Can you imagine the destruction in the UK if the property market crashed

Thrugelmir

phillw wrote: »

It was the ERG that forced Cameron to call a referendum. You'll have to ask them what power they exerted over the prime minister.

UKIP wasn't going to go away........ Better to control the situation than let the dogs loose.

GreatApe

homeless9 wrote: »

I am not sure what you have been reading, but....

When a lot of younger people have saved their butts off, like really saved their nuts off, yet house prices have risen at such a rate that you'd have to be saving £10,000-15,000+ per year just to have kept up with the price increases of 2 bedroom homes..... then something is wrong...that's my situation.

The government have done nothing to push house builders to get on and build. They have introduced a Help To Buy Scheme, giving people up to a 20% loan to help them buy a property, they are effectively saying 'house prices are 20% overpriced so here's a big fat loan so you can help keep up the demand for housing and increase house prices even more'.

My parents bought a large 3 bedroom home for £65,000 in the late 80's on a £7,000 teachers income and had 2 children at the time. For a couple to buy that same house today, valued at £450,000, as an example - they'd need a household income of £80,000 and a whopping £90,000 deposit.

Houses are waaaaaaaay overvalued. If the Government is only making house prices increase, and making it even harder year on year to get on the property ladder, then I am glad if the people are wanting change and wanting house prices to drop and maybe they are taking action in a drastic way, but have no choice. We will see how things play out....but a 20% drop would be welcome.

There are always hidden parts to old stories, like how did your parents buy a £65k home with just £7,000 income that is 10 x earnings. You either lie or dont know the full story

The truth is, despite house prices being 'high' ownership is at near record highs especially for uk born citizens

The reason you feel house prices are high is because you are poor but do not realize it.
I do not say this to criticize I was in the same situation 10 years ago I was poor but did not realize it. The competition is not income vs houses it is income + inheritances + gifts + dual incomes + business income + dividend income + other passive income +previous hpi + lots more vs houses

When you take all forms of wealth and income into account houses look affordable and by definition houses must be affordable because most people own their own home and ownership has gone up about 500,000 units in the last two years alone

AG47

HPC in full swing, there is a rush to undercut if sellers want to sell now before huge falls over the next six months

chucknorris

AG47 wrote: »

HPC in full swing, there is a rush to undercut if sellers want to sell now before huge falls over the next six months

I exchanged yesterday selling our previous home, which I bought for £360k in 2005, and sold for £650k, I did not improve the property at all. I also I get back the extra £22k stamp duty, which was payable because we bought our current home with cash before selling. Feel free to criticise £290k tax free growth (plus of course no rent paid in 14 years), I seem to recall that you rent, that must also add up to a fair sum?

phillw

chucknorris wrote: »

Feel free to criticise £290k tax free growth (plus of course no rent paid in 14 years), I seem to recall that you rent, that must also add up to a fair sum?

You need to compare rent against the interest on the mortgage, the lost opportunity on the capital & buildings insurance.

If he was renting a place that freed up capital to invest and he made a decent return, then it may have been a reasonable choice. Although from the way he talks he wants the prices to crash, because maybe it didn't quite work out.

lisyloo

phillw wrote: »

You need to compare rent against the interest on the mortgage, the lost opportunity on the capital & buildings insurance.

If he was renting a place that freed up capital to invest and he made a decent return, then it may have been a reasonable choice. Although from the way he talks he wants the prices to crash, because maybe it didn't quite work out.

I’m all for a fair comparison but don’t forget the 14 years rent.

Mathematically owning a home over the long term is a no brainier.
If that wasn’t the case there would not be any landlords or rental property available.

jeandenham66

triathlon wrote: »

I just cannot read what I am reading on the internet these days, people on so many websites who are actively trying to destroy the country they live in just so they can move into a cheap house.. Can you imagine the state of the UK if property prices were to collapse, 40% or even 50% or worse?

Millions of jobs would be lost as the economy would go under, Banks would collapse, pensions lost, people would become homeless, hard working immigrants would return home, nothing positive would come from it. Even if by some miracle these people got the cheap home they wanted with a property crash, though so many other factors would prevent this but kets forget that for now, can you imagine the state this country would be in.

People want to be careful want they wish for on that horrible hate website, it's even bordering on hate crime in my opinion, housepricecrash.com, wanting ill on other people to put right their weakness and inadequacies in life

Agreed, I have heard a ton of people speak of 'cheaper' houses if everything plays out badly, I think this is quite a narrow view as people will lose jobs and their livlihoods, I wouldn't be surprised if suicide rates also go up.


Rooting for a cheap house is one thing, but we all still pay a unseen price in the end.

lisyloo

jeandenham66 wrote: »

Agreed, I have heard a ton of people speak of 'cheaper' houses if everything plays out badly, I think this is quite a narrow view as people will lose jobs and their livlihoods, I wouldn't be surprised if suicide rates also go up.


Rooting for a cheap house is one thing, but we all still pay a unseen price in the end.

Borrowing more and more isn’t good either.
Younger people face a triple whammy of loans for university, higher house prices and higher retirement costs.
It’s not sustainable for prices to keep increasing And people just borrowing more.
The level of pension provision and savings are pretty atrocious which means as soon as someone loses their job they are down the food bank relying on others,

We need a period of stagnation but with stability and confident.
I appreciate that markets don’t typically work like that.

phillw

lisyloo wrote: »

Younger people face a triple whammy of loans for university, higher house prices and higher retirement costs.

Student loans is a tricky one, when places were free there were people doing rubbish degrees because they may as well put off earning money for three years even if it didn't help their career. Although the current system doesn't completely remove that as you may be determined to never earn enough to start paying the loan back.

lisyloo wrote: »

The level of pension provision and savings are pretty atrocious which means as soon as someone loses their job they are down the food bank relying on others,

It would seem that is a failure of the benefits system.

lisyloo wrote: »

We need a period of stagnation but with stability and confident.
I appreciate that markets don’t typically work like that.

You're right they don't, stagnation would destroy confidence.

lisyloo

phillw wrote: »

It would seem that is a failure of the benefits system.
.

I wouldn’t say not having savings or insurwnce is a failure of the benefits system.

I would say it’s a failure of personal financial planning and also the education system around that topic (that I know Martin lewis supports).

If someone has a home then surely it’s their personal resposibility to make sure their family are ok if they die, get sick, lose their job or have an accident.

The state is there as a safety net but not to keep people in the lifestyle they’ve become accustomed to.

This is very basic personal finance and maybe that’s the problem that the education around this is largely missing.