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

ukcarper

Crashy_Time wrote: »

Yes, but how it affects you will depend on when and how you bought.


If you bought ago long time the house is just worth a lot less than your grandchildren hoped to inherit, you are probably not giving a monkeys by this point.


If you have a comfortable re-payment mortgage then you have done your duty for the bankers for a couple of decades, and you can...well sit in your house and think that you nearly own it, but it is worth less than you hoped it would be.


If you jumped in anywhere near the peak of the Ponzi, even with cash, you have made the silliest financial decision of your life, and no amount of posting on here is going to make you better.


If you jumped in near the peak and thought you had bought a free cash for life machine, and tried out the machine, you better just jump off the roof now.


And remember, if house prices CRASH there is a good chance yours will too :rotfl:

The thing is some people make mistakes when they buy mew, interest only mortgages, liar loans. But you do not have to do the same and if you had bought 17 years ago and did what I and a lot of other people did you would be well on the way to owning.

ukcarper

Crashy_Time wrote: »

Yep. What would you call it?

A very small thing.

Crashy_Time

wotsthat wrote: »

What have other people's mortgage applications got to do with your decision not to buy yourself?

Like mewing it wasn't compulsory.

Muppets taking out Liar Loans made the whole thing into an unstable, overvalued Ponzi, which had to be bailed out by the government, what more reason do you need to keep clear?


Mewing wasn`t compulsory, but the bankers know that if you offer sheeple (another classic) nearly free money, they will take it and then some. Again the whole scam worked...until it didn`t.

Crashy_Time

ukcarper wrote: »

The thing is some people make mistakes when they buy mew, interest only mortgages, liar loans. But you do not have to do the same and if you had bought 17 years ago and did what I and a lot of other people did you would be well on the way to owning.

Owning and "owning" are overrated I`m afraid. Sorry to have to be the one to break it to you.

ukcarper

Crashy_Time wrote: »

Owning and "owning" are overrated I`m afraid. Sorry to have to be the one to break it to you.

Yea it's bloody awful living here rent free in my lovely home.

Rota

Crashy_Time wrote: »

Yes, but how it affects you will depend on when and how you bought.


If you bought ago long time the house is just worth a lot less than your grandchildren hoped to inherit, you are probably not giving a monkeys by this point.


If you have a comfortable re-payment mortgage then you have done your duty for the bankers for a couple of decades, and you can...well sit in your house and think that you nearly own it, but it is worth less than you hoped it would be.


If you jumped in anywhere near the peak of the Ponzi, even with cash, you have made the silliest financial decision of your life, and no amount of posting on here is going to make you better.


If you jumped in near the peak and thought you had bought a free cash for life machine, and tried out the machine, you better just jump off the roof now.


And remember, if house prices CRASH there is a good chance yours will too :rotfl:

Lot of "if's" in there. Whats your prediction track record been like so far?

padington

Bet Crashy is rubbish at Monopoly. :rotfl:

On a serious note, the reason why Crashy can't stop spinning the wheels on his fruit machine called 'rent and wait' is because he probably thinks that he almost 'won' because his perception is that prices during his time playing the game didn't out pace rent by as much others have experienced. This is giving the effect of two jackpots dropping on the win line. His primeval hunters spear feels like it's getting closer to the target and the next time he'll hit the 'animal'. Sadly for Crashy, neither a fruit machine nor the housing market holds exactly the same dynamics as you experience when hunting animals.

So don't forget, everytime Crashy hears news about other people's houses going up in price, this is just reinforcing his feeling of personal success and that his experience was different and that he was closer to a win and thus more likely to want to rent and wait even more.

The 'false win' is a key motivating component for compulsive gamblers.

Sadly for Crashy with some games like the 'rent and wait' game, the only way to not lose over a life time, is to not play at all.

wotsthat

Crashy_Time wrote: »

Yes, but how it affects you will depend on when and how you bought.

If you bought ago long time the house is just worth a lot less than your grandchildren hoped to inherit, you are probably not giving a monkeys by this point.

If you have a comfortable re-payment mortgage then you have done your duty for the bankers for a couple of decades, and you can...well sit in your house and think that you nearly own it, but it is worth less than you hoped it would be.

If you jumped in anywhere near the peak of the Ponzi, even with cash, you have made the silliest financial decision of your life, and no amount of posting on here is going to make you better.

If you jumped in near the peak and thought you had bought a free cash for life machine, and tried out the machine, you better just jump off the roof now.

And remember, if house prices CRASH there is a good chance yours will too :rotfl:

Rather than go over old ground...

wotsthat wrote: »

So, in summary, I'll have paid £47,500 in interest & maintenance (plus the capital of course) and will own 100% of my house. A crash of 100% would still leave me £50k better off buying rather than waiting and hoping.

By contrast you've paid £81k over the same time period and own 0% of nothing.

I could have been in negative equity from day 1 paying £480/ month mortgage - at the exact same time you were paying £330/ month to rent a room in a shared house - I'd have coped

Compounding works against the renter and with the homeowner - if your lot could grasp this they'd realise the significance of the price paid for a house diminishes over time.

The problem is psychological - today is always the tipping point. You can NEVER buy.

I reckon what'll happen on HPC is that, at some point, prices will fall by 15% or so, you'll all buy (with mortgages ) and you'll have a big homeowners party to have a laugh at the sheeple. No-one will be allowed to spoil the party by turning up with a calculator or an Excel spreadsheet.

wotsthat

padington wrote: »

For some games like the 'rent and wait' game, the only way to not lose over a life time, is to not play at all.

I recently stopped doing the lottery after using the same numbers since day 1 - I know how they feel.

padington

wotsthat wrote: »

I recently stopped doing the lottery after using the same numbers since day 1 - I know how they feel.

The lottery is even more addictive, that probably does have a better chance of winning over many lifetimes. However rationally it would probably be better not to have 14 million life times spent chucking your savings down the drain for the chance of one life time of becoming a millionaire

The renter sadly gets 14 million life times of licking the landlords boot and usually never gets even one chance for one life time where this strategy becomes wise.

The only chance a stubborn renter has is to loudly cheers on their horse called 'rent' and hope that somehow there will be a spectacular and unpredendented set of events which could reverse their fortunes.

When this does happen partially though and markets collapse, this 'win' reinforces the addiction (together with perceived false wins) and they instead keep backing the horse called 'rent' rather than locking in any 'winnings' at that point and so never actually win anything.

So the lottery and paying rent are both games for mugs, whilst paying rent might be slightly worse.