Parents, you're just making it worse! Please STOP!

dougk_2

vishpatel wrote:

they are the minority IMO. Most migrant workers rent cheaply with many people in one property.

Even if this is the case (which I don't susbcribe to as I know a number who have bought), the increasing population is what is driving the prices up - they need to live somewhere , if they don't buy they rent and someone needs to own the houses that are let out.

Until we get a situation where there is substantially more houses available (either to rent and/or buy) then demand will exist and prices either stable or increasing.

Jorgan_2

dougk wrote:

Until we get a situation where there is substantially more houses available (either to rent and/or buy) then demand will exist and prices either stable or increasing.

You've hit the nail on the head there, supply & demand.

Its true, banks should know better, but it isn't just FTBers who borrow beyond their means, second & third time buyers do as well. Borrowers will often take on a mortgage which they can service but keep on borrowing from other sources, ending up in trouble. I am having to attend a growing number of reposessions & more often than not its lenders with second charges that have called in the debt.

vishpatel

dougk wrote:

Until we get a situation where there is substantially more houses available (either to rent and/or buy) then demand will exist and prices either stable or increasing.

Disagree. I think the cooling economy & a credit crunch will pull a lot of money out of property. With less oppurtunities, there will be less migrant workers.

BobProperty

Jorgan wrote:

You've hit the nail on the head there, supply & demand.

Its true, banks should know better, but it isn't just FTBers who borrow beyond their means, second & third time buyers do as well. Borrowers will often take on a mortgage which they can service but keep on borrowing from other sources, ending up in trouble. I am having to attend a growing number of reposessions & more often than not its lenders with second charges that have called in the debt.

Can I just back Jorgan on this. The high street lenders tend to only take the first class clients and at reasonable ratios. It's the "back street 2nd charge equity release and car loan company" that gets squeezed (after all we have to pay the mortgage don't we) and consequently are the ones more likely to have to go for the proceedings and repossession. Pop into the local county court and see who is listed as plaintiffs for hearings and I'll almost guarantee for every well known Bank or Building Society petitioning for a repossession there are 4 or 5 lenders you've never heard of or you say to yourself "I never knew they did secured loans".

lynzpower

vishpatel wrote:

Disagree. I think the cooling economy & a credit crunch will pull a lot of money out of property. With less oppurtunities, there will be less demand from migrants.

Not all migrants are low income dont forget, I agree with dougk Ive known of a rather a few migrant workers who have bought property in groups. With the idea that they can sell it once they leave to go back down under. And dont have to deal with the crapness of some lower end rental accomodation. It does happen.

But overwhlemingly I do think there are people I know of trying to sell at the top of the market and cant, but the cheaper end of the market is bouyant. Property, like anything is only worth what someone is willing to pay for it, loan from parents, mortgaged to the hilt, or not.