Telegraph-Spare a thought for HousePriceCrash whingers as prices prepare for take off

Turnbull2000

http://blogs.telegraph.co.uk/finance/ianmcowie/100023946/winners-and-whingers-as-house-prices-prepare-for-take-off/

But for every winner there is a whinger. Spare a thought for Housepricecrash.co.uk devotees who have been waiting and wishing for house prices to plunge for years now.

:rotfl:

the_flying_pig

well, he's absolutely right to say that HPI creates a loser for every winner.

Carl31

The housing market is getting boring now
If there is going to be constant attempts to keep it 'stable' by the government, in whatever the current guise is, then of course it is going show signs of 'recovery', but one day, these attempts will fail, the further prices go, the less consumers have to spend on other commodities
All it is is prolonging an ever growing pain. The current housing market will be the next big finance story for the history books, and not in a good way

CLAPTON

If it result in more houses being build (rather than simply exchanged) then maybe it wull be a good thing althopugh new builds are generally speaking bad value.

I'm not really sure whether banks will be encouraged to lend more to high LTV people as the rules don't say what effect they will have on the banks capital ratios

Murphy_Gooner

CLAPTON wrote: »

If it result in more houses being build (rather than simply exchanged) then maybe it wull be a good thing althopugh new builds are generally speaking bad value.

I'm not really sure whether banks will be encouraged to lend more to high LTV people as the rules don't say what effect they will have on the banks capital ratios

Banks wont get risky. Those days have long gone. And its a sad fact that people trying to get on the housing ladder are going to find it extremely difficult.
I really do feel for people who are trying to get somewhere in life

Carl31

Murphy_Gooner wrote: »

I really do feel for people who are trying to get somewhere in life

Hopefully most people don't gauge their life success on whether they own a house
Else there might be a few deluded people walking about

Turnbull2000

Murphy_Gooner wrote: »

Banks wont get risky. Those days have long gone. And its a sad fact that people trying to get on the housing ladder are going to find it extremely difficult.
I really do feel for people who are trying to get somewhere in life

With state backed mortgages coming into force next year, I'm pretty sure our banks will start taking risks again. And why not? The government will have a direct interest in ensuring house prices do not fall, and will step in should it happen (unlikely as that now is).

I'd take investment risks too if I knew someone else will swallow any losses.

dryhat

Still living in your sister's spare room turnbull?

Murphy_Gooner

Turnbull2000 wrote: »

With state backed mortgages coming into force next year, I'm pretty sure our banks will start taking risks again. And why not? The government will have a direct interest in ensuring house prices do not fall, and will step in should it happen (unlikely as that now is).

I'd take investment risks too if I knew someone else will swallow any losses.

I wouldn't look into that as if it will help thousands upon thousands of young couples get into the housing ladder.

The government are going to provide up to 20% of the value of a property which would be used as deposit as most lenders these days want you have put that much deposit down.
You need to have 5% deposit of your own (which you would expect anyway) so the government would give the remaining 15% and this will only be available for the purchase of a new build property which we all know are usually overpriced and cheaply built and small as possibly built.

grizzly1911

The costs of these initiatives, to the buyer is not yet known,

For some it may be too much to bear.

Keeps the house builders happy as they pass on, typically overpriced, property and keeps their cash flow ticking over.

CLAPTON

Murphy_Gooner wrote: »

I wouldn't look into that as if it will help thousands upon thousands of young couples get into the housing ladder.

The government are going to provide up to 20% of the value of a property which would be used as deposit as most lenders these days want you have put that much deposit down.
You need to have 5% deposit of your own (which you would expect anyway) so the government would give the remaining 15% and this will only be available for the purchase of a new build property which we all know are usually overpriced and cheaply built and small as possibly built.

I don't think the issue is whether the banks 'want' 20% deposit.

The issue is that the government (FCA et al) instructs them to keep greater reserves for high LTV ratios which makes lending less financially rewarding.
So the question is how will these type of loans appear on the bank's books?