price drops

MUDGUTS

cheeky_lil_monkey wrote: »

This thread is so petty and annoying!!

I'd agree with you there.

Personally, I think the trouble comes from one of two or three camps:

People like me who mainly encountered the fairly smug and arrogant attitude of home owners who had a bad approach to credit and despise these types of generally stupid, short sighted and greedy people.

I have seen hundreds of folk watch the value of their house rise and immediately go and get a conservatory built on the back. Last time I looked into the value this added, it was 10%, that's 10% the cost of the conservatory, not the house, so at 5k they have just spent 4.5k which they will not get back.

The next thing they must do is borrow against the house to get a secondhand, clocked, ex-fleet, silver 3 Series BMW on the drive to 'keep up with the Joneses'. (Older types will get a Golf)

Then comes the laminate flooring, and huge TV.

If there is any money left they MUST have a jet wash for the new brick drive and PS2, etc., etc., plus a mini moto, and other 'boys toys': All on credit cards.

It's a long story but I would come into contact with these types a lot and out of curiosity I would ask them if they thought there would be a house price crash. The answer, from just about all was no.

The credit crunch is more than a crunch IMO, it's the start of it and a lot of stupid, greedy people are going to lose their homes, some through not being able to re-mortgage and others through not being able to borrow more to live.

Borrowing money in the way we have been doing for the last few years is over.

Like I said people are generally stupid, short sighted and greedy.

Or...

People who fall into the category of being stupid, short sighted and greedy as described above and are now waking up to the consequences of what they have done.

Or...

People who are buying now or have recently done so and are trying to convince themselves they have done the right thing.

Anyway, the thread is about price drops. My view is they have a long way to go and I would expect to see a 30-40% correction in the next 3-5 years.

cheeky_lil_monkey

Hmm.....I know a fair few who would fit into the first category. Thankfully, we have no debt outside our mortgage - which makes it seem a little unfair as to why they're all in more debt....yet we're struggling to move on!!

We're not trying to convince ourselves we did the right thing in buying - we moved out of rented accom as it was dire and pay less in mortgage than we'd pay in rent for a crummier place!! It's just the way it is around here - a huge proportion of the properties around here are owned by greedy BTL Landlords who have a multitude of houses yet charge a huge amount of rent and let the properties fall into disarray.

I don't think we see a huge drop without it leading to job losses etc. and I don't think that even our pathetic government would allow that to happen. I think prices will fall a little, the market will even out for a period....then it will all relax and start to climb again. There's too much invested interest these days with so many people having invested their futures in property...I just can't see there being a major crash with so many influential people involved.

Only time will tell though!