We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Wow 50% here we come
Comments
-
MikeLondon wrote: »But if someone's prepared to lend you £10.00 now, and the item you want costs £10.00, you're laughing.
Next week, it may only be worth £6.00, (yay!!!!), but you may only be able to borrow £5.00, thus making it less affordable, despite being less expensive?
That make any sense at all?
err....? NOdolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
nah fair cop Lypsey, sorry obviously jumped in there with my size 11's! lol
i know an internet forum is all about debate and people's opinions, but it just seems that on here it always seems to boil down to who's right & who's wrong in the mean time laughing at everyone elses misfortune whether it be for HPI or for HPC, etc. (don't get me wrong I participate in these as well!)
anyway I'll let you lot carry on with the "predictions" (i would add these predictions have been happening for about 5 years though
) sorry one last little dig there! lol 0 -
dolce_vita wrote: »err....? NO
Ok, i'll try another way.
You have a £10,000 deposit, and the property costs £100,000.
A bank are prepared to lend you the £90,000 you need.
In the future, once the 'crash' has happened.
That same property may only be worth £80,000.
You still have £10,000 deposit but the banks are now only prepared to lend you £60,000 due to the credit crunch etc etc.
So you could have bought a house at £100,000, but now you cannot get the mortgage.
So, less expensive BUT ALSO less affordable.0 -
Makes sense to me MikeLondon, the banks are already tightening their lending criteria.Gone ... or have I?0
-
MikeLondon wrote: »Ok, i'll try another way.
You have a £10,000 deposit, and the property costs £100,000.
A bank are prepared to lend you the £90,000 you need.
In the future, once the 'crash' has happened.
That same property may only be worth £80,000.
You still have £10,000 deposit but the banks are now only prepared to lend you £60,000 due to the credit crunch etc etc.
So you could have bought a house at £100,000, but now you cannot get the mortgage.
So, less expensive BUT ALSO less affordable.
I understand what you are saying.
But what you have to remember is there will still then be people who can afford in the new climate but that they will have less competition and be less eager to just dive in for fear of "missing the boat".
Because that was crashes do - they blow away the speculative froth and the chancers which allows the market to function as normal again.dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
MikeLondon wrote: »Ok, i'll try another way.
You have a £10,000 deposit, and the property costs £100,000.
A bank are prepared to lend you the £90,000 you need.
In the future, once the 'crash' has happened.
That same property may only be worth £80,000.
You still have £10,000 deposit but the banks are now only prepared to lend you £60,000 due to the credit crunch etc etc.
So you could have bought a house at £100,000, but now you cannot get the mortgage.
So, less expensive BUT ALSO less affordable.
So who's going to buy an 80k property if they can only borrow £60k? Surely that means it'll end up going for £70k?"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Guy_Montag wrote: »So who's going to buy an 80k property if they can only borrow £60k? Surely that means it'll end up going for £70k?
Someone could still buy it for £80,000. But the person in the example I quoted couldn't.
Therefore, it could still go for £80,000 but the person that could've bought it when it was £100,000 and lending criteria was less harsh, now can't.0 -
MikeLondon wrote: »Someone could still buy it for £80,000. But the person in the example I quoted couldn't.
Therefore, it could still go for £80,000 but the person that could've bought it when it was £100,000 and lending criteria was less harsh, now can't.
Ah, I see where you're coming from. However, since there will be fewer people able to make an offer that will drive down the price further (though that may what brings it to £80k in the first place)."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.3K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards