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Debate House Prices
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Sellers' gloom over property market inactivity
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I'd rather house prices fell than the bank have to lend me 6 x my salary in order to buy in London. Surely in the current climate, even the thickest of the general public would rather something were cheaper than it being easier to borrow more?They are an EYESORES!!!!0
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HAMISH_MCTAVISH wrote: »One where anyone with a decent job, decent credit, and a historically normal, sensible and prudent 5% to 10% deposit can get a mortgage at within a couple of percent of bank funding costs.
Which is NOT what we have today.
So no risk pricing then?
Bearing in mind you can now get 4% on some savings accounts, that would put the average mortgage at around 6 or 7%.0 -
From the actual article (rather than peoples own personal definitions)Economic uncertainty and a lack of mortgage lending led to the sluggish housing market, the Royal Institution of Chartered Surveyors (Rics) said.
So, not JUST mortgage rationing then...It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
What do you mean by a properly functioning market?
I'll have a go.........
HPI > 10% = properly functioning market ?
When banks are having to lend ever higher amounts to borrowers = properly functioning market ?
When some banks are treading on ever thinner ice, and are ever more reliant on dodgy ways of funding their lending = properly functioning market ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »One where anyone with a decent job, decent credit, and a historically normal, sensible and prudent 5% to 10% deposit can get a mortgage at within a couple of percent of bank funding costs.
Which is NOT what we have today.
Arguably they can do all of that - the problems appear to be more that people don't have the 5-10% deposit (because they've never saved) and that even if they borrow a sensible salary multiple they can't buy anything. In terms of problems in the market mortgage rationing tails in behind price and lack of deposits. Of course if more people were saving for deposits, the bank would have funds to lend!Adventure before Dementia!0 -
Out,_Vile_Jelly wrote: »I'd rather house prices fell than the bank have to lend me 6 x my salary in order to buy in London. Surely in the current climate, even the thickest of the general public would rather something were cheaper than it being easier to borrow more?
When it comes to property, I don't think that most of the general public are much bothered about the amount they have to borrow, as long as -
a) They can borrow it.
b) The initial repayments are affordable.
c) They think the value of the property they buy will increase in price from day 1.
When you have that mentality, mixed with no or little "mortgage rationing", you will eventually end up with financial disaster (see 2007).30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Currently it seems people (on large) simply don't have the taste for borrowing to buy a house in the current climate.
You cannot force people to borrow to buy a house. The article quite clearly says demand for mortgages has fallen. So people can moan we don't have the "correct" amount of loans all they like. You cannot force it onto people who do not want to buy as they are not willing to take the risk, as many (and this is in the article) believe said assets are overpriced and will fall in price.
That's not to say people don't have the desire to buy. Just when they have the desire AND the means, it seems many are holding back due to fear of the asset they are buying being overpriced and ready to fall. And who can blame them?
Hamish is begining to sound like a gold ramper. Can't actually explain what he states, just keeps saying it.0 -
Graham_Devon wrote: »Currently it seems people (on large) simply don't have the taste for borrowing to buy a house in the current climate.
You cannot force people to borrow to buy a house. The article quite clearly says demand for mortgages has fallen. So people can moan we don't have the "correct" amount of loans all they like. You cannot force it onto people who do not want to buy as they are not willing to take the risk, as many (and this is in the article) believe said assets are overpriced and will fall in price.
That's not to say people don't have the desire to buy. Just when they have the desire AND the means, it seems many are holding back due to fear of the asset they are buying being overpriced and ready to fall. And who can blame them?
Hamish is begining to sound like a gold ramper. Can't actually explain what he states, just keeps saying it.
S'ok. There is a trend:
Thread is posted. Posters jump in & announce their assertions as to why the market isn't working, without having read the article.
Arguement ensues.
Someone then posts content from article highlighting how the assertion is false.
Flee thread, never to return.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
In addition, Hamish ain't the only one who does this, but it is a definite MO of his, amongst others.
Though he will say he leaves owing to all the "hamish haters"It's getting harder & harder to keep the government in the manner to which they have become accustomed.0
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