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

Graham_Devon

London down 0.7% this month on the Land Registry.

If this continues, the OP could well have been right.

ukcarper

The things April is 6 months ago so I 'm not sure he is. He also posted a link that said prices were still increasing. I be quite happy if prices stagnate or fall back a bit wouldn't be surprised if they didbut I could have afforded buy I would have.

Bubble_and_Squeak

Graham_Devon wrote: »

London down 0.7% this month on the Land Registry.

If this continues, the OP could well have been right.

na, i was wrong
peak was after april

Graham_Devon

Bubble_and_Squeak wrote: »

na, i was wrong
peak was after april

I'm so behind the times. Didn't even realise there was a name change.

wotsthat

Blooloo wrote: »

Its a scam that is not often discussed...if you google for tax avoidance for the rich, you will find this particular one.

The losers here are the market, possibly the person in arrears.

Meanwhile, the bank now owns property which it shouldnt, it has converted a bad debt into an asset, and avoided a tax liability to boot.

It is a sort of reverse Off Balance Sheet vehicle.

many of the big mortgage banks have shell companies to "handle" their possessions....this keeps homes of the market, and provides serious competition for the BTL.

All I get when googling that is tosh about Gary Barlow.

I still can't quite see the issue because under European accounting rules AIUI the transaction you detail are not off balance sheet sales.

Blooloo wrote: »

to correct you, the net position between the shell and the bank is 100K in shares.

It could appear like that but, as above, I think it would appear on a balance sheet though and so...balance.

Jason74

Bubble_and_Squeak wrote: »

this has descended into a danny debate
who cares who legally owns the property?
the bottom line is if you don't service the debt you will more likely than not lose the property

Absolutely true of course. But likewise if you are a renter a dont pay your rent, you'll almost certainly lose your home that way too. In that sense, there is no difference. If you need to pay for housing (by whatever means), you'll eventually lose that housing if you don't make the payments.

But, with ownership, not keeping up with the payments is pretty much the only way you'll lose your home. If you rent, there are other ways you can lose it too, some of which you have no control over. And, with ownership, as long as you've gone for a repayment mortgage, you'll eventually reach the point of not having to make payments any more. That's something the renter never reaches.

That's why for most people, owning their own home is the best thing in the long term. It's also why for many , the value of that home is actually of little or no importance. The "value" is in the security and reaching the point where there are no ongoing costs (beyond maintenance of course), rather than in the capital value of the property.

wotsthat

Crashy_Time wrote: »

Do you have a mortgage?

Yes and I own my home too. It's been explained and if you don't get it that's fine but little point going round in circles.

Crashy_Time wrote: »

Nice. When did you cash in your house?

Another HPC phrase that sounds clever when the groupthink is strong but silly in the real world.

ukcarper

wotsthat wrote: »

Yes and I own my home too. It's been explained and if you don't get it that's fine but little point going round in circles.



Another HPC phrase that sounds clever when the groupthink is strong but silly in the real world.

Surely you would only cash in your house (if that means sell it and take the money) if it was an investment property, but as for most people it's a home I can't see the relevance.

chucknorris

wotsthat wrote: »

Yes and I own my home too. It's been explained and if you don't get it that's fine but little point going round in circles.



Another HPC phrase that sounds clever when the groupthink is strong but silly in the real world.

That's the problem wotsthat, they don't live in the real world.

Crashy_Time

ukcarper wrote: »

Surely you would only cash in your house (if that means sell it and take the money) if it was an investment property, but as for most people it's a home I can't see the relevance.

Well the relevance is that you can`t stop boasting about your HPI "gains" (which you are unlikely to see now anyway)


"It was very nice of the bank to give me my £300k house when I paid of the £45k I borrowed from them. "


So where is this 300k house that rents for 1400 p.m then? At the peak of the bubble I rented a 700k+ house in the same street as Fred the Shred for 1000 p.m (shared house), so I am finding some of your claims to be frankly a bit silly.