Will there really be a crash?

Lungboy

Lornapink wrote: »

lets hope the 'compassionate' amongst us don't start bemoaning ever rising rents as supply diminishes.

You say that as though rents aren't already "ever rising" thanks to people not being able to afford to buy their own homes.

toomsie

jane101q wrote: »

I'm in the process of buying a house and I'm seriously considering pulling out before the search due to the regular reports of prices going down and an impending crash.

I'm a FTB and I wouldn't want to pay for something then it a significant amount of value in April next year when I could potentially just wait buy something maybe even bigger and in a better area then but then again I don't want to loose this opportunity and the drop never happen and be priced out.

It is a one bedroom house so I won't have the advantage of renting out a room if money ever becomes a issue post crash. Do you think this drop will be more likely a stagnation of prices or a full blown crash like in 2008.

I don't think house prices can continue to go up in a healthy economy. The trend from the 1980s is that the cost of living will continue to go up. Inflation will go up and wages remain stagnant.

If prices do go down you will be left in negative equity. So you will be paying more for your mortgage than those who got in early and those who got in late.

Negative equity will make you less competitive in the workforce because you need to find a job that pays more to maintain the same quality of living.

ukcarper

toomsie wrote: »

I don't think house prices can continue to go up in a healthy economy. The trend from the 1980s is that the cost of living will continue to go up. Inflation will go up and wages remain stagnant.

If prices do go down you will be left in negative equity. So you will be paying more for your mortgage than those who got in early and those who got in late.

Negative equity will make you less competitive in the workforce because you need to find a job that pays more to maintain the same quality of living.

Do you really mean from the 80s, real earnings have increased dramatically since the 80s yes things have fallen back but only to 2007 levels.

Jack_Johnson_the_acorn

toomsie wrote: »

I don't think house prices can continue to go up in a healthy economy. The trend from the 1980s is that the cost of living will continue to go up. Inflation will go up and wages remain stagnant.

If prices do go down you will be left in negative equity. So you will be paying more for your mortgage than those who got in early and those who got in late.

Negative equity will make you less competitive in the workforce because you need to find a job that pays more to maintain the same quality of living.

Factor in all the rent you would have to pay for somewhere likely less desirable were your freedom is also restricted. I'd risk negative equity in a heartbeat. You could end up waiting 20 years for a crash like Crashy time. Negative equity doesn't last forever. If you love the house just buy it and live your life.

Crashy_Time

Jack_Johnson_the_acorn wrote: »

Factor in all the rent you would have to pay for somewhere likely less desirable were your freedom is also restricted. I'd risk negative equity in a heartbeat. You could end up waiting 20 years for a crash like Crashy time. Negative equity doesn't last forever. If you love the house just buy it and live your life.

Or scanning copies of your mortgage statement to show people on the internet because you are so desperate to be seen to have made all the right choices?

Thrugelmir

ukcarper wrote: »

Do you really mean from the 80s, real earnings have increased dramatically since the 80s yes things have fallen back but only to 2007 levels.

Over the same time frame so did lending multiples. Likewise the introduction of interest mortgages with no repayment plan attached. At the outset lenders required an endowment plan to secure the debt. With UKAR alone still holding over a 100,000 mortgages. There's considerable unwinding of this historic issue to be addressed.

ukcarper

Thrugelmir wrote: »

Over the same time frame so did lending multiples. Likewise the introduction of interest mortgages with no repayment plan attached. At the outset lenders required an endowment plan to secure the debt. With UKAR alone still holding over a 100,000 mortgages. There's considerable unwinding of this historic issue to be addressed.

I wasn't referring to house prices poster said since 80s trend has been for inflation to go up with wage stagnation which is not the case. Plenty of problems in housing market as you say.

Jack_Johnson_the_acorn

Crashy_Time wrote: »

Or scanning copies of your mortgage statement to show people on the internet because you are so desperate to be seen to have made all the right choices?

Hardly Crashy, It's a screenshot, took 2 seconds to post. Unlike you I back up my claims.

You've made one of the worst financial decisions possible and still claim to be the housing oracle. :rotfl:

Whereas I just bought because I wanted my own place even when the oracle claimed it was stupid a sheeple move ..:rotfl:

How's the bedsit life going?

lisyloo

Or scanning copies of your mortgage statement

What mortgage?


Sorry, sorry, had to get it in just the once (promise)

Crashy_Time

Jack_Johnson_the_acorn wrote: »

Hardly Crashy, It's a screenshot, took 2 seconds to post. Unlike you I back up my claims.

You've made one of the worst financial decisions possible and still claim to be the housing oracle. :rotfl:

Whereas I just bought because I wanted my own place even when the oracle claimed it was stupid a sheeple move ..:rotfl:

How's the bedsit life going?

Didn`t you once post a picture from a show flat you found on the internet and say it was your flat, or was that someone else?