If we vote for Brexit what happens

Crashy_Time

buglawton wrote: »

What matters is whether you can afford the house you need in a given place and time. A healthy market means a decent proportion of people are finding and affording what they need.

Any kind of 'crash' is a signal that demand has sharply dropped, due to universal pessimism but much more likely because lenders have pulled in their horns. In other words, houses are just as hard to physically buy as before a crash.

Only one rare type of buyer benefits - someone who wants a home and is sitting on an unused cash pile. So I assume that those on this board who endlessly express a wish or expectation of a crash are that kind of person. Except of course they're not, in fact they're just wistfully hoping. HPCers rarely promote something big and radical being done about supply, as in 'lots of brand new housing capacity'. They just keep hoping for a special kind of crash where everyone except themselves finds it harder to buy.

Except in a world where 1/3 rent, 1/3 have paid off their mortgage and 1/3 have some kind of outstanding mortgage but would not all necessarily bail on the loan if NE strikes, and banks are backstopped by the government printing press, the banks have no need to "pull in their horns", in fact the ONLY way they are going to make profits is if there is a crash. More smaller loans at sensible multiples to wages is the way forward for the banks, and just think of the sugar rush to the retail/DIY economy as all the youngsters jumped out of their childhood bedroom and into a cheap flat in need of some paint. That would be any chancellor/bankers dream in this climate.

System

Only the baby boomers, generation x and generation y have benefited from the housing market over the years. The millennial and the next generation (TBD) are at a disadvantage due to the decrease in real wages Home ownership to age groups graphs says it all. Anyways the older generation can afford to take a hit from the predicted economic downturn. At the end of the day your generation caused the problem.:money:

Crashy_Time

mrlegend123 wrote: »

Only the baby boomers, generation x and generation y have benefited from the housing market over the years. The millennial and the next generation (TBD) are at a disadvantage due to the decrease in real wages Home ownership to age groups graphs says it all. Anyways the older generation can afford to take a hit from the predicted economic downturn. At the end of the day your generation caused the problem.:money:

Bottom line for me is - If you ain`t cashed out at bubble prices by now, you ain`t going to do so, not with all the economic trouble, Italy etc., coming down the track.

glasgowdan

And their comments on the subject get vaguer and more tenuous as they try and make themselves feel better about not being able to afford a home

Crashy_Time

glasgowdan wrote: »

And their comments on the subject get vaguer and more tenuous as they try and make themselves feel better about not being able to afford a home

Neighbour dropped his price has he, you sound in a bad mood.....:rotfl: What effect do you think the Italian situation will have on lending in the UK, if any?

System

Properties in the South-East are close to unaffordable for me. I have a engineering degree working a middle management earning 40k plus. In late 20s so I've got plenty of time left for promotions. I have alot of money stashed away in investments and have no student debt.

Lower income famlies should be able to afford a house as well. They work hard and deserve it. If it wasnt for lower income famlies taking on massive amounts of debt your house prices wouldn't increase at the current rate fuelled by low base rate.

Crashy_Time

mrlegend123 wrote: »

Properties in the South-East are close to unaffordable for me. I have a engineering degree working a middle management earning 40k plus. In late 20s so I've got plenty of time left for promotions. I have alot of money stashed away in investments and have no student debt.

Lower income famlies should be able to afford a house as well. They work hard and deserve it. If it wasnt for lower income famlies taking on massive amounts of debt your house prices wouldn't increase at the current rate fuelled by low base rate.[/QUOTE]


Bingo. That is how the whole thing took off with rocket fuel, once HPI seemed baked in people would do and say anything to get as big a loan as possible, so they could join the party, it was like winning the lottery for many ordinary people, the most "free" money they could ever hope to lay hands on (short of actually winning the lottery) and it worked...until it didn`t. The problem with all pyramid type ventures is that the last people in tend to get left holding the bag.

System

I am involved in local politics, I have witnessed social cleansing of low income families. They cannot get on the council house or housing association list, can't afford to rent privately. They have two choices take on more debt or move away to a confirmed poorer area of the UK such as Scotland (for Dan).

ukcarper

mrlegend123 wrote: »

Properties in the South-East are close to unaffordable for me. I have a engineering degree working a middle management earning 40k plus. In late 20s so I've got plenty of time left for promotions. I have alot of money stashed away in investments and have no student debt.

Lower income famlies should be able to afford a house as well. They work hard and deserve it. If it wasnt for lower income famlies taking on massive amounts of debt your house prices wouldn't increase at the current rate fuelled by low base rate.

Lower income families have never been able to buy. There have been much tighter controls on mortgage lending since the crash so people can no longer take massive amounts of debt.

Crashy_Time

ukcarper wrote: »

Lower income families have never been able to buy. There have been much tighter controls on mortgage lending since the crash so people can no longer take massive amounts of debt.

So who bought all the council houses then, it couldn`t have been all landlords surely?