Are House Prices Going to Crash?

mjfusent

No, they will stabilise and interest rates will stay low enough

aderbyshirelad wrote:

It seems a lot of posters here want a great big crash, instigated by the government if necessary, so they can pick up a house on the cheap BUT then they would like rampant HPI to start again to boost their wealth, even though half of them profess that they just want a home and don't see it as an investment.

The hypocrisy, bitterness and downright selfishness shown be some here leaves me gobsmacked. Good luck to you all...

My thoughts exactly, plenty of people are praying for a crash because they think that way they will be able to afford a house/buy a bigger house. What they don't realise is that if there is a crash its likley that the very reasons for that crash will prevent many of them from doing this (high interest rates or unemployment to name but two).

mr.broderick

No, they will stabilise and interest rates will stay low enough

BobProperty wrote:

I wonder why you bother posting on a money saving site then?

For the hell of it

cupid_s

I've absolutely no idea

jyonda wrote:

You may not be in negative equity but you may have seen the size of your equity shrink to nothing which would still be a massive setback if you'd spent years renting and saving up for a big deposit. you'd have lost the fees too. If you bought at ANY point and your property falls below what you paid for it you'd be better off if you hadn't bought it. Surely?
Even those saying 'well that 4 bed detached is much closer now' are over looking the fact that you'd be much closer to it if you didn't buy in the first place.

Not in our case.

When we were buying our house, we did so many sums my head was spinning. Basically the rent on a place big enough for us would have cost over twice what our repayment mortgage was. Based on this we worked out that by the time we were likely to be selling, we would be better off having bought our house rather than renting, even if our house was worth 25% less than what we paid for it. This takes into account mortgage arrangement fees and solicitors fees.

MissMotivation

I've absolutely no idea

aderbyshirelad wrote:

Very handy for who exactly?

Abaxas sums it up perfectly in their last post...

Lets just have a house price crash, mini recession then get back to making money again. If people can hold on they'll not loose out in the medium/long term. But that doesnt mean it won't hurt in the soft term (3-5 years).

It seems a lot of posters here want a great big crash, instigated by the government if necessary, so they can pick up a house on the cheap BUT then they would like rampant HPI to start again to boost their wealth, even though half of them profess that they just want a home and don't see it as an investment.

The hypocrisy, bitterness and downright selfishness shown be some here leaves me gobsmacked. Good luck to you all...

I have generally held off psoting in any of these "House Price Crash" posts because the truth is that no-one knows for sure what will happen and we can sit here and debate it all day long and still be none the wiser.

This post generally sums up how I feel about the matter and in particular the last paragraph!:T

scorpio_princess

Yes, but not yet

lynzpower wrote:

House price crashes dont happen in a vacuum.

I anticipate they will mean job losses and further cuts in the state machinery, leaving us all worse off.

Or am I missing smething here again?

You're spot on about the job losses Lynz. I can't speak for the rest of the country, but in this area there has been some pretty hefty job losses in the past few months - a large printing firm went bust leaving hundreds of people jobless, most of which were middle aged men who'd worked there all their lives (and guess what's going to be built on the land it occupies in the city centre...). And let's not forget the hundreds, if not thousands of jobs that Norwich Union have offshored to India - and it's only going to get worse.

There just aren't many jobs about, especially for unskilled, manual workers (the jobs in manufacturing, transport and agriculture are going to the increasing immigrant population, as for some reason employers don't have to pay them the minimum wage).

All of this doesn't bode well, IMO - house prices, GOING UP, unemployment, GOING UP, population (immigrants, not birth rate) GOING UP, wages GOING DOWN (or at least staying the same). Something has to give!

I do wish people would stop getting so defensive and bitter about all of this. Like i've said before, i'd love for there to be a correction, but not a major 'crash' as too many of my loved ones would be affected. I simply want the playing field to be evened out a little, because all this resentment (and in some cases, blatant greed) is causing divisions in society - the 'haves and have nots'. It's really feeding into the 'i'm alright Jack' mentality, and eating into what little community spirit we seem to have left. Actually, this all sounds rather familiar - are we sure it's Labour in government, or could they be imposters in disguise...?

IFA

No, they will stabilise and interest rates will stay low enough

Lets just see what the recent interest rate hike does and then comment.. and then again in February or whenever it will be.

It's not just house prices that are affected it's the enormous level of debt in this country which is spiralling out of control. The "have it all now" society need to learn patience..

Personally I'd like to see the cost of buying a house (and moving) lowered. EA's have got away with it for too long and incompetent conveyancers.. oh and incompetent government with stamp duty..

lynzpower

I've absolutely no idea

There just aren't many jobs about, especially for unskilled, manual workers (the jobs in manufacturing, transport and agriculture are going to the increasing immigrant population, as for some reason employers don't have to pay them the minimum wage).

Particularly in terms of bar work, and agricultural work, if you "live in" or have accomodation provided- you dont I understand have to pay min wage per hour, read something on one of those travellers websites- can anyone confirm?

IFA

No, they will stabilise and interest rates will stay low enough

Even skilled jobs ie IT which I work in have many "skilled" immigrants available to work for less..

Pobby

Yes, but not yet

scorpio_princess wrote:

You're spot on about the job losses Lynz. I can't speak for the rest of the country, but in this area there has been some pretty hefty job losses in the past few months - a large printing firm went bust leaving hundreds of people jobless, most of which were middle aged men who'd worked there all their lives (and guess what's going to be built on the land it occupies in the city centre...). And let's not forget the hundreds, if not thousands of jobs that Norwich Union have offshored to India - and it's only going to get worse.

There just aren't many jobs about, especially for unskilled, manual workers (the jobs in manufacturing, transport and agriculture are going to the increasing immigrant population, as for some reason employers don't have to pay them the minimum wage).

All of this doesn't bode well, IMO - house prices, GOING UP, unemployment, GOING UP, population (immigrants, not birth rate) GOING UP, wages GOING DOWN (or at least staying the same). Something has to give!

I do wish people would stop getting so defensive and bitter about all of this. Like i've said before, i'd love for there to be a correction, but not a major 'crash' as too many of my loved ones would be affected. I simply want the playing field to be evened out a little, because all this resentment (and in some cases, blatant greed) is causing divisions in society - the 'haves and have nots'. It's really feeding into the 'i'm alright Jack' mentality, and eating into what little community spirit we seem to have left. Actually, this all sounds rather familiar - are we sure it's Labour in government, or could they be imposters in disguise...?

Good post!

prudryden

Reference House Crash:
Let's face it, if it happens there is not a lot you or I can do about it. But you can mitigate the consequences if it does happen. Hope for the best, expect the worse. Have a contingency plan if the worst happens. Plan ahead.