House Price Crash Website

sanfrancisco

poopscoop wrote:

Why do you care about the other kids? Can their own parents not look out for them? Are you the government? A lot of people are worse off and you just complain at things you cannot change.

What a wonderful attitude. If only there were more people in the world like you.

"Why does that bloody Chancellor keep sending MY money to Africa for drinking water for kids, when my rubbish only gets collected twice a month."

poopscoop

sanfrancisco wrote:

What a wonderful attitude. If only there were more people in the world like you.

"Why does that bloody Chancellor keep sending MY money to Africa for drinking water for kids, when my rubbish only gets collected twice a month."

oh be quiet you whining fool.

Is that the kind of thing you worry about? What the government does with your money? You should just forget about it because you don't have a say in it.

I give to loads to the third world, I even sponsor a child in China and give to Wheatfield Hospice every week. But why do I need to worry about the future of other kids in the UK? Don't they have a fine enough life as it is? Bet you don't do nothing besides whinge about stuff you cannot change.

sanfrancisco

I was being sarcastic. It was a parody of you.

Be NICE Moneysavers.

poopscoop

sanfrancisco wrote:

I was being sarcastic. It was a parody of you.

Be NICE Moneysavers.

nah, must be you if you thought up such a thing. You shouldn't worry about what the government does as it's pointless

mr_fishbulb

movieman wrote:

My parents' first house was a four-bed terrace, and it's been the only house they ever owned.....Today it's valued at two hundred times what they paid for it in the late 60s: have wages increased by the same amount in that period?

I don't think you can make a direct comparison of the value of their house before and after decimalisation

BobProperty

I think the market was relatively flat in the 60's. Don't forget there was massive inflation in the early 70's (like 25%) and despite very high interest rates (18%?) the inflation took care of the borrowing cost. So anyone buying in the late 60's, and holding onto their property, did very well out of the inflation in the early - mid 70's.

mystic_trev

BobProperty wrote:

I think the market was relatively flat in the 60's. Don't forget there was massive inflation in the early 70's (like 25%) and despite very high interest rates (18%?) the inflation took care of the borrowing cost. So anyone buying in the late 60's, and holding onto their property, did very well out of the inflation in the early - mid 70's.

Agree Inflation woked well for the Homebuyer, not just the seventies but also (to a lesser extent) the 80's. It's going to be interesting how things "pan out" now we've had a period of high borrowing, but low inflation. A lot of people (particulary younger generation) seem to be maxed out on credit - somethings got to give?

vishpatel

Smug homeowners vs bitter renters.

Bickering aside, there is a hell of a lot of people in between.

People who geniunely cannot afford to buy anything, and others who are mortgaging themselves up to their eyeballs for quite frankly very poor value properties. These people are putting themselves at huge risk to interest rate movements, house price movements, changes in the economy like job security etc..

Things might be rosy (or at least appear so) right now, but they can change quickly, and usually when you least expect it.

Personally I won't be looking to buy until houses become better Value for Money. Thats a core MSE value isn't it? Always get Value for money?

Renting is NOT dead money. Rent is not a dirty word. People on minimum wage, waiters, nurses etc.. will always need a place to live so there will always be reasonably cheap places to rent. Buying is another matter. Houses have been cheap in the past. It's naive to think they will never be again. When? Who knows... but theres only so much debt a nation can take on before the snowball gets too big...

sikejsudjek

Interest rates don't have to go any where near as high as during the last crash to cause one. People have borrowed far more relative to incomes, and many lied on their mortgage applications. My bet is that even a rise of just 0.75% will finish off a large number of borrowers and cause a HPC. The BTL brigade will jump ship and cause more problems when sentiment moves against property. With low inflation, this time round the crash may well be more severe and last longer.

Chrysalis

First off I rent but my sister brought a house 3 months back here is my views.

Inflation - Clearly this number is inaccurate but helps keeps people's wage increases and benefit increases to a minimum, you cant tell me inflation is 2% when my council tax has doubled over 5 years and my electricity bill has more then doubled over 3 years. Obviously they excluding many things.

Interest Rates - This is a big key figure in this whole mess, right now I strongly believe during the bulk of labour's time in power our economy has survived on credit, credit cards are at an all time high, people have taken second mortagages releasing their equity which has pumped money into the economy and kept the wheels turning but eventually all this will run out. Obviously interest rates can bottom out there is a limit and when they start rising their is a lot more potential for upwards movement then in the late 80s so yes the crash is potentially bigger. I would be interested to know why people may think that interest rates will stay at this level for decades.

Economy - I dont believe jobs are more secure, far from it. We have more temp workers then ever, the new trend by companies is to outsource (recent ntl 6k job losses), and there is a pattern of more and more unskilled work been outsourced and people who have gone to uni etc. and now doing skilled work are carrying student debts. When the credit buying stops the economy will crash its just a matter of when. We also now export less then we import as well and are predicted to fall below india GDP within 10 years.

Affordability - This one is interesting, in my sister's case her monthly mortgage is cheaper then her rent was and both properties were similiar sized however she did have to spend 8k on the property to make it livable which she obviously borrowed. I will also point out its probably a very low single digit % of single adults who can afford a house or flat today, my sister and her bf both work and 'just' managed it between them to be accepted for a mortgage. I fear that if interest rates rise enough they will be in trouble. Those older generation like my dad who says its a matter of not willing to save up in this generation are partially right but not fully, take my dad as an example. He did do 2 jobs to buy his first home, but do you think a single person now days doing 2 'normal' jobs say 15k a year for first and a 6k a year for 2nd would be able to get a house? no chance thats because the goalposts have moved so yes the younger generation does have it harder, in this era my dad on his job and income would have been renting. Usually it needs working couple unless you are a government key worker which is another thing that has helped hide the problem.

Politics - Obviously labours economy miracle is coming to an end, it could be 1 year 2 years or 3 years or longer but I think it will be within 3 years personally and blair has probably sensed this and will be out before it happens, conservatives if they win the next exlection will be coming in at a very bad time and if things crash hard enough they may well be out after 4 years. Interesting times ahead.

As an additional note I think this is all making the rent market equally as bad, obviously less people able to buy adds demand to the rent market and renting is barely affordable in itself and estate agents become very fussy about which tenants they choose, council renting is becoming harder and harder thanks to them allowing people to buy houses reducing their property count and them stopping building new council houses.

I think a lot of the housing market has also been fuelled by landlords for the above reason and people buying 2nd homes rather then FTBs making a shift in buyers.