50% house price crash does not = more affordable homes

Cscott139

venison wrote: »

Might make life easier for first time buyers if prices crashed 50%, for those already on the property ladder it makes no difference

Not sure how? If prices dropped so much lots of people wouldn't be able to afford to sell and would be plunged into negative equity.

Chrysalis

The answer to the OP's question is no, as the problem right now is a lack of social homes more than house prices. As when you buy a house you gain the house as an asset anyway.

But with that said a crash would help the poorer get on the ladder easier, however crashes typically also happen during recessions so if we have a 50% crash then I would speculate there would be spikes in redundancy and other problems to deal with making it tougher for people.

So basically it depends on the reason for the crash, if its due to over supply of housing then yes its good, if its due to an economic crash, then its bad.

triathlon

Chrysalis wrote: »

The answer to the OP's question is no, as the problem right now is a lack of social homes more than house prices. As when you buy a house you gain the house as an asset anyway.

But with that said a crash would help the poorer get on the ladder easier, however crashes typically also happen during recessions so if we have a 50% crash then I would speculate there would be spikes in redundancy and other problems to deal with making it tougher for people.

So basically it depends on the reason for the crash, if its due to over supply of housing then yes its good, if its due to an economic crash, then its bad.

It is what I keep saying, and people forget that immigration might be just a little less yearly, but it is still massive and will be next year and the following. The chances of a 25% or greater property crash in the next 15 years is in my opinion 100/1, so a 50% crash is close to zero chance of happening.

westernpromise

triathlon wrote: »

It is what I keep saying, and people forget that immigration might be just a little less yearly, but it is still massive and will be next year and the following. The chances of a 25% or greater property crash in the next 15 years is in my opinion 100/1, so a 50% crash is close to zero chance of happening.

And of course a lot if not most of that immigration was from outside the EU, so will presumably continue even after Brexit.

lisyloo

We may have a lot less emmigration after brexit meaning net immigration will be even higher.
Health care costs are a big issue for pensioners.

Thrugelmir

Cscott139 wrote: »

Not sure how? If prices dropped so much lots of people wouldn't be able to afford to sell and would be plunged into negative equity.

Happened in the early 90's.

triathlon

lisyloo wrote: »

We may have a lot less emmigration after brexit meaning net immigration will be even higher.
Health care costs are a big issue for pensioners.

No complaints from me, I still living in hope that the immigration work ethic rubs off on those helping themselves to the £100's Billions in welfare payments, they can double intake as far as I am concerned.

triathlon

Thrugelmir wrote: »

Happened in the early 90's.

I witnessed it and from what I have seen in this past decade compared to those bad old days is what could of been learnt was learnt. Homeowners in the the 1990's crash were given very little help, had they been it would have been far less painful.

GreatApe

SpiderLegs wrote: »

Yes, great ape and his two besties from Cambridge don’t seem to twig this.

It’s actually a bit embarrassing that such Mensa dignitaries can’t grasp the concept that if a person has access to 100k they can afford a 100k house, but if that house price increases by 50% they are a bit stuffed.

I’m predicting the wise one will return and tell us that of course he meant everything else went up by 50% too, but as that’s not what was originally claimed and not something that bears any relation to reality it’s not going to be any more convincing .

Like the 99.9% you do not get it

Housing affordability is independent of price even if house prices go up 10 x or fall 90%, affordability is on average nationally no worse. Almost by definition this has to be true, how can house prices go up 10 x if they are unaffordable at the new price. Almost by definition whatever the price is now, is affordable. Likewise if house prices crash 90% are they any more affordable? No because there is a reason prices are 90% off.

GreatApe

Markie76 wrote: »

So if I lose (or just quit as I'm a lazy ****) my job I'll still be able to splash out on that £750k 4-bed Bucks detached I've had my eye on?

Please say YES........ :A

I suspect that £750k house is currently unaffordable for you with your job so nothing changes if you lose your job affordability is exactly the same :rotfl: