Interest Rates could hit 6% very soon!

thesaint

sanfrancisco wrote: »

Hey mm,

I was questioning why 20/30% was called a correction, and how just a correction will cause a mess.

I am one of the ones who has been born too late, and am priced out.

Bring the crash on.

I can't wait for all the greed to stop and for us all to live again where we care a bit more about each other, and less about money.

Irony in it's purest form.

meanmachine_2

thesaint wrote: »

People "Out of the market" have experienced carnage?

Come on.

You don't think that a property market which utterly and completely decimates a whole generation's spending power is "carnage"?

I'm speechless.

thesaint

meanmachine wrote: »

You don't think that a property market which utterly and completely decimates a whole generation's spending power is "carnage"?

I'm speechless.

I do not know which generation that you speak of. There are plenty of rental properties available, and the rent has been more or less static for many a year, while mortgage rates have been going up and up.

So a renter's spending power has not changed as much as a homeowner's or BTL'er.

If you are talking about the Golden Goose that is home ownership, aspire to something else in the meantime.

The glass is really half full.

prudryden

Or is it half empty?

Melissa177

sanfrancisco wrote: »

Who cares what its called. 20/30% would cause absolute carnage, and would lead to recession.

Actually, that's a good point - can a recession come as a result of a HPC, or does it always have to be the other way around?

I've always thought that a recession is needed to trigger a HPC in the first place? And the resulting crash makes the recession worse?

phlash

Correct me if I'm wrong, but I thought the recession followed the HPC in the "last crash"?

Melissa177

meanmachine wrote: »

You don't think that a property market which utterly and completely decimates a whole generation's spending power is "carnage"?

I'm speechless.

There are still plenty of FTBs buying. People are just buying later, and having to do without luxuries in life. If "carnage" was being caused, the market would have creashed already.

When my grandparents and parents struggled to get on the property ladder, they gave up all kinds of luxuries in order to save - my grandparents saved pennies by keeping chickens and selling the eggs, my parents never went to the pub/went out for meals/scrimped and saved on groceries etc. My generation wants everything handed to them on a plate. I went without a lot of things in order to afford my flat, and then bought a flat right near the bottom of the ladder. If I can do it, others can!

Contrast that with some FTBs who were moaning that "all they wanted was a nice two bed flat in West London" and that they couldn't afford it (this was in the ES a while ago). Find a cheaper area/buy a one bed!

sanfrancisco

Melissa177 wrote: »

Actually, that's a good point - can a recession come as a result of a HPC, or does it always have to be the other way around?

I've always thought that a recession is needed to trigger a HPC in the first place? And the resulting crash makes the recession worse?

The last HPC started in 1989, and led to the recession that began in 1992.

meanmachine_2

Melissa177 wrote: »

There are still plenty of FTBs buying. People are just buying later, and having to do without luxuries in life. If "carnage" was being caused, the market would have creashed already.

Evidence? Sources?

I thought FTBs were at their lowest ever in the history of the housing market, replaced by boomers drawing on their unearned equity to BTL.

Those few FTBers left are being helped onto the ladder/snake by mumsy and dadsy.

Those without rich parents are screwed.

Thanks Labour, you lying, hypocritical shills.

Melissa177

I didn't get any help from my parents at all (they couldn't afford to anyway!), there are still plenty of FTBs out there.

Here's an interesting article from the BBC back in Feb:

http://news.bbc.co.uk/1/hi/business/6357057.stm

FTBs account for about 36% of new home loans, which is still fairly high, but not as high as the 50%+ in the 90s.

If there were no FTBs coming into the market from the bottom, common sense tells you it would crash, as there would be no fuel for the bottom of the ladder, and the people on the next rung up wouldn't have anyone to sell to.