Daily Mail headlines house price crash

lenny007

BTman wrote: »

I fully agree with that..

It is a real shame that the only way that a lot of people in my situation will ever be able to afford a home is if prices tumble and the people you refer to hit hard times, I would rather most didn't, but you got to look out for number one...
It really is not my problem if people have stretched themselves to the limit when interest rates are historically low (but now heading upwards).
I could probably buy now, The bank will probably lend me enough for a 1 bedroom hovel in chavsville, but I am sensible and predict higher interest rates due to inflation creeping up. There is no reason why rates shouldn't return to the average of around 7% and maybe even hit 10% to 12% in the next few years.
Even with a fixed rate mortgage people will get stung with their fix runs out and they notice that their IO mortgage payments have doubled over night, just as those who bought at 3.5% a couple of years back are finding out.

OK, maybe I was a bit harsh in my comments, but having your nose rubbed in it by multiple home owners and BTL numptys when you can't afford a home for your family makes one slightly bitter...

You're a real charmer aren't you?

There's a difference between "the prices have come down, hurrah for me!" and " the prices have come down, ha ha suckers!!"

Experts, media et al have been predicting a bursting of the bubble for a few years but oh dear, all that's happened at worst is a stabilising of the market. If YOU can't afford to buy somewhere, i feel sorry for you - i really wouldn't want to be starting out in the game now.

But i'm not sitting in my house lording it over you or people in your position.

There is a historical precedent that the market will be manipulated to create favourable financial conditions. The BOE Governor admitted as much a matter of months ago. If there were signs of the sort of collapse you're hoping for, i daresay that due to the autonomy the BOE has now, it'll manipulate the rates to lessen the blow.

I appreciate your bitterness but it's still not on. It's like hoping someone has a car crash in order to get their car cheaper. You're focussing on the pain, not the gain.

CB1979_2

BTman wrote: »

I am so looking forward to coming back to this board when prices do eventually start to drop..

Be warned, I will be a right smug git!!

well that must make everyone else being smug at you for the last few years, cos you've been wrong whenever you post House Price Crash rubbish.

so i suppose you being totally & utterly wrong and being embarrased about it gives you good reason to be smug IF it happens and not just stabillises (by the way if they do stabillise you still won't be able to afford one! "HAHAHAHAHAHA" that was me being smug)

not specifically aimed at you but to all the other HPC hopefuls:
I'll ask again, why do you want on the property ladder if you're happy for house prices to crash? surely with such a dodgy "investment" you wouldn't want a part of it?

or possibly when you're in a position to actually own a nice house, you'll be pleased to see your home lose 50% of its value as well?

if you can't afford to own a home, rent and make do, why the constant moaning

BTman

CB1979, you are exactly the type of person I am aiming my venom towards. I hope you end up living in a box.

There's a good BBC have your say today... http://newsforums.bbc.co.uk/nol/thread.jspa?sortBy=2&threadID=6061&edition=1&ttl=20070413161101&#paginator

CB1979_2

ouch - don't cry man, just accept that you can't afford a house yet.

so 1 of 3 things has to happen

1) you have to earn more, thought about a second job?
2) you have to hope prices drop to your affordability - this is what you're obviously waiting for.
3) move somewhere, you can actually afford, I may want to live in Central London, I can't yet, so I'll live elsewhere for the time being where I can afford

but why get so het up about something you have no control over, continue living in your rented accomodation, enjoy what you have now live for the day and all that malarky.

wouldn't it be ironic though that house prices crash so you could afford them, but then you get made redundant cos the company goes bust cos of the recession you've been hoping for years actually happens!

btw you didn't answer my q's about why you want on the unstable investment ladder?

Ems*Honie

BT Man, Just because I can afford a house now, does not mean I gloat at those who cannot. Your suggestion is that you will gloat if I lose my house. I am also a buy to let numpty, thanks for that , I rent a house to my sister and her disabled boys as they couldn't afford a deposit on a decent house otherwise. I stake my furure, my childrens future and my sisters future on being able to pay our mortgages, I am not going to apologise for that.

I feel sorry for people who weren't lucky enough to buy a property before the current boom, but it doesn't mean I should feel guilty for having bought our first house. I bought at 18 yrs old, infact we started looking more or less as soon as it was legal. We were both very young and took a huge risk. We couldn't afford the house of our dreams then either, we bought what we could afford and made the most of it.

I have retrained rcently i the hope that should interest hit the roof I have a good foundation to at least pay some of the mortgage each month aswell as raise the kids, perhaps you should consider night school too? WE have worked hard to get here, it did not fall into our laps. We are not smug, grateful maybe?

WE took what we could and made the most of it, without the downfall of others around us to make it happen. It is sad how bitter some people are.

amcluesent

Let's be clear about why interest rates are low, allowing an asset bubble in housing.

All the Western economies are running their Mint's printing presses 24*7 to pump liquidity into their economies to sustain the debt-based 'boom'. It so happens that China (esp.) has been happy to buy all that debt. If their appetite for buying debt declines for any reason (Israel bombs Iran?) then all the Western economies will raise rates to make their debt more attractive and mortgage rates will shoot up. (N.B 'Prudent' Gordon will be as much use as a chocolate teapot in this scenario).

The bubble has already burst in the USA with real declines in property values. There is a good case to be made that the UK housing market has been traduced into a Ponzi scheme. As of now, no-one on a public sector wage can play and private sector people are going with 7 times salary, interest only mortgages.

Who will be the first to call that paying £250,000 for a chipboard flat squeezed into brownfield between two council blocks is a monumental con? We are not far away from the day of reckoning.

ManAtHome

Good points Amcluesent, but I think only causing a problem at the moment in the US due to defaults, presumably "helped" by IRs reaching over 5 times what they were a few years ago. If they'd had the BoExcess, things may have turned out slightly "better".

Of course, ultimately this might have softened the eventual blow - but if things turn sticky over here, we can always double house prices to pay off the debts again can't we..?

Tahiti

No one knows for a fact what will happen, but it seems obvious to me that if there are few first time buyers, there is less upward pressure on prices.

Mind you, I've been thinking it for about 18 months now, and the prices are still rising (even if very slowly in my area, on the sub £250k sector at least).

I genuinely feel sorry for people who can't get a foot on the ladder (many of my friends are in this position), but the flip side of that is a crash will result in people losing their homes. I'd hope that people are not spiteful enough to want to see this happen en masse. As for BTL, you could argue that the more reposessions there are, the more customers there are needing to rent.

I just hope that not too many people get hurt by the housing market pressures (either as a home owner or a wanna be first time buyer).

mystic_trev

Unfortunately many people are now in huge debt. Add to that doubling of Council tax, massive utility bills and increased Interest rates.......it aint looking good. Many Professional Property investors are now hedging against Price falls next year by using financial instruments to "short" the market, thus protecting themselves. As usual it’ll be those who can least afford it who will suffer the most.

hearts

I don't know about where you are but the prices in Edinburgh are shooting up. A tenant of mine asked less than a year ago to buy the property he was living in. I said he could have it for 85k. Less than a year later same property just sold next to me for 115k.
This is the bottom of the market of course and these properties are being snapped up for buy to let, because of there high rents to mortgage but it has a knock on effect for all other properties.