House Price Crash 6

lypsey

I am actually completely gobsmacked by this and am not really sure whether this is true but.........

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/03/15/ccmort15.xml

It says "Data from the Bank of England shows that "specialist" lending in the UK has risen from 6pc of all mortgages in 1996 to 26pc last year, reaching £281bn" . It is saying the US could have a crash as big as the great crash in the 1930's

If this is true , this crash is going to be enourmous, and far greater than the 40% I have forecast,

dannyboycey

http://forums.moneysavingexpert.com/showthread.html?t=401668

BargainHunterCat

Now I am getting excited about prices coming down! :T

Doozergirl

I don't think anyone should take financial advice from someone who can't count.

You have started the following threads:

House Price Crash
House Price Crash 3
House Price Crash 4
House Price Crash 5
House Price Crash 5
House Price Crash 6
House Price Crash 6

dannyboycey

BargainHunterCat wrote: »

Now I am getting excited about prices coming down! :T

Yeah, be aware though, if you are a first time buyer and the market crashes then lenders will be reluctant to lend as much. However, if prices do come down, you will be getting much more house for your money.

Guy_Montag

I was thinking we'd had HPC 6 before.

Still never mind, easy to get mixed up.

Generali

Britons are drawing cash out of their houses at a galloping pace of over £50bn a year, a lifestyle subsidy of 4pc of GDP.

Is this true? Is this money actually going on holidays, cars and plastic tat or is it being invested in BTL?

dannyboycey

It's good to see the government are spending our hard earned cash wisely though isn't it: http://news.bbc.co.uk/1/hi/uk_politics/6453575.stm

Dead_Eye_Jones

People have been predicting this for ages, and have been wrong for years now. I've no doubt one day they will be right - and we look frwd to the 'told you so posts' (not!), but im glad I didnt hang around. At my rate Ill be mortgage free before some have even started!

Will there be a crash? Maybe! But FTBs need to know that they will be competing for these bargins against Investors who have hung back, City bonus spenders, and people like me who will fancy riding the next wave with a few BTLs. Im not so sure people will have any better access to property, even if they cost less.

dannyboycey

Generali wrote: »

Britons are drawing cash out of their houses at a galloping pace of over £50bn a year, a lifestyle subsidy of 4pc of GDP.

Is this true? Is this money actually going on holidays, cars and plastic tat or is it being invested in BTL?

I think that they are realising that they are in deep trouble financially and need to free up cash either to pay their own debts or to stupidly fund their childrens housing deposits. Nobody is simple enough to use their property money to fund a week in Benidorm.... are they?

buglawton

Yesterday the papers were trumpeting "Interest rates will have to rise to 8% to control house prices" or somesuch. The key point is that no matter what happens to prices, housing will always be equally difficult to afford while demand exceeds supply. Remember that during each housing price fall in the past, the actual number of house transactions did NOT rise. The reason prices fell was because EVERYONE felt physically reluctant to buy at that time and this would include the people who had been 'waiting' for that price crash.

For a balanced view read the 1st article on this page:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/03/10/cmian10.xml