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Will it just keep going up?????
princepilot
Posts: 34 Forumite
If we dont have a crash what will happen?
Will it just go up gradual or just remain static for a few years?
It cant keep going up like this surely. People just cant afford to buy a house these days.
Matt :j
Will it just go up gradual or just remain static for a few years?
It cant keep going up like this surely. People just cant afford to buy a house these days.
Matt :j
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Comments
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princepilot wrote: »[strike]If we dont [/strike] when we have a crash what will happen?
Will it just go up gradual or just remain static for a few years?
It cant keep going up like this surely. People just cant afford to buy a house these days.
Matt :j
I hope you don't mind but I corrected your post before answering.
Your last sentence gives the answer. We have reached a point where prices are beyond the reach of even people earning above average incomes.
This has been due to people's access to cheap, easy money and borrow huge amounts of money and therefore fuel the prices further.
As you are no doubt aware the days of cheap, easy money are coming to an end and rampnat HPI is over.
These booms/bubbles have happened many times in the past and here is a list of all the ones that ended with a "soft landing" ........................
Did you count them all?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 -
thats a bit harsh, the dotbomb was relatively soft and theres still lots of nice sun kit floatings about for buttons, 64 cpu 64gig ram servers for £2k anyone.
that said the buble should have burst about 3 years ago, creative lending and btl has kept it growing but it will pop, unless you are a ftb or landlord it doesnt really matter at the moment anyway.0 -
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Well,
My property is about a month of going on to the market for sale. I do hope it doesnt crash before. After is fine though , hehe
Seriously , i cant see anyother outcome than an almighty crash as people will just be unable to afford their own property forever in the future.
Whem mine is sold i will have 30k profit that im just going to save. I can live somewhere pretty much rent free for a few years while i wait for the inevitable crash!
Matt0 -
I'm in the mortgage industry and for some time have argued a crash is overdue.
99% of fellow industry people I meet react to my sentiment with anything from total disbelief to utter disinterest. For them 'prices always go up' end of.
Funny how those very same individuals are now comming round to the idea and even claiming they thought this was on the cards all along!!!!
There are a lot of people I know with c30% equity tied - up in several properties and it is this very equity that gives them peace of mind, even an arrogant superior air. If it dissapears it will drag thier egos through the hedge backwards as they suddenly find out they are no richer in asset terms than the the bloke who shine thier chavvy Beemers.0 -
The Northern Rock thing has really tuned my mind on the British pysche. It seems panic and a rush for the doors is definitely on the cards. No rational thinking here....
The BoE can always try & delay all this by cutting rates again though.0 -
The Northern Rock thing has really tuned my mind on the British pysche. It seems panic and a rush for the doors is definitely on the cards. No rational thinking here....
The BoE can always try & delay all this by cutting rates again though.
It's a good old fashioned run on the bank and I believe those people queing are behaving rationally. If it was my money and there was any hint of it being lost I'd want it in my hands ASAP.
This has exposed a major weakness in the whole system and people are wary.
As for the guarantee - what a pile of !!!!!! that is.
Besides the amount of time you would have to wait if you've got more than 2k you lose some and if you've got more than 35k you lose even more.
And what do you mean by "delay all this"?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 -
dolce_vita wrote: »It's a good old fashioned run on the bank and I believe those people queing are behaving rationally. If it was my money and there was any hint of it being lost I'd want it in my hands ASAP.
This has exposed a major weakness in the whole system and people are wary.
As for the guarantee - what a pile of !!!!!! that is.
Besides the amount of time you would have to wait if you've got more than 2k you lose some and if you've got more than 35k you lose even more.
And what do you mean by "delay all this"?
So if people get a hint of losing money on their investment properties, will they want to sell ASAP? Or will they be in it for the long term???
By delay all this, I mean they can attempt to boost the economy again by reducing interest rates to encourage even more borrowing. If they manage to keep the housing bubble going, people may continue as they are now and those who need a bit of cash can just keep dipping into their equity/adding it onto their mortgage.0 -
dolce vita, I think maybe you should try not to be so rude.
It just makes you and your approach seem a lot less rational.0 -
So, in the words of vishpatel,
"boosting the economy by reducing interest rates to encourage more people to borrow more money and dip into their equity to keep the whole thing going"
is your idea of a rational approach is it?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
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