If we vote for Brexit what happens

System

The property asset bubble was created in the 90s by the bankers. Everyone knows that.

System

During brexit, we need to keep a eye on the FPC in regards to mortgage lending, that's the first indicator. Then keep a eye on BoE in regards to base rate, second indicator.

System

BoE will reduce the base rate this week therefore reducing borrowing cost to shore up the broken housing market via mortgage rates. Eventually we will hit the affordability property ceiling and no where to go but down down down. That's if the next financial crisis doesnt get there first! I'm really enjoying watching the financial markets going down at the moment and seeing investors flocking to stocks and shares. The FTSE is now overvalued. The housing market is the next asset to take a hit as people have been using it as a investment tool.

We need higher interest rates, oil prices etc in order to recover.

ukcarper

mrlegend123 wrote: »

BoE will reduce the base rate this week therefore reducing borrowing cost to shore up the broken housing market via mortgage rates. Eventually we will hit the affordability property ceiling and no where to go but down down down. That's if the next financial crisis doesnt get there first! I'm really enjoying watching the financial markets going down at the moment and seeing investors flocking to stocks and shares. The FTSE is now overvalued. The housing market is the next asset to take a hit as people have been using it as a investment tool.

We need higher interest rates, oil prices etc in order to recover.

The reason to cut interest rates is not to sure up a broken housing market.

You say that we will hit affordable property ceiling and prices will fall if it's true by definition property is affordable at the moment and secondly why would prices go down down down as if they fall a bit they will become affordable again.

As I said you are just looking for any reason to justify your belief that prices will crash. I can see prices stalling or falling a bit which I think would be a good thing but I wouldn't be surprised if they continual to increase.

ukcarper

buglawton wrote: »

You believe the bubble was only built in the noughties?
Born too late maybe?

Problem is people see the 90s as the norm not as the lowest point property prices have been perhaps they should look at what happened in the 70s and 80s.

Crashy_Time

buglawton wrote: »

You believe the bubble was only built in the noughties?
Born too late maybe?

The rocket fuel of cheap credit to the masses was added in the Noughties, plus a brainwashing campaign on TV etc., that wasn`t happening in the 90`s.

Crashy_Time

ukcarper wrote: »

Problem is people see the 90s as the norm not as the lowest point property prices have been perhaps they should look at what happened in the 70s and 80s.

They were allowed to crash in the 80`s though, that is the difference.

jimpix12

Every time this thread gets bumped, glasgowdan bids another £10k over the asking price.

ukcarper

buglawton wrote: »

My examples are South East (London commuter belt) and South coast.

I suppose it depends what you call low incomes. I first bought in the 70s earning a fair bit higher than average income and just about managed it moving 20 miles further out from London to where I really wanted to be. Moved again the early eighties after splitting up and just about managed to buy again using a fair bit of equity from previous property.

ukcarper

Crashy_Time wrote: »

They were allowed to crash in the 80`s though, that is the difference.

Not talking about crash talking about speed of increase.

Interest rates were not cut to prop up housing market.