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There will not be a crash

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  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    poppy10 wrote: »
    Don't worry, we'll be OK ;)
    SquatNow wrote: »
    In 3 years time the people that bought in 2008 will be living in work camps trying to pay back their negative equity.

    ........OK
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    TBeckett100 wrote: »
    If we look at our landscape, we are an island. It isnt going to get bigger and we have a shortage.
    golddustmedia wrote: »
    If nothing else, the UK is an island, land (property) is one commodity that's guaranteed in limited supply!


    What does being an island have to do with it? If we weren't an island, say like Luxembourg, could we just expand over the border into neighbouring countries? :confused:
    poppy10
  • hoggums
    hoggums Posts: 213 Forumite
    I've just read this thread and chuckled. What a bunch of numpties. No crash indeed.
  • ShelleyC_2
    ShelleyC_2 Posts: 1,500 Forumite
    :rotfl: Thanks for unearthing this one I needed a giggle after a bad day
    Looking for the perfect home and saving to make becoming a MFW easier
    MFiT3 48103/50000 Saved So Far :j
  • GDB2222
    GDB2222 Posts: 26,243 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    poppy10 wrote: »
    What does being an island have to do with it? If we weren't an island, say like Luxembourg, could we just expand over the border into neighbouring countries? :confused:

    That's what's been happening in Europe for the last few thousand years.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • TTMCMschine
    TTMCMschine Posts: 684 Forumite
    Some people do have some odd ideas. Firstly may I suggest everyone goes to You Tube & enters exponential in the search box - then watch the 8 x 10 minute videos explaining how the exponential function works - that will explain in simple mathematics why nothing can continue to grow forever.

    People seem to be able to think in comparisons & in the very short term. However, at x% growth per annum it doesn't take the same amount of time for the numbers to double, the time decreases with each doubling time, and the final figure grows, well, exponentially.

    For example, if the average house price was £200K & growth was at 10%, then in 7 years time the average house price would be £400K, 7 years after that it would be £800K, 7 years after that £1.6 million, 7 years after that £3.2 million, 7 years later £6.4 million, 7 years later £12.8 million, then 7 years later £25.6 million.

    So in just 49 years you would need to pay £25.6 million for a bog standard house. What would the price be in another 49 years? Most people would assume £51.2 million, but actually it is £3.276 BILLION.

    Clearly this cannot continue, & I'm happy to say that the insanity has now come to an end.

    Besides, the economy is completely in tatters, there will be no more thoughts of house price growth as inflation lets rip & you need a wheelbarrow full of cash to buy a loaf of bread.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    The_Dangerman wrote: »
    Calm down dear, it's just a slowdown ;-) (Not aimed at anyone in particular)

    Low interest rates, high employment and more households being created than houses being built is not a reciepe for a crash.

    Sure, there is no doubt we're at the end of a good run, and maybe inline for a run of a year or two of stagnation and a further 3 years (in my estimation) of slow growth while wages catch up but that is all.

    Hmmm. Wooden spoon for predictions, here!

    Interestingly, this poster hasn't been near the housing boards for a while (since March), but lurking on savings and insurance boards instead. He does now realise that house prices aren't stagnating, though, having said in late October this year :

    You don't have to buy a house "round where you live", you can buy one anywhere in the country. With property prices crashing and rents rising, it means you can get a decent yield, 8% or more.

    http://forums.moneysavingexpert.com/showpost.html?p=15095655&postcount=52

    Never a good idea to be that patronising "calm down dear" and completely wrong at the same time. Makes you look a bit silly, really.
    The_Dangerman wrote: »
    I'm not in the slightest bit concered that house prices are going to crash, because they aren't, and they won't. In fact, I think it's a great time to buy and will be looking to buy more this year (if the price is right ;-) )

    How many more BTLs have you bought this year?
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    TTMCMschine wrote: »
    Some people do have some odd ideas.

    What, like this thead, "there will not be a crash"?
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    The_Dangerman wrote: »
    There maybe the desire of a crash, but I'll re-hash this thread in a year to show this wasn't the case.

    I'm not even remotely concerned about a crash. In fact I see it as good time to invest and take advantage of those who are desperate to sell.

    Not quite a year, but any chance of you eating your hat?
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    daunker wrote: »
    At the present time I'm making an investment decision now to purchase another property for 20% less than the value which similar properties were being sold for in winter 2007 it's in a superb location (central london) and is not a new build. I think the downside is very limited.

    Did you buy it? Still happy about the decision?
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
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