We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. 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!
Fears: "Massive global property crash"
Comments
-
i dont think monetary stimulus will go on forever so your argument is incorrect. at some point (probably now) they wont do more and start to raise rates. the reason? worries about pension deficits, savings of people retiring, civil unresr due to what you say about rich/poor divide and banking sector profitability.
what i think will happen is much bigger then most suspect. the US is the reserve currency and they are the only country raising rates. dollar will go up even more higher setting up a worldwide collapse in the eonomy. evetually (probably in the next few years) they will decide dollar can not be the reserve currency. similar kind of thing to the plaza accord.
If the yanks lose their reserve currency status, they are toast, their debt is a reserve currency sized debt.
I can't see Amercian turkeys voting for thanks giving.
... but who knows maybe they already have.
Let's assume you are correct, trump pushes for high interest rates (5%) and succeeds and protects its economy with an import tax as suggested elsewhere of 5% by early 2018.
What would be the effects in the UK do we think?Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
Martinslovechild wrote: »The question here is whether I would buy at all - rather than being forced to choose one of the above options.
My own belief is that London prices are too high. Borrowing multiples are unsustainable at their current level. If I really have to live in London, then I would rent in the short-term and allow my landlord take the hit on the asset value of the property when prices start to fall, as I believe they will over the next 2 years.
Unfortunately the only time you can ever buy is now.
Incidentally, do you think that anyone else might want to adopt your strategy whereby you "rent in the short-term and allow my landlord take the hit on the asset value of the property"? If so, what effect do you foresee that having on the cost of renting?0 -
I've been trying to get a further B2L but due to the affordability criteria stiffening (resulting from impending tax rises) we're keeping our funds in ISA's until such time as mortgage criteria loosens and/or our ISA's increase sufficiently to provide the higher deposits required by mortgage criteria changes.
I envisage a lot of B2L folk are similarly sitting it out for now. We have a 25% deposit and in the area we target prices are quite high and rent yield pretty good, but due to the mortgage changes we now need to stump up about 35% to get the competitive mortgage products.
I'd bet new homes developers will be holding back as a result.
Am again reviewing ISA funds choices, and am to focus on UK and US, plus a bit of health and global technology0 -
US monetary stimulus;
Instead of the lefts borrow and spend model I see Trump employing the private sector (pension funds etc) to fund for example road and bridge building, where the private sector will implement French style tolling.
The days of borrowing and pumping are coming to a close I hope0 -
westernpromise wrote: »Unfortunately the only time you can ever buy is now.
Not if I want to buy in 2 years' time, it's not.westernpromise wrote: »Incidentally, do you think that anyone else might want to adopt your strategy whereby you "rent in the short-term and allow my landlord take the hit on the asset value of the property"? If so, what effect do you foresee that having on the cost of renting?
Yes, absolutely. This is exactly what the senior editor of MoneyWeek magazine did prior to the last housing crash in 2007. Many landlords are in it for the long-term and won't allow a crash to disrupt their plans. Buyers, on the other hand, won't want to pay above the odds when getting into the market only to find themselves in negative equity just a few years down the road.Mortgage Feb 2001 - £129,000
Mortgage July 2007 - £0
Original Mortgage Termination Date - Nov 2018
Mortgage Interest saved - £63790.60
ISA Profit since Jan 1st 2015 - 98.2% (updated 1 Dec 2020)0 -
Martinslovechild wrote: »Not if I want to buy in 2 years' time, it's not.
Yes, absolutely. This is exactly what the senior editor of MoneyWeek magazine did prior to the last housing crash in 2007. Many landlords are in it for the long-term and won't allow a crash to disrupt their plans. Buyers, on the other hand, won't want to pay above the odds when getting into the market only to find themselves in negative equity just a few years down the road.
Money week :rotfl: if you listened to them, you would have no money left, they've been bearish on property for years.
They've been wrong on every turn, apart from the odd issue when the play devils advocate to their own opinion just so they can cover all possibilities.
Look at their previous advice ...
http://moneyweek.com/the-stockmarket-rally-of-2009-is-not-the-same-as-2003-93611/
Does that editor admit how many other years he rented when he would have been a fool to?
Betting against family homes in up and coming areas is a stupid game. Buy somewhere you can afford, pay the mortgage off, own the place forever.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
Money week :rotfl: if you listened to them, you would have no money left, they've been bearish on property for years.
They've been wrong on every turn, apart from the odd issue when the play devils advocate to their own opinion just so they can cover all possibilities.
Look at their previous advice ...
http://moneyweek.com/the-stockmarket-rally-of-2009-is-not-the-same-as-2003-93611/
Does that editor admit how many other years he rented when he would have been a fool to?
Betting against family homes in up and coming areas is a stupid game. Buy somewhere you can afford, pay the mortgage off, own the place forever.
The Money Weak editor (she not he) is Merryn Somerset Webb, you'll probably have heard of her before.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
I was with some 1% broadsheet readers last week who were contemplating selling their second/third homes in the uk because they wanted less exposure to property in general and uk property specifically.
Did they phone some potential buyers to tell them to get their money ready..........:rotfl:0 -
-
chucknorris wrote: »The Money Weak editor (she not he) is Merryn Somerset Webb, you'll probably have heard of her before.
You will recognise her by the word "HYPOCRITE" branded on her forehead in 3 inch letters. She earned such branding by writing articles predicting a house price crash around 2010 (IIRC) at the same time as purchasing a large house in the SE that has no doubt increased in value by a significant amount.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.4K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards