If we vote for Brexit what happens

MobileSaver

Crashy_Time wrote: »

So no empty housing space in London then?

There is lots of empty housing in the areas of London where people would rather not live, just as there is in Edinburgh.

cashbackproblems wrote: »

a bit of bad economic news and ... and you are STUCK in negative equity.

What nonsense! The average LTV in the UK is just 48% and even the poorest areas are only 88% LTV; Prices would have to drop dramatically before the vast majority of people would need to worry about negative equity.

theartfullodger

MobileSaver wrote: »

There is lots of empty housing in the areas of London where people would rather not live,.....

There's lots of empty housing in areas people would love to live - foreign investors leaving them empty and watching prices grow... oh, damn..., £ been falling.... Ah, shame...

jimbog

peter_we wrote: »

It cannot grow exponentially forever, unless wages do the same. So a crash is guaranteed, not just a possibility.

Other factors could be at work e.g. an increase in population would cause an increase in demand with the issue of lower wages being counterbalanced by more people sharing the same accommodation i.e. overcrowding. Whereas a crash is a possibility it certainly can't be guaranteed.

MobileSaver

ruelle wrote: »

My friend's boss managed to get £30k knocked off his house sale post-Brexit. It's the first time I've heard of someone renegotiating successfully after the EU vote.

Although whether "Brexit" was the real reason a £30k reduction was agreed is something no-one will ever know (except perhaps the vendor.)

ruelle

MobileSaver wrote: »

Although whether "Brexit" was the real reason a £30k reduction was agreed is something no-one will ever know (except perhaps the vendor.)

No, the vote happened and my friend's boss asked for a reduction because of Brexit. And got it! Better to take a hit now then potentially lose more down the line. No idea how much the house costs though.

Crashy_Time

ukcarper wrote: »

We've gone though all this before and you keep changing your story anyway you've spent £80k renting.

No, the story has not changed at all, I even posted a link to the house where I last rented a room. The story of renting cheaply and saving/investing while having no debt doesn`t suit your narrative, that is the problem.

glasgowdan

Long term renting when you can afford to buy is utterly moronic. No what ifs and buts change that from being true. Even if the rent is 'cheap'. All this means is you end up spending years in a trashy area/small rubbish flat instead of paying the same £££ each month on a much more pleasant place.

There will not be a widespread 50% slash in house prices. There will never be, because of income levels. It's very simple. If 2 people can afford a house it'll sell. If it goes for sale cheaper, that means maybe 15 people can afford it... this automatically pushes the price up. Back up to the sort of levels as before (or close to).

Now, financial change or not, brexit or not, the average UK citizen is NOT going to see a drastic slash in wages. Across the board, UK-wide, national average wages are not going to dwindle. They may sit level, but not suddenly cut by a big %.

Crashy_Time

MobileSaver wrote: »

There is lots of empty housing in the areas of London where people would rather not live, just as there is in Edinburgh.



What nonsense! The average LTV in the UK is just 48% and even the poorest areas are only 88% LTV; Prices would have to drop dramatically before the vast majority of people would need to worry about negative equity.

I read somewhere (HPC website actually :rotfl:) that a 5% drop in prices would take 25% off the profits of one of the biggest house builders, leading to a cut in dividend. Is that just rubbish, or are the general public just much smarter than the big house building companies and the people who run them?

Crashy_Time

glasgowdan wrote: »

Long term renting when you can afford to buy is utterly moronic. No what ifs and buts change that from being true. Even if the rent is 'cheap'. All this means is you end up spending years in a trashy area/small rubbish flat instead of paying the same £££ each month on a much more pleasant place.

There will not be a widespread 50% slash in house prices. There will never be, because of income levels. It's very simple. If 2 people can afford a house it'll sell. If it goes for sale cheaper, that means maybe 15 people can afford it... this automatically pushes the price up. Back up to the sort of levels as before (or close to).

Now, financial change or not, brexit or not, the average UK citizen is NOT going to see a drastic slash in wages. Across the board, UK-wide, national average wages are not going to dwindle. They may sit level, but not suddenly cut by a big %.

What actually happens during a housing bubble is that people tend to pay too much for very average property in not so great areas, then they just get caught out when the economic winds change and can`t sell for anything like they paid/borrowed. At least a renter can just walk away if the area/house isn`t up to expectations.

brodawel

Crashy_Time wrote: »

What actually happens during a housing bubble is that people tend to pay too much for very average property in not so great areas, then they just get caught out when the economic winds change and can`t sell for anything like they paid/borrowed. At least a renter can just walk away if the area/house isn`t up to expectations.

I agree with you there crashy and that's partly why it's taken me so long to find a house. Sellers asking way too much for very average property. Anything decent and at a fair price sells reasonably quickly up here in North Wales, but thankfully no silly business like in London, I couldn't cope with all that best and final offer kind of thing.