Help to Buy equity loan London - The right approach ?

GreenSnake

buggy_boy wrote: »

Yeah but you havent bought for years waiting for the crash.... Given the increase in house prices in that time you are desperate to try to convince everyone the 50%+ price drops are coming... Wont happen, you gambled and lost...

My house is worth less now than in 2007.
Maybe you are only referring to certain areas of the country?

Anyway, it doesn't bother me that prices have fallen. I've paid off my mortgage and my next house will now be cheaper. Unless I decided to move to London / SE, which I wouldn't!

GreenSnake

Just buy the house you can afford and pay off the mortgage ASAP.
Don't think about price falls, selling etc.

I'm bearish on UK house prices, but I'd still buy ASAP - unless I was living rent free somewhere. Then I wouldn't.

I don't view my house as an investment. Its value is the rent I am not paying to someone else. That's all.

Crashy_Time

jaymerchi wrote: »

Incorrect - I am under 30 atm and have rented for a total of 5 years. Only really had a cushion for a deposit since early 2017

Really dont understand why the mere mention of a fall in house prices in a scenario analysis exercise riles people up like this.

I think I do

Crashy_Time

GreenSnake wrote: »

My house is worth less now than in 2007.
Maybe you are only referring to certain areas of the country?

Anyway, it doesn't bother me that prices have fallen. I've paid off my mortgage and my next house will now be cheaper. Unless I decided to move to London / SE, which I wouldn't!

What happened?

buggy_boy

Crashy_Time wrote: »

Bet you said that about Trump and Brexit as well...? Don`t underestimate how peed off a large number of people now are with the housing Ponzi, they might just do something "crazy" like elect Corbyn If the system hadn`t been bailed out like it was there probably wouldn`t have been Trump or Brexit, now the only outcome left is a big correction to property prices.

Nope I predicted both Brexit and Trump, Neither had any direct coloration with house prices... If you think Corbyn is a saviour you are going to be very disappointed, its been a slow change but he has come to realise he will not win with his ideology so is now so desperate to get into power he will promise anything... Remember the last general election he would scrap tuition fees and all student debt... Afterwards the numbers were crunched about how much that would cost and he said what he meant was it was obviously an ambition. Everything Corbyn has promised is based on mainly the extra money he thinks he will get by increasing corporation tax however he does not factor in companies will change their structure, you cannot say if you double the rate of tax you will double the income, just like rates have reduced from 28% to 19% and the tax income take has actually gone up.

The ironic thing is you hope for this massive crash like the one that would have happened if the government had not stepped in, however if that sort of thing ever did happen money would be worthless, rioting and disorder would ensue. Trust me worrying about house prices would be the last thing you would think about as society collapsed into anarchy... Capitalism and our current system is massively flawed however history has shown to date its still the least worst option.

51mm5

Thing is, crashy time and his friends at hpc want a crash of house prices no matter what. They're wishing for a 4 bedder in the best part of town for a tenner even if it meant armageddon.

jimbog

brit1234 wrote: »

You say you are going to sell in 5 years time, can you tell me when you expect London house prices to stop falling? Financial Times today says Fulham house prices have already fallen 20%.

However, the same article also says that outside of Fulham 'those for London overall have increased by 19 per cent'. You must have missed that bit.

Crashy_Time

buggy_boy wrote: »

Nope I predicted both Brexit and Trump, Neither had any direct coloration with house prices... If you think Corbyn is a saviour you are going to be very disappointed, its been a slow change but he has come to realise he will not win with his ideology so is now so desperate to get into power he will promise anything... Remember the last general election he would scrap tuition fees and all student debt... Afterwards the numbers were crunched about how much that would cost and he said what he meant was it was obviously an ambition. Everything Corbyn has promised is based on mainly the extra money he thinks he will get by increasing corporation tax however he does not factor in companies will change their structure, you cannot say if you double the rate of tax you will double the income, just like rates have reduced from 28% to 19% and the tax income take has actually gone up.

The ironic thing is you hope for this massive crash like the one that would have happened if the government had not stepped in, however if that sort of thing ever did happen money would be worthless, rioting and disorder would ensue. Trust me worrying about house prices would be the last thing you would think about as society collapsed into anarchy... Capitalism and our current system is massively flawed however history has shown to date its still the least worst option.

Correlation you mean, or were you thinking Magnolia? Money would be worthless if UK house prices correct by 30-40%? That is a big statement, and one I don`t think you are qualified to make

Crashy_Time

51mm5 wrote: »

Thing is, crashy time and his friends at hpc want a crash of house prices no matter what. They're wishing for a 4 bedder in the best part of town for a tenner even if it meant armageddon.

No, no one is hoping for houses at a tenner, that would be plainly silly.....right?

buggy_boy

Crashy_Time wrote: »

Correlation you mean, or were you thinking Magnolia? Money would be worthless if UK house prices correct by 30-40%? That is a big statement, and one I don`t think you are qualified to make

To be fair I could pick out some spelling mistakes you have made in other posts but I always think once you start doing that its because your losing the argument. I did not say money would be worthless because of house prices crashing 30-40%, in fact my post never relates to 30-40% decreases. What I am saying is for house prices to crash (I would call a crash bigger than a correction) as you want it would mean something drastic has gone wrong just like in other crashes you need high unemployment and high interest rates. We currently have neither and nor is there any sign at least at the moment that we are particularly heading in that direction. Hence a crash is not likely in the near future. A slight correction or stagnation yes but a sustained crash no.

My post before stated if the government had not stepped in during the financial crisis then it could have made money worthless yes, we saw with northern rock there was a run on the banks, if the government had not stepped in that would have likely led to loss of confidence and more of a run, this would have crashed the banks which would have had a knock on effect and crashed the economy, at that point house prices are a bit of a mute point if you have no job, no money and are hungry.