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Debate House Prices


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Property 50% crash in real terms from top to bottom

2

Comments

  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    chucky wrote: »
    Home owners mortgages aren't affected by inflation, capital owed to the banks is inflation proof. Home owners benefit nicely from real house price falls compared to an FTB.

    ???

    Did I say they were?
  • DpchMd
    DpchMd Posts: 540 Forumite
    whatismoney wrote: »
    This does not make any sense if property is falling in value then property owners are losing out. It is simply not true to say as you did that "Home owners benefit nicely from real house price falls."

    If inflation really takes off then yes a mortgage will go down in real terms, but remember the bank always wins. They will probably revalue all mortgages to the new inflation figures or something. Do not put it anything past them.

    But at this time there is deflation in the property market. Property is falling and debts are going up in value in comparison. As Mike Maloney says we will see big deflation first as we are seeing but have more to go then currency creation will be turned up all over the world to fight the deflation.

    Graham is that you?
    "Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin
  • prowla
    prowla Posts: 14,195 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    House prices were hugely inflated and people can't afford to buy.
    The ever increasing prices and cheap borrowing led to the bubble.
    We all know that bubbles eventually burst.
    IMHO, houses were more than double their value, so 50% would still leave them over-priced.
  • DpchMd
    DpchMd Posts: 540 Forumite
    prowla wrote: »
    House prices were hugely inflated and people can't afford to buy.
    The ever increasing prices and cheap borrowing led to the bubble.
    We all know that bubbles eventually burst.
    IMHO, houses were more than double their value, so 50% would still leave them over-priced.

    Source please.
    "Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin
  • whatismoney
    whatismoney Posts: 9 Forumite
    DpchMd wrote: »
    Graham is that you?


    No I am not Graham, is that you Elvis?
    A billion here, a billion there, and pretty soon you're talking real money Everett McKinley Dirksen
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 6 June 2012 at 9:01AM
    whatismoney wrote: »
    The slide in UK house prices will continue for at least five more years until interest rates are back to normal and crush the value of a home by almost 50% in real terms
    Interesting that our first post you were saying that falls will happen for 5 years.

    A few posts later "It's looking more likely" and "It is just a prediction".
    whatismoney wrote: »
    It is looking more like a 50% real crash from top to bottom
    whatismoney wrote: »
    It is just a prediction 2017
    Sounds like you're not so sure anymore...
  • DpchMd
    DpchMd Posts: 540 Forumite
    whatismoney wrote: »
    No I am not Graham, is that you Elvis?

    Well now I know why Graham accuses me of creating new accounts.

    double-facepalm.jpg
    "Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    ???

    Did I say they were?
    Here we go, groundhog day.
  • prowla
    prowla Posts: 14,195 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I stated IMHO - that is the source.
  • whatismoney
    whatismoney Posts: 9 Forumite
    prowla wrote: »
    House prices were hugely inflated and people can't afford to buy.
    The ever increasing prices and cheap borrowing led to the bubble.
    We all know that bubbles eventually burst.
    IMHO, houses were more than double their value, so 50% would still leave them over-priced.


    Agreed 50% crash will still be overvalued.
    A billion here, a billion there, and pretty soon you're talking real money Everett McKinley Dirksen
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