Housing Crash Coming

fatbeetle

RelievedSheff wrote: »

I am intrigued to find out how Corbyn plans to get these hundreds of thousands of extra homes built each year.

A new "Five Year Plan", maybe? It worked for Stalin!!

Stalin's chief aim was to expand industrial production. For this, he developed three Five-year Plans between 1928 and 1938. Gosplan, the state planning agency, drew up targets for production for each factory. The first two plans concentrated on improving heavy industry - coal, oil, steel and electricity.

Some keen young Communists, called Pioneers, went into barren areas and set up new towns and industries from nothing. There were champion workers called Stakhanovites, named after a coal miner who broke the record for the amount of coal dug up in a single shift. Education schemes were introduced to train skilled, literate workers.

The Soviet Union also gave opportunities to women - crèches were set up so they could also work. Women became doctors and scientists, as well as canal diggers and steel workers.

At the same time, many of the workers were slave workers and kulaks from the gulag. Strikers were shot, and wreckers (slow workers) could be executed or imprisoned. Thousands died from accidents, starvation or cold. Housing and wages were terrible, and no consumer goods were produced for people.

John_Smith_2019

Well, I will give my opinion;

The one thing that may crash the property market is a significant rise in interest rates.
I think this will depend on what happens to Gilt auctions, but the BoE can keep on buying up 30 year Gilts as long as they want.

Having said that, there is not one single residential property market for the whole UK. There is a vast regional difference.

John_Smith_2019

The-Joker wrote: »

Corbyn has launched an assault on the property market including banning Right to Rent checks, greater tenant rights and a huge council building programme.

No he hasn't.
Because he hasn't won the election.
And according to the bookies, he is very unlikely to.

Cortinaa_GTR

I bought a new build 4 bed property in Nov 17 on a 2 year fixed deal which is expiring. I've just had the house valued to switcher lender and it's increased 6% from the purchase price which I wasn't expecting. I appreciate this isn't the same as selling at an increased price but the banks need to have confidence in the surveyors valuations surely?

westernpromise

Parnott wrote: »

I bought a new build 4 bed property in Nov 17 on a 2 year fixed deal which is expiring. I've just had the house valued to switcher lender and it's increased 6% from the purchase price which I wasn't expecting. I appreciate this isn't the same as selling at an increased price but the banks need to have confidence in the surveyors valuations surely?

Yes, the valuation survey is to establish that the property is adequate security for the loan. 6% looks a plausible value change on 2 years ago.

Depending on what your 2-year fix was, you've probably paid off around 6% of your mortgage over that time. So if you had originally bought a £100k property with a 10% deposit and a £90k mortgage on it, you would now own a £106k property with an £84k mortgage outstanding. When you bought, you had 10% equity (your deposit); whereas now, you've got 20% equity (deposit plus asset inflation plus repayments you've made). This unlocks more favourable deals i.e. those available at 80% LTV or better.

It's interesting to look at what would have happened had you been renting the house instead.

Your rent over 2 years would have been £6k, so about £250 a month. You would have saved about £3k renting versus buying. Unfortunately the house would now cost £106k, so even if you added the £3k to your £10k deposit, the mortgage on it that you'd need would be £93k. So instead of owning a £106k house with £84k left on the mortgage you'd own a £106k house with £93k left on the mortgage.

Buying two years ago has thus saved you £9k.

Pearman25

thanks For Sharing Link..

triathlon

John_Smith_2019 wrote: »

No he hasn't.
Because he hasn't won the election.
And according to the bookies, he is very unlikely to.

And has zero chance of winning. Every day that passes now looks like a modest win for Boris, and Boris is not going to do anything to help crash the property market.

westernpromise

A modest win is quite a good result as it will ensure Labour replaces its leader with another who is just as deranged by Marxist hate.

A really crushing 1983 style victory would result in Labour recovering its sanity in about 10 or 15 years' time, and becoming electable. The objective of all political parties should be to prevent Labour ever winning an election, as this is always catastrophic and has recently proven actually murderous.

The-Joker

Roll on 30% discount on new homes for FTBers

If it doesn’t happen then all those who voted Tory will feel betrayed

MobileSaver

The-Joker wrote: »

Roll on 30% discount on new homes for FTBers. If it doesn’t happen then all those who voted Tory will feel betrayed

A blanket 30% discount for FTBs was never on the table; the suggestion was for the discount to apply to local key workers who couldn't otherwise afford to buy in the local area.