House Price Crash

RHemmings

MORPH3US wrote:

A bit earlier on that programme, there was a couple who were advised by a mortgage advisor to buy their council house for £30,000.

The story goes on that they couldn't afford to keep up the repayments and blamed the advisor for it. When they interview the woman though, it turns out that they real reason is that her husband lost his job and she fell pregnant. How the hell is that the mortgage advisors fault, it could happen to anyone at any time!!!

People just don't take responsibility any more, just like this bank charge reclaiming (don't want to open that debate) but whats the point of being careful with money if you can just blame someone else and get it all back anyway!

Would you say that the majority of people who get into trouble with repayments are in trouble solely through their own fault? Or would you say that many people have been given mortgages beyond their realistic means to afford?

Sorry CB1979, it's question time again.

RHemmings

dougk wrote:

Beacuse the same old drivel comes up time and time again, so i look thinking there is some new exciting news and facts and its the same old thing with nothing new and no new evidence to prove that a crash is on its way - somehow it always appears this time of year too when the market starts to slow for the winter - strange that!

Just because i don't agree, doesn't mean i shouldn't post and I will post elsewhere as well - after all i can do as i like on a day off work!

The thread is about what Martin said. And how he raised the possibility of a crash on national TV. Given how the press has tried to ignore the possibility of a crash as much as it could do, Martin saying these things is a major step.

RHemmings

Gorgeous_George wrote:

I'm sure Martin would agree that at no point did he say a house price crash was imminent. He said he didn't know and that anybody who claimed that they knew was a liar.

GG

I think some people are missing what has interested people who are more bearish on property. We're not claiming that Martain said that there would be a crash. Just that Martin, a well known and widely trusted person, suggested that a crash is possible, and the BBC broadcasted it, is news enough in itself.

RHemmings

MORPH3US wrote:

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!!!

Can you please tell me which posts in this thread claim that Martin said there would be a house price crash? I've looked, and I can't see any.

AndrewSmith

RHemmings wrote:

But see the other thread on "bargains at auctions". Those repossessed properties are selling at prices much lower than previous sale prices. In the case I followed up, low enough so that the drop is the size of a massive crash in prices. If more properties start getting repossessed, that's going to put some serious downward pressure on prices.

In cases reported on here yes, however such large savings form only a small number of the reposession houses sold each year.

Lenders have an obligation now to obtain the highest possible price for a reposession property, as opposed to simply clearing their debt. This is indicated in such things as the 7 day notice rule when an agent receives an offer on such a property.

Reposession property that sells for a vast reduction in the current comparable market value is usually directly indicative of the condition of the property bearing in mind that some people are reluctant to leave their home ammicably.

Andy

MORPH3US

RHemmings wrote:

Would you say that the majority of people who get into trouble with repayments are in trouble solely through their own fault? Or would you say that many people have been given mortgages beyond their realistic means to afford?

Sorry CB1979, it's question time again.

There are two reasons that I can see for getting in trouble with mortgage payments:

1. Powers beyond the persons control i.e. losing job, having a child, increase in mortgage rates. All of these can be protected against in some form and to some extent.

2. People are just bad with money = their own fault. If people get mortgages beyond their means, IMHO that is their fault NOT the banks. Banks don't force people to take money, they merely say what they will offer and its up to the person to decide how much they want.

Funnily enough, the gf's sister is currently looking for a mortgage on a house at the moment. She earns £35k + but is on her own and looking at a house about £100,000 but is having trouble getting a mortgage for various reasons.

We were trying to help her suggesting good deals because we brought our house about 3 months ago on a 100% mortgage which we overpay by the maximum every month.

We were telling the gf's sister that she would be better off overpaying the maximum every month because on here wages and a modest mortgage, she could afford it. We were told in no uncertain terms by the gf's sister to stop interfereing and that we should "stop being so sensible overpaying our mortgage"?!?!? Work that one out!?!?

M

dunstonh

I just read on the bbc news site that the gap between income and mortgage is close the previous peak in 1990. Those of us around then know what happened next.

MORPH3US

RHemmings wrote:

Can you please tell me which posts in this thread claim that Martin said there would be a house price crash? I've looked, and I can't see any.

Sorry, I thought I was on a thread called "House Price Crash"

lypsey wrote:

saying something like houses were overvalued and going down

My mistake!!!

M

RHemmings

AndrewSmith wrote:

In cases reported on here yes, however such large savings form only a small number of the reposession houses sold each year.

Lenders have an obligation now to obtain the highest possible price for a reposession property, as opposed to simply clearing their debt. This is indicated in such things as the 7 day notice rule when an agent receives an offer on such a property.

Reposession property that sells for a vast reduction in the current comparable market value is usually directly indicative of the condition of the property bearing in mind that some people are reluctant to leave their home ammicably.

I've only viewed a small number of such properties. But the ones that I saw were not in worse condition than typical properties you see during normal viewings.

What percentage of repossessed property would you say is sold without an auction, and what proportion would go through to auction?

RHemmings

MORPH3US wrote:

Sorry, I thought I was on a thread called "House Price Crash"

Perhaps a poorly named thread. But no actual posts that I can see claim that Martin said that there would be a HPC.