'We've reached a tipping point' Signs of house price weakness

HAMISH_MCTAVISH

Joeskeppi wrote: »

This is why they can't win. They may cheer if a crash happens but we're still the ones better off. None of this pointless argument makes any sense to me.

Absolutely.

It's why it's rarely worth engaging.

Just post up a few worked examples every now and again and it becomes crystal clear to any passing newbies that the pro-crash arguments have no veracity.

Take the poster in this thread that has been renting for 17 years waiting for the fabled crash....

He's already paid more in rent than it would have taken to buy a house. And prices have more than doubled in the meantime.

If you buy a house for your landlord, prices double, then a crash comes along and prices fall 30%, it makes not the slightest difference.

You still bought a house for your landlord.

And you now have to buy another one for yourself.

At higher prices than where you started out.

To then sit around in those circumstances saying "prices are falling more in a month than I am paying in rent" makes such little sense that I can't begin to fathom what they are thinking....

AndyGuil

Blooloo wrote: »

It matters a lot to those in the market TODAY. If you arent in the market, then it is irrelevant unless you have a business mortgage with LTV requirements.

Gloating helps no-one.

It doesn't matter because you own a house for several decades and you are going to see a lot of recessions and house price cycles in that time. One day you won't be paying any mortgage and on your way to that point the costs of doing so will get cheaper on average.

System

Blooloo wrote: »

It matters a lot to those in the market TODAY. If you arent in the market, then it is irrelevant unless you have a business mortgage with LTV requirements.

Gloating helps no-one.

So if a crash occurs you obviously won't be gloating here then.

Blooloo

Joeskeppi wrote: »

So if a crash occurs you obviously won't be gloating here then.

thats right.

Im not here to blow my own trumpet. I am discussing todays market.

Living on past victories is where generals get slaughtered.

Blooloo

AndyGuil wrote: »

It doesn't matter because you own a house for several decades and you are going to see a lot of recessions and house price cycles in that time. One day you won't be paying any mortgage and on your way to that point the costs of doing so will get cheaper on average.

did you forget to respond to my post, about TODAYS market?

Of course you did.

Apparently paying top dollar is irrelevent...well as you say its a 25 year deal with interest on every 1p you borrowed compounded for 25 years.

Saving on the borrowing has got to be the aim of this website...and it has nothing to do with comparing with renting...which is another calculation and guess equation.

System

You might find more people willing to discuss today's market in the house buying board.

Blooloo

HAMISH_MCTAVISH wrote: »

Absolutely.

It's why it's rarely worth engaging.

Just post up a few worked examples every now and again and it becomes crystal clear to any passing newbies that the pro-crash arguments have no veracity.

Take the poster in this thread that has been renting for 17 years waiting for the fabled crash....

He's already paid more in rent than it would have taken to buy a house. And prices have more than doubled in the meantime.

If you buy a house for your landlord, prices double, then a crash comes along and prices fall 30%, it makes not the slightest difference.

You still bought a house for your landlord.

And you now have to buy another one for yourself.

At higher prices than where you started out.

To then sit around in those circumstances saying "prices are falling more in a month than I am paying in rent" makes such little sense that I can't begin to fathom what they are thinking....

money obsession is probably an "ism" in medical terms.

Maybe people dont want to live in a two/one bed flat.

Maybe for a little more they want to rent a nice place..you know, for enjoying life a bit more.

I pay a little more for a better car, Ill ask for an upgrade at the airport, maybe pay more for extra legroom.

But how about your advice to a person buying BTL TODAY...could he earn a few more £££££s every month if he bought next month?..those £££££s being earned EVERY month for the entire period of his mortgage? hmm? ha?

Blooloo

Joeskeppi wrote: »

You might find more people willing to discuss today's market in the house buying board.

I like it here...listening to old generals reliving past victories...

AndyGuil

Blooloo wrote: »

did you forget to respond to my post, about TODAYS market?

Of course you did.

Apparently paying top dollar is irrelevent...well as you say its a 25 year deal with interest on every 1p you borrowed compounded for 25 years.

Saving on the borrowing has got to be the aim of this website...and it has nothing to do with comparing with renting...which is another calculation and guess equation.

Let me see. So we have long periods of HPI followed by short periods of falls all pccuring in a cycle. We have just had a fall which is clearly over as the house prices have risen like they did straight after the last recession. A sudden kick of HPI at the start, tick, as before. Then a little restraint in the market with sustained increases to the next recession. It is a cycle.

wotsthat

Blooloo wrote: »

Living on past victories is where generals get slaughtered.

I'd say more sensible decision making than victory but you still don't get it - buying isn't just a past victory - it's an ongoing victory.