House price CRASH is good for everyone

PasturesNew

A crash is not good for anybody who wants to split up acrimoniously that then has to try to split the debt.

Splitting the profits was a hard enough argument.... how the hell do you agree with somebody you now hate who owes which percentage of the negative equity? Especially if neither party can afford to raise it.

PasturesNew

Re:

4) Anyone who is left a house in a Will.
Will benefit from decreased death taxes

Not the case for those that don't pay any death taxes. The current threshold is at £312k.

So if they had a house "worth" that now and it fell 30% down to £200k (after estate agent fees), then they've paid no death duties either way, but any inheritance is reduced by £100k.

And if there's that "doubles up" IHT of 2x£312k (not sure if that's law or not yet, so many laws ... never sure if you're coming or going), then that'd be £200k knocked off a £600k house.

PasturesNew

brit1234 wrote: »

Its good for first time buyers, and owners wanting to move up, it is not good for property investors intent on capital gains.

Not if you can only raise 1x mortgage with a 50% deposit being demanded.

Gorgeous_George

Bf109 wrote: »

Quote:
Originally Posted by Gorgeous George
A 30% crash is good for everybody except:

1) Those who bought in recent years.

Why these people? what effect would it have on them? Surely none?

No effect = not doing them any good!

2) Those who do not want to sell.

Why these people? what effect would it have on them? Surely none?

No effect = not doing them any good!

3) Those who have withdrawn equity from their property and cannot afford to pay the mortgage without withdrawing more.

Why should anyone feel sorry for the irresponsible and greedy?Had they been responsible, they would have a massive chunck of equity in their property, ready to cash in. Of course, for those who blew it on holidays in the costas.... no sympathy

No-one mentioned feeling sorry for people.

4) Anyone who is left a house in a Will.

Will benefit from decreased death taxes

:rotfl: They will still lose money!

5) Anybody who wants to remortgage.

They can get a smaller mortgage

No they can't. They need to cover the whole mortgage.

6) FTBers with less than £20K in savings.

They will need a smaller deposit

But they didn't need a deposit at all before the crunch.

7) FTBers with less than a good credit record.

Then they probably wouldnt be able to run a mortagage without getting into arrears anyway and would have even less chance of getting a mortgage if prices continue to rise

So we agree. No benefit to them from lower prices.

8) Anybody who has to pay more tax as a result of a drop in Stamp Duty income.

Who cant afford a shoebox at the moment but might be able to if prices crash. Who the hell pays more tax as a result of a drop in tax anyway?

Governmenrt spending needs to be funded somehow. Less Stamp Duty must lead to increases on other taxes.

9) Those who want to sell to rent.

At the expense of the multitude who are compelled to rent to buy?



10) Housebuilders.

Who build sub-standard rabbit-hutches and offer fraudulent gifted-deposits to encourage people to buy their overpriced shiatholes? Boo-Hoo. My heart really bleeeeeds for them!

No-one mentioned feeling sorry for people.

11) Home improvement companies.

Who should have been making hay while the sun shone

They will still be making people redundant and closing down as prices fall.

12) Banks and building societies and their staff, shareholders and members.

Their fault for causing an un-sustainble bubble in the first place

Maybe.


13) Estate Agents

Good!

We'll all enjoy paying their benefits then?

GG

Did you mention the government

No but I will add it as they will lose the election if prices crash because this will prove that the public shouldn't be allowed to vote

My responses in blue.

GG

Ninnins

But what about the 'innocents' like me who needed the money as a single parent sending two kids to uni and trying to support a home too? Still, even at it's worst, I am lucky that there is still some equity, although I wish I'd been a bit more "knowing" - don't we all?!

Gorgeous_George

Needed what money? Equity in the house?

There is no such thing as a single parent. It usually takes two I believe. A widow would be the surviving parent.

GG

Ninnins

Gorgeous_George wrote: »

Needed what money? Equity in the house?

There is no such thing as a single parent. It usually takes two I believe. A widow would be the surviving parent.

GG

,

Bless! But some parents are more equal than others ... not complainining, just got on with it. Yes, equity - needed to use some of equity just to maintain the financial status quo.

Gorgeous_George

brit1234 wrote: »

Its good for first time buyers, and owners wanting to move up, it is not good for property investors intent on capital gains.
:beer:

Falling prices must be good for FTBers UNLESS the credit crunch means that they cannot borrow enough to buy their fist home.

Falling prices are only good for those wishing to 'move up' if they have sufficient savings to fund the new mortgage deal and moving fees.

Property investors intent on capital gains could benefit from falling prices if, for example, they sold at the peak and are waiting to buy again in the dip.



GG