House Price Crash Discussion Thread

LisbonLaura

codger wrote: »

The housing market cannot be allowed to fail just as Northern Rock cannot be allowed to fail (quoth an estate agent yesterday to a friend of ours.)

Er, um. . .

Haha...an estate agent moralising!!!

He need not worry, the housing market will merely correct itself.
It's just a pity that in the process the UK economy will be seen to have failed ......... though this will have nothing to do (they will say) with commissions gained (NB not 'earned') by selling mortgages to folk who can't afford them, & even worse to multiple property buyers whose sole aim is profit.

It's all utterly loathesome, & we will all suffer..... except the Applegarth-type reptiles

The next step will be the lowering of interest rates to suit the skewed housing market (which wont work), instead of the required raise in a futile attempt to deal with raging inflation.

As ever the majority wont realise where the blame lies, - even if they grasp that they've been forked, - & thus govt. will act accordingly.

london_fox

Hi all

I am new to this board so sorry if there is a thread on this somewhere else.

One of the guys I work with is banding about the word 'receission' today after speaking to a friend of his who works in banking. I am currently buying a house (in London) and I am now a little bit worried that I will end up with a lot of negative equity as a result.

I am hoping that prices in London will not be too badly affected as demand is still very high.

Thoughts??

LisbonLaura

If you haven't exchanged contracts -- DON'T !!!!

No doubt some might disagree?

carpetbelly

LisbonLaura wrote: »

If you haven't exchanged contracts -- DON'T !!!!

No doubt some might disagree?

Of course some might disagree... Such as me

I mean, what a sweeping generalising statement. People buy their houses for different reasons and have different situations.

m00m00

if you aren't looking to remortgage or move quickly (within 3-5 years) then negative issue is highly unlikely to be an issue for you


if you are buying because you expect it to rise in value, then you are extremely likely to be disappointed

Romani_Ite_Domum

m00m00 wrote: »

if you aren't looking to remortgage or move quickly (within 3-5 years) then negative issue is highly unlikely to be an issue for you

I am not so sure m00m00? If the market crashes next year, then anybody buying now could easily be NE for longer than 5 years.

I agree that a house should be a home though. I would buy today if it was the right property.

london_fox

We are buying to stay there for a while. obviously we are hoping to get some money back on any developments we make to the place but overall we have bought it as a home.

LisbonLaura

carpetbelly wrote: »

Of course some might disagree... Such as me

I mean, what a sweeping generalising statement. People buy their houses for different reasons and have different situations.

I didn't think 'DON'T' was at all generalised?

It's one word & I meant it

codger

ivegotabig1 wrote: »

America v's Iran it seems to me is going to come to a head at some point in the not too distant future (nxt 2 yrs) !! With the distinct possibility of military Action of some kind..... Oil at 99$ a barrel will look cheap as & when the situation in the middle east is resolved..... Thus We will have high inflation & the most basic raw material of the western economy costing a fortune.....Result.... Huge Global recession !!
last year many economists would have laughed in your face at 99$ a barrel....!!! my thought for the day

Well I think The End of The World Is Nigh.

Apart from that bit of the world where I live.

We're immune to such things.

m00m00

Romani_Ite_Domum wrote: »

I am not so sure m00m00? If the market crashes next year, then anybody buying now could easily be NE for longer than 5 years.

I agree that a house should be a home though. I would buy today if it was the right property.

I was factoring in reduction in LTV via payments made via a repayment mortgage, and assuming a non 100% mortgage initially

if the buyer is on an IO mortgage, or a high LTV (>95%), then I would say run away