House Price Crash

steve_cov

mystic_trev wrote:

as yesterdays Mail tells us

Yes, but the Daily Hate Mail also thinks that anyone who is (black/Jewish/Asian/gay/single mum/not the editor of the Mail: insert preferred minority here) is a Bad Thing.

You might as well ask next door's cat what's happening in the real world.

going2die_rich

Good news for people who are looking to get on the property ladder. A collapse in the housing market would make it a great time for young people like me looking to buy their first home with good savings in the bank.

Can only hope it happens!

Sorry to those that will be the million or so that would go under but it's the way of the world, someone has to fail in order for someone else to succeed

mystic_trev

steve_cov wrote:

You might as well ask next door's cat what's happening in the real world.

Yes- I agree Steve and the Express is just as bad. I was using it as an example!

Thanks

dougk_2

zzzzzzzzz
how many more times do we have to see this title?

AndrewSmith

A lot of it is down to the 'have it now' society in which we currently live. People today, both FTB and homeowners, seem incapable of being able to say 'I cant afford it at the moment'.

Buy to let has pushed up the demand and price for the smaller, normally first time buyer type properties thus pushing them now out of reach of many trying to get on the ladder.

We are now seeing more and more often that the rents attainable for buy to let are not now covering the mortgage payments much above 75-80% LTV.

First Time Buyers asparations are higher these days also. My first house was a 3 bed mid terrace ex council house that I managed to buy simply by working every weekend and extra hour that there was to save the deposit. With TV programs promoting the contempary lifestyle and chic property interiors this is now the expectation for FTB instead of buying something that may need a little living with for a while.

Homeowners too are tempted to simply 'add it to your mortgage'. Good old Carol Vorderman. I hope she is proud of the contribution she and First Plus have made to the current state of affairs.

Dont see the relevance? Well it's simple. Homeowners are being heavily targetted by such companies to borrow equity from their homes. They are sold the dream of a new car, holiday, conservatory, extention etc etc. So they borrow, increasing their mortgage either by a new loan or a second charge.

When they then come to want to move, they must sell for a higher amount than they would have to repay the mortgage and secured loan, have sufficient for fees, and to have a deposit for the next move. This is where they find that they have spent £10,000 on that conservatory which has, in fact, done nothing for the value of their property as they are just under the 3% stamp duty threshold (dont even get me started on that one).

The public have to take responsibility for this and accept that they are largely to blame. After all, no-one actually forced them to take the money.

However it is down to the very clever advertising and promotion of the utopian lifestyle that makes the current standard of living seem inadequate, that makes people take the bait.

There is no quick or easy solution to the current situation, it is something that will settle itself over a number of years.

My advice, as always, is never overcommit, if you cant afford it then accept it. There is nothing clever about being able to borrow 5,6,7 x your income. Just because it's there, you don't have to take it.

Andy

Get_Real_2

Seeing the title does not mean that you have to browse the thread

How about making yourself busy elsewhere dougk ?

MORPH3US

going2die_rich wrote:

Sorry to those that will be the million or so that would go under but it's the way of the world, someone has to fail in order for someone else to succeed

Thats ok then, as long as you are sorry but get the house that you want on the cheap, who cares about the millions that face financial ruin, heartache, broken relationships and poverty!!

It doesn't take much to start the "house price crash brigade" again does it. Martin is on tv saying "prices MAY go down" and all of a sudden chinese whispers syndrome kicks in and "Martin says there WILL be a HOUSE PRICE CRASH!!!" run for the hills!!!

What Martin actually said (as Andrew Smith and others have pointed out) was that he believes there will be a period of stability and then went on to say that he cant actually say what will happen and that anyone that tells you that they do know what is going to happen is lying!!!

M

dunstonh

It is inevitable that a price crash will occur. The thing that we dont know is when and how much. It could start next week, it could start in 10 years. However, one will occur at some point. Its the nature of the beast. Stockmarkets and property go up and down at various points which no-one can predict.

The only thing you can do is make a judgement call as to when its time to get out and make your money safe. It could still go up for some months or years after you do but if you get too greedy, you could miss the exit point and get burned. Some will come out too early, some will get it right, some will get it wrong and leave it too late.

One thing is certain though. A lot of people doing mortgage buy to lets now are going to lose money and they are going to whinge like hell that they didnt know the risks and be looking for someone to blame other than themselves. This time round though, they cant pass the buck onto financial advisers or anyone else.

MORPH3US

AndrewSmith wrote:

A lot of it is down to the 'have it now' society...... SNIP SNIP ..... you don't have to take it.

Andy

Once again Andy, top post!!!

M

AndrewSmith

dunstonh wrote:

One thing is certain though. A lot of people doing mortgage buy to lets now are going to lose money and they are going to whinge like hell that they didnt know the risks and be looking for someone to blame other than themselves. This time round though, they cant pass the buck onto financial advisers or anyone else.

Absolutely right.