Why don't people cheer the brilliant elements of No-Deal crash- Such as making property affordable?

movilogo

Eurozone recession started. Why do people still cling EU?

https://www.theguardian.com/business/live/2019/jan/31/uk-house-prices-brexit-eurozone-gdp-italy-business-live

mayonnaise

Autumn86 wrote: »

*Property prices will hopefully crash,
meaning prospective buyers like me with large cash deposits ...

What large cash deposit? That 20k you saved up after defaulting on your debts?

Autumn86 wrote: »

I'm now in a position where I'm on a yearly salary of £28,600 + also have other cash income from a side-business, so total income of over 30k per year, plus have also saved-up over £20,000 cash now,

Rich2808

Because in this country every other thing going down in price and becoming affordable (e.g. cars, food, utility bills, taxes, televisions, tablets, phones etc etc) is celebrated.

But if the cost of putting a roof over you head falls - it is seen in the media and elsewhere as being tantamount to the end of civilisation as we know it!

But then when you build an entire economy - and most of your financial sector - on the back of keeping that particular asset price high then what do you expect!

And then 2,500 homeless people die on the streets over the last 5 years - and we wonder why.

Autumn86

Herzlos wrote: »

Mortgage costs will shoot up and criteria will tighten up hugely. Banks may decide to not even offer new mortgages on depreciating assets. A huge price crash will be great for the pure cash buyers, so will favour the super-rich and their asset stripping. Normal people will really struggle to get mortgages, or will find huge rates. If it gets bad enough, you might need to put up in the region of 50% deposits.


It's also terrible news with anyone with investments including pensions. Aiming to retire any time soon? Good luck if your NHS pension, backed up by property investments, takes a nose dive.



Or they'll just shut down NHS units and lay you off, or bring in staff from outside Europe, or sell off NHS units to private companies who'll still pay you as little as possible but strip all of your other benefits, or you'll just continue to run understaffed and have to deal with more pressure, more queues, less breaks and so on.



Because the only people who won't be getting screwed by it will be the establishment that Brexit was meant to be a protest about.

Banks need to lend money via mortgages to make money.
They increase interest rates and people stop taking out mortgages, thus crippling the bank's income stream, forcing them to lower rates to entice anxious customers.


I don't contribute to any pension scheme (opted out of the statutory government one even) as my parents own 5 properties (including 2 in Berkshire) and so my eventual inheritance in my 40s/50s will be worth over 7-figures, thus negating the need for a pension.


And the hospital physically couldn't open and function without my job role, its a job for life if desired, and so 0% risk of bankruptcy.
*And I'd love it if I was more busy at work, but 11hours out of each 12hour shift I spend just sitting around surfing the internet on my phone, waiting for incidents to occur which require me.

Autumn86

mayonnaise wrote: »

What large cash deposit? That 20k you saved up after defaulting on your debts?

Defaulted on debts? lol

My credit-record is spotless & perfectly clean, and has been for 5+ years now... :T


But yep got £20,000 cash currently, and saving just under £2,000 extra per each month, so by the time I wish to buy Autumn/Winter I'll have over £40,000 cash,
so in the top few % bracket of under 30-year olds cash-pile wise.

Herzlos

86 (assuming 1986) would make you 32?


Plenty of 30 somethings on much higher salaries with more assets and less cash sitting around.


Plus, how are you putting £2k aside a month on a £30k income? You're barely bringing in £2k/month after tax. Still living at home?

Autumn86 wrote: »

Banks need to lend money via mortgages to make money.
They increase interest rates and people stop taking out mortgages, thus crippling the bank's income stream, forcing them to lower rates to entice anxious customers.

Sure, but they also aren't going to lose money by giving out bad mortgages. Even if that means 50% deposits and 15% APR. They'll make plenty of money from overdrafts, loans, etc.



Your £20k deposit will barely get you started now, it's going to get you nothing in a property crash unless you're buying a < £50k house.

I don't contribute to any pension scheme (opted out of the statutory government one even) as my parents own 5 properties (including 2 in Berkshire) and so my eventual inheritance in my 40s/50s will be worth over 7-figures, thus negating the need for a pension.

but if property prices tank...? :rotfl:

And the hospital physically couldn't open and function without my job role, its a job for life if desired, and so 0% risk of bankruptcy.
*And I'd love it if I was more busy at work, but 11hours out of each 12hour shift I spend just sitting around surfing the internet on my phone, waiting for incidents to occur which require me.

But I bet they could replace you with an Indian for half the wage once the "red tape" gets cleared up. Or make you cover a larger area. Or just close the hospital - no need to pay you to unlock the door if the place is shut, no?



There's no such thing as a job for life.

MobileSaver

Rich2808 wrote: »

every other thing going down in price and becoming affordable (e.g. cars, food, utility bills, taxes, televisions, tablets, phones etc etc) is celebrated.

That's because we live in a market economy where supply and demand is everything. All those things you list have practically unlimited supply versus consistent demand whereas property has very limited supply and growing demand; in which case if the prices starts falling that means something is going seriously wrong with the economy hence the reason to not be cheerful.

Rich2808 wrote: »

And then 2,500 homeless people die on the streets over the last 5 years - and we wonder why.

Really?!? Only a fraction of homelessness is due to house prices, the biggest contributor is life style choices leading to problems such as addiction.

pjcox2005

If a hard-brexit happens I'd probably do OK:


Quite a secure job with pay linking relatively well to inflation with additional work required due to Brexit.
I have a mortgage so a period of higher inflation coupled with point 1 helps reduce that debt in real terms and not planning to move properties. If i did to something bigger which would fall in value more than a smaller property.
Plenty of years to retirement so cheaper shares to go in pension and other investments.
Reasonable levels of disposal income so in effect can deal with price rises by cutting back /minimising.
Not planning on working overseas or holidays abroad in short term.


I did however vote remain, and would be upset if a hard Brexit happens as it will impact hardest those who can't afford to be hit as well as reducing the overall quality of our country (e.g. NHS staff mentioned by OP) and make the gap between rich and poor greater in my view as those with money can benefit more.


Not to mention the fact that so much time is focused on one issue when needs to be addressing other points in society.

Autumn86

Herzlos wrote: »

86 (assuming 1986) would make you 32?

Plenty of 30 somethings on much higher salaries with more assets and less cash sitting around.

Plus, how are you putting £2k aside a month on a £30k income? You're barely bringing in £2k/month after tax. Still living at home?

Sure, but they also aren't going to lose money by giving out bad mortgages. Even if that means 50% deposits and 15% APR. They'll make plenty of money from overdrafts, loans, etc.

Your £20k deposit will barely get you started now, it's going to get you nothing in a property crash unless you're buying a < £50k house.

but if property prices tank...? :rotfl:

But I bet they could replace you with an Indian for half the wage once the "red tape" gets cleared up. Or make you cover a larger area. Or just close the hospital - no need to pay you to unlock the door if the place is shut, no?

There's no such thing as a job for life.

*I wasn't born in 1986, just like the number '86'. lol

*No.
After spending 9+ years living alone in private rented apartment though I decided to save up and get a mortgage instead,
so rent subsidised-accommodation at work (£350p/m deducted direct from salary).
I also run a successful & profitable side business which brings me in over £1,000 profit per month (although I choose to reinvest a large portion of that back into the business currently).

*No, can't be bothered to dig-out the data link but I think the stats showed that less than 1% of 25-30year olds have more than £20,000 cash in their bank.

*Can get many luxury 2-bed apartments for £180k - £200k (outside London/Surrey), so 5x income = £150k + 30-40k cash deposit.

*I extremely doubt property prices from the coming crash will still be in a slump when I retire (in 35+ years from now)! :rotfl:

*Very much doubt closing a major busy A&E hospital would be done, especially as the NHS budget is so sacredly protected, but could theoretically happened, however there are many hospitals I could work at. lol
-Alternatively could easily return back to working for the prison service/or in a similar role.

phillw

Autumn86 wrote: »

Banks need to lend money via mortgages to make money.

No they don't. They can lend money via mortgages to make money, if they don't think it's worth the risk then they will lend via other means or shore up their position.

Someone should point your parents at your posts, you might find your inheritance going to a charity instead.