House Price Crash Discussion Thread

dudleyboy

pickledpink wrote: »

Well,

Maybe you don't begrudge paying for gas, electricity, fuel and food - we all have to do that!! But you buy them with the intention of USING them. When you buy a house (as YOU clearly want to) it doesn't evaporate into thin air after you've used it!

Just because we are going through a slump now does not mean it will last forever! If you thought that you wouldn't be saving up a deposit to buy a place of your own would you?

It's funny, I thought this thread was for discussing house price crashes, not for discussing the virtues and merits of home owning over renting.

I think you might be missing my point. In the long run, of course buying a home is preferable to renting one - at least for me it is - providing, that is, you can afford the cost of running one. I have no intention of renting forever but while I do I do not regard this expense as being any different from any other. It's a facility that I pay to use.

In my opinion, home buying is an investment and renting is an expense - but it's no more "dead money" than any other monthly expense. If I didn't rent then I'd be homeless and, given the choice of the two, I know which I'd prefer.

"Buying" an over-priced house with a 100% mortgage, however, is NOT an investment. When the prices are realistic again I'll start looking. Considering all the permanent "For Sale" signs I keep seeing and all the "New Price" alerts in the local property paper, we shouldn't have too long to wait.

http://en.wikipedia.org/wiki/Pyramid_schemes

The thing with pyramid schemes is that when people stop coming in at the bottom, the pyramid collapses. We CHOSE not to enter and help sustain the pyramid, now, with the credit crunch, people will be FORCED not to. Prices are coming down gradually at the moment. Things will be very different in 6-18 months time and had the government not stepped in to save Northern Rock (and currently making provisions elsewhere) we'd be seeing the effects right NOW. Pink, ask yourself this: How many other countries with a free market economy have a bank that's owned by the state?

What happens when all those people who've already overstretched themselves find that they're unable to switch to a better mortgage deal once their current one ends and their monthly repayments shoot through the roof to an unsustainable level? If you're unable to see the bigger picture beyond your own property portfolio then you're quite deluded.

Of course the slump won't last forever and house prices will rise again... but NOT until they've first fallen a significant amount to more sustainable and realistic levels. That's when I'll be buying.

Lotus-eater

pickledpink wrote: »

You;ve got a saucy mind, Carol! Seems like you're not just cash-starved, eh?;)

As it happens, I do have a very small you-know-what.....in fact I don't have one at all! That's because I'm a girl...........!!!!:p

I've got big boobs though - do they count?:j

PP

I don't like the way you talk to and about people, I don't care how much money you have tied up in property, I rarely agree with anything you say............. but at last I have something I like about you

beingjdc

pickledpink wrote: »

When you buy a house (as YOU clearly want to) it doesn't evaporate into thin air after you've used it!

The interest on the mortgage does, it vanishes to the bank.

If your interest is more than rent would be, it's only worth it if prices are rising.

Prices are not rising, they are falling.

So...

[Deleted User]

skap7309 wrote: »

Well said.

As a FTB with a massive interest on whats happening to the market i check on here everyday, reading every post. Without pointing the finger there are 3 or 4 complete d*cks writing stupid, meaningless posts about how well they are doing in life over the next poster. Get a get grip or get lost. No one gives two sh*ts. (Rant over)

This is amazing, im in the same boat and i was going to post EXACTLY the same thing after reading how certain people have IMO got lucky with property purchases.

I dont believe anyone who comes online and starts talking up their success anyway though, modesty is a word i believe in though.

Be sure to release some equity though so you can pay for some cosmetic work to be done once those big'uns start sagging;)

Riq

Supercharge_Me wrote: »

This is amazing, im in the same boat and i was going to post EXACTLY the same thing after reading how certain people have IMO got lucky with property purchases.

I dont believe anyone who comes online and starts talking up their success anyway though, modesty is a word i believe in though.

Be sure to release some equity though so you can pay for some cosmetic work to be done once those big'uns start sagging;)

Agree with you and the poster you quoted too!!

redmen9

pickledpink wrote: »

You're all just jealous. It seems to be the same set of losers who post on here night and day wishing on a price crash, cos other people's properties make you feel pig sick.

BTW, I DO have 600K in equity - who said it was all in one property you sad bunch of losers?!:rotfl:

And as for you !!!!!!, when I've got as much time on my hands as YOU clearly have I'll find the psost where you insult people and call them morons. Moron!:p

Strange post.

Personally, I'm not wishing for a house price crash because I think I can make any money out of it, it's not because I want one-upmanship on my neighbours or a case of keeping up (or ahead) of the Jonses. It's because I want a home that I can call my own for my family to live and grow up in.

Some people have lost sight of what's important in life with making money as their number one objective in life. Me, I don't care about coining it in, all that I ask for is that I can afford a nice house that my family will be happy in.

I think that a house price crash is imminent, hence partly the reason i sold my first home to move into rented (main reason being I have another child on the way and I needed a house with another bedroom). I just think that current prices are unsustainable, wages have increased 15% in the last 10 years whilst house prices have increased by 300%. There is a svere lack of first time buyers because of the prices and with the current level of personal debt, it is inevitable that the financial markets are going to deflate.

It appears that the people who deny the house price crash seem to think that those who believe it will happen are doing so in an attempt to knock confidence in the housing market. I don't think that's true, the reality is that we are all terrified as to what affect the current financial crisis will have on us in other ways (savings, unemployment recession/depression).

Watching the BBC at breakfast yesterday and they had their financial expert actually admitting to the beginning of a house price crash where as before they were vehmently denying it.

I just hope prices fall to realistic level. That I and many others can afford a HOME and that the people who have bought into property to make a killing have their fingers severly burnt.

pickles110564

beingjdc wrote: »

The interest on the mortgage does, it vanishes to the bank.

If your interest is more than rent would be, it's only worth it if prices are rising.

Prices are not rising, they are falling.

So...

But when their mortgage term runs out, they will have paid and bought their own home yet you renters have just poured your money down the drain and helped pay the LL's mortgage off.

m00m00

or some of 'us renters' have made investments elsewhere which have paid off handsomely, so we could buy a house outright whenever we wanted to, we just choose not to.

abaxas

pickles110564 wrote: »

But when their mortgage term runs out, they will have paid and bought their own home yet you renters have just poured your money down the drain and helped pay the LL's mortgage off.

Dont be so stupid and spout this brainwashed claptrap.

This point has been done to death in this thread. Plenty of people make more from renting than if they have bought the property. This wont always be the case, but over the last 2 years (in Sheffield) it certainly has.

Why pay more for the same thing? We are all here to save money, if renting is cheaper/better investment why shouldn't we profit from an LL?

Rover

pickles110564 wrote: »

But when their mortgage term runs out, they will have paid and bought their own home yet you renters have just poured your money down the drain and helped pay the LL's mortgage off.

That may well apply to some Pickles, but certainly not to all. I've been renting less than two years, in that time I've always spent less on rent than I've acquired in interest on my capital.
My current rent does not meet repayments on my LL's mortgage.
I am, effectively, a cash FTB when I choose to enter the market again.
Take your blinkers off Pickles and try to absorb some of the information constantly whizzing past your nose.