**Don't Buy A House** House Prices Set To Crash!!!

deemy2004

Theres always Auctions - No chain....

dippy

It's the second time that a member of the Bank of England's monetary policy says that house prices will fall in 2005. It's not surprise that because of the falling dollar and the increase in inflation in December, the BoE does not look likely to lower interest rates. Most people have been counting on lower interest rates to fuel an increase in house prices.

frugal_dougal_3

Lets all say Aaaaargh for Gordon Brown.

He's lost all that stamp duty in the big slow down !

ribenagirl

Speaking as someone who bought a couple of years ago, it's quite a scary thought to know that if we were looking to buy a house now, we would not get a mortgage big enough to buy our OWN house....:D

It does annoy me how people who are already on the ladder and want to move up moan about house price rises as well 'We can't afford to move up the ladder, we'll have to get a bigger mortgage' - Hello? You're probably going into that new property with 50-60k equity that you never had before thanks to the house price rises!!!!

As for first time buyers, I think all of our sympathies are with them. It's not nice wanting a place of your own and not being able to afford one. Of course, now I'm on the ladder myself I have become very selfish, as most of us do, and do not want to see the value of my investment drop, even though I know it would help you guys out and probably myself in the longer run, as the whole cycle starts with the FTB. As an NHS employee, I wouldn't be able to afford my own place at all in the area I live, if it wasn't for the fact that I married a man who had a 'proper' job

I notice that the press are tending to use much less inflammatory language now so as not to be accused of scaremongering - a 'softening' of house prices was what the Times called it the other day, for instance.

dippy

Guess how Gordon Brown is going to plug his growing deficit and borrowings...

valiant23

dippy wrote:

Guess how Gordon Brown is going to plug his growing deficit and borrowings...

Off topic I know, but

I think he'll do it by either;

• Putting Blair in stocks and selling wet sponges to the French
• Sell British Passports on E-Bay (highest bidder: O. Bin Laden location: Dover)
• Changing the rules on the Lottery by making it law to buy a ticket but no-one is allowed to win.
• Implementing a tax on web-site forums at approx. 50p per post
• Make retirement illegal

Ooh, what about charging extra tax for petrol-people won't mind if we say it's to save the environment.:rolleyes:

rrwfotr

Hi chaps,

A good website to check what’s going on in the press:

http://www.housepricecrash.co.uk

Some say there going up (usually bank's and estate agents) people who have a vested interest in the gains, and people who say there going down people who want to get onto the ladder. Personally I think you have more luck winning the lottery to know what’s really going to happen.

There's no mass unemployment at the moment, the only down side is the idiots who are mortgaged up to the neck and the only unstable element is interest rates. If they go up the castle built on sand might collapse as the technology stocks in 2001/2.


rrwfotr

MiserlyMartin

frugal_dougal wrote:

there is a shortage of housing in this country for reasons that I won't bother to list here.
QUOTE]

Is there? Some people have commented that the figures are wrong regarding the number of new homes that the government say we need to build. All these thousands of new homes that are going up as we speak can only lessen that 'shortage', if indeed it does exist. And they have plans for hundreds of thousands over the next 20 years.

dougk_2

There are more people living on their own than in the past.
Hence the demand for more housing.

Traditionally Families lived together often with many siblings living at home for many years. Now with further education being popular and many divorces/ splits and just plain people wanting to be on thier own there are more demands on housing.

MiserlyMartin

Well then consider this: if there is an increase in the number of one person households or dwellings eg: flats and small houses, this will lead to a proportional increase in the number of large family houses supply.

In short, in the lower end of the market, flats and small houses go up in price due to shortage, but in the upper end of the market, large houses fall in price due to excess of supply.

Conclusion: Extra one person households make no difference to average house prices.