House Price Crash Discussion Thread

kriss_boy

carolt wrote: »

You didn't, and won't make a lot; may make a loss. But on the bright side, if you extend it, you have a home you should be able to live in for many years, so sale price is irrelevant.

To make a loss.... our newly extended 3 bedroom house that at the begining of the year would have been worth 140,000... would now have to be worth less than 110,000K... you cant seriously suggest property will fall that severly?!?!

Making a loss on this work is completely out of the question because to suggest a 3 bedroom house be only worth 110K is madness as people like myself on modest wages would suddenly be able to afford 4 bedroom detached houses at a young age! It doesnt add up.



So many people are smug about reaping the fruits of their property generations labour. Its all relative though. Those who paid 30 grand for their one bed flat 6 years ago may now sell it on for 70 grand... but theyll remain at exactly the same point on the property ladder... one bed flats...

van_persie

kriss_boy wrote: »

To make a loss.... our newly extended 3 bedroom house that at the begining of the year would have been worth 140,000... would now have to be worth less than 110,000K... you cant seriously suggest property will fall that severly?!?!

140K to 110K? Easily.
Did anyone expect rampant HPI of around 300% over the past 10 years?
Then why not accept that the market - that is so clearly a bubble bursting - won't fall by a mere 20%?
I fully expect 40% falls from peak at the trough in around 3 years.

neas

van_persie wrote: »

140K to 110K? Easily.
Did anyone expect rampant HPI of around 300% over the past 10 years?
Then why not accept that the market - that is so clearly a bubble bursting - won't fall by a mere 20%?
I fully expect 40% falls from peak at the trough in around 3 years.

Im hoping as a FTB you are correct . Its inflated way too much... somethings gotta break .

van_persie

neas wrote: »

Im hoping as a FTB you are correct . Its inflated way too much... somethings gotta break .

I am correct.
You can bet your house on it.

carolt

If the IMF (International Monetary Fund) and HSBC believe UK house prices to be 40%/30% overvalued, respectively, then why on earth shouldn't the price of your house fall by 30K? Or substantially more?

Sorry if you don't want to hear it, but always read the small print and remember that prices can go down as well as up.

Like I said, assuming you bought to live there, rather than to make a profit, it shouldn't affect you.

If you bought as an 'investment', I suggest researching your investment strategy somewhat better next time. The clues that prices were about to fall would have been found in little things like the first run on a UK bank, one of the biggest mortgage lenders, in decades, and headlines saying 'PRICES ABOUT TO CRASH'..... :rolleyes:

ManAtHome

kriss_boy wrote: »

So Im relying on the market remaining stable as our plan is to also extend ours and look to make the same kinda of return. Our extension will be slightly dearer, maybe 25K, but still, with a total investment of around 110K Id love for the market to at least remain the same so that in a year I could get 140K if not more.....

I know it shouldnt matter but jeez how else are people like myself meant to work their way up the property ladder.

Hang on a mo... If you want to work your way UP the pyramid, you're better off if prices fall! If your place drops 10% you 'lose' 14k, the next block up loses more...

Vincenzo

van_persie wrote: »

I am correct.
You can bet your house on it.

I remember an awful lot of people sold properties and rented in the 2004 blip, waiting for the market crash, only to find themsleves a rung or two down the ladder.

I presume, if you are so sure, you have sold up and are renting?

Good luck.

HammersFan

carolt wrote: »

Shame you didn't post here before buying - you might have got advice that could have saved you a little...

The moral is: never believe a financial advisor! Make your own decisions - they have a vested interest in selling you products, so asking them which product to buy may be sensible; but asking them whether to buy anything at all, isn't, as they are always going to say yes, or else they'd never make any money....

How very helpful. The moral is also don't believe a lot of the bitter guff you read on these forums either. Hang in there - things will work out ok if you graft.

HammersFan

carolt wrote: »

If the IMF (International Monetary Fund) and HSBC believe UK house prices to be 40%/30% overvalued, respectively, then why on earth shouldn't the price of your house fall by 30K? Or substantially more?

Sorry if you don't want to hear it, but always read the small print and remember that prices can go down as well as up.

Like I said, assuming you bought to live there, rather than to make a profit, it shouldn't affect you.

If you bought as an 'investment', I suggest researching your investment strategy somewhat better next time. The clues that prices were about to fall would have been found in little things like the first run on a UK bank, one of the biggest mortgage lenders, in decades, and headlines saying 'PRICES ABOUT TO CRASH'..... :rolleyes:

You say here that prices can go down as well as up. You seem to be forgetting the 'up' bit then. You nor anyone else can be certain of the way the market is going - and your advice on investment research sounds rather patronising. If anything was a 100% sure bet then we'd all be rich. I'm willing to bet good money that someone who buys today will be in a better position in 10 years time than someone who keeps on renting hoping for a crash. But that's just my opinion and I am prepared to admit that I might be wrong.

You also seem to put a lot of faith in the predictions of the big banks and the IMF. Aren't they the same people who failed to foresee the sub-prime problem and who are reporting big drops in profits? Good economists will always say that their predictions are not anything like guarentees. Someone buying today gets a house to live in - and if they can afford the payments, what's the problem if prices fluctuate a bit.

I just get quite frustrated that you scaremonger people away from the market with your ill-considered advice stated with way too much certainty.

dolcevita

Could somebody please tell me why high house prices are a good thing.

Seriously, why is paying say, 200k for a house, better than paying 100k for the same house?