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A very very very bad day for the housing market

1235

Comments

  • tonydee
    tonydee Posts: 722 Forumite
    Part of the Furniture Combo Breaker
    Indeed. Those of us who remember the last Crash (fumbles for stick and false teeth!) also remember that the largest falls in Property prices happened when Interest rates were going down. Once the initial drop in house prices started, sentiment changed and then had a snowball effect on Property values.

    And then it went back up again :D
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Indeed. Those of us who remember the last Crash (fumbles for stick and false teeth!) also remember that the largest falls in Property prices happened when Interest rates were going down. Once the initial drop in house prices started, sentiment changed and then had a snowball effect on Property values.

    Look at other bubbles bursting. The Florida Land Boom ended in 1925, a year in which US interest rates fell slightly. The dot com thing ended in 2001 when interest rates also fell. House prices fell (in real terms) from 1990-1995. From 1992, interest rates were falling as you say.
    phlash wrote: »
    I think that 'part' that you refer to though has a bigger impact than you maybe give credit for. Maybe too much importance is put on interest rates cooling the market, but if importance is being put on them by the public, then with interest rates rising will come a change of sentiment. Whether its justified or not. Does that make sense?

    In your argument, rate rises become a self fullfilling prophecy of falling house prices. There probably is something (or even a lot) in that but it's by no means the end of the story.
  • PJD
    PJD Posts: 582 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    ds1980 wrote: »
    my house has gone up 30% in a month yippee!!!!!!! paid £240k now worth £320k interest [party is coming around tonight and ive not even finished it yet!

    That's nothing!!

    The price of my heart has gone up 50% !!

    What a pity though that i'm not in a position to donate it just yet :(
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    tonydee wrote: »
    And then it went back up again :D

    Yep - I bought my first BTL in 1996 £35,000 - value now £135,000 !!! My second 1998 £77,000 now £200,000 !!!
  • CB1979_2
    CB1979_2 Posts: 1,335 Forumite
    BettiePage wrote: »
    How many of those divorcees remarry? How many people die and therefore 'vacate' their property? How many empty properties are there in the UK?There is no shortage of property, only a shortage of affordable property.


    don't think I've ever said that there is a shortage of property

    but we'll just stick to the argument of divorces shall we?

    nothing to add about old folks living longer, the more immigrants, etc etc
  • Rover
    Rover Posts: 323 Forumite
    Yep - I bought my first BTL in 1996 £35,000 - value now £135,000 !!! My second 1998 £77,000 now £200,000 !!!

    You're a canny guy Mystic - care to share with me when you intend to buy your third please ? :beer:
    anger, denial, acceptance ;)
  • ds1980
    ds1980 Posts: 1,213 Forumite
    yes but thats over years this has been in the last month!! Completed on April 16th 2007!!!

    Anyone that bought in 1996 will have seen massive rises youve not done anything accept "own" a property. Have your btl's increeased by £70k in the last month i very much doubt it.
  • ds1980
    ds1980 Posts: 1,213 Forumite
    Rover wrote: »
    You're a canny guy Mystic - care to share with me when you intend to buy your third please ? :beer:

    Canny????? if id have been buying houses in 1996 ive have made much more than that. Remember any of those gains are susceptible to 40% tak if he hasn't got a good accountant!! Real terms he's not made a great deal and he certainly hasn't done anything canny!
  • BettiePage
    BettiePage Posts: 4,627 Forumite
    CB1979 wrote: »
    don't think I've ever said that there is a shortage of property

    but we'll just stick to the argument of divorces shall we?

    nothing to add about old folks living longer, the more immigrants, etc etc
    Ok, divorces. How many of them remarry?
    About 7,500 church marriages a year - 11% of the total - already include at least one partner who has been divorced.
    http://www.guardian.co.uk/religion/Story/0,2763,752466,00.html This was from 2002.


    http://www.statistics.gov.uk/STATBASE/ssdataset.asp?vlnk=9596
    This has remarriage rates.
    Illegitimi non carborundum.
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ds1980 wrote: »
    Canny????? if id have been buying houses in 1996 ive have made much more than that. Remember any of those gains are susceptible to 40% tak if he hasn't got a good accountant!! Real terms he's not made a great deal and he certainly hasn't done anything canny!

    You get 'taper relief' dumbo - which would take a large chunk of CGT off. Anyway they're not being sold as I bought them for Income, and thank you, I have avery good Accountant!
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