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

abaxas

carpetbelly wrote: »

I totally agree and think it really shows a sign of the times we live in. And people wonder why the youth of today have no morals if people freely think like this eh.

Where is the problem with taking advantage of other people's financial stupidity?

The whole financial industry is designed to do that.

TimmyP_2

With respect that everyone is entitled to their own opinion on a subject, I find it amazing to read how passionate some people are about house prices and how people should do this that and the other.

At the end of the day, if someone see's a house they like and they want to buy it, and can afford to, then whats the big issue?!

Yes, house prices may fall, but they ultimately may rise - unless people have a crystal ball in front of them, how can you be so sure?! I've got every understanding of why it can be such a talking point, but for it to get so heated over something that is ultimately beyond your control just seems bizarre.

There is always going to be a demand for property. The goverment/BOE would be comitting suicide if they let the house market crash. Whilst values may fall in the short term, the long term demand for houses (especially smaller 2 bed FTB houses) will be ever present. Something which I believe will keep housing prices at a steady rate.

Feel free to pick at my comments - I'm sure someone will...

carpetbelly

abaxas wrote: »

Where is the problem with taking advantage of other people's financial stupidity?

Well, I have my own morals to live with. If you're happy to go through life taking advantage over people who aren't educated in finance, god help anyone who you could use to your advantage then.

abaxas

TimmyP wrote: »

Yes, house prices may fall, but they ultimately may rise - unless people have a crystal ball in front of them, how can you be so sure?! I've got every understanding of why it can be such a talking point, but for it to get so heated over something that is ultimately beyond your control just seems bizarre.
..

If that hope is what keeps you believing, then so be it.

The government cannot save a market the size of the housing market. The inflation required would destroy the UK. I prefer being able to eat than owning a house.

TimmyP_2

abaxas wrote: »

If that hope is what keeps you believing, then so be it.

The government cannot save a market the size of the housing market. The inflation required would destroy the UK. I prefer being able to eat than owning a house.

I don't hope or believe anything.

I'm in the process of buying my first house. A modern 2 bed townhouse. I can afford the mortgage and afford to eat. I have no intention of moving out anytime within the next 5-10 years so in some respects couldnt really give a damn about the market. My mortgage is fixed and I'm still able to save £300 a month. Its only people who over-commit who i'd be worried for.

If the housing market does fall, and the government can't stop it, where do you think all the new houses that are so desperately required are going to come from? Land prices for development remain sky high and at present show no sign of falling. The government has to be involved to help meet its own set target.

hgllgh

DiggingOut wrote: »

Correct, lisyloo. Other impacts will be that people will no longer be as able to borrow against equity in their homes, because there won't be any. This will affect sales of big-ticket items like cars, etc.

So a housing crash could cause redundancies in manufacturing and the service industries, and lots of misery all around. It could even spiral into a deflationary situation like Japan has had for years.

At the first sign of significant falls in housing prices, I would expect the MPC to slash rates to try to prevent a major crash, and all the negative consequences that could come with it.

The MPC will only slash rates if the housing crash affects CPI inflation. As long as CPI is going up (regardless of what happens in the housing market) interest rates will go up. CPI crept back up in October above the 2% target. If it goes up again then the MPC may well increase interest rates further or they risk an inflationary spiral. The MPC couldn't give two hoots about irresponsible borrowers or lenders

SquatNow

mr.broderick wrote: »

More worryingly than the trash you posted here is that you read it yourself again and edited it.

I'm mildly dyslexic you jumped up little $h!t and have to go back through posts and correct them afterwards

Soprano

Perhaps only threads about religion bring out more hostility towards fellow MSE folk!

Some people like to create a 'them vs. us' mentality while each side barks their view at each other about something nobody really can know: the future housing prices!

Over time, house prices go up. They may dip or crash, but given enough time, they go up. I'm not certain there is a crash coming, but suspect prices are going to drop for some time.

People should buy what they can afford, not buying for buying sakes. That’s what worries me. Too many people in the UK buying homes they cannot afford, then will be paying the consequences later.

Britain is currently obsessed with owning their own home, so much so its blinding many people into taking on much more than they can ever chew.

mr.broderick

SquatNow wrote: »

I'm mildly dyslexic you jumped up little $h!t and have to go back through posts and correct them afterwards

Whatever cave boy.

SquatNow

Soprano wrote: »

Over time, house prices go up. They may dip or crash, but given enough time, they go up. I'm not certain there is a crash coming, but suspect prices are going to drop for some time.

Correct, in the long term mean house price rise in line with inflation, with boom-bust cycles normally every 18 years.

Given how high they went this time, when they crash it may take longer than normal for them to recover to this level though... possibly even 2 or 3 cycles.

You see the problem is, we don't atually *HAVE* an economy left to speak of, just people importing stuff using credit and selling it to each other.