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

MobileSaver

Bubble_and_Squeak wrote: »

the old compare today with the worst bit of the worst post war financial crisis trick

Ah, the old "I won't answer the question because it will make me look like a fool" trick.

Bubble_and_Squeak

MobileSaver wrote: »

Ah, the old "I won't answer the question because it will make me look like a fool" trick.

yes, you're right
i'm sure there will be a surge of fresh first time buyers with jumbo sized deposits in the run up to christmas which will save the market

Crashy_Time

Jack_Johnson_the_acorn wrote: »

What about the ones living rent & mortgage free? should they sell up and move into a HMO/hostel? :rotfl:

They can do what they like, but the value of their house will drop as people around them sell up. They better hope they don`t live in a street full of HMO`s and BTL`s
:rotfl:

Crashy_Time

MobileSaver wrote: »

The "smart ones" are quids in compared to someone who has been renting for the last 16 years.

But let's humour you... where should these people who "sell now or die tryin" live once they sell? I suppose there are plenty of cheap empty HMOs in your street that they could move in to but somehow I don't think that would appeal to them.



How long has the first time buyer decline being happening for? I'm pretty sure that first time buyers are up about 300% since the worst of the global credit crunch. Surely you wouldn't be taking one solitary month's figures and extrapolating doom and gloom based on that? Only the most desperate HPCer would stoop to such levels. :rotfl:

The smart ones who bought in 2004 you mean?

wotsthat

Crashy_Time wrote: »

They can do what they like, but the value of their house will drop as people around them sell up. They better hope they don`t live in a street full of HMO`s and BTL`s
:rotfl:

You've been around for long enough to have noticed that people don't rush for the exits when prices fall. Ever noticed the lack of for sale signs during such times? They sit tight and wait for them to recover.

This behaviour makes the HPC crew very very angry.

ukcarper

Crashy_Time wrote: »

The smart ones who bought in 2004 you mean?

Yes the person who bought a £100k property in 2004 with a 90% mortgage who now owes £65k

chucknorris

Crashy_Time wrote: »

They better hope they don`t live in a street full of HMO`s and BTL`s
:rotfl:

Don't do yourself down, some people might not mind you being their neighbour.

Crashy_Time

wotsthat wrote: »

You've been around for long enough to have noticed that people don't rush for the exits when prices fall. Ever noticed the lack of for sale signs during such times? They sit tight and wait for them to recover.

This behaviour makes the HPC crew very very angry.

You mean they don`t rush for the exits when unprecedented emergency measures are put in place to bail out banks, and "homeowners" believe (with a little encouragement from the likes of Call Me Dave) that it was done to protect them? When foreign and investor money exits prices are coming down, doesn`t matter if Joe Average has a For Sale board in his garden or not.

danothy

Crashy_Time wrote: »

They can do what they like, but the value of their house will drop as people around them sell up. They better hope they don`t live in a street full of HMO`s and BTL`s
:rotfl:

The value of owning a house will never drop below the sum of all the rent you could expect to pay for the rest of your life if you didn't own it. You could buy a house for £100k with a 25 year mortgage at 7% and a £15k deposit, and still break even on a £600/month rent over the 25 years. Even if the resale value of the house dropped to zero. Every day after that you're in profit regardless of the house price. Every month you live in that house after that is £600 the house is actually worth to you, regardless of the resale value. If you live there for another 25 years that's another £180k that house has been worth to you, even if you'd genuinely get absolutely nothing for it when selling it.

Crashy_Time

danothy wrote: »

The value of owning a house will never drop below the sum of all the rent you could expect to pay for the rest of your life if you didn't own it. You could buy a house for £100k with a 25 year mortgage at 7% and a £15k deposit, and still break even on a £600/month rent over the 25 years. Even if the resale value of the house dropped to zero. Every day after that you're in profit regardless of the house price. Every month you live in that house after that is £600 the house is actually worth to you, regardless of the resale value. If you live there for another 25 years that's another £180k that house has been worth to you, even if you'd genuinely get absolutely nothing for it when selling it.

Where can you buy a decent house for 100k?