anyone else want a CRASH...?

ravenfield

james3333 wrote:

what a idiotic statement... why would NOBODY buy a property in a crash?
FTB's will be on thier hands and knees wanting a crash!!!!!! this would be thier chance to get on't ladder!
and therefore, this would make sense to me that my house would be more desirable to more people than a bigger 2nd rung house, hence i would like to think i would benefit from a crash...

nobody will want to buy because the price is still falling and could lasts a year or two before it hits the bottom. or it couild be like what my auntie told me, the bank refuse to give morgage unless you can put down huge deposit or whatever.

if everyone is able to buy a house immediately when there's a crash, then there is never a crash isn't? for a crash to generate, it needs to have significantly more seller than buyer out there.

james3333

i see what you mean.... but when the bottom is hit, the 're-build' begins and people will snap up properties, including myself!:cool:

ravenfield

problem is when a crash is going to happen? or will it ever happens? some of my friends think the price will keep booming until it's 2012 and is very likely to crash after that. Perhaps they are right but I'm very scared because it will be another 5 years + 2 or more years of house price booming before it crash. that means a lot of ppl will lost a lot of money as the fall will be Mega big

zag2me

Also you wont want to buy during a crash, as your property will be going down in value.

The only time you will be able to buy is at the very bottom, so you could be waiting many years for that.

cupid_s

james3333 wrote:

even if there was a massive crash, i could maybe keep my smaller property and buy the big one so i'll have 2 propeerties
seems like a win win situ for me?

If you have the money outright to buy the larger property and have no mortgage on your smaller one then I think it is a win win situation. But if interest rates do rocket many people who currently have a small house will find their mortgage repayments so much higher. And if they need a mortgage to buy a second property the amount they can afford to borrow will be much lower they might not even be able to get a mortgage in the first place, especially without a huge deposit as ravenfield mentioned

abaxas

cupid_stunt wrote:

If you have the money outright to buy the larger property and have no mortgage on your smaller one then I think it is a win win situation. But if interest rates do rocket many people who currently have a small house will find their mortgage repayments so much higher. And if they need a mortgage to buy a second property the amount they can afford to borrow will be much lower they might not even be able to get a mortgage in the first place, especially without a huge deposit as ravenfield mentioned

Exactly, usualy rules apply.

You want the largest mortgage you can afford at HIGH rates not the largest you can afford at LOW rates.

In terms of a crash.

Who knows what will happen, however history tells us that after a period boom we get a bust. Throughout history 'It's different this time' has never come true. It just keeps people happy.

roswell

If you want a crash you best hope your property falls by only 15% AND the bigger property by 20%, (and not the other way round)

Truth is no FTB will buy in a crash unless they have a large deposit, Simple mindset applies, IF house is worth 100K this month next month its worth 90 K ill hold out till its 50 K .. if it falls to 50 K they will hold out longer, there is also the point that the banks will ALWAYS give you money when you have / are making money, no bank wants to know you when you have no money to give them.

look at the FTSE100, it is now above the crash price of 2001, but how many people remortgaged there house to invest in the FTSE in 2002 ????? And those that held there shares instead of selling at a loss will once again be in profit.

its Capitalism by the banks and benifits the banks, When the money is plentyfull they will give to everyone, when everyone one has no money and wants some they with give to no one ....

Xbigman

Personally I'm trying to clear as much off my mortgage as possible for when the crash happens. Exactly how it will happen is debatable right now, but I want to be in the best position possible to benefit.
My main hope is that the flats in my area, which are priced very close to houses right now, will fall back relatively more and I can pick up a cheap BTL.

I also agree with other posts that the crash will take 2 years to bottom out once it gets going, so 2009 at the earliest but more like 2010/11 is the time to aim at.
Regards



X

fimonkey

Wow, I'm learning HEAPS about economies and house prices etc etc though still elementary level at teh moment. Can someone please explani to me what share prices have to do with house prices?

Overall, what do you think the percentage is of ppl who use these forums and those who think there'll be a crash. Is there a poll anywhere that show's ppl's opinions on either a) Rise, b) stagnate or c) crash?

Cheerio

budgetflyer

The sky is about to fall in doomsday mongerers have been predicting this crash for the last 5 years and still it hasnt happened.
When and if it does these very same people still will not buy in a "falling" market ,forever waiting for the "right time" to buy.Trouble is ,they will still be guarding their hard earned money and will yet again miss when the tide turns and before they realise it prices will once more be "too expensive" and so they will wish another crash etc etc etc