Coronavirus effect on property markets?

silvertooth

_mayonnaise_ said:

Those youtube videos are the best.

Had a looky through his other masterpieces and "Adding to our Preparations" is a classic.

Pointing at his soup can collection...."carrot and coriander soup.....vegetable soup, minestrone soup..."

A can of Bramwell's vegetable soup... "Enough to keep you alive for a day" 

Keep em coming, tooth!

Keep on believe the fake news yes things will get better

no need to prep 

the hospitals won’t be overrun 

all is well

Crashy_Time

MobileSaver said:

Crashy_Time said:

But in that case the banks die because they have to keep lending,

The banks do keep lending but with more onerous terms; larger deposits, potentially higher interest rates and stricter credit checks. As Lisyloo says, the irony of cheaper house prices is that for many people it actually makes it harder to buy one.

Who will borrow from them in that scenario? What I think you actually mean is that with cheaper house prices and your banking scenario it is going to get harder and harder to sell a house?

Crashy_Time

Sailtheworld said:

Crashy_Time said:

lisyloo said:

silvertooth said:

lisyloo said:

Indeed. One could argue that if people aren’t travelling or going out and spending more time at home that they’ll be keener for it to be a nicer place to stay and be more willing to spend a higher proportion of their money on it rather than a cruise (Petrie dish). I expect the medium term result to be higher prices. Those with a dry cellar or storage or shelter will be at a premium.

Very optimistic lisyloo. But your forgetting that the banks are all in deep doodoo 

as people stop paying rents and mortgages the banks are going to collapse and so will the property market

this will be the least of the government’s worries as this pandemic becomes the worst crisis in living memories 

It was somewhat tongue in cheek.
but as we’ve been saying all along, it won’t help most buy a house as we’ve consistently said that a serious crash would be accompanied by job losses and economic issues making it hard for most people to buy.

But in that case the banks die because they have to keep lending, and mortgage lending is really their best horse? in fact everything that has been done since `08 has been about keeping lending, especially mortgage lending, going, why would the PTB stop now? If the banks die the price of your house is what someone can pony up from their house safe or their penny jar so you have to be very careful what you wish for, and you consistently said that Brexit wouldn`t happen and that the virus was just a short lived "blip", why should anyone take any notice of your predictions about how house prices will be miraculously preserved in a meltdown?

You remember 2008? House prices weren't preserved; however, people who didn't need to sell just battened down the hatches until the market valued their house 'properly'. The proportion of the market made up of distressed sellers therefore increased. I distinctly remember the guys on HPC complaining about deluded sellers as supply dried up.

Then per Mobilesaver's post the banks imposed tougher lending conditions whilst simultaneously starting a price war to secure the business of the very best risks. Bad news for FTBs but great news for the already well off. 

There used to be a guy on here who said who you want to know who will own the houses after a meltdown just look at who owns them before - it'll be the same people.  

Yes you used to say that and people used to believe it (maybe) but what really happened was house prices and markets went well down and there was a massive CB bailout, do you think the same bailout is coming this time? ECB press conference today says not...........

MobileSaver

Crashy_Time said:

MobileSaver said:

The banks do keep lending but with more onerous terms; larger deposits, potentially higher interest rates and stricter credit checks.

  it is going to get harder and harder to sell a house?

Yes, of course, it goes without saying that as it would be harder for people to buy, it will be harder for people to sell.

This is the bit that you and your HPC chums always forget or conveniently ignore; there really aren't that many winners in the wake of a financial crisis.

silvertooth

MobileSaver said:

Crashy_Time said:

MobileSaver said:

The banks do keep lending but with more onerous terms; larger deposits, potentially higher interest rates and stricter credit checks.

  it is going to get harder and harder to sell a house?

Yes, of course, it goes without saying that as it would be harder for people to buy, it will be harder for people to sell.

This is the bit that you and your HPC chums always forget or conveniently ignore; there really aren't that many winners in the wake of a financial crisis.

The winners are the poor

in the last Great Depression it was an equalising the rich lost the most

the poor become less poor in a relative scale

Sailtheworld

Crashy_Time said:

Sailtheworld said:

Crashy_Time said:

lisyloo said:

silvertooth said:

lisyloo said:

Indeed. One could argue that if people aren’t travelling or going out and spending more time at home that they’ll be keener for it to be a nicer place to stay and be more willing to spend a higher proportion of their money on it rather than a cruise (Petrie dish). I expect the medium term result to be higher prices. Those with a dry cellar or storage or shelter will be at a premium.

Very optimistic lisyloo. But your forgetting that the banks are all in deep doodoo 

as people stop paying rents and mortgages the banks are going to collapse and so will the property market

this will be the least of the government’s worries as this pandemic becomes the worst crisis in living memories 

It was somewhat tongue in cheek.
but as we’ve been saying all along, it won’t help most buy a house as we’ve consistently said that a serious crash would be accompanied by job losses and economic issues making it hard for most people to buy.

But in that case the banks die because they have to keep lending, and mortgage lending is really their best horse? in fact everything that has been done since `08 has been about keeping lending, especially mortgage lending, going, why would the PTB stop now? If the banks die the price of your house is what someone can pony up from their house safe or their penny jar so you have to be very careful what you wish for, and you consistently said that Brexit wouldn`t happen and that the virus was just a short lived "blip", why should anyone take any notice of your predictions about how house prices will be miraculously preserved in a meltdown?

You remember 2008? House prices weren't preserved; however, people who didn't need to sell just battened down the hatches until the market valued their house 'properly'. The proportion of the market made up of distressed sellers therefore increased. I distinctly remember the guys on HPC complaining about deluded sellers as supply dried up.

Then per Mobilesaver's post the banks imposed tougher lending conditions whilst simultaneously starting a price war to secure the business of the very best risks. Bad news for FTBs but great news for the already well off. 

There used to be a guy on here who said who you want to know who will own the houses after a meltdown just look at who owns them before - it'll be the same people.  

Yes you used to say that and people used to believe it (maybe) but what really happened was house prices and markets went well down and there was a massive CB bailout, do you think the same bailout is coming this time? ECB press conference today says not...........

Don't try and kid yourself this is a strange belief system. You were around in 2008 - house prices fell so people took their houses off the market to wait until the market valued them 'correctly'. A distressed seller doesn't have that luxury so volumes fell and the market was made up of a higher proportion of distressed sellers. You lot on HPC were moaning like big babies about it. That was 12 years ago and you've put 12 years rent into project crash since. Of course this is the Royal 'you' - you'll never buy.

I neither know nor care whether there's a big bailout coming.

silvertooth

Yes we should all not try to kid ourselves 

many still in denial that this is not as bad as it really is 

this is happening right now, as Boris Johnson said most of us are going to lose family members to the pandemic

i have stopped trying to warn people it’s a waste of time

if you haven’t done your bulk shopping already then you are only going to find more empty shelves and higher prices

if you haven’t already got your savings out of the stock markets and cash out of the banks then you are only going to find it more difficult every day from now on

if you haven’t already got your silver bullion then it’s going to be very hard and very expensive every day from now

buglawton

tommyedinburgh said:

In the process of purchasing a buy to let, a closing date has been set tomorrow on a property we are keen on, I'm getting wobbled by the current global picture, don't know whether or not to proceed.

wot no delete?

Sailtheworld

silvertooth said:

Yes we should all not try to kid ourselves 

many still in denial that this is not as bad as it really is 

this is happening right now, as Boris Johnson said most of us are going to lose family members to the pandemic

i have stopped trying to warn people it’s a waste of time

if you haven’t done your bulk shopping already then you are only going to find more empty shelves and higher prices

if you haven’t already got your savings out of the stock markets and cash out of the banks then you are only going to find it more difficult every day from now on

if you haven’t already got your silver bullion then it’s going to be very hard and very expensive every day from now

I bet your throne built of bog rolls and pasta is worth more than your silver.

Boris Johnson didn't say that by the way. Government policy is now clear and I hope he doesn't give in to the calls to close schools etc. These calls are coming from people with 200kg of pasa rotting in their garage and should be ignored.

buglawton

silvertooth said:

tommyedinburgh said:

In the process of purchasing a buy to let, a closing date has been set tomorrow on a property we are keen on, I'm getting wobbled by the current global picture, don't know whether or not to proceed.

No harm in delaying, it’s a given prices are going to be much lower looking forward 

By which time the mortgage offer may have expired. If you're a cash buyer you're king and I'd probably reduce the offer sharply on that basis.