We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
When America sneezes the whole world crashes a cold ;)
Comments
-
Another interesting graph.
What worries me is that this may be a step change to a new level rather than a temporary diversion from the trend.
That means we'll see currency devaluation; or to put it another way we'll see retail price inflation rise to match the asset price inflation we've seen over that last five years.
For me as an wannabe FTB who's been carefully squirrelling away my money this would be a disaster, however, (assuming it's matched with wage inflation) for those that have stretched themselves to the limit they will see their debts eaten away as happened in the 70s."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Oh come on! Most predictions are drivel in hindsight. Clearly you were so smart you did not believe it. insert a term of abuse here!
I am a home-owner with a mortgage. I do not see how continued HPI will benefit me, unless I suddenly want to move to the Shetlands. Please explain?
I think the point being made is that it would not take much to push a large % of FTB'ers into negative equity, which is an uncomfortable position, becaues you have to work harder or risk losing your asset.0 -
I think the point being made is that it would not take much to push a large % of FTB'ers into negative equity, which is an uncomfortable position, becaues you have to work harder or risk losing your asset.
IMHO it seemed like gloating......In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Has anyone got a graph of how much the average house price is now compared to how much it was when property price crash first started predicting a crash in 2004? I own a house I just feel sorry for the FTB who believed the drivel.
What about those who simply couldnt for financial reasons or cos they wernt in a real position or even old enough
I earn well over double national average wage and they still wont give me a mortgage. In fact I earn well in excess of the bank manager whos telling it me <
!!!!!!'s that all about?0 -
Guy_Montag wrote: »What worries me is that this may be a step change to a new level rather than a temporary diversion from the trend.
That means we'll see currency devaluation; or to put it another way we'll see retail price inflation rise to match the asset price inflation we've seen over that last five years.
For me as an wannabe FTB who's been carefully squirrelling away my money this would be a disaster, however, (assuming it's matched with wage inflation) for those that have stretched themselves to the limit they will see their debts eaten away as happened in the 70s.
So that would mean a massive and catastrophic devaluation of the pound. Unlike the 70's, globalisation (e.g. the China/India factor) means we can't just inflate our salaries out of trouble. The UK would become hugely uncompetitive and the price of imported goods (we don't produce much these days) will soar.
It's pathetic that we've been left in such a state of limbo because of recklessness and greed. Everybody could suffer thanks to needlessly high house prices.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Dunno if many of you remember the "little local difficulty" Lloyds of London had - where insurance policies were re-sold several times (with everyone in the chain getting a nice little earner).... until a few large claims turned up.
Surprise, surprise the global debt industry has been doing the same - some estimates are that total debt is up to 7 times global GDP. Property values could be the least of our problems...0 -
On the topic of Negative equity another interesting one: it looks like a 15% fall in house prices would trigger 47.8% of ARM's to enter negative equity!
Negative equity is an interesting one. It only matters if you want to remortgage or sell. It can cause a lot of individual pain for borrowers but only becomes part of a wider problem if a lot of these individuals are being foreclosed on.
If this does become a wider problem, the Government will step in. It is possible that they could put a moratorium on foreclosure for example (as happened in the 1930s) and compensate the banks in some way.
For example, I just found this on Bloomberg.0 -
No we wouldn't have twice the disposable income. The wealth explosion has led to high houseprices. Britian has never been richer.meanmachine wrote: »Oh God, you really wouldn't want to see that.
US house prices are, on average, HALF what they are here, but property is DOUBLE the size.
Yet again, Brits get ripped off - this time by each other!
Insane situation.
If our market was free like the US's (and no it's nothing to do with size of country, Britain has thousands of acres of usable land), we'd have twice the disposable income we do now.
Still, our economy will pay for it in the end.
You see, the wealth of the country is in the assets it has, if houseprices were halved then the bank of England would print less money. As it would lead to inflation if they didn't. It's not as simple as paying less into your mortgage and therefore having more money to chuck around at other things. High houseprices have lead to there being much more opportunity to make lots and lots of money.God made man, man made money, money made man mad0 -
Plastering is hard work which can lead to physical problems later in life if you overwork and abuse your body. The money has to be earnt with hard work.sciencegeek wrote: »must be quite nice to earn ~70,000 irrespective of house prices though i would imagine
What's your point?God made man, man made money, money made man mad0 -
stuck.
I do think that HPI will drop right down and may even go YOY negative but I don't have any reason to think that there'll be a 50 or 70% reduction in prices as some people predict. As I say, just wishful thinking.
50% or 70% and no-ones panicking, wait till unemployment is 20% then see what property prices are.
THE GREAT DEPRESSION:rolleyes:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.9K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 246K Work, Benefits & Business
- 602.1K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards