Land Registry -0.3% MoM, -2.6% YoY

the_flying_pig

Pimperne1 wrote: »

Except for the ones who stood to inherit the equity in their parent's house.

very few people will "inherit... equity" anytime much before about their 35th birthday at best. indeed they could very easily be 60 years old more when it happens.

as such they hardly qualify as "young".

MissMoneypenny

Road_Hog wrote: »

Not for the ones who've bought a house in the last 4 years. Many who might find themselves in negative equity.

That is nothing new in this boom and bust that we always have in the UK. Gordon lied BTW; this was not the end of boom and bust. I wonder if he really thought that when he then created a massive boom?

As someone said before: buying a house is not being on a property ladder. When you buy a house you are on a property rope, where you jump as high as you can and then try and hang on tight.

ukcarper

joguest wrote: »

caveat emptor

It still makes it bad news for them. I would imagine most people who bought then just wanted somewhere to live and were not in it to make a fast buck.

Pimperne1

ukcarper wrote: »

It still makes it bad news for them. I would imagine most people who bought then just wanted somewhere to live and were not in it to make a fast buck.

Well whether they were or not if they hang on to their house, or at least remain in the housing market, in excess of 25 year then they will probably be made for life.

ukcarper

Pimperne1 wrote: »

Well whether they were or not if they hang on to their house, or at least remain in the housing market, in excess of 25 year then they will probably be made for life.

You are probably right but it will make it difficult for them to get a good mortgage deal or move if they need to. What get me is some people have no sympathy for those people who probably worked hard to gets where they are where.

wotsthat

I don't understand how prices can be reducing. After all aren't we told on this forum by a number of posters that the government will do simply anything to stop house prices falling? There are meant to be multiple props to keep bulls (those with a house or wanting to buy one) in clover. Have some of the props gone or could the falls be explained by simple economics?

joguest

ukcarper wrote: »

You are probably right but it will make it difficult for them to get a good mortgage deal or move if they need to. What get me is some people have no sympathy for those people who probably worked hard to gets where they are where.

Base rates have been slashed to their lowest level for 300 years. A reduction in equity seems only fair given the reduction in interest repayments (and the fact that capital repayments have typically doubled by the rate slashing - lower house prices are mitigated against by faster repayments than the homeowner would have expected on the original interest rate). No need for sympathy.

Road_Hog

wotsthat wrote: »

Have some of the props gone or could the falls be explained by simple economics?

Lack of liquidity in comparison to the last decade or so. Sluggish labour market and deflationary pressure (real terms) on wages.

ukcarper

joguest wrote: »

Base rates have been slashed to their lowest level for 300 years. A reduction in equity seems only fair given the reduction in interest repayments (and the fact that capital repayments have typically doubled by the rate slashing - lower house prices are mitigated against by faster repayments than the homeowner would have expected on the original interest rate). No need for sympathy.

Are the people with little or no equity benefiting from those low interest rates though?

ukcarper

joguest wrote: »

We've got two mortgages (with 99% and 60% equity at today's prices). I'd be more than happy if prices fell 90% - we could sell our first house and buy one worth five times as much with cash. It's only the desperately indebted and those close to downsizing in old age that want prices to rise.

Can you explain how that would work if your house is now worth a £100k it would be worth £10k after fall. If you have 99% equity it means you owe £1k on house so after selling for £10k you will have £9k how is that going to buy you a 5x better house and that doesn’t account for lose on other house.