BREXIT - Good news for all those youngsters!

dexterwolf

Surely though if the housing market drops that much then most people will sit tight until it goes up or they will lose money. So less houses on the market won't see a major drop in prices imo. Also won't mortgage lenders be looking hard at who they lend to. No point lending someone a 95% mortgage and then 6 months later the house is reprocessed. Also if we crash then we would probably be in a recession so less people will be able to save as much with possible job losses. So for me I can see 5% drop possibly for a few months but if 15/20% then I just don't see where or how people will still buy homes as people will suit tight and not move themselves.

chucknorris

dexterwolf wrote: »

Surely though if the housing market drops that much then most people will sit tight until it goes up or they will lose money. So less houses on the market won't see a major drop in prices imo. Also won't mortgage lenders be looking hard at who they lend to. No point lending someone a 95% mortgage and then 6 months later the house is reprocessed. Also if we crash then we would probably be in a recession so less people will be able to save as much with possible job losses. So for me I can see 5% drop possibly for a few months but if 15/20% then I just don't see where or how people will still buy homes as people will suit tight and not move themselves.

We are about to put a house on the market, if the market does turn bad, we'll simply postpone selling.

cashbackproblems

dexterwolf wrote: »

Surely though if the housing market drops that much then most people will sit tight until it goes up or they will lose money. So less houses on the market won't see a major drop in prices imo. Also won't mortgage lenders be looking hard at who they lend to. No point lending someone a 95% mortgage and then 6 months later the house is reprocessed. Also if we crash then we would probably be in a recession so less people will be able to save as much with possible job losses. So for me I can see 5% drop possibly for a few months but if 15/20% then I just don't see where or how people will still buy homes as people will suit tight and not move themselves.

Some people need to sell and have no choice, also their next place will be cheaper by the same or even more than what they lose on their place

2008-2010 people held tight but prices still fell

HHarry

vincent.waldorf wrote: »

People who voted leave are uneducated in economics and politics...

Then it was up to the Remainers to explain in clear, simple and factual terms what the benefits and risks were.

Miss_Samantha

HHarry wrote: »

Then it was up to the Remainers to explain in clear, simple and factual terms what the benefits and risks were.

"We don't care, you and experts don't know anything. Nigel and Boris say everything will be great and everything is the EU's fault."

TrickyTree83

HiToAll wrote: »

Just corrected that for you.

The snobbery is off the scale.

https://www.youtube.com/watch?v=K2k1iRD2f-c

p00hsticks

bigfreddiel wrote: »

But your next property will cost less. Negative equity won't matter

For the majority of house owners who have borrowed the major part of the purchase price, of course negative equity matters.

Consider someone who put in a £10k deposit to buy a £100k house with a £90k mortgage.

If the house value then drops to £80k, not only has their original £10 k deposit gone up in smoke, but if they need to sell for any reason (job loss, relocation, growing family etc) then they are faced with having to raise another £10k in order to do so, simply to meet the shortfall in the mortgage.

And it won't really matter how much less the 'next property' costs as they'll have no deposit to put down anyhow, so it;s back to renting for them.

cashbackproblems

p00hsticks wrote: »

For the majority of house owners who have borrowed the major part of the purchase price, of course negative equity matters.

Consider someone who put in a £10k deposit to buy a £100k house with a £90k mortgage.

If the house value then drops to £80k, not only has their original £10 k deposit gone up in smoke, but if they need to sell for any reason (job loss, relocation, growing family etc) then they are faced with having to raise another £10k in order to do so, simply to meet the shortfall in the mortgage.

And it won't really matter how much less the 'next property' costs as they'll have no deposit to put down anyhow, so it;s back to renting for them.

that's assuming they have ZERO equity in their home, most people will not move after just 1/2 years where you situation applies, but 5-10 years by which time a chunk of the mortgage will be paid.

Prices are already coming down my rightmove is flooded with reduced prices and an EA just rang me to say a flat I went to see last month was priced at 400k (at the time maybe just 20k overpriced) and now the seller wants 310k!! They know things will only get worse

martinsurrey

cashbackproblems wrote: »

that's assuming they have ZERO equity in their home, most people will not move after just 1/2 years where you situation applies, but 5-10 years by which time a chunk of the mortgage will be paid.

Prices are already coming down my rightmove is flooded with reduced prices and an EA just rang me to say a flat I went to see last month was priced at 400k (at the time maybe just 20k overpriced) and now the seller wants 310k!! They know things will only get worse

this thread is about FTB's...

If you have cash and equity, of course you can exploit falling prices, most FTB's are NOT going to be in that group.

cashbackproblems

martinsurrey wrote: »

this thread is about FTB's...

If you have cash and equity, of course you can exploit falling prices, most FTB's are NOT going to be in that group.

READ the post I was replying to, his example was someone who was to sell their home with falling prices

For FTB's the falling market we will see will be brilliant