Just a little pointer for this forum

wockawocka

I've seen lots of arguments on the MSE boards between people hoping for a crash and those who don't want one.

1. If you bought it as an investment and you are losing out, tough, you had the opportunity to do the research and you made a choice, live with it.

2. If you bought it as a home to live and grow in you have no worries as price falls will all be relevant, that 4 bed end terrace you want to move to will fall by the same amount once averaged out.

3. If you took 20k out for a conservatory worth 5k see point number 1.

Shame the governments of the UK and the USA don't have the same attitude with their banks, but that's another story for another time.

WTF?_2

wockawocka wrote: »

I've seen lots of arguments on the MSE boards between people hoping for a crash and those who don't want one.

1. If you bought it as an investment and you are losing out, tough, you had the opportunity to do the research and you made a choice, live with it.

2. If you bought it as a home to live and grow in you have no worries as price falls will all be relevant, that 4 bed end terrace you want to move to will fall by the same amount once averaged out.

3. If you took 20k out for a conservatory worth 5k see point number 1.

Shame the governments of the UK and the USA don't have the same attitude with their banks, but that's another story for another time.

Problem is, a banking collapse would be catastrophic. They really are "Too big to fail" so we as taxpayers and savers (inflation) get to bail them out.

What's really needed is better regulation of the financial sector and a tough regulator with real teeth.

m00m00

and also quite revolutionary

stop paying bankers and execs huge bonuses for failure, and reintroduce 'moral hazard' to the system.

Davesnave

2. If you bought it as a home to live and grow in you have no worries as price falls will all be relevant,

.......Or even relative

PasturesNew

Davesnave wrote: »

.......Or even relative

especially if you have a granny annexe

IveSeenTheLight

wockawocka wrote: »

I've seen lots of arguments on the MSE boards between people hoping for a crash and those who don't want one.

1. If you bought it as an investment and you are losing out, tough, you had the opportunity to do the research and you made a choice, live with it.

2. If you bought it as a home to live and grow in you have no worries as price falls will all be relevant, that 4 bed end terrace you want to move to will fall by the same amount once averaged out.

3. If you took 20k out for a conservatory worth 5k see point number 1.

Shame the governments of the UK and the USA don't have the same attitude with their banks, but that's another story for another time.

Fair points but you missed a few more..

4. If you have been renting for many years awaiting a crash and lost out to house price increases while paying rent all this time (like some posters who have been waiting 6+ years), tough, you had the opportunity to do the research and you made a choice, live with it. (note the hard line stance was copied from point 1.)

5. If you continue to wait until you perceive the bottom of a house price correction (I dont use crash as it may only be 5, 10 or 15%), you may find that what you perceive to save will be less, the market may not drop so much and with fewer mortgage offers, you may end up with a mortgage on not so good a rate), tough, you had the opportunity to do the research and you made a choice, live with it. (note again the hard line stance was copied from point 1.)

6. If you sold to rent until the correction and you find after you have re-entered house ownership you find that you daid save some money, well done, you had the opportunity to do the research, you made a choice and it worked out.

tr3mor

7. If you think that house prices are going to go up and up forever and ever then you're a bloody idiot!

:money:

carolt

IveSeenTheLight wrote: »

Fair points but you missed a few more..

4. If you have been renting for many years awaiting a crash and lost out to house price increases while paying rent all this time (like some posters who have been waiting 6+ years), tough, you had the opportunity to do the research and you made a choice, live with it. (note the hard line stance was copied from point 1.)

5. If you continue to wait until you perceive the bottom of a house price correction (I dont use crash as it may only be 5, 10 or 15%), you may find that what you perceive to save will be less, the market may not drop so much and with fewer mortgage offers, you may end up with a mortgage on not so good a rate), tough, you had the opportunity to do the research and you made a choice, live with it. (note again the hard line stance was copied from point 1.)

6. If you sold to rent until the correction and you find after you have re-entered house ownership you find that you daid save some money, well done, you had the opportunity to do the research, you made a choice and it worked out.

Absolutely true.

We all have to make our choices and live with them.

The best way to avoid making decisions you might regret is to be as well-informed as possible. If you genuinely believe the pattern of the last few years is about to be repeated over the next few, ie prices to double/triple over the next few years, why don't you just come out and say it? And quote reputable sources, so that the less knowledgeable among us can read them and learn from your useful advice.

BUT - you can't, can you???

Because you know full well that no-one in their right mind, let alone any experts at all, are suggesting prices are going to do anything other than fall for the next few years.

To draw lessons for the future based on the experience of the very recent past is misleading, to say the least, as the last few years have been so atypical. If you must draw comparisons with the past, the last time prices fell would surely be a better comparison.

Refer readers to all those people who bought at precisely the wrong time last time, as the market started falling, and faced 10+ years of negative equity before they could move...always assuming they hadn't had their houses repossessed first.....

Zammo

wockawocka wrote: »

2. If you bought it as a home to live and grow in you have no worries as price falls will all be relevant, that 4 bed end terrace you want to move to will fall by the same amount once averaged out.

Yeah right, try telling that to the chump who bought an overpriced 2 bed at the peak last August who's just been made redundant due to weakening economic conditions.

I wonder how he's going to feel when he sees a four bed for the same price as he's queuing up outside the DSS for his giro, so he can spend it on cans of baked beans to heat over the economy 7 storage heaters in a rented p1ss hole owned by a slumlord.

mr.broderick

Zammo wrote: »

Yeah right, try telling that to the chump who bought an overpriced four bed at the peak last August who's just been made redundant due to weakening economic conditions.

You're assuming he borrowed the money

Zammo

mr.broderick wrote: »

You're assuming he borrowed the money

You're assuming he didn't.