Savers 'lose' £43bn, Mortgagees 'gain' £51bn.

DervProf

ruggedtoast wrote: »

I dont understand your manfiesto Devon.

You own a property through a shared ownership. You are effectively a home owner.

Yet you thirst for house price falls like a wrinkled dry cactus in the desert thirsts for the Autumn rains.

Why?

You (and Hamish) ask "Why?".

:rotfl:

If you actually think about it, you might know why. I understand why GD would like to see lower house prices, and there is a very easy to understand and logical reason. Seems like you are looking to have a "pop", and have come up with some convoluted way of doing so.

ruggedtoast wrote: »

Bump.

This won't be forgotten Graham.

I reckon it'll be you who will want this to be forgotten.

undetterred

Yawn,how predictable.......cmon devon,step upto the plate.

DervProf

OK, I'll explain my reasoning why Graham (or anyone else with a shared ownership property) would want house prices to fall from where they are now.

I take it by "shared ownership", Graham is part buying (or has bought) part of his home, and is paying rent on the other half. Actually, he may own part of the property and someone else owns the rest of it, but the detail doesn't really matter.

I think it's fair to say that Graham would like to buy all of the property he lives in, or would like to move elsewhere and buy 100% of the new place. It doesn't take much imagination to work out why lower property prices will help him, unless I am totally missing the point. I understand that he has a son, and I can understand that as a parent he would want lower property prices to allow his son to be able to buy a place more cheaply.

And if the above reasoning doesn't make sense, then may this will......

GD might not be a greedy, short-sighted ******d. Yes, there are a few of us around.

JonnyBravo

DervProf wrote: »

GD might not be a greedy, short-sighted ******d. Yes, there are a few of us around.

So just to be clear.
Are you saying that anyone who wants house prices to rise is by definition "a greedy, short-sighted ******d"?

HAMISH_MCTAVISH

DervProf wrote: »

I think it's fair to say that Graham would like to buy all of the property he lives in, or would like to move elsewhere and buy 100% of the new place. It doesn't take much imagination to work out why lower property prices will help him, unless I am totally missing the point..

As Graham has admitted he wouldn't get a mortgage now from his lender, falling prices have done him absolutely no good at all.

A house being cheaper is of no help to someone that can't get a mortgage at all.

DervProf

JonnyBravo wrote: »

So just to be clear.
Are you saying that anyone who wants house prices to rise is by definition "a greedy, short-sighted ******d"?

No, but I have met plenty who do exhibit these characteristics.

DervProf

HAMISH_MCTAVISH wrote: »

As Graham has admitted he wouldn't get a mortgage now from his lender, falling prices have done him absolutely no good at all.

A house being cheaper is of no help to someone that can't get a mortgage at all.

However, if prices fall far enough, the mortgage requirement may not be so great, and therefore the bank may lend the amount required.

Even if Graham can't get the mortgage today, then I'm pretty sure he'd like to do so at some time in the future. HPI is likely to lessen his chances.

Graham_Devon

Derv, you have it pretty much spot on.

As a second point, what is it with people pretending they cannot see any point of view, all in order to try and get one over another poster?

I've gone through why I want prices to fall several times now, so don't feel the need to type it all out again.

Suffice to say, Derv's point about short sightedness summed it up perfectly. If you are saving money for a deposit and are in no rush to go and buy, every bit you save mounts up to a lower LTV. Every house price decrease also does the same. A bit like pensions, for every £100 I put in, my employers put more in. It's what falling prices does to any potential deposit. My hope, and thats all it is, it isn't a plan, is to have a big enough deposit on what I would class a reasonably priced house in order for my wages to allow me to do my best for my son and family, in terms of days out and time together. It's what I missed out on in a way as my parents were doing all they could to earn every penny for us. I'm determined to spend some quality time with him AND house him. Not one or the other, which it seems so many see as "normal".

Many can't see this, and will simply be ready to shoot you down, whether it be "ha, you can't get a mortgage, you wished it upon yourself" or "ha, you can't afford a house, your fault, you should have spent every penny you have on debt". If my hope doesn't work out, then fine, but I'm not in a competition to own the biggest house or go rushing out to buy something bigger / better and set myself up for a large fall should I not be able to work for any reason.

heathcote123

HAMISH_MCTAVISH wrote: »

I too am curious as to why GD ghosts out of the thread every time this comes up.:)

Dunno if it's that odd really. I'd welcome a 50% fall in house prices tommorow, would give me a chance to stock up on some more BTL - and I'd probably buy out the other half of my SO.

I want property to be high when I'm selling out, not while I'm still buying.*

*Apart from in Edinburgh, where I want prices to be astromical permanently.

DervProf

Graham_Devon wrote: »

Derv, you have it pretty much spot on.

As a second point, what is it with people pretending they cannot see any point of view, all in order to try and get one over another poster?

I've gone through why I want prices to fall several times now, so don't feel the need to type it all out again.

Suffice to say, Derv's point about short sightedness summed it up perfectly. If you are saving money for a deposit and are in no rush to go and buy, every bit you save mounts up to a lower LTV. Every house price decrease also does the same. A bit like pensions, for every £100 I put in, my employers put more in. It's what falling prices does to any potential deposit. My hope, and thats all it is, it isn't a plan, is to have a big enough deposit on what I would class a reasonably priced house in order for my wages to allow me to do my best for my son and family, in terms of days out and time together. It's what I missed out on in a way as my parents were doing all they could to earn every penny for us. I'm determined to spend some quality time with him AND house him. Not one or the other, which it seems so many see as "normal".

Many can't see this, and will simply be ready to shoot you down, whether it be "ha, you can't get a mortgage, you wished it upon yourself" or "ha, you can't afford a house, your fault, you should have spent every penny you have on debt". If my hope doesn't work out, then fine, but I'm not in a competition to own the biggest house or go rushing out to buy something bigger / better and set myself up for a large fall should I not be able to work for any reason.

Something for ruggedtoast not to forget.

It's called being reasonable. It's called being slightly ambitious, without "wanting icing on the cake". People like myself don't want house price falls to spite anyone. I want house prices to be at what I see as a level that a "hard working" family can afford. I don't want the purchase of a house to rely on hocus pocus economics. I don't think that it's healthy for an economy to rely on HPI. HPI should be a symptom of a healthy economy, not the supposed cause of it.