Will there really be a crash?

lookstraightahead

The problem is, people don't just buy their house. They go on some kind of supermarket sweep buying everything in their path from mega expensive curtains (how much are those nowadays!!!!) to new cookers to matching scented drawer liners and masses of over priced garden fencing and ponds with coloured stones. They spend thousands and thousands. Then we have some kind of crash/adjustment and they lose all of that type of investment immediately plus the deposit they paid. They are feeling pretty bad as they've never encountered this type of thing before (as imo they've got used to houses being a certain investment overnight) and decide to buy more stuff on credit to make them feel better. Interest rates then go up and they can't afford repayments anymore. You don't need much of a shift to change the behaviour of those who have never experienced negative equity or indeed any downturn.

Thrugelmir

WobblyDog wrote: »

In reality, I think politicians of all hues will make preventing or softening any crash a high priority, so I don't expect prices to fall much.

Politicians haven't got the answers. To cause a downturn only takes a relatively small number of transactions. Akin to an avalanche. Once started impossible to stop.

triathlon

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.

You have to ask yourself, what is most important in life. OK, house prices will probably flatline for 18 months, but it is broadly accepted, minus Bedsit land doom mongers, that prices will double at least in less than a decade. And not only that, every survey that has ever been done on renting and homeownership shows that homeowners are far superior in every conceiveable way. Better relationships, woman find homeowners far more attractive when did you last see a woman on the singles market searching out a renter. They have better social lives, better friends, more loved by their family, better jobs, far higher confidence.

Also on a more lighthearted not, homeowners are on average 4 inches taller, their partners have less affairs and they live longer.
You get a small community and renters are never really accepted, and quite rightly so, why should they be when they have no stake in the community and more so if they receive charity in the form of HB.

Please be very careful what you listen to hear on here, most of the doom mongers are in the gutter looking up at people like us with not aspiration but desperation and a hope they can topple us and bring us down to their level

HOMEOWNER EVERY TIME

It's a no brainer.

lookstraightahead

I dunno triathlon, my ex has a huge beautiful house but he's a t@@@.

A homeowner might be more attractive than a renter at first glance, but a renter might have done so much more with their lives, rather than sitting on a pile of bricks.

I would quite happily date someone who rented rather than a home owner whose life had been so steady eddy that they were able to make sound financial decisions at every juncture - I agree home ownership is a good thing but not if the rest of your life is all about your house.

jane101q

vpeake wrote: »

We've just bought a house, but are on a 5 year fix. The area where we live has become quite popular recently due to it being by an area in high demand (which we couldnt afford).

My boyfriend was so worried this morning after the house price news, but I am trying to remain hopeful and think that it's better than renting or buying a house in a recession.

Thanks for sharing, great hearing from someone in a similar position. When you've spent time saving for something this big you can often feel the burden of whether you are doing the right thing. The Crossrail delay announcement also added to the feeling but will continue to remain hopeful.

jane101q

lookstraightahead wrote: »

Why does every house need to be an investment? You need somewhere to live!

Having said that, we've got too used to greedy homeowners who think they can get rich from bricks and mortar - false wealth. It's time for an adjustment

I never said the property was an investment. If you could getter value for your money wouldn't you take that opportunity especially in a situation where you won't have the burden of paying stamp duty (up to £300k) for your first property. (I also I know this could also change at any time if the government wanted to).

Crashy_Time

bobbymotors wrote: »

Tell you what Crashy....you seem certain of yourself, so lets have a bit of fun

If the halifax house price index falls from todays level by 35% at any point in the next year, I will send you £1000

If it doesnt you send me £100

Hows that then my old bedsit friend?

I don`t need £1000, I`ve got plenty thanks If you put any value on the Halifax index I won`t ask you for any investing advice either.

Crashy_Time

triathlon wrote: »

You have to ask yourself, what is most important in life. OK, house prices will probably flatline for 18 months, but it is broadly accepted, minus Bedsit land doom mongers, that prices will double at least in less than a decade. And not only that, every survey that has ever been done on renting and homeownership shows that homeowners are far superior in every conceiveable way. Better relationships, woman find homeowners far more attractive when did you last see a woman on the singles market searching out a renter. They have better social lives, better friends, more loved by their family, better jobs, far higher confidence.

Also on a more lighthearted not, homeowners are on average 4 inches taller, their partners have less affairs and they live longer.
You get a small community and renters are never really accepted, and quite rightly so, why should they be when they have no stake in the community and more so if they receive charity in the form of HB.

Please be very careful what you listen to hear on here, most of the doom mongers are in the gutter looking up at people like us with not aspiration but desperation and a hope they can topple us and bring us down to their level

HOMEOWNER EVERY TIME

It's a no brainer.

I read a survey that said that 90% of male homeowners that bray about house prices on the internet married their first GF, it didn`t mention "homeowners" (mortgage debt holders) though.

bobbymotors

Crashy_Time wrote: »

I don`t need £1000, I`ve got plenty thanks If you put any value on the Halifax index I won`t ask you for any investing advice either.

Not all that sure after all then? Even at 9/1?

Crashy_Time

bobbymotors wrote: »

Not all that sure after all then? Even at 9/1?

Pretty sure that the credit conditions that created the UK housing bubble are gone, it is all downside from now on...if you are a HPI fan that is MC being the poster boy for HPC is just so deliciously ironic, classic comedy in fact.