70% club get it right again

Exocet

chucky wrote: »

yes, you're very good at that - a sort of visionary in an ironic way... it was Dec 2008 even though you were trying to be clever you got it spot on :T

http://forums.moneysavingexpert.com/showpost.html?p=16931313&postcount=26

I'm not sure what your point is. You quote the supposedly 'legendary' Mewbie who isn't even talking about geared borrowing. I was making an admittedly flimsy connection between 70% losses and how much smaller price drops could result in equally appalling consequences as a result of.. geared borrowing.

chucky

Exocet wrote: »

You quote the supposedly 'legendary' Mewbie

he was probably a leg end in his own underpants... but that's about it really...

chucknorris

Exocet wrote: »

I'm not sure what your point is. You quote the supposedly 'legendary' Mewbie who isn't even talking about geared borrowing. I was making an admittedly flimsy connection between 70% losses and how much smaller price drops could result in equally appalling consequences as a result of.. geared borrowing.

Only mewbie would call mewbie legendary, hello mewbie I would say hello more often But I keep losing track of weho you are

Exocet

chucknorris wrote: »

Only mewbie would call mewbie legendary, hello mewbie I would say hello more often But I keep losing track of weho you are

That's nice but I was using the term Hamish used today for Mewbie in his MSE dictionary. I have not come across the user name before.

chucky

chucknorris wrote: »

Only mewbie would call mewbie legendary, hello mewbie I would say hello more often But I keep losing track of weho you are

maybe they could have sticky thread to let people know which user id mewbie is currently using so that everyone can keep up...

i do remember being an ok lad until he started sending abusive PM's to a number of users... not sure why he needed to do that...

Exocet

I guess you would rather discuss mewbie than geared borrowing. Carry on then, enjoy your memories.

Harry_Powell

Exocet wrote: »

That's nice but I was using the term Hamish used today for Mewbie in his MSE dictionary. I have not come across the user name before.

Methinks the lady doth protest too much!

macaque_2

The_White_Horse wrote: »

70% club - hahahahahahahaaaaa
so you are saying that i could buy a house that was 300k in 2007 for 90k? HHAHAAHAHAHAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
that is funny.

Here is a 5 bedroom house with 1.7 acres of land within easy reach of Zurich. Price - £91,973.



When it comes to property values, the Brits lost touch with reality 10 years ago. If you had told someone in 1997 that their £90k house would sell for £300k in 2007 their response would have been similar to yours. Today our economy is in a much more difficult position to that of 1997. We have falling incomes, higher taxes and rocketing unemployment. The BTL industry sustained the property bubble for a few years at the end of the boom but they are now suffering record levels of bad debts. These high debts reflect a missmatch between BTL income expectations and renters' ability to pay.

So why are people paying £300k for £90k houses? After all, we don't pay three times as much for cars or computers today. The answer is that property prices are now being valued on the cost of holding debt (which is at an all time low). This has fueled unbridled speculation. Cheap money however is a transient phenomenum.

A house price correction is essential but I also accept that a catastrophic collapse in prices would create economic mayhem. That is why the house price decline is going to be long, slow and painful. The process however has started. Prices are falling and lenders are reserving preferable rates to buyers with 40% discounts.

Whilst £90k for a modest house might not sound much to you, it is huge sum to a 30 year old on average income. If we don't get house prices back into line with our competitors, the markets will do it for us.

Blacklight

You're still living in the 90's when property had undergone 14 years of stagnation. Get real.

Herbie_Hancock_I_wish

macaque wrote: »

Here is a 5 bedroom house with 1.7 acres of land within easy reach of Zurich. Price - £91,973.



When it comes to property values, the Brits lost touch with reality 10 years ago. If you had told someone in 1997 that their £90k house would sell for £300k in 2007 their response would have been similar to yours. Today our economy is in a much more difficult position to that of 1997. We have falling incomes, higher taxes and rocketing unemployment. The BTL industry sustained the property bubble for a few years at the end of the boom but they are now suffering record levels of bad debts. These high debts reflect a missmatch between BTL income expectations and renters' ability to pay.

When you put it like that it does make you think. That looks like a wonderful place to live. might be new to here but it does surprise me just how high houses have risen.