A question re: the housing market....

Guy_Montag

obsessed_saver wrote: »

Seriously, you don't want high rise blocks of flats every where.

Who would build high-rise blocks of flats? Because who would want to live in them? If no-one wants them they would be valueless, therefor no-one would build them

Ok, perhaps some people would like a pied-de-terre in a city centre, but as a general rule people most people want a detached house with a bit of a garden in a leafy 'burb.

carpetbelly

sm9ai wrote: »

Everyone works really hard(well sort of). You are almost suggesting those who cannot afford a house don't work hard.

And remember that shelter is one of the essentials of live.

In my opinion it is criminal that some houses sit empty.

Not at all. I have never suggested that.

There is a thing called social housing. Though, they current amount of it needs reviewing and the way it's also allocated does as well.

I'm not saying the system is perfect, far from it in fact, it's totally flawed and can be very unfair to certain demographics.

Shelter is an essential, but that's just shelter. You don't have to define that as owning your own shelter do you.

But I totally agree with your statement about houses sitting empty. It's wrong and should be put a stop to. Especially having been homeless you see the homelessness problem in this country.

carpetbelly

Guy_Montag wrote: »

If we are going to have a rentier society, we need strong rights for their tenants - stronger than we have today. See, for example, the 4 threads in the last fortnight to the effect of "Help, my LL's being repossessed & I'm being evicted".

Guy, having been screwed over by landlords a lot in my time, I can only agree with this.

Saying that, the one landlord who was fair, never cared if I didn't send through the contract renewals, as long as we paid our rent on time and were good tennants he left me and my flatmate alone. Nicholas Van Hoogstraten (sp). The guy from sussex who's a little notorious. I rented in brighton through his management company, not one problem. In fact, even got a nice message from him personally when the misses little boy had a serious accident.

Granted, I did never want to be late with the rent ever

Romani_Ite_Domum

1) Yep we are all screwed. The ones who partied the most will have the biggest hangover. Bring it on.

2) BTL would be a bit daft to buy a falling asset as an investment.
FTBs will open thier eyes to the fact that although they can now afford a grotty 1 bed flat 30 miles from where they work, they will no longer feel that they have to get on the "ladder" at all costs. Better to ride the snake for a while. ( oh ar matron)

[Deleted User]

People who think a boom will occur again after all the US subprime mess is written off are sadly mistaken.

As with all pyramid selling schemes it relies on a constant feed from the bottom end. This will not happen unless somehow they can shrink the interest rate infinity to zero thus the multiples of borrowing can reach infinite levels on interest only. People wont allow this to happen as they will spend their money rather then put it in a bank account thus raising the cost of money. Below 5% APR its simply not worth bothering to save, IMO. Thus at teh moment I dont save so no one can borrow my money, its all on equities.

silvercar

The BTL brigade who bought too late will have been watching the housing market carefully. They probably joined the dot.com boom to late and lost on that. They will get out as soon as the credit squeeze hits them, the increase in mortgage on their residential home hasn't helped. They will see the CGT reduction in April as a sign that that is the right time to get out.

If I was a FTB I would be looking for something in May, when the BTLs have been empty for a month or two, there is a glut of smaller properties on the market and ex-landlords are getting jittery and will expect reduced offers. OK there will be some BTLs who will use this as a buying opportunity, but I reckon this is a time when the supply will exceed the demand. Especially as there has been some pent up demand from buyers unable to buy in recent years.

pamaris

silvercar wrote: »

The BTL brigade who bought too late will have been watching the housing market carefully. They probably joined the dot.com boom to late and lost on that. They will get out as soon as the credit squeeze hits them, the increase in mortgage on their residential home hasn't helped. They will see the CGT reduction in April as a sign that that is the right time to get out.

If I was a FTB I would be looking for something in May, when the BTLs have been empty for a month or two, there is a glut of smaller properties on the market and ex-landlords are getting jittery and will expect reduced offers. OK there will be some BTLs who will use this as a buying opportunity, but I reckon this is a time when the supply will exceed the demand. Especially as there has been some pent up demand from buyers unable to buy in recent years.

This is my plan... I hope to see plenty of "no chain, vacant possession" properties.

sarkin

Maybe prices will fall but its not going to happen overnight

poppy10_2

carpetbelly wrote: »

I'd agree with that... If prices start to fall a bit in my opionion you're going to get the savvy BTL's thinking 'oooo, cheap property where the rental yield will easily cover me' and buy up some more.

Unlikely. More likely scenario is if prices start to fall, you'll get the panicky BTL's thinking "OMFG, my pension is going down the toilet, I need to get out of this quickly before it drops in value even more" and they will sell, adding to the glut of houses for sale and further pushing prices down.

kingkano

Something nobody has mentioned.... so prices slip, BTLs all start to sell, all the people who are renting start to compete for the same couple of properties that are left, rents go up maybe?? OR they have to live somewhere, they realise prices are down now so they decide to buy instead maybe??

Unfortunately saying the market will crash and you will rent instead sounds to me mutually exclusive....