If we vote for Brexit what happens

Harper123

brit1234 wrote: »

A lot of people especially the public sector salaries are the same as 2004 levels when you take inflation into account.

Its been the record low interest rates, QE, funding for lending, buy to let, interest only mortgages, 40 year mortgages, self cert/liar loans, fraud, money laundering that have lead to this property bubble not a successful economy with big wage rises.

I live in Hertfordshire and work in London on an average salary and am single. If prices dropped to 2004 levels where I live I'd personally be able to buy a nice two bed semi detached (near the station, with less than 40 minute commute to London) with a mortgage about 2.4 times my income and pay about £250 a month mortgage.

Whilst this would obviously be lovely If they were this cheap and everyone could snap them up without any effort at all then how long do you think prices would stay low?

Or does everyone on here that wants a crash, not care about the long term, and just wants it to crash long enough for them to buy somewhere?

ukcarper

Crashy_Time wrote: »

How many multiples of salary were people borrowing though, to get to present levels?

It's difficult to borrow large salary multiplies now and the vast majority of buyer will not have high salary multiples. You need to understand that the people buying these properties are not the ones earning average salaries.

cashbackproblems

Crashy_Time wrote: »

How many multiples of salary were people borrowing though, to get to present levels?

most people no more than x3, but you can't do that nowadays you need x6/7 which usually means you have to buy with a partner

Crashy_Time

ukcarper wrote: »

It's difficult to borrow large salary multiplies now and the vast majority of buyer will not have high salary multiples. You need to understand that the people buying these properties are not the ones earning average salaries.

That was kind of my point. Assets which previously were bought on lower salaries that now need much higher salaries to buy is pure Ponzi economics, nothing has changed in the asset (conservatory plonked on the back maybe) just the debt fuelled value. What many people don`t seem to understand is that some EZ banks are about to go pop, and this is going to lead to a new credit crunch. People on high salaries who buy expensive houses that previous generations bought cheaply are just being gamed by the financial system. Many are going to regret taking the sort of Buy Buy advice that used to be prevalent on here IMO.

mayonnaise

Conrad wrote: »

I see Sajid is over in India for trade talks and I fully expect a rapid show case deal being done with a population double that of the EUs and in rapid growth

Wonderful. So we swap free trade with the EU (half a billion people, GDP per capita around $34,000) for a trade deal with India (GDP per capita around $1,500). Brilliant. Let's hope the sale of satellite technology to Botswana or consultancy to Papua New Guinea will fill the gaps. What an utter disaster.

baza52

are you still bleating on Mayo?
Have you got your moving date yet to live in the EU?

mrginge

mayonnaise wrote: »

Wonderful. So we swap free trade with the EU (half a billion people, GDP per capita around $34,000) for a trade deal with India (GDP per capita around $1,500). Brilliant. Let's hope the sale of satellite technology to Botswana or consultancy to Papua New Guinea will fill the gaps. What an utter disaster.

Yes that is exactly right. We are going to leave the EU, all trade will cease and we will instead rely on one trade deal with a much smaller (economically) country.

That is exactly what is going to happen.

:doh:

mayonnaise

Brexit uncertainty has hit UK business


http://www.bbc.co.uk/news/business-36757795

Manufacturing had the gloomiest outlook, and job creation in the economy slowed to a two-year low.

Haven't these people heard about Conrad's new age of prosperity?

MobileSaver

indianabones wrote: »

Why pay full price now, when a few months or even a year down the line you could save a good chunk of money.

Because trying to time the market is a mug's game.

How do you know that six months down the line you're getting the best price, maybe you should wait another six months for an even better price? Or maybe you called it wrong and prices increase?

You end up like Crashy spending over 10 years moving around from one flat to another, in areas no-one else wants to live, waiting and waiting for "the crash" to happen.

indianabones wrote: »

If you're in no rush to buy, then now isn't a good time is it?

For the majority of people this isn't an impulse purchase or investment, it's their home. It's somewhere for them to live out their hopes and dreams for the next 7 years plus. Why put your life on hold for something that may never happen?

Spidernick

Thrugelmir wrote: »

The UK is the largest export market for Indian clothing manufacturers. India receives less favourable treatment than other developing countries in terms of import tariffs. Bangladesh imports for example are 0%. There's a far more complex picture that's going to unravel. Countries want to trade with the UK. The UK market is simply too big to ignore.

As someone who has been on two short-term assignments to Bangalore, believe me you haven't seen real red tape until you've done business with India. Don't get me wrong, they are lovely, hard-working people, but they could seriously give the French a lesson in red tape! In no way is this going to come close to neutralising the many negatives from leaving the EU.