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

Crashy_Time

snowqueen555 wrote: »

It's great if you own a house, but not great if you are looking to buy.

Within reason, a market that keeps going up stupid percentages each year is just going to hurt future generations. Salaries are not keeping up.

People need to spend more on housing which takes away from other priorities in life.

It isn`t if you want/need to sell, property is massively illiquid, and expensive to maintain empty or maybe expensive and stressful to maintain tenanted. many people are now realising that price drops, big one`s, are the only way they will ever shift that house connected to a death or divorce for example.

Crashy_Time

Clifford_Pope wrote: »

Only those with cash would be able to afford a house whose price had crashed 50%. No lender would risk it with the likelihood of a further crash coming.

So after doing the biggest central bank backed financial bailout in history in 2008, and continuing it for ten years+ you think the PTB would allow mortgage lending to stop if property prices fell 40 -50%? I really wouldn`t bet on that outcome, politically and for the wider economy it is now beneficial if more people can afford a home, more borrowers at lower prices and maybe slightly higher rates is better (for the banks/government/society) than less borrowers at amounts likely to cause defaults and political "unrest" (like the Brexit vote) The PTB/large chunk of the electorate don`t care about people who post on forums and would like their house to be worth lots any more.

Herzlos

Crashy_Time wrote: »

It isn`t if you want/need to sell

Indeed, but many people don't actually need to sell and will instead just sit on it a bit longer or extend if they outgrow. People used to live 3/4 to a room so can certainly afford to make do in a smallish house for a few extra years.
The only people selling in a crash are those who are desperate - bank reposessions, divorces etc, and they'll take an appropriate hit.

property is massively illiquid, and expensive to maintain empty or maybe expensive and stressful to maintain tenanted. many people are now realising that price drops, big one`s, are the only way they will ever shift that house connected to a death or divorce for example.

But people also need to live somewhere, so most people will make do for a while. Inherited houses can also sit for a while until the market picks up again. Divorces are realistically the only ones there where people need to sell as it's not always possible that one partner will be able to buy the other out.


House prices are based on affordability, so you can bet that unless you're sitting on a huge pile of cash, if you couldn't afford it at current prices you couldn't afford it at 50% reduction either.

triathlon

Crashy_Time wrote: »

It isn`t if you want/need to sell, property is massively illiquid, and expensive to maintain empty or maybe expensive and stressful to maintain tenanted. many people are now realising that price drops, big one`s, are the only way they will ever shift that house connected to a death or divorce for example.

Oh so you don;t want a home now? :rotfl::rotfl:

How many times now have you predicted this nonsense.. 1024th

phillw

Crashy_Time wrote: »

It isn`t if you want/need to sell, property is massively illiquid, and expensive to maintain empty or maybe expensive and stressful to maintain tenanted.

Most people don't need to sell their property.

Crashy_Time wrote: »

many people are now realising that price drops, big one`s, are the only way they will ever shift that house connected to a death or divorce for example.

People are stubborn, my friend viewed a property that had been taken off the market a few years ago as it didn't fetch the asking price. The seller had then spent a fortune doing the house up and then expected to get what they were asking for it before plus the amount they had spent on it. They were desperate to move, but wouldn't accept a penny under the asking price.

I accept that a few people will get to the point where they do, but not enough to seriously move the market & there is no indication that is coming soon.

Even if my house lost half it's value, then the rent I'd have paid in the last 13 years would still not make up for it. It would have to be completely worthless.

AG47

People can be stubborn and hold on with their high prices and this just means loads of properties on the market for longer times.

This crash could take another half a decade to reach bottom, maybe longer

lisyloo

AG47 wrote: »

This crash could take another half a decade to reach bottom, maybe longer

I don’t have half a decade of life left (hope not).
Most young ladies will want to start a family before 35 (important age fertility wise) so don’t expect the ladies to want to wait around for very long at all.

AG47

lisyloo wrote: »

I don’t have half a decade of life left (hope not).
Most young ladies will want to start a family before 35 (important age fertility wise) so don’t expect the ladies to want to wait around for very long at all.

You are thinking very short term

These boom and bust cycles are normal, a big bust every decade and a half or so then boom in between busts.

Life carries on, the next generation forgets.

Nothing new under the sun

lisyloo

AG47 wrote: »

You are thinking very short term

That’s my point about individuals.
They can’t wait around for decades, not If they want their own biological children (which is the majority). This is a biological fact whether anyone likes it or not.

triathlon

AG47 wrote: »

People can be stubborn and hold on with their high prices and this just means loads of properties on the market for longer times.

This crash could take another half a decade to reach bottom, maybe longer

What crash?

I have just been swimming training this evening and yet again I saw yet again another two camper/van conversions in the car park where they were being used to live in, becoming common these days.
House, flats are becoming a very rare and commodity these days with a waiting list for people to grab the chance to rent or buy one.

Never mind crash, we will be starting a new bull run before the start of 2020