Nationwide goes negative YOY

Dan:_4

mitchaa wrote: »

Put your money where your mouth is then. Sell right now, bag the £200k profit, put it into a high interest savings account and rent until you can buy the same property or a better 1 at that again in a few years time

No, i thought not:D

Confidently predicting:T :rotfl: Crystal ball i see

some people are not greedy enough to uproot their entire family.

aardvaak

I don't know what everyone is complaining about the "authorities" have wanted a reduction in house/property prices and financial authorities to get back to normal lending practices of years ago i.e., 2-3 times income that everyone can afford.
So what if some value get knocked off property values - houses are there to be lived in not just a chance to make a fast buck.
If you have to sell at a bit less you should be able to buy at a bit less.

johnycoldears

mitchaa wrote: »

Put your money where your mouth is then. Sell right now, bag the £200k profit, put it into a high interest savings account and rent until you can buy the same property or a better 1 at that again in a few years time

No, i thought not:D

Confidently predicting:T :rotfl: Haha, crystal ball syndrome i see

My house is my home. It was 13 years ago, when I bought it and I hope it will be in 13 years time.

Calling homes "property" (nicely impersonal) and speculating with them using easy credit is what caused this asset bubble in the first place. Why would I want to STR and be like that ?

mitchaa

Dan: wrote: »

some people are not greedy enough to uproot their entire family.

For £100k, i'd move my family 100 metres down the road into rented accomodation.

Without a doubt.

You need a big pair of balls however to predict the future;) I doubt he will go down this route even though he is confident he will lose £100k.

Some people should follow their convictions

Pigs might fly.

johnycoldears

mitchaa wrote: »

For £100k, i'd move my family 100 metres down the road into rented accomodation.

Without a doubt.

You need a big pair of balls however to predict the future;) I doubt he will go down this route even though he is confident he will lose £100k.

Some people should follow their convictions

Pigs might fly.

I actually live in a village of less than 1000 people - the same village I was born and raised in.

I have based career decisions on commutabilty from my home. If I had wanted easy money I could have uprooted to London for an extra 25% a year. So why would £100k from selling my house make me want to move out.

Even if I was mercenary enough to uproot and rent , it would not be in this village (nothing to rent) and it's highly unlikely I could get my own house back again in the future - and yes I would like it to be the same house.

Some things in life are more important than money - actually having a proper life for a start.

By the way given that prices increased by approx 10% in the first six months and have fallen by slightly more over the last six months, I have already lost £35k since last autumn- and am I bovvered ?

PasturesNew

dannyboycey wrote: »

Yep. And if you use 'real' inflation as opposed to the made up figures that they give us then it's a LOT more.

I personally believe that the basket of goods used to measure inflation shoud consist of at least 60-70% essential items, as opposed to DVD's /iPods etc.

Easiest way to do this would be to keep the existing list and split it into two. So they issued three lists.

For those near the bottom of the income pile they're never buying the gadgets/holidays/new things, so their rate of inflation just to eat the basics is increasing a lot more.

I've never bought a DVD nor an iPod. Nor a plasma screen. Nor a holiday. And if I had the list to hand I could also dismiss most of the other things on it as never have or never will.

It's skewed to a middle-class lifestyle.

Why would I care much if a sofa is cheaper, if I only ever buy the very cheapest one once every 20-25 years?

neverdespairgirl

PasturesNew wrote: »

I've never bought a DVD nor an iPod. Nor a plasma screen. Nor a holiday. And if I had the list to hand I could also dismiss most of the other things on it as never have or never will.

I've never bought a DVD, ipod or plasma screen either. We got a DVD player when OH's parents died, it had been in their house, but the only DVDs ever watched on it are children's ones, and all were bought in Israel. I got given an ipod for Christmas by my parents, and we have a perfectly good telly that has worked well since 1990.

We've never bought a holiday in the sense of a package,but we do go away quite a lot - we choose to spend our disposable income on doing things rather that acquiring things. In the last year, we've been to Israel twice, and once each to Wales and Cornwall.

EdInvestor

$$$ wrote: »

Presumably 15% are shafted? If so I think it's enough to move the market if they have to sell.

The 15% who are affected are those coming off fixed rate deals this year.

Most of these are likely to be among the 95% of borrowers who have more than 20% equity in their homes, so will have no trouble getting another reasonable deal in the market.

Of the remaining 5% with less than 20% equity, some may have to go on the lender's SVR, which will be higher than their old deal, but also may come down in future months as base rates fall.

A few will be in trouble, mostly recent borrowers with 100% mortgages at Northern Rock or those struggling with an inner city new build flat.. But it's unlikely this small group will have a major impact on the overall market.

boinging_2

EdInvestor wrote: »

The 15% who are affected are those coming off fixed rate deals this year.

Most of these are likely to be among the 95% of borrowers who have more than 20% equity in their homes, so will have no trouble getting another reasonable deal in the market.

Of the remaining 5% with less than 20% equity, some may have to go on the lender's SVR, which will be higher than their old deal, but also may come down in future months as base rates fall.

A few will be in trouble, mostly recent borrowers with 100% mortgages at Northern Rock or those struggling with an inner city new build flat.. But it's unlikely this small group will have a major impact on the overall market.

So what's causing prices to fall at the moment? In September last year the idea of having negative YoY house prices was laughed off by most.

Where do you see it stopping?

EdInvestor

boinging wrote: »

So what's causing prices to fall at the moment? In September last year the idea of having negative YoY house prices was laughed off by most.

The credit crunch: it's worse, and taking longer to sort than people expected, causing mortgage rationing and thus falling prices.

Where do you see it stopping?

When the credit crunch comes to an end. The stockmarket seems to think the worst is over and the big banks (RBS,HBoS) are now fessing up to losses and asking shareholders for new capital.Some interbankcredit markets are now functioning again but not all.So progress is underway on getting it sorted but there is still a lot of work to be done.The 50bn from the Govt will help when it gets deployed..

Latest guesstimate is maybe another six months until the market is back to reasonable normality (but not stpidity of the 120% mortgage variety.) Most people will just sit tight IMHO - it is the EAs and brokers who are most at risk because there are so few transactions..

It will be interesting to see if the bottom fishers actually find any decent property bargains among the quantities of dross out there.One doubts anyone with a decent home to sell would go anywhere near the market at the moment, why would you bother?