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Debate House Prices
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Savers 'lose' £43bn, Mortgagees 'gain' £51bn.
Comments
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heathcote123 wrote: »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.
Yeah, right.
If you really want this, see "greedy, short-sighted ******d".
If you are just saying this to provoke a reaction, you just got one.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
undetterred wrote: »Yawn,how predictable.......cmon devon,step upto the plate.
I think he's hit a home run.
Pitch again sunshine.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
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.
What I am asking is whether you believe in your personal circumstances, house price falls will actually benefit you, as an individual.
I think we all know where the contributors to this board are coming from VI wise. I have absolutely no idea where you are coming from though.
I dont think I am the only one. Considering how much you post here it isnt unusual that your "readers" would like to know.0 -
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Have I got this right?
Shared ownership 50/50 total cost £200k
So 50% share = £100k
House prices drop 50% the 50% share is now = £50k and equity -(£50k).
So you need £50k before you start saving for a deposit, !!!!!! :eek:
How does that fit in with Dev's plans?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.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.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Yeah, right.
If you really want this, see "greedy, short-sighted ******d".
If you are just saying this to provoke a reaction, you just got one.
Calm down dear, you are over-reacting.
Which bit is it you don't like? Folks round here are generally quite keen on the idea of cheaper houses. I agree. In fact you seem quite keen on that too...0 -
Shared ownership 50/50 total cost £200k
So 50% share = £100k
House prices drop 50% the 50% share is now = £50k and equity -(£50k).
So you need £50k before you start saving for a deposit, !!!!!! :eek:
How does that fit in with Dev's plans?
Devonian Economic Theory...... Enough said.
“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 -
[QUOTE=Graham_Devon;46735999 Savers 'lose' £43bn, Mortgagees 'gain' £51bn.[/QUOTE]
who told people that putting cash in a bank account was the best investment vehicle? savings rates can go down as well as up, who said they were going to be at 5% for ever?
if people think they are 'losing' money by saving they don't really understand...0 -
Have I got this right?
Shared ownership 50/50 total cost £200k
So 50% share = £100k
House prices drop 50% the 50% share is now = £50k and equity -(£50k).
So you need £50k before you start saving for a deposit, !!!!!! :eek:
How does that fit in with Dev's plans?
If Dev didn't put a deposit down on his 50% share, and hasn't had the mortgage for very long, then yes, he has ~ -£50K equity. I don't think he wants or expects 50% price falls, and I think he might have been paying the mortgage for a while.
So your theory may be correct, but I don't think it's the reality of the situation.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Have I got this right?
Shared ownership 50/50 total cost £200k
So 50% share = £100k
House prices drop 50% the 50% share is now = £50k and equity -(£50k).
So you need £50k before you start saving for a deposit, !!!!!! :eek:
How does that fit in with Dev's plans?
Yep, thats correct.
But I don't understand quite what is so surprising?
A) Any "normal" purchase of a house valued at 200k losing 50% would leave you 100k worse off, rather than 50k.
With the SO property, you could now buy the second 50% at half the price you originally bought the first 50%.
C) All other houses will also have dropped 50% in price. Therefore, like ANY other purchaser in negative equity, you will need to buy out the original mortgage before moving. There really is no difference.
I see Hamish has jumped in to call it Devon Economic Theory, but it's no different to any other mortgaged property, apart from you are somewhat shielded from falls dependant on your percentage.0
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