Offer advice wanted

Crashy_Time

Without a link the thread is pretty meaningless ?

Beardmidget

Look, we know you know this, but we all realise that house price corrections (crashes, if you must) can and do happen. We’ve seen it many times before. It has happened to some extent in the last 12 months, it happened in 2009, and many times before that.

Over time, however, your advice has been proven wrong because there has been a long term increase in average prices which has significantly outstripped any other investment you could have made over the past decade. Most bank accounts have been generating significantly less interest than inflation has devalued the currency in them.

Nobody really knows what house prices will do over the next decade. Will they double again? (probably unlikely, but not impossible). Will they be flat? (Probably unlikely but not impossible). Will they fall? (Over the whole decade, looks extremely unlikely).

The ‘nightmare’ scenario of deep falls with no recovery is extremely unlikely because in this context very few people just hand their keys back. They just stay put paying their mortgage in spite of negative equity because they will still owe the money even after they’ve had the house repossessed. This scenario automatically set up the market for recovery because sellers can’t/won’t budge for these low values and buyers have to adjust back upwards inspite of difficult prevailing conditions.

If house prices really did fall by 3/4 overnight, and this was sustained, the economic realities of this scenario would be so overwhelmingly severe that it’d be like the bleedin’ hunger games.

Even a stopped clock is right twice a day.

Anyway, OP, what did you decide to do?

Crashy_Time

Beardmidget wrote: »

Look, we know you know this, but we all realise that house price corrections (crashes, if you must) can and do happen. We’ve seen it many times before. It has happened to some extent in the last 12 months, it happened in 2009, and many times before that.

Over time, however, your advice has been proven wrong because there has been a long term increase in average prices which has significantly outstripped any other investment you could have made over the past decade. Most bank accounts have been generating significantly less interest than inflation has devalued the currency in them.

Nobody really knows what house prices will do over the next decade. Will they double again? (probably unlikely, but not impossible). Will they be flat? (Probably unlikely but not impossible). Will they fall? (Over the whole decade, looks extremely unlikely).

The ‘nightmare’ scenario of deep falls with no recovery is extremely unlikely because in this context very few people just hand their keys back. They just stay put paying their mortgage in spite of negative equity because they will still owe the money even after they’ve had the house repossessed. This scenario automatically set up the market for recovery because sellers can’t/won’t budge for these low values and buyers have to adjust back upwards inspite of difficult prevailing conditions.

If house prices really did fall by 3/4 overnight, and this was sustained, the economic realities of this scenario would be so overwhelmingly severe that it’d be like the bleedin’ hunger games.

Even a stopped clock is right twice a day.

Anyway, OP, what did you decide to do?

No, it last happened (without massive central bank intervention to prop it up) in the late 80`s, and no it wouldn`t be like the "hunger games" because your house dropped in value
:rotfl:This type of "reasoning" is like the "Not building any more land" meme, most sensible people know that it is nonsense and that preserving the debt bubble is more about protecting the 1% than anything else.

Crashy_Time

buggy_boy wrote: »

Thats your response to every post.... Are you Scottish by any chance?

No, not every post, basically just offer low, the seller is likely the one under pressure now.