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50% house price falls
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Dead_Eye_Jones wrote: »Ive always been interested to note that posters always claim their LL is not going to sell - but everyone elses will. Surely we'd have one or two peeps going "actually im a bit worried about being booted out". But curiously no
!
Just a passing observation!
I know someone who sold a BTL complete with the tenants, but that was at the height of the BTL boom and the buyer was pleased to avoid the risk of a void.
When homes initially start to fall there will be an INCREASE in homes to rent, as sellers refuse to admit that they have missed the peak, and rent out the property "until prices pick up again next............". Only if the down turn becomes a rout will distress sales cause a flood of sales of cheap homes.
One other thought: BTL'ers get 100% tax relief on their mortgage interest BUT when the mortgage is bigger than the rent, the cost of the mortgage in effect goes up automatically?0 -
bargainbarmy wrote: »Err? I don't think so!!!
It definitely is a contradiction. You are implying that property prices always go up, hence there is no gambling involved, yet you say it's a gamble.
I hope you have as much fun in your next career! :rotfl:0 -
BobProperty wrote: »The market is led by sentiment and affordability. Over the last few years we have had easy (too easy?) credit and the sentiment of "property always goes up in value". Add vested interests especially newspapers, "property !!!!!!" TV, property scaminars, etc. and people like the Glasgow taxi driver on the other thread "jump on the bandwagon". We are now at a point where the market is stalling. The current situation can only be prolonged for a few years at most (or cynically until after the next general election).
Yeah, but that's still 'greed'. People figure that they can make a fortune from property, no risks involved.... So you get people spending megabucks on houses or apartments on the grounds that they can sell them on at a profit, pushing up prices even further for people who just want a place to live.
The mortgage industry jumps in with ever larger loans and complex repayment arrangements to fuel the frenzy and by facilitating higher prices, they stimulate demand for their 'product' - debt.
This all goes on until it is no longer sustainable. I agree we're fast reaching that point. Brown will try to spin it out until the election - let's hope it's sooner rather than later.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
bargainbarmy wrote: »I am asurveyor and know the trends of the market inside and out. there is not going to be a crash.
Obviously you can't read charts properly.
Show me a long term trend that doesn't support a big correction.I'm no expert in the economics of the housing market, but to me the basic laws of supply and demand seem to go a long way to ensuring that house prices will not "crash".
Yes you're correct.
You're no expert.
Supply and demand is a myth that has been wheeled out by people who stand to loose a lot of money in a downturn.0 -
It definitely is a contradiction. You are implying that property prices always go up, hence there is no gambling involved, yet you say it's a gamble.
I hope you have as much fun in your next career! :rotfl:
I won't have to change my career, in fact I have never been busier what with the rising number of valuations for remortgages, repossessions, hips etc. Things are looking pretty rosey for surveyors ching ching !!!0 -
Brown will try to spin it out until the election - let's hope it's sooner rather than later.
Yes. There are two schools of thought on this. He either wants to stay in power - in which case he'll call a snap election in the next few weeks. Sentiment towards him is as good as it's going to get and it's the only chance he'll have.
Or... He WANTS to lose and let the Tories appear responsible for his mistakes. A few years of an unstable economy, falling house prices, and possibly a recession for good measure and... Bingo! Labour get back in again after just a few years. (In which case he'll wait till things start going t*ts up next year before calling an election.)
As much as it sounds like a conspiracy theory, I'm edging towards the latter.0 -
bargainbarmy wrote: »ching ching !!!
Is that the sound of your two brain cells banging together?
The fact is, you are so busy, you have been posting on this forum all morning!0 -
dannyboycey wrote: »Is that the sound of your two brain cells banging together?
The fact is, you are so busy, you have been posting on this forum all morning!
As many as two!!!!!!!!!!!!!!!!!!??????????0 -
dannyboycey wrote: »Is that the sound of your two brain cells banging together?
The fact is, you are so busy, you have been posting on this forum all morning!
lol I love it !!! :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:0 -
Just a point,do you not think that the lenders will now be a little more careful to whom they lend money to.
http://news.bbc.co.uk/1/hi/business/7010415.stm
Is it not possible that with the recent panic the lenders will perhaps review past applications?I think they call it fraud!
To me this article describes yet another factor that has distorted the market resulting in extreme prices.0
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