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House Price Crash 6
Comments
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Just another point.
People have got used to the prices i.e we know what approximately £300K buys in the area we are looking.
Hasnt anyone noticed that a house that is worth £300K is immediately snapped up when its price is dropped by £10K? I have seen it so many times in the last 6 months that to buy a nice house at a relatively good price one has to be very quick and be in a good position to proceed.
Basically from my experience even a modest drop of 5% will cause a surge in people buying as there is still strong demand out there.0 -
ukbondraider wrote:Just another point.
People have got used to the prices i.e we know what approximately £300K buys in the area we are looking.
Quarter of a million for a small two bed flat with no Garden in Streatham, south London?:eek:
I dont know anyone who'll be getting used to that kind of price ever....0 -
lypsey wrote:MAc
...and I can assure you that any investor worth his salt will rush for the exit at the 1st sign of a 10% loss. This will trigger a massive crash .
I don't know what %age of homes are buy-to-let but lets assume that an area (whatever size) has 1,000 BTL homes let out to renters.
Now (I'm typing really slowly so you can keep up!), let's say 750 of those LLs sell their assets to avoid losing out IF the HPC matures.
Hooray! 750 more house available on the market, prices must fall.
But, wait a minute...
Boo! There are 750 more buyers looking for somewhere to live (the former renters who are made homeless by the LLs selling up).
Net effect on the the supply/demand ratio is minimal.
Besides, buyers end up in the EA fee, Stamp Duty, solicitor fee etc. trap. Renters remain free people, able to move when they wish without huge financial penalties.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
as i have said before, there is a London and South East view of house prices and salaries, which have no bearing on the rest of the country whatsoever.
What happens in the South East with the city bouses, is not reflected anywhere else that I am aware of.0 -
london had a nominal 32% fall during the last crash according to nationwide, not sure what the real (including inflation) figure was. Nominal prices recovered in 2002, (with thanks to Sir Humphrey @ http://forum.globalhousepricecrash.com)"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0
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