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Debate House Prices
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Lack of supply boosting prices...
Comments
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No way.
It's not wishful thinking. Nobody can say prices have dropped until every property in an EA window is down. There has always been the odd cheap place here and there.
Sellers won't drop the price and when credit becomes available again FTB will pile in. You wait and see.
That'll be a long wait then;)Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
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Credit won't be available like it was before, risky lending is unacceptable. It was one of the causes of the recession.IveSeenTheLight wrote: »Just for clarification, are you inferring that buyers will have a long wait?0 -
Credit won't be available like it was before, risky lending is unacceptable. It was one of the causes of the recession.
Possibly, could that infer that there is a lower oppertunity to become an owner then?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Credit won't be available like it was before, risky lending is unacceptable. It was one of the causes of the recession.
Uk lending was not risky, as our low default rates show.
And if credit remains in short supply,then less people will become homeowners, and more landlords will become enriched.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Yes, a larger deposit is needed and the amount that can be borrowed in comparison to the salary is less than previously. Low deposit FTB's need enough salary to make up the rest and a gaurantor. It won't go back to the way it was before lending wise. However I see it as a delay, FTB's need to save enough deposit then the flow of FTB's should increase and plateau allowing the market to increase again.IveSeenTheLight wrote: »Possibly, could that infer that there is a lower oppertunity to become an owner then?
A decling markets puts buyers off. If you buy a property worth a 300k then it goes down 5% this year you have lost 15k off your equity in one year!0 -
100%+ mortgages are very risky. When the markets fall people get into negative equity. It is debatable if landlords become enriched. People tend to look at cheaper options such as moving to cheaper areas, sharing properties, sharing rooms, moving home, foreigners moving abroad (a lot non EU workers are not having visas renewed). More importantly the repayments for the mortgage for the low deposit buyers are greater than the cost for rent even more so when you consider that falling house prices eat into the equity.HAMISH_MCTAVISH wrote: »Uk lending was not risky, as our low default rates show.
And if credit remains in short supply,then less people will become homeowners, and more landlords will become enriched.
Declining markets don't force repossions. If the interest rates go up then repossessions could happen.0 -
HAMISH_MCTAVISH wrote: »Uk lending was not risky, as our low default rates show.
And if credit remains in short supply,then less people will become homeowners, and more landlords will become enriched.
only because IRs we're cut to the bone to save the reckless when they go back up so will the defaults. and if credit stays low there will be fewer buyers meaning fewer sales meaning lower pricesHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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