Parents want a house price FALL to help their children get on the property ladder

CLAPTON

des_cartes wrote: »

Lower house prices = lower risk for lenders = more mortgages. The reason mortgages are difficult to get is because lenders want large deposits. Why do lenders want large deposits. Because they know house prices must fall. Once house prices have corrected (fallen) this risk diminishes.

are you saying that the banks have a massive amount of available money for mortgages but are just waiting for house prices to drop?

ILW

CLAPTON wrote: »

are you saying that the banks have a massive amount of available money for mortgages but are just waiting for house prices to drop?

If prices drop, then more houses can be bought with the same amount of money.

silvercar

ILW wrote: »

If prices drop, then more houses can be bought with the same amount of money.

and the investors will plough in, again pushing FTBs out.

ILW

silvercar wrote: »

and the investors will plough in, again pushing FTBs out.

Not if rents also drop due to diminishing demand for rental property.

CLAPTON

ILW wrote: »

If prices drop, then more houses can be bought with the same amount of money.

so a 20% drop in price may lead to a 25% increase in FTB

is that the sort of correction we need ?

ILW

Honestly don't know, but it would be interesting to see how it panned out at a much higher drop. I truly believe there would be more winners than losers.

phil_b_2

Parents want prices to drop eh... But I bet not one of them would sell their own home for anything less than market value.

Really2

silvercar wrote: »

Parents want lower house prices to help their kids onto the ladder.
Investors want lower house prices to invest in BTL.
FTBs want lower house prices to get on the housing ladder.

Pensioners don't.
Those in neg equity don't.
Those wanting to remortgage with high LTV don't.
Developers/ builders don't.

Take your pick.

I should imagine age of child has something to do with it. I would say anyone with a child or children under 8 and have purchased in the last 8 years dont want them to fall yet.

I should imagine those with children 15+ do and that have nearly paid of their mortgage do.

I can't see many saying they would like to go in NE now so on the of chance their 3 year old will buy a house at 18 in 15 years time.

Being a good parent is looking after you r child now and sorting out their future as much as possible.
It is also advisable to make sure your children have a good nest egg for when they are an adult.
Wanting prices is not enough, people need to prepare their children more also. If prices don't fall back at least if you have arrange for your child to have options by saving / investing for their future.

Also I agree with what others say, they want other peoples house prices to drop, not there own.:)

ILW

I would not be worried if the value of my house dropped.

Really2

ILW wrote: »

I would not be worried if the value of my house dropped.

Neither would I but I have 30% equity and a cheap mortgage.

I would if I had no equity and no chance of remortgaging.
This type of survey is very dependant on peoples situation.

Only 35% thought there were not enough houses? sounds like they interviewd a few Nimbys.

We want cheaper houses for our children but don't build any more please, it will lower the value of our house!