House Price Crash 5

crashinit

lol its going to crash its coming, sterling going to take a hit next year that is coming once that hits your looking at massive repossions on a mass scale, people that have brought in the past 5 years with 65% -100% of a mortgage are going to be hit so hard that they will not have any choice. oh by the way cpi is 2.7 but thats going up next month.

Any happy days for a the few wise men and sad days for the massive pop who fell into this trap, just ask 1 question why are banks charging more costs of taking out a mortgage.

Alan_M_2

I misunderstood I thought you were referring to quitting employment and setting up a proper business. Not doing a bit of cash work on the side, not quite what I'd refer to as setting up a business.

I do run my own business, and whilst I have no problems now, there was a 3-5 year period where It simply wasn't possible to obtain credit/mortgages etc.

Computer says No syndrome.

Sisyphus

Alan_M wrote:

....

Reading between the lines there are many people on here that would suggest I'm some sort of frivolous selfish whinger for actually wanting that....bizarre if you ask me.

Now I do happen to live somewhere where I really wouldn't choose to buy because the prices are so high (but the rent is very reasonable in comparison) but it's a really nice area, in a cul de sac, where I have enough room to park four cars and know everything will be intact when I wake up in the morning. I like that, and I'm pretty comfortable with it all actually, but I have financial interests elswhere so I'm actually much less bothered about where and when I actually buy something.

There's a great deal of animosity from a few people who are unable to buy at the moment, being priced out of the market.....so invest in something else until prices drop or your income reaches a level where you can buy what you want, or what you can tollerate as the case may be.

One thing I don't understand is the panic to be in the market no matter what the cost, that's a little short sighted, so if you can't buy right now, what are worrying about? Theres very little you can do about it, so chill out, save what you can and sooner or later the economy will enter a different phase of the infinite cycle.

These threads are useful if one desperate FTB takes heed of an excellent post like this and avoids plunging into financial ruin.

'Owning' is not the be all and end all to our existence, surely. If you don't agree with over inflated prices then the answer is don't buy.

meanmachine_2

lisyloo wrote:

I think ALL of them are better than complaining and doing nothing.
That's if you REALLY want to do something about it.
Obviously some people are never happy and want it on a plate.

Thanks for that. Alas, with a central bank churning out new money at a rate of 14% a year, asking prices rising at 23% per annum, it's all rather futile.

I *have* put the work in, researching exactly why house prices have shot up in all Western countries, regardless of population density.

I've concluded the whole thing will end in tears.

So excuse me if I choose not to run after an out of control train.

I'll wait for it to hit the buffers.

Others can take on 8 jobs, four wives, work 25 hours a day, just to pay triple what someone who didn't have to do that paid 5 years ago - but I'm clearly too lazy to countenance that.

Sorry. Merry Xmas!!

lisyloo

I misunderstood I thought you were referring to quitting employment and setting up a proper business. Not doing a bit of cash work on the side, not quite what I'd refer to as setting up a business.

Hi Alan,

You can call it what you like.
I'm just trying to make the point that there are ways that people can increase their income if they choose to do so and they may be more productive than just complaining.
There are several ways to skin a cat.
For some people it may be putting in lots of hours on low pay but for others who may have skills (carpetry, computers) they may be able to get a better rate of pay by doing odd jobs.

I do run my own business, and whilst I have no problems now, there was a 3-5 year period where It simply wasn't possible to obtain credit/mortgages etc.
Computer says No syndrome.

I understand and appreciate the problem.
To start up a "proper business" (not weekend car washing) takes risk.
People need to understand the risk/reward ratio and work out whether it suits them.
Some people may be happy stacking shelves but knowing they have a regular wage, but for some people that's not enough.
Depends on your ambitions, dependents and attitude to risk.
I'm sure you'd agree that running your own business CAN have greater rewards in the long term (if it works out).

I've concluded the whole thing will end in tears.
So excuse me if I choose not to run after an out of control train.

I don't necessarily disagree with you.
If you have decided not to buy then I hope it works out for you.
My comments were not aimed at people who didn't want to buy, but at people who have decided to buy but don't want to do anything about it except complain that they can't have what they want RIGHT NOW at the price they want it.

Others can take on 8 jobs, four wives, work 25 hours a day, just to pay triple what someone who didn't have to do that paid 5 years ago - but I'm clearly too lazy to countenance that.

Good for you. Hope it works out :-)

I'm not saying that people should work 7 days a week to buy a house at the peak. Just that if they want something they should be prepared to put in some graft and wait instead of just complaining.

lypsey

I was gob smacked by the top line of this article


http://www.naea.co.uk/about/latest_news_details.asp?id=294&PageNo=1

AVERAGE ASKING PRICE NOVEMBER 2006 £211,401
AVERAGE ASKING PRICE OCTOBER 2006 £226,768

Possibly a typing error???

Paul_Herring

lypsey wrote:

I was gob smacked by the top line of this article


http://www.naea.co.uk/about/latest_news_details.asp?id=294&PageNo=1

AVERAGE ASKING PRICE NOVEMBER 2006 £211,401
AVERAGE ASKING PRICE OCTOBER 2006 £226,768

Possibly a typing error???

You were perhaps expecting £326,768 ?

lisyloo

I don't think it's unusual for prices to fall in October.
This year figures fell LESS than last October so when applying a "seasonally adjusted" interpretation then they are quite good.

You either need to look at figures that are already seasonally adjusted or use your judgement when looking at non-seasonally adjusted figures.

I don't think there is anything shocking out there at the moment apart from the continuing strength of the housing market.

In my opinion this is likely to be affected by rising interest rates, which will really stretch affordability is some households which are already burdened by rising petrol and utility prices.
Infaltion has just risen from 2.4% to 2.7% so rate rises are quite likely in the new year in my opinion.

This is why I decided recently to get on to a fixed mortgage rate.
Those on fixed rate will be fine (for the time being).

lypsey

Yes but you miss the point , this is a 7% decrease in ONE month

lisyloo

It's a decrease in ASKING prices. These mean didly squat.

I can ASK £200,000 for my car but it doesn't mean anything.

I read through the article and it didn't provide me with anything shocking.

I think incomes are being squeezed and interest rates may rise but there is no sign of a crash at the moment in real SELLING prices.

Did you see anything of significance when reading the article?