House price crash?

davesgirl97

homer_j wrote: »

whilst there is insufficient housing to meet demand - no. I think that it will level out or dip slightly but crash would be disasterous for the economy...

You have said exactly what our mortage broker said yesterday when I asked him and his partner this question, which I think it will do this, but it doesnt sort out the problem of it making homes affordable, I guess we need a goverment that will put wages up , but keep house prices the same or slighlty lower:D....all tho a crash would be disasterous for the economy, it can happen, it has happened before.... Thankyou Homer_j for your inpute, I appreciate it

homer_j_3

I think its one of those evils - increase wages and it allows people to borrow more which puts people in more debt or in a position to pay more for a house so you do not actually get rid of the underlying problem which is that there is not enough housing in this country.

I think that there should be more affordable housing and things like shared ownership schemes for people who cannot get onto the housing ladder but what I have found is that people take advantage of the schemes and they inevitably help those who can already afford it rather than those that cannot.

Take a situation that I had a little while ago where someone came in for a shared ownership property that we were selling in the EA where I work and because I did not offer islamic mortgages due to not having any on my wide ranging panel of banks and building society, he just said he would pay cash for it then. That to me is not someone who cannot afford to buy a house.

hollyblue

homer_j wrote: »

I think its one of those evils - increase wages and it allows people to borrow more which puts people in more debt or in a position to pay more for a house so you do not actually get rid of the underlying problem which is that there is not enough housing in this country.

I think that there should be more affordable housing and things like shared ownership schemes for people who cannot get onto the housing ladder but what I have found is that people take advantage of the schemes and they inevitably help those who can already afford it rather than those that cannot.

Take a situation that I had a little while ago where someone came in for a shared ownership property that we were selling in the EA where I work and because I did not offer islamic mortgages due to not having any on my wide ranging panel of banks and building society, he just said he would pay cash for it then. That to me is not someone who cannot afford to buy a house.

I think you are absolutely right Homer, the ability to borrow money is scarily easy these days.

I also think shared ownership is a fantastic way of assisting young people/FTBs. This is how I managed to get on the ladder 9 years ago and am still there as house prices are so expensive I can't afford to move up to a fully owned property. I'm hoping to be able to sell my share to my daughter when she's old enough. That way I don't have to live with her until she's 30 and can afford to buy her own!!

I certainly hope there isn't a crash but that property remains static for some time in order to let wages catch up. Fingers crossed eh

Paulinuk

sooner it crashes the better,its all stupid,what good does these crazy prices do1000s of people can never buy,i came off market sold 1bed flat for £28000 now its a horrendos £96000 mad,i was going to retire to krakow but its gone mad there as well.its a stupid world

Snow_Dog

homer_j wrote: »

whilst there is insufficient housing to meet demand - no. I think that it will level out or dip slightly but crash would be disasterous for the economy...

Certainly be disastrous for the masses of mortgage advisers that seem to have sprung up along with the EA's over the last few years.;)

homer_j_3

Why would it be disasterous for me if the house prices were to crash - more people would be able to buy and I would have more business? Or am I missing something?

If you were right then I would just have to use my other qualification and move into investments or I could draw upon my management experience and go back into that or I could try my hand at something new - I lwould see it as an opportunity personally?

Seriously there would be more hurt if prices were to crash than just me having my trade affected.

Alias_Omega

Well for me, im aged 27, have a child on the way, partner is 21, unemployed with 1 child already, claiming benefits. I work full time in the raf, i earn £26,600 a year.

With this setup, the house i can buy would be about £130,000. This would buy me a ex council house around my area.

This shows me that even if i work my !!! of for 22 years in the raf, ill leave with a small pension, no house living in a council house.

I should just throw it all away, claim job seekers allowance and be in and out of work for the rest of my life, then at 65 claim that free state pension as the goverment has paid the NI contributions.

If i could move abroad with my skills, i would.

Snow_Dog

Darned good point, if house prices were to come crashing down i'm sure people would be lining up to buy.

And as Confucious once said, those that can, do, those that can't, go into management.

(Sorry couldn't resist that, blame it on the brandy and a long week)

homer_j_3

Well at least you can buy a house and its a start. When your partner becomes employed or your children are old enough to allow your partner to work then hopefully this will allow you to buy someting different.

Ultimately some people cannot even afford a council house.

pickles110564

Rick62 wrote: »

I think a property crash would be very healthy, make it affordable again and maybe make people realise that a house should be somewhere to live, not a place where stupid speculators can make fortunes for doing nothing.

How can stupid speculators be stupid if they are making money?