A cry of anguish

ILW

olly300 wrote: »

The late 80's, the early 70s, after the war....

Late 80s were not good, market did drop 30% early 90s

.
I bought my first place Dec 89, and IRs hit 12%.

Tended to just get on with things as didn't have the internet to moan on though

ruggedtoast

ILW wrote: »

Compared to when?

Compared to when you were young boomers.

ukcarper

ruggedtoast wrote: »

Slightly better deal?

You boomers really have no appreciation how much more expensive getting on the ladder is these days do you?

When I bought my first house in the early 70s it was higher in relation to earnings than property is now.

homelessskilledworker

ash28 wrote: »

A 30% fall in property prices actually wouldn't change our current lifestyle - why would it? We, along with about 45%of the people who live in owner occupied housing have no mortgage.

And for those who had a reasonable amount of equity - they might lose on the house they currently live in but their next step up could suddenly become affordable.

Our house in the early 90s lost around 36% of it's "value" (in the south east) during the last big crash - we were left with our original deposit.

We lived in a small 3 bed and couldn't afford the next step up - the property crash meant all of sudden that nice 4/5 bed family house we had always wanted, was in our reach. And we bought it.

This is massively reassuring to me, and something that I am going to have to admit getting seriously wrong going on what quite a few have said on this thread.

I thought quite a few people would be hurt if not worse by a fall of 30%, something that I really hope happens for reasons I have repeated many times on this board(not purely for my own needs, but is one reason).
It is far more comforting knowing if I get what I want nobody else will suffer.

chewmylegoff

homelessskilledworker wrote: »

It is far more comforting knowing if I get what I want nobody else will suffer.

if prices fall by 30% in nominal terms do you honestly think "nobody else will suffer".

i cannot think of anyone who wouldn't suffer, apart from perhaps a hedge fund which had taken short positions betting on general economic derailment.

ILW

chewmylegoff wrote: »

if prices fall by 30% in nominal terms do you honestly think "nobody else will suffer".

i cannot think of anyone who wouldn't suffer, apart from perhaps a hedge fund which had taken short positions betting on general economic derailment.

In what way would everybody suffer?
Don't think I would.

chewmylegoff

ILW wrote: »

In what way would everybody suffer?
Don't think I would.

the banks would pretty much all need to be bailed out again for a start, so you would suffer assuming that you do one of the following (i) pay tax in the uk; (ii) use public services in the uk; (iii) receive benefits in the uk; (iv) buy things in shops in the uk; (v) pay a mortgage in the uk and not have a long term variable deal paying close to base rate (vi) have your wealth in sterling and buy things from abroad.

michaels

Except may be your local carpet and diy places would be boarded up, half the take-aways in town closed, potentially your bank nationalised, supported by your taxes. Just because your own direct circumstances might be OK (at least as the result of first round effects) doesn't mean you would be unaffected by the knock on effects - still if you sell burglar alarms and window bars business might be booming...

Edit: Cross post with Chewie

ILW wrote: »

In what way would everybody suffer?
Don't think I would.

Graham_Devon

I think people need to stop blaming the boomers for everything they got. They couldn't have known they would have ended up where they are.

On the other hand, said boomers need to stop insulting the young at every opportunity.

My personal issue, and I know this is the issue for some others too, is how the housing market, at the moment, seems somewhat favoured towards those with houses. I should be on that side I guess, having a mortgage of my own.

Theres a hell of a lot of stimulus hitting the propety market (indirectly or not) meaning those who can't really afford their properties get to keep them, whereas those with exactly the same finances can't have one simply because they were born at th wwrong time, or didn't buy at the right time.

The younger generation are getting hit harder and harder. The facts show this. Getting a job is a huge battle. Getting a decent salary is the next battle. Getting a house seems impossible. BTL landlords are favoured by the mortgage companies. Older people are favoured by the government. Anyone who already has a house is favoured for mortgage purposes. The young are told they should buy shared equity and be damn grateful for it....whereas everyone knows full well it's just more expense for the same thing.

For young people who work, they see older people in homes they can't really afford, holding on to them through pure luck, but the luck is somewhat rubbed in their faces at all angles. They see their counterparts from school lavishing it up on benefits and getting given pretty nice homes...meanwhile, they are supposed to put up and shut up.

The advice from the older generation in all these arguments is to buy a flat or small home. Then if they do, and find they can't afford to move for family growth reasons, they get lambasted for not buying big enough in the first place.

We have had people on here having a pop at the young for not buying big enough....the older and wiser bought a house big enough for their needs. At the same time, they are lambasting the same age group for "wanting it all".

I've personally been told A) that I should make do and be grateful for what I have got and stop "moaning" and wanting everything handed to me on a plate that I shouldn't have bought the house in the first place and should have saved up more for a house that suited me (though thats wanting it all apparently) and C) that I shouldn't ever have rented as that was a waste of money...... 3 arguments all by the same person, each argument falling over itself.

I guess my feeling with these threads is you are damned if you do and damned if you don't.

ILW

I was not thinking in terms of a crash, more a matter of prices just being 30% lower. ie they had not risen as much or stay stable and inflation causes a real terms drop over a number of years. I believe they have already dropped around 15-20% in real terms since the peak.