House prices 'at the cliff face'

DaveLy

The main problem with house prices halving is the amount of people unwilling to sell, or at least unable to due to the amount of negative equity they'd end up with.

The way I see it, as a 26 year old, is the last generation of home owners bought houses and over 10 years unrealistically claimed they're now worth double, while this doesn't effect anyone else in this generation as they can simply sell their overpriced house for another overpriced house. It does infact effect my generation (and future generations) who in the majority simply cannot afford it.

Pete111

Moneyweek is hilarious but I can tell you right now that if house prices drop by 50% I'm buying another to rent out. I won't be the only one.

Personally I think all will be flat for a bit...at least until until Capital Economics predict a rise....

Blacklight

Pete111 wrote: »

Personally I think all will flat for a bit...

You and 500,000 other public sector workers with a fat redundancy payout that's not gaining any interest.

Pete111

Blacklight wrote: »

You and 500,000 other public sector workers with a fat redundancy payout that's not gaining any interest.

Ouch...

(Very much private sector over here thank you!)

Pete111

RenovationMan wrote: »

It would cause the biggest scramble to buy properties that the world has ever seen!

I doubt that people would all agree to sit back and hold off buying until prices fell 50%. I also doubt that many people could afford to sell if prices fell 50% - I know I couldnt. As we all know, if you are in negative equity, as I would be, you are not allowed to sell anyway.

I can only assume that 50% drops will come from those altruistic mortgage free folk, giving their fellow citizens a helping hand on the property ladder? Good on em, I say!

Yep - after all Xmas is a time for giving!

Actually sod it, at 50% off I'm having two or three.

ukcarper

Average house price about £165k knock of 75% £42k divide by 3 for the often-quoted salary multiply you get £14k, average wage £25k you would only have to work 3 days a week to buy a house great.

Blacklight

ukcarper wrote: »

Average house price about £165k knock of 75% £42k divide by 3 for the often-quoted salary multiply you get £14k, average wage £25k you would only have to work 3 days a week to buy a house great.

And that's why it will never ever happen, ever.

PasturesNew

I'd like some of that average wage, where I live the average wage for a full-time female is about £16k (they would have us believe, but there are actually no jobs).

ess0two

stringsmk2 wrote: »

Evidence being?

Same claptrap with peak oil thrown in also.

neas

macaque wrote: »

If you are thinking of buying, why not hold off for a bit. In 18 months time, your deposit may be enough to buy the entire house for cash.



http://www.moneyweek.com/news-and-charts/economic-indicators/uk-house-prices/02-uk-net-mortgage-lending-00011.aspx

i held off for 3.5 years.... and you would be asking me to make my total wait 5 years?

Seriously you cant put it off forever. Its ok if you cant afford to get a house with a decent LTV but if you have a deposit already why put it off with 2007 price levels... inflation eroding the difference and low interest rates to make it a cheap mortgage for first 5 years?

While you are waiting you are gambling that the 10-20% fall will be worth the wait... which i dont think it will be .