House Price Crash Discussion Thread

carolt

IveSeenTheLight wrote: »

I have yet to see anyone show me a property that crashed in the 90's and has not recovered and surpassed the price before the crash.

Yes, but the crash happened in the early 90's - are you really suggesting that FTB's buying their studio/one-bed flat in some manky area are necessarily going to want to be stuck there, unable to afford to move due to negative equity, for 15 years until prices rise to current levels again?

Also, you don't factor in inflation - even if house prices 'stagnate' to use your favourite phrase, in real terms they fall, as of course if you just left the money in the building society it would rise by 5% or so per annum. And with oil prices hitting record levels again, inflation - and interest rates - may be set to rise, not fall...

bukup

assumptions do no one any favours.....

house prices are going to crash

interest rates are going to go up

do not buy ... do not sell ... do not rent...

blah blah blah

You really do not do yourselves any good worrying,

whatever happens-happens...!

Whether you are rich,poor,renting,developing property,worth millions or

pennies, there is only one thing that IS for sure......

All of us,will one day will be dead !

In the meantime,why not 'enjoy' life,when was the last time you sat down

and talked to your family ?

When was the last time you complemented someone at work ?

When was the last time you visited your doctor,and had an MOT ?

It sounds daft but dont stress out over assumptions,stress is a big killer.

There is so much more to life than money,whether you have it or not.....

DONT LET IT RULE YOUR LIVES

Gorgeous_George

I'm no expert on house prices. I started buying in 1985 (I still have a mortgage of £55K). My BTL was bought at a good price because of luck.

I wouldn't buy at today's hideous prices. Will prices rise or fall? I have no idea - but "I WOULDN'T BUY TODAY!" I SAY "I WOULDN'T BUY TODAY".



GG

dolce_vita

............NOR ME.



(not because prices might [STRIKE]crash[/STRIKE], sorry, correct but because they are too expensive)


If the [STRIKE]crash[/STRIKE], !!!!!!, correction happens then I think prices will drop.

But if prices keep going up and up then i don't think they will [STRIKE]crash[/STRIKE], correct.

And I also think that if prices don't go up or don't go down then they will stay the same.

But I might be wrong, they could go up forever.

Or they could keep going down.

who knows? I'm confused now.

anyway, all you people talking about a crasdh - stop it I say, stop it now.

LostSocks

I think there's a stand still going off at the moment. I'm looking at houses at the moment, and when I was buying back in 2003, houses were flying off the shelf and have been doing so up until early this year. Houses are the same estate have now been on for over a month and I think the asking prices are ridiculous and house sellers have their heads in the clouds. One house we viewed needed totally gutting as it hadn't really been touched decorating wise for years (they had the cheek to call it a kitchen!) and the boiler looked older than me. I told the EA, it was too high and needed work yesterday and today they came back saying the asking price has dropped by £2,000. Prices dropping was unheard off last time I was house hunting. Still wouldn't buy it though.

mystic_trev

http://efinancedirectory.com/articles/8_Areas_in_the_U.S._Known_as_the_Most_Unaffordable_Housing_Markets_in_the_World.html

mattiker

mystic_trev wrote: »

http://efinancedirectory.com/articles/8_Areas_in_the_U.S._Known_as_the_Most_Unaffordable_Housing_Markets_in_the_World.html

Nice one Mystic_trev.... it's good to see some one doing some solid research into this subject and not just venting (somewhat) unfounded opinions. Lets see some facts! Anyone else found any good links to news articles on this topic?

Generali

mystic_trev wrote: »

http://efinancedirectory.com/articles/8_Areas_in_the_U.S._Known_as_the_Most_Unaffordable_Housing_Markets_in_the_World.html

London is an interesting one. Lots of people (especially recent immigrants) earning very little in hospitality and support functions. Lots earning a massive amount in finance, IT, design and advertising. Middle earners seem, increasingly, to be refusing to live there, preferring a long commute instead.

When I started off in London in the mid 90s I was on about £170 pw net as a data entry bloke in a small UK bank. Now I could make 10x that without too much more effort.

My guess is that sort of thing is massively skewing the data.

carolt

Thanks, mystic_trev.

I particularly liked the bit in the article that said:

A Tip on How to Make Money in a Housing Downturn: Rent

There are tons of books and articles out there that tell you how to profit from the real estate bubble. Some suggest buying foreclosures in depressed areas; others say commercial property is the way to go. But if you really want to make money during a housing slump, the easiest and most profitable thing to do is rent.


Couldn't have put it better myself....

ivegotabig1

http://news.bbc.co.uk/1/hi/business/7049930.stm

Even the IMF is predicting a gloomy outlook for the u.k property market !!!!
What has happend in the U.S is quite likely to happen here !!!! Wake up Bulls !!! The Property Bubble is about to Burst