House Price Crash Discussion Thread

m00m00

the problem is,

the boat was the titanic.

and the icebergs are getting ever closer.

mr.broderick

m00m00 wrote: »

the problem is,

the boat was the titanic.

and the icebergs are getting ever closer.

Yes buy in calm seas double your money then sell before the icebergs approach.

m00m00

or buy the salvage for a fraction of the original price after the iceberg strikes.

there's plenty of people out there who could buy at the moment, but who just plain refuse to pay the stupid asking prices which are way above the intrinsic value of property.

blue_monkey_2

Vincenzo wrote: »

I don't. People talk about buying a house as if it is a right, like the right to vote. It isn't and never has been.

We have never had such widespread home ownership in this country. AND there is NOTHING wrong with renting! I think, the reason many people have been so negative towards renting is at the very heart of the 'problem' with the housing market. People perceived that they were missing out on huge gains in the capital value of property, whilst paying someone else's mortgage. Perhaps that attitude will change as the market calms down.......

Have you tried to rent recently?? If you don't have a clean credit rating LL are asking for 6 months rent upfront plus a deposit (4 months has been quoted on here). Letting Agents want you to BRING HOME 3 times the rent - so around here with rents at £900 a month (often more) for a basic 3 bed home - I have seen one for £2500 a month as well - it is impossible for the 'Average' family to rent as well. If you don't bring this home then the LL cannot get Insurance for you so won't take you on. There are no private options around here either, everyone is usng Letting agents for security as many people are getting into debt and not being able to pay. You cannot rent if getting HB. The list is endless, no kids allowed, no pets allowed. We have kids, we don't have enough deposit, we are the average earners you keep on reading about. We work, pay taxes. Where do the lkes of us go?? I never thought of us as 'poor' before until our long term let was put on the market. We are now at the mercy of the council yet there is nothing available. Apparently.

Is it not a right to have somewhere to live? If housing was cheaper the likes of us would not have to stuck in a homeless hostel until some old dear in a 3 bedroom house dies so we can have somewhere to live. We would dearly love to buy so we were not hanging around waiting to see what date the court give us for eviction in 3 weeks time, but unless a bank is going to give us 11 or 12 times my husband salary then it isn't going to happen. As average earners we did not even earn enough for Shared Ownership.

I would like to think that we are a minority. But we aren't. I know more people like us, single people, couples, peole with families. I spoke toa lady this week who's 7 years old daughter had moved house 7 times in her life. having a home means you have roots.

A whole new generation is shortly going to need housing, if they cannot afford to buy where are they going to go? If they cannot afford to rent where are they going to go? If there are now subsidised housing options then where are they going to go? If there are no FTB because the prices are out of their reach (as is the case in the South right now) then how are the people on the next rung going to sell? And so on.

mr.broderick

blue_monkey wrote: »

Have you tried to rent recently?? If you don't have a clean credit rating LL are asking for 6 months rent upfront plus a deposit (4 months has been quoted on here). Letting Agents want you to BRING HOME 3 times the rent - so around here with rents at £900 a month (often more) for a basic 3 bed home - I have seen one for £2500 a month as well - it is impossible for the 'Average' family to rent as well. If you don't bring this home then the LL cannot get Insurance for you so won't take you on. There are no private options around here either, everyone is usng Letting agents for security as many people are getting into debt and not being able to pay. You cannot rent if getting HB. The list is endless, no kids allowed, no pets allowed. We have kids, we don't have enough deposit, we are the average earners you keep on reading about. We work, pay taxes. Where do the lkes of us go?? I never thought of us as 'poor' before until our long term let was put on the market. We are now at the mercy of the council yet there is nothing available. Apparently.

Is it not a right to have somewhere to live? If housing was cheaper the likes of us would not have to stuck in a homeless hostel until some old dear in a 3 bedroom house dies so we can have somewhere to live. We would dearly love to buy so we were not hanging around waiting to see what date the court give us for eviction in 3 weeks time, but unless a bank is going to give us 11 or 12 times my husband salary then it isn't going to happen. As average earners we did not even earn enough for Shared Ownership.

I would like to think that we are a minority. But we aren't. I know more people like us, single people, couples, peole with families. I spoke toa lady this week who's 7 years old daughter had moved house 7 times in her life. having a home means you have roots.

A whole new generation is shortly going to need housing, if they cannot afford to buy where are they going to go? If they cannot afford to rent where are they going to go? If there are now subsidised housing options then where are they going to go? If there are no FTB because the prices are out of their reach (as is the case in the South right now) then how are the people on the next rung going to sell? And so on.

you're telling me these people didn't miss the boat?

mr.broderick

m00m00 wrote: »

or buy the salvage for a fraction of the original price after the iceberg strikes.

there's plenty of people out there who could buy at the moment, but who just plain refuse to pay the stupid asking prices which are way above the intrinsic value of property.

Yeah they are the same people who wouldn't buy 4 years ago...how wrong they were

brit1234

I think the rent rises depend on where you live. In the midlands and north they are coming down in the south going up. The simple fact is many landlord rents aren't coving the mortgages and they are being repossessed in greater numbers.

As for the Titanic they didn't realise the iceberg was coming till it was to late. Like the housing market people are bailing out but it is far to late. What waits for the majority is a ice death.:eek:

Vincenzo

blue_monkey wrote: »

Have you tried to rent recently?? If you don't have a clean credit rating LL are asking for 6 months rent upfront plus a deposit (4 months has been quoted on here). Letting Agents want you to BRING HOME 3 times the rent - so around here with rents at £900 a month (often more) for a basic 3 bed home - I have seen one for £2500 a month as well - it is impossible for the 'Average' family to rent as well. If you don't bring this home then the LL cannot get Insurance for you so won't take you on. There are no private options around here either, everyone is usng Letting agents for security as many people are getting into debt and not being able to pay. You cannot rent if getting HB. The list is endless, no kids allowed, no pets allowed. We have kids, we don't have enough deposit, we are the average earners you keep on reading about. We work, pay taxes. Where do the lkes of us go?? I never thought of us as 'poor' before until our long term let was put on the market. We are now at the mercy of the council yet there is nothing available. Apparently.

Is it not a right to have somewhere to live? If housing was cheaper the likes of us would not have to stuck in a homeless hostel until some old dear in a 3 bedroom house dies so we can have somewhere to live. We would dearly love to buy so we were not hanging around waiting to see what date the court give us for eviction in 3 weeks time, but unless a bank is going to give us 11 or 12 times my husband salary then it isn't going to happen. As average earners we did not even earn enough for Shared Ownership.

I would like to think that we are a minority. But we aren't. I know more people like us, single people, couples, peole with families. I spoke toa lady this week who's 7 years old daughter had moved house 7 times in her life. having a home means you have roots.

A whole new generation is shortly going to need housing, if they cannot afford to buy where are they going to go? If they cannot afford to rent where are they going to go? If there are now subsidised housing options then where are they going to go? If there are no FTB because the prices are out of their reach (as is the case in the South right now) then how are the people on the next rung going to sell? And so on.

blue_monkey, I am sorry to hear of your problems in finding a home. I was really making comment on the attitude of many that can afford to rent but resent doing so.

blue_monkey_2

No problem V, I wanted to explain. I think that many people don't understand the situation a lot of us are in who are 'average' wage earners with no chance of getting a place to call 'home'.

For us we got into this situation a little differently. My mother was 'given' the house by my father instead of him paying Child Support (another story of him not removing his name from the deeds though, she had to pay for that but did not realise she had to so he sat quietly saying nothing, until we helped her and he has not spoken to us since!! Shame). Anyway, she took it without realising that she could not afford it and did not have a clue what to do with it. One winter it flooded as it had no heating and my husband and I offered to move in and do it up for her slowly, she in turn said that we would stay here until she retired as this is what it would be for - her retirement fund. However, 15 years off her retirement and 3 months after signing a new 10 year fixed rate and us having 2 kids she changed her mind and put it on the market.

We said to her many a time 'do you want us to go' she said now, really stay here until I retire, in hindsight we should have gone. But we stayed out of loyalty and would have felt bad if she had lost it. Indeed, when she told us she was selling I spent 2 months worrying how on earth she was going to be able to affrd it without the money we put into it. She can't. I have given up worrying because of the situation she has put us in.

We missed the boat. Totally. Who knew what would happen. My husband got Industrial Asthma and so he could not work in the same field and took a new job paying 12k pa less but it was that or JSA. It had to be the job (for my sanity, LOL!! But that now leaves us unable to get a clean credit rating to rent. If we could go back to the day we was married I would have gone out the next day and started looking while we could.

So now we hope that here is a crash so we can afford to buy somewhere for our family.

The thing is, although we have 'missed the boat' there is going to a new generation leaving school/uni in the next 5 years who are going to be in the same situation we are in right at this minute. That is not earning 'enough' to rent or buy locally. So where will they go? What will they do? I am a buit of a worrier and Iworry for what the future wil bring. Even the SO places they stuck up are beyond the reach of 'normal' families. They turned an old building into apartments in the village and a 1 bed flat (sorry, apartment!!) was available on 50% shared ownership.... £999 a month for the rent/mortgage. Eek!!

I personally can see a downturn, this house has had £19k knocked off the price recently, someone else on the HB forum recently said they had knocked 50k off the price of their property priced at !49k from £199k. Everyone asks whether we can buy this place as it is cheap as it has no heating - it is priced at £250k!! The only people interested are developers as it has quite a big bit on the side that you can build on and they want to make it bigger - thus making it out of reach price wise for anoher family.

I think it is also interesting to note that there has not been a single council house sale in the last 2-3 years in this village too as that has become too expensive as well.

aztec21

m00m00 wrote: »

there's plenty of people out there who could buy at the moment, but who just plain refuse to pay the stupid asking prices which are way above the intrinsic value of property.

I know some people who have been doing that for the last 6 years. More fool them.