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House Price Crash 6
Comments
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MickKnipfler wrote: »When are people going to understand that by re-mortgaging to "free up cash" you aren't making money, you are BORROWING
Are you mental man?
Everyone knows a house is your very own personal ATM machine0 -
dannyboycey wrote: »That is absolutely correct. If you can't afford a 3 bed detached now, you still wont when the crash happens for this reason. People often wrongly assume that it's a good idea to buy when the market has fallen/falling. It's not. It makes sense to buy when the market is on the up and prices are rising.
If a lender will give you 5 times your salary now, they sure as hell wont if the market crashes.
why not?
house prices dont affect what you earn0 -
dannyboycey wrote: »That is absolutely correct. If you can't afford a 3 bed detached now, you still wont when the crash happens for this reason. People often wrongly assume that it's a good idea to buy when the market has fallen/falling. It's not. It makes sense to buy when the market is on the up and prices are rising.
If a lender will give you 5 times your salary now, they sure as hell wont if the market crashes.
That wont be a problem for the people who have been saving a nice healthy house deposit (like us)0 -
dannyboycey wrote: »That is absolutely correct. If you can't afford a 3 bed detached now, you still wont when the crash happens for this reason. People often wrongly assume that it's a good idea to buy when the market has fallen/falling. It's not. It makes sense to buy when the market is on the up and prices are rising.
If a lender will give you 5 times your salary now, they sure as hell wont if the market crashes.
I agree with you up to a certain point......
........those of us sitting on a rather large pile of cash can benefit!
I might even buy another couple of BTL's if the yields made it viable.0 -
.......and who is going to sell these houses to you cheap? The couple who bought their first house last year? Do you think they are going to take a X% loss and go rent?
The market starts at the bottom. Someeone has to sell there sometime for all you people further up to move on. If they decide to sit it out property becomes scarce. Pushing prices up ;-)0 -
.......and who is going to sell these houses to you cheap? The couple who bought their first house last year? Do you think they are going to take a X% loss and go rent?
The market starts at the bottom. Someeone has to sell there sometime for all you people further up to move on. If they decide to sit it out property becomes scarce. Pushing prices up ;-)
The same people as in the last crash. Negative equity, unemployment, can't keep up with the mortgage payments, repossesed!
Sad as it was last time it's going to be a hell of a lot worse this time.0 -
I would imagine the fall in property prices will start in one or two regions first, with London and the South East being the last to be affected.
I live in the East Midlands and house prices have actually been falling slightly here of late. It may be a blip, it may be the start of a much bigger fall. There's certainly no shortage of people who want houses, but they're unable to afford them when the average house costs something like 8 times the annual salary of the region.Saved over £20K in 20 years by brewing my own booze.
Qmee surveys total £250 since November 20180 -
According to the Telegraph today, MEW is at 4% of GDP! Remove that spending and you have an instant recession (2 or more consecutive quarters of -ve growth).
Thats not what I meant,
he said they wont lend 5 times salary in a falling market
if im on 50 grand now and I can get 250 grand why will i not be able to get 250 if the house prices are dropping, a bank doesnt care what the value of the house is only that you can pay back what you borrow!0 -
If prices fall and you've got a bit of cash to put down as a deposit and manage to hang on to your job you should do nicely.0
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