Is a Housing Price Drop a Disaster for All?

movilogo

[Quote] 10% and now apparently a 5% reduction will be considered a "Crash! [/Quote]

Many houses are actually sold under 5% of asking price anyway. Some sell below 10% of asking price. So using that definition, price crash is already here.
No one is expecting buy one house get one free soon. 

MobileSaver

movilogo said:

Many houses are actually sold under 5% of asking price anyway. Some sell below 10% of asking price. So using that definition, price crash is already here.

Now you really are getting desperate and scraping the bottom of the barrel... as if asking price v selling price has any significant relevance to the housing market. Again it is telling that the only people who would be "using that definition" are the HPC loonies clutching at straws rather than admit their HPC dream just isn't happening.

Crashy_Time

OP you definitely picked the wrong forum for anything even approaching a sensible discussion on your question.

Getting_greyer

Crashy_Time said:

OP you definitely picked the wrong forum for anything even approaching a sensible discussion on your question.

Haha, maybe so. Threads on here do tend to digress but then that's what debate is. 

Sailtheworld

movilogo said:

Many houses are actually sold under 5% of asking price anyway. Some sell below 10% of asking price. So using that definition, price crash is already here.

Nobody uses that a definition of a price crash because it's clearly flawed.
Last Year - I buy a house for £100k
This Year - I try to sell at an asking price of £125k
Next Year - I sell at £110k
The HPC crew would be celebrating but that's to be expected. There are a few old-timers on there who are beyond hope but I'm hopeful, that for most of them, it's just a phase they're going through. 

frank_facts

May I say, if looking for a first by, then go to an auction, and buy from here. Then you can develop the place to suit you. Or Snatch Back from Estate agents, you have to bid for the place via a sealed tender. One thing is to keep your borrowing to a min, and if you have any work that gives you share save schemes. Use these when they have matured and dropped out of CGT, to take CAPITAL off you Mortgauage.I used this at BT plc and killed my Motgauge in under 10 years. Always when paying off a lump, get them to recalculate your TERM, so that the lump sum is off CAPITAL, not % to be paid.

Get a clause into your morgauge that allows for you to pay off lump sums.

Property is just another commodity, and as they have stopped making LAND, so this is the most costly item. Bricks 1,000 a £10.

So they will go up and down in value. One must not think they will go up constantly.

lisyloo

Not everyone has the time to revamp a property.
heres a horrific auction story so buyer beware
https://forums.moneysavingexpert.com/discussion/6104893/horrific-homebuyers-report-help/p1

Crashy_Time

Getting_greyer said:

Crashy_Time said:

OP you definitely picked the wrong forum for anything even approaching a sensible discussion on your question.

Haha, maybe so. Threads on here do tend to digress but then that's what debate is. 

Not what I meant though.

Crashy_Time

Sailtheworld said:

movilogo said:

Many houses are actually sold under 5% of asking price anyway. Some sell below 10% of asking price. So using that definition, price crash is already here.

Nobody uses that a definition of a price crash because it's clearly flawed.
Last Year - I buy a house for £100k
This Year - I try to sell at an asking price of £125k
Next Year - I sell at £110k
The HPC crew would be celebrating but that's to be expected. There are a few old-timers on there who are beyond hope but I'm hopeful, that for most of them, it's just a phase they're going through. 

What happens if you can`t sell it at all though?

Sailtheworld

Crashy_Time said:

Sailtheworld said:

movilogo said:

Many houses are actually sold under 5% of asking price anyway. Some sell below 10% of asking price. So using that definition, price crash is already here.

Nobody uses that a definition of a price crash because it's clearly flawed.
Last Year - I buy a house for £100k
This Year - I try to sell at an asking price of £125k
Next Year - I sell at £110k
The HPC crew would be celebrating but that's to be expected. There are a few old-timers on there who are beyond hope but I'm hopeful, that for most of them, it's just a phase they're going through. 

What happens if you can`t sell it at all though?

You really are rusty about the mechanics of buying and selling aren't you. If I really wanted to sell it I'd have to reduce the price until it did. Maybe I'd have to sell it for less than I bought it for? If the market consisted of just this single imaginary house then most people would agree that house prices have fallen.

If I sell for 90% of asking price it might be party time on HPC but it doesn't tell you whether prices are up or down.