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If house prices crash will this make it a good time for first time buyers?
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If you have a 30% deposit, have a stable job and are borrowing <3x your salary there shouldn't be a problem getting finance.
If a 'crash' happens and you find you cant get funding like the above, you'll probably have larger things to worry about, like eating and keeping yourself warm in the winter.0 -
If the proverbial hits the fan and house prices drop off (I won't use the C word 'cos that's a different thread), people may start talking about something more relevant and interesting.
Hey, my wedding ring has gone up in value by 30p, perhaps. My 2p coin is worth thruppence as scrap!
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Those that begrudge potential FTBs and up-sizers (or "bitter" people, according to one pathetic post) hoping for a 'correction' should direct their ire towards the individuals who instigated this bubble.
And if job losses ensue from this correction,again, the people to target are not those who wished for affordable housing, but those who created a weak economy heavily dependent on a damaging type of inflation. By looking for short-term political gain, these are the real selfish people.
If I lose my job as a result of this mess, then Gordon Brown will be the target of my anger. But at least a recession will help put right everything that is wrong with this country... and as George say, pub conversations will no longer be about how much a f**king home is worth.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Another house price crash thread reported0
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fistfullofdollars wrote: »No because in a nut shell it would lead to a recession and people would loose their jobs, inflation would go up, so would interest rates and banks would tighten up their lending criterias. So the property that was £200k now £120k would still be just as difficult to buy.
It would only be good for the bitter half of this site, so they can tell us that they were right.
What people need to learn is that its not a right to own its a luxuary. First time buyer Johnny on £15k p/a would still find it just as hard to buy as in the 1980s when he would have been on £6k p/a and house prices were 1/3 of what they are now.
All IMO of course!
I don't necessarily disagree with what you're saying but I bought my first house 8 years ago for the cost of £28,950, my salary at the time was around £14k and I had a fairly high level of debt. Said house is now worth £125k and I earn £20k and have no debt but I couldn't buy this house with even 6x salary with no deposit so it's not really that cut and dried as Johnny on £10k 8yrs ago could have bought my house as I did but then he probably lives in Home Counties not Sheffield.
Incidentally I was watching Working Lunch earlier and they suggest a deifnite lowering of prices in Yorkshire over next couple of years whilst other areas remaining bouyant which I can only put down to a good availability of housing.
Sam"You've been reading SOS when it's just your clock reading 5:05 "0 -
dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
Alias_Omega wrote: »im in a winning position as at the moment we pay £277 rent..
a mortgage would of been £612
Me too i only pay £260 for a 2 bed house in a nice area, i sold up 2 years ago, big detached house, paided 70k sold for £160, the monthly interest on our money pays my rent and we bank half our wages.
We now have a very easy going life style, hoildays too (weeeeeee) instead on penny pinching, no more tears!!
but i really wish i could have my own house so i could do things to it, but still have a reasonable life style tooas at the moment theres no way we could buy at these's price as there would be no point to what we did!! might of well just stayed and lived in hell.
Do you guys think in the next few months, something will change either interest rates or house prices dropping???0 -
nollag2006 wrote: »Another house price crash thread reported
Another idiotic and pointless Nollag2006 post noted.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
fistfullofdollars wrote: »No because in a nut shell it would lead to a recession and people would loose their jobs, inflation would go up, so would interest rates and banks would tighten up their lending criterias. So the property that was £200k now £120k would still be just as difficult to buy.
It would only be good for the bitter half of this site, so they can tell us that they were right.
What people need to learn is that its not a right to own its a luxuary. First time buyer Johnny on £15k p/a would still find it just as hard to buy as in the 1980s when he would have been on £6k p/a and house prices were 1/3 of what they are now.
All IMO of course!
It's not absolutely certain that large house price drops would cause an immediate recession though - look at the US which has seen plummeting house prices in many areas for the last year and the economy is surging ahead.
However, I think it's quite likely that it would given the absurd amount of personal debt in the UK, much of it secured against property in the form of remortgages or MEW loans. There is also a hell of a lot of speculative cash tied up in housing too - not good for the banks which stupidly loaned it once the house can't easily be sold on and the debt repaid.
Interesting that you view anyone pointing out that a crash is quite likely as being bitter - there's a difference between pointing out that something is extremely likely to happen and actually wanting it to happen, out of badness. Seems like you don't react very well to being told something that you don't want to hear.
A little less denial might be a good idea. If you keep your head in the sand you are in a very bad position to make good judgements in a tricky situation.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
chattycathyuk wrote: »Do you guys think in the next few months, something will change either interest rates or house prices dropping???
I will definitely think in the next few months. Something will change for sure.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0
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