiting for the crash, and I'm prepared to weather any property crash or interest rate rises.

Jim_B_3

"But Housepricecrash people seem to have this dream that they will then swoop in and buy all the properties cheap."

No Dander, they have a dream that one day they will be able to buy a house without having to lie on a self-cert form, borrow tens of thousands of pounds from their parents, put themselves in hock to the tune of eight to ten times their salary and even be able to get a repayment mortgage rather than an interest only. The worst of it is that nobody actually beneftis from increasing house prices except people who are able to radically reduce their houseing needs i.e. people whose children are all leaving, or people who are dead.

inmypocketnottheirs

Jim_B wrote:

"But Housepricecrash people seem to have this dream that they will then swoop in and buy all the properties cheap."

No Dander, they have a dream that one day they will be able to buy a house without having to lie on a self-cert form, borrow tens of thousands of pounds from their parents, put themselves in hock to the tune of eight to ten times their salary and even be able to get a repayment mortgage rather than an interest only. The worst of it is that nobody actually beneftis from increasing house prices except people who are able to radically reduce their houseing needs i.e. people whose children are all leaving, or people who are dead.

oh dear ................

Jim_B_3

I know, the signs are not good for the next generation of housebuyers. So far as I can tell, my generation has allowed house prices to rise, knowing that it makes no differnce to us at all (unless, as mentioned, you have the opportunity to trade down) but knowing full well that it will disadvantage the next batch of first-timers. I have to bite my fist when i see kids scraping together their huge deposits.

Personally speaknig, I'd be quite happy to see a crash. My house returns to sensible value, everyone else's does the same, all the first-timers can put their money into the rest of the economy instead of paying it to the banks over the next 40 years, and best of all I won't have to put with with middle-class idiots downing their sparkling wine and gushing to each other about how great it is that they've taken out a second mortgage, or, as they like to call it, "released their equity".