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

townendwig

ukcarper wrote: »

Just because you think it is better to buy and that prices will not crash does not mean you want prices to rise. As far as I can tell the people who want a crash cannot see that.

I'm pretty confident to say that the vast majority of people I have met in real life and on the internet, will champion the price of their house rising as soon as they have taken out a mortgage on it. You may be different but I would suggest you are in a minority there!

ukcarper

townendwig wrote: »

Fair play to you, and for many people taking on a mortgage makes more sense than paying rent. But it isn't the only option. And to suggest the decision is one of cost is a gross simplification. As you rightly point out personal circumstances play a part and there are many factors to take into account.


I read another thread on here about someone who's neighbours are making their life a living hell to the extent they feel trapped in their own home, if that happened to us in our current home, we'd move somewhere else. But because they have a mortgage they are stuck where they are, horrible story and sad to read.

Yes but there are plenty of people on the same group complaining about renting.

Jack_Johnson_the_acorn

townendwig wrote: »

Fair play to you, and for many people taking on a mortgage makes more sense than paying rent. But it isn't the only option. And to suggest the decision is one of cost is a gross simplification. As you rightly point out personal circumstances play a part and there are many factors to take into account.


I read another thread on here about someone who's neighbours are making their life a living hell to the extent they feel trapped in their own home, if that happened to us in our current home, we'd move somewhere else. But because they have a mortgage they are stuck where they are, horrible story and sad to read.

Well they could sell..... a mortgage isn't a prison like some would have you believe.

Clearly I agree that renting provides more flexibility re moving home, but renting cannot compare with purchasing when it comes to security. I would hate to be settled and then pushed out by a LL.

townendwig

ukcarper wrote: »

Yes but there are plenty of people on the same group complaining about renting.

I don't follow sorry, what group is this??

Rota

Crashy_Time wrote: »

From Mumsnet;


"What's really quite scary though is the implications of those foreign investors pulling out their money suddenly, leaving a trailing wake of artificially high prices, negative equity and barely-afforded mortgages. Not to mention what will happen when interest rates start to rise, as they inevitably will."

From mumsnet? no way!

Crashy_Time

Rota wrote: »

The problem with that thread Crashy, is that you guys are reading it wrong. While it's true there are reductions they aren't because a 50-70% crash will happen next week, its because many owners have seen the 20%+ uptick in London over the last 18 months and decided to cash in.

This strategy worked at the start of the year when HTB money, with no MMR was in place. As I and others have said here this slowdown is welcome in London. 20% rises are not sustainable.

What you are seeing is these chancers that have seen the house across the road sell for "X", added 20% to that and listed.

When they haven't sold quickly they think "mmm, OK, I'm still up "x" if I reduce the price by 10%".

In addition to these points it is the middle of summer, when the market traditionally slows.

If it doesn't sell from there, and I suspect a lot won't these properties will be withdrawn from the market and return to rental stock.

Some sellers will drop further to meet the market. In a balanced forum readers would see both sides of this debate and make up their own minds.

If that view was presented on HPC the poster would be banned.

Doesn`t need a 50 - 70% crash to put a lot of UK mortgage holders in trouble, 7% would probably do that, especially in the I.O capital of London.

ukcarper

townendwig wrote: »

I'm pretty confident to say that the vast majority of people I have met in real life and on the internet, will champion the price of their house rising as soon as they have taken out a mortgage on it. You may be different but I would suggest you are in a minority there!

I disagree and I know plenty of people who are not worried about the value of there house. I suppose people who have just bought would not like it to fall in value just as people waiting for the crash will not like it when they don't .

Crashy_Time

townendwig wrote: »

I don't follow sorry, what group is this??

UK Carper is obsessed with "groups", he thinks only 23 people read this board.

ukcarper

Crashy_Time wrote: »

Doesn`t need a 50 - 70% crash to put a lot of UK mortgage holders in trouble, 7% would probably do that, especially in the I.O capital of London.

Keep spouting the rubbish a 7% fall in London would still leave them well up on their initial investment.

Rota

townendwig wrote: »

Fair play to you, and for many people taking on a mortgage makes more sense than paying rent. But it isn't the only option. And to suggest the decision is one of cost is a gross simplification. As you rightly point out personal circumstances play a part and there are many factors to take into account.


I read another thread on here about someone who's neighbours are making their life a living hell to the extent they feel trapped in their own home, if that happened to us in our current home, we'd move somewhere else. But because they have a mortgage they are stuck where they are, horrible story and sad to read.

nice posts townendwig. Like your style. Wanting HPI and giving a view are very different things. Lets be honest, Im not going to start a revolution by tying on the forum. I like to guess whats going to happen and make/save cash from this. HPC have been wrong for 15+ years while I've been 70% right so far.

Saving money and not wanting to lose is the same from my point of view.

Bruce and his "illiquid depreciating asset" bile. Google it for some great blasts from the past.