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A very very very bad day for the housing market
Comments
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mystic_trev wrote: »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
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mystic_trev wrote: »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.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.0 -
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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 etc0 -
mystic_trev wrote: »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
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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.0 -
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!0 -
Ok, divorces. How many of them remarry?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
http://www.guardian.co.uk/religion/Story/0,2763,752466,00.html This was from 2002.About 7,500 church marriages a year - 11% of the total - already include at least one partner who has been divorced.
http://www.statistics.gov.uk/STATBASE/ssdataset.asp?vlnk=9596
This has remarriage rates.Illegitimi non carborundum.0 -
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!0
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