Housing Market about to implode!

mrstinchcombe

Lets be honest if these people have been paying £286 a month on their £150,000 mortgages then they should really have been SAVING for the last 2 years.

This would soften the blow come the end of their fixed terms

KingKenny

Ad wrote: »

The reason lies here -

1) The independence of the Bank of England is a complete falsehood.

I don't remember this story reaching the evening news I wonder why.

I hope this finally enlightens some of you who refuse to acknowledge the reality of NuLabours so called miracle economy. I rest my case.

Ad, i am not in disagreement;

Point 1 is true, i agree, but there are other factors as to why the BOE held rates so low for so long.

But if it were only in the UK, then yes we are all doomed, but if you were to travel to OZ, USA, its the same problem. We have just gone through an era of extreme money suppy introduction, with low base rates globally, and extremely cheap credit. This all feeds the beast, .i.e. any asset class which can be bought using this cheap money. Couple this with some very creative lending practices and bingo you get your housing boom?

But it does not go on for ever, you cannot have a boom in asset class without a bust at a later date, other wise we would all just get richer and richer, but it would be worth nothing.

So when the bust arrives, which it will, when the rug is removed, which it will, the real players, will make more money on the way down, maybe more than they made on the way up?

You have to hook the junkie on the drug, to make the money. The junkies are hooked, but remove their drug (credit), and you get a junkie who cannot afford his fix, and there are alot of junkies globally, who will be in rehab in the coming years, because the drug is not an endless product which we can just keep obtaining.

I am not saying we are all doomed, but a few will get burned, much dependent if they bought an over priced asset using credit at extremely cheap short term cost, but rising in the long term?

MORPH3US

Sapphire wrote: »

However, I think there are many clueless people out there who are definitely not as careful and prudent as many of the posters to this site are. They live for today, and don't realize that buying property is not an easy or cheap proposition and that there are many pitfalls. They feel they absolutely HAVE to be on the property 'ladder' - at any cost - because they think everyone around them is, and they are influenced by advertising, including property !!!!!! on TV. :rolleyes:

If thats the case, then as cold hearted as it sounds, its TOUGH!!

The whole world has gone crazy when idiots, people without common sense, people who have common sense but choose not to use it, people who prefer spending on beer / clothes / drugs / perfume / cigarettes rather than saving and / or being sensible with money get treated on a cushy number by everyone.... and people like me who work hard, go to uni, save money, overpay mortgage, never claim benefits in my life (although i'm not having a dig at genuine benefit claimants) and all I want is a quiet life get half of our income taken as tax, get penalised the more I earn while people sit on their !!!!!! contributing nothing to the country, council tax, student loans etc etc...

Sorry for the rant, but it really peeves me off when I am careful with my money and work bloody hard, while some people expect it to all fall into their lap and even then they waste what they get... :mad::mad::mad:

Time for a cup of tea and a few relaxation techniques me thinks....

KingKenny

MORPH3US wrote: »

The whole world has gone crazy when idiots, people without common sense, people who have common sense but choose not to use it, people who prefer spending on beer / clothes / drugs / perfume / cigarettes rather than saving and / or being sensible with money

You have to live a little, i would say a beer, a pair of jeans, and if you smoke a ciggy are essentials to many. You cannot begrudge these things.

You are a long time dead, save a little, but do not stop enjoying the things which make you happy, life is too short?

nelly_2

Sapphire wrote: »

I also spend a lot of time researching anything I buy, especially for when it comes to expensive home improvements.

However, I think there are many clueless people out there who are definitely not as careful and prudent as many of the posters to this site are. They live for today, and don't realize that buying property is not an easy or cheap proposition and that there are many pitfalls. They feel they absolutely HAVE to be on the property 'ladder' - at any cost - because they think everyone around them is, and they are influenced by advertising, including property !!!!!! on TV. :rolleyes:

I wholy agree but that^ is the long winded description


mine is - people are [EMAIL="w@nkers"]w@nkers[/EMAIL]

These sort of people have been responsible for such high prices because

A- they thick enough to pay

and

B - they even thicker enougher to borrow well passed their limit

***k 'em I say

past their limit?

Is it passed or past?

baby_boomer

TTMCMschine wrote: »

Next month, the 2005 two year fixed mortgage at 2.29% on Portman - now being subsumed by rival Nationwide will revert to the BoEs base rate, plus 1.99%

And what about the 0.99% deal from Shepshed Building Society from the same period :eek: ?

That should really hit the market for six when it comes to an end :rotfl:

What the market needs, in order to cool down, is for Gordon to announce that he will stop tax relief on buy-to-let mortgages over a fixed timetable - but he won't because it would cost votes.

Gazumping - Hardly a sign of imminent implosion

TTMCMschine

baby_boomer wrote: »

And what about the 0.99% deal from Shepshed Building Society from the same period :eek: ?

That should really hit the market for six when it comes to an end :rotfl:

What the market needs, in order to cool down, is for Gordon to announce that he will stop tax relief on buy-to-let mortgages over a fixed timetable - but he won't because it would cost votes.

Gazumping - Hardly a sign of imminent implosion

I hadn't heard about that one, but I think there'll be lots resetting this year & next, & if 20% of mortgages were 2 year fixed rate deals in 2005 then the market is about to get nuked.

Generali

TTMCMschine wrote: »

I hadn't heard about that one, but I think there'll be lots resetting this year & next, & if 20% of mortgages were 2 year fixed rate deals in 2005 then the market is about to get nuked.

The lead indicator for this is going to be a rapid rise in credit card debt. It's very hard to cut your lifestyle suddenly. If debt on CCs starts to rise quickly, expect an increase in distressed sellers about 12 months later when the cc bills have had a chance to hit and mortgage arrears have had a chance to build.

TTMCMschine

Generali wrote: »

The lead indicator for this is going to be a rapid rise in credit card debt. It's very hard to cut your lifestyle suddenly. If debt on CCs starts to rise quickly, expect an increase in distressed sellers about 12 months later when the cc bills have had a chance to hit and mortgage arrears have had a chance to build.

I think it's going to get very nasty.

Generali

TTMCMschine wrote: »

I think it's going to get very nasty.

I suspect you're right but hope you're wrong.