How Much Longer Before The Crash

eco-friendly_2

nollag2006 wrote: »

Whenever I read these house price crash muppets praying for a fall back in values, I often turn to the archive section of their own website, to see just how feeble and pathetic their predictions of a crash are.

For those of you who want a laugh at these muppets and their ridiculous predictions of a crash, here it is:
http://www.housepricecrash.co.uk/predictions-archive.php

Interesting ! predicitions show an increase of 5% ,,,,,,,,,,,,,,,,,,,,,to a fall of up to 50% at least that gives me something to work to :T



Think , I'll take a look in at my granny's tomorrow ! she's into tea leafs.

Exocet

As we seem to be bumping old threads I thought this one was fun.

Jowo_2

People still genuinely believe there is going to be a huge crash any minute. An estate agent I know is still showing property to people who have been sitting out since 2008 waiting for substantial falls. Who knows if their patience is going to be rewarded - there could be a double dip recession which wipes out the kind of protection that the low interest rates have given property owners.

A pal recently had a 100% cash buyer withdraw from buying their flat because the buyer's dad has convinced them they are going to lose substantial sums of money. Who knows if he is right or wrong but this person has been looking for a year plus and is still too nervous to enter the market, even when they are in the position to buy from a distressed seller or negotiate a big reduction.

EDIT - I wonder if the people who have withdrawn from the market are factoring in their rental costs while they sit out from buying? If, for example, my friend's potential buyer who changed their mind is in an average cost 1 bedroom rental in the local area, they'd have spent around 8k waiting for the market to stabilise, perhaps another 8k this coming year, too. So if they buy a place and think 'great, I've got it for £x less because I'm patient' will they remember to factor in the rent they've been spending?

jozbo

You could wait your whole life but at the end of the day money's money and enjoying your life is more important

Jonbvn

Jowo wrote: »

.....they'd have spent around 8k waiting for the market to stabilise, perhaps another 8k this coming year, too. So if they buy a place and think 'great, I've got it for £x less because I'm patient' will they remember to factor in the rent they've been spending?

To add balance to your point, most people buy with a mortgage and have to consider the interest they would have paid on their mortgage.

In simple terms, mortgage interest is equally as "dead" as rent.

pardal51

I still think that a market correction is long overdue. Ordinary working people are committing a huge share of their income in mortgage repayments. I feel that more and more people are greedy and want to have a property portfolios because (a) money is everything in life and I must get rich and live like a celebrity; (b) pension investment – “conservative - house prices always rise” option compared to stock market.

Those who just want a house to live in are paying the price of being price out of the market.

Then people who are priced out get desperate and want to do anything, i.e., over borrow just get into the “housing ladder” not weighing the consequences, because if you buy a house in X years time you will be "richer".

I am not criticising capitalism, but the real problem is that inequality is increasing in this country and this is a big problem in society.

I know that I will be trashed for expressing my opinion, but it is just my personal opinion anyway. So my ears and eyes are ready :rotfl:

Fact: I have been saving for ages hoping to get a modest place to live. That’s why just now I am looking for a place I can afford (I have calculated how much I’d pay if interests rate rose to 8% so I know how much I will have to pay – it can rise higher than that I know), even though it is so over price what we have seen so far. You just get frustrated.