price drops #2

MUDGUTS

Lilly, I'm sensing a lot of 'anger issues' in your posts.

We know you are OK with your purchase but please have some sympathy for those who just don't understand the market or are hell-bent on convincing themselves they know best. Some people just aren't that smart.

...or educated

LillyJ

dolcevita wrote: »

And I've just sold a flat for 60k more than I bought it for.

That doesn't mean prices are going up.

I am not talking about individual cases. I am talking generally.

Massive consumer debt, whether it be MEW, credit cards, loans etc is what will bring the housing market down and lead to a big fall in prices.


!!!!!!. even the banks have run out of money.

Doesn't that tell you anything?

I didn't say prices are going up. I said not everyone is "in debt up to their eyeballs" as you said, forcing them to sell high. It simply isn't true.

LillyJ

MUDGUTS wrote: »

Lilly, I'm sensing a lot of 'anger issues' in your posts.

We know you are OK with your purchase but please have some sympathy for those who just don't understand the market or are hell-bent on convincing themselves they know best. Some people just aren't that smart.

...or educated

ITS NOT ABOUT ME!!!!!!!!!!!!!!!!!!!!!!!!!! My SELLER was not in debt up to their eyeballs forcing them to sell for a higher price. If you read I was defending your post Mudguts. So I am not sure why I now cannot make any postings without people making nasty comments about me buying a house. This is about anecdotal information and I see no reason why my comments are less valid than anyone elses.

It makes no difference to my purchase what equity the seller has, but as this is meant to be anecdotal, I am quoting anecdotally.

I also know that my neighbours just sold and they had 40% equity (next door to my rented). They also did not want to sell for a low price.

If you really think I am saying these things to make some sort of statement about my purchase I would be grateful if you could point out to me the statement that it is making, as I currently can't see it.

LillyJ

dolcevita wrote: »

generally it is true.

And debt will bring down prices.

Yes that may be true generally. I also agree with the fact that the house price crash is likely due to bad credit, and I for one am glad that 100% mortgages and ridiculous multiples have been removed. It will make for (after the next 1,2,3,4,5,6...whatever years) a more stable market, which is surely the best thing for everyone.

brummybloke

LillyJ wrote: »

ITS NOT ABOUT ME!!!!!!!!!!!!!!!!!!!!!!!!!! My SELLER was not in debt up to their eyeballs forcing them to sell for a higher price. If you read I was defending your post Mudguts. So I am not sure why I now cannot make any postings without people making nasty comments about me buying a house. This is about anecdotal information and I see no reason why my comments are less valid than anyone elses.

It makes no difference to my purchase what equity the seller has, but as this is meant to be anecdotal, I am quoting anecdotally.

I also know that my neighbours just sold and they had 40% equity (next door to my rented). They also did not want to sell for a low price.

If you really think I am saying these things to make some sort of statement about my purchase I would be grateful if you could point out to me the statement that it is making, as I currently can't see it.

your problem is that you HAVE a house, most on here dont and are praying for a crash. Not a correction of say 10%, they are keeping their little fingers crossed that it is 50% taken off the price of all housing and wobetide anyone who even thinks of buying a house or owning one without the risk of repo hanging over their families heads.

good for you for choosing to buy yourself a house.

LillyJ

brummybloke wrote: »

your problem is that you HAVE a house, most on here dont and are praying for a crash. Not a correction of say 10%, they are keeping their little fingers crossed that it is 50% taken off the price of all housing and wobetide anyone who even thinks of buying a house or owning one without the risk of repo hanging over their families heads.

good for you for choosing to buy yourself a house.

Well I had this argument before and I thought people on here were just trying to make me see the "errors of my ways". Now I just think they generally just want to argue, and for some reason every time I post (even when just making anecdotal comments with NO RELATION to myself or my financial situation) they feel the need to shout at me that prices are going down. Yep, I've got that now.

You are right Brummybloke, people aren't just predicting a crash, they are PRAYING for one, and wishing financial downfall on all who dare not to follow their way of thinking.

I was thinking about it yesterday, and in some areas, a crash of 75%+ would be needed for an average person to be able to buy a house at 3x salary. Now that is NOT going to happen, no matter what any one on here hopes for.

Turnbull2000

LillyJ wrote: »

You are right Brummybloke, people aren't just predicting a crash, they are PRAYING for one, and wishing financial downfall on all who dare not to follow their way of thinking.

I was thinking about it yesterday, and in some areas, a crash of 75%+ would be needed for an average person to be able to buy a house at 3x salary. Now that is NOT going to happen, no matter what any one on here hopes for.

People say stupid things on the internet. But in reality, they probably don't give a damn about other folks financial downfalls - just like 'homeowners' didn't give a damn about the plight of those priced out so long as the loony money kept rolling in.

As for 3.5x multiples in the more expensive South East and other prime areas, I don't think even the most hardened HPCer is predicting such mayhem. The salary multiple refers to national averages, not regional markets.

LillyJ

Turnbull2000 wrote: »

People say stupid things on the internet. But in reality, they probably don't give a damn about other folks financial downfalls - just like 'homeowners' didn't give a damn about the plight of those priced out so long as the loony money kept rolling in.

As for 3.5x multiples in the more expensive South East and other prime areas, I don't think even the most hardened HPCer is predicting such mayhem. The salary multiple refers to national averages, not regional markets.

Well fair enough if they aren't expecting to snap up a 3 bed house in Gerrards Cross for £90k, cos if they are then I think they will be a bit disappointed!
Just sometimes the way people laugh, point and go on about "stupid, greedy people" all the time, I sometimes think people want to see families out on the street so they can "step into their shoes" with their financial expertise.

I don't think everyone who bought in the past is selfish, it is just human nature to want assets to go up. Even if they didn't want them to, there is not much they could have done about it!

WTF?_2

LillyJ wrote: »

Well I had this argument before and I thought people on here were just trying to make me see the "errors of my ways". Now I just think they generally just want to argue, and for some reason every time I post (even when just making anecdotal comments with NO RELATION to myself or my financial situation) they feel the need to shout at me that prices are going down. Yep, I've got that now.

You are right Brummybloke, people aren't just predicting a crash, they are PRAYING for one, and wishing financial downfall on all who dare not to follow their way of thinking.

I was thinking about it yesterday, and in some areas, a crash of 75%+ would be needed for an average person to be able to buy a house at 3x salary. Now that is NOT going to happen, no matter what any one on here hopes for.

There's a wonderful little thing called 'the market'. One way or another, supply and demand will balance out. We are set to get a whopping housing crash with nasty food/energy inflation or massive 70's style inflation in all areas (including wages).

Now if there's a genuine housing 'shortage' then the drops won't be so great and likely the whole currency is going to have to be debased and the money presses spun up to 'max'. My guess is that a whopping crash is going to be what happens though. One way or another the equation is going to have to even out.

Maybe the 'It's going to be like the 70's' people have a point though - the latest fuel crisis certainly makes me feel like I remember feeling seeing the news as a kid back then ..... I'm pretty sure that the overall standard of living is going to have to fall, no matter what happens.

MrSafeGaz

I think you have to take what alot of people say on these boards with a pinch of salt. In my opinion there are very few on here that have balanced, realistic and objective opinions. I am a FTB in waiting and don't believe prices will rise but although I would love it for house prices to 'crash' I can't help but laugh when I read someone predicting a 50% drop in prices. How can they honestly expect anyone to take them seriously? There are so many variables that no one, not even so called experts can make accurate predictions.