Sell Your House Now Or Face 80% Falls, what is YOUR prediction?

LillyJ

Actually do you know what I think we have all been reeled in by a troll....
Can't believe we fell for it.

LillyJ

If the value of sterling in terms of inflation falls by 50% then we are all !!!!!!ed anyway unless our wages rise by 50%. If they do rise by 50% then we are all back in the same boat we were in before.

If my house value falls by 80% then I will let you have it for half price.

Oliveru

LillyJ wrote: »

So we should all go and live abroad, and get our "wealth" up. Stuff family and friends (and work), life is just about wealth.

You don't have to move abroad to protect yourself, just invest in assets that are not dropping in value in order to protect your wealth- My suggestions would be the Chinese RMB, gold and silver or even foreign property in certain places if you can afford it.

If you stay in the UK without any savings your worse off as inflation will push up the cost of living (food and other imports, oil etc). If you have savings in sterling you will be better off not your savings will still be devalued, if you stay in the UK yet have some savings that are not being devalued (like my above suggestions) you will be in the best position.

So you can see that it does not take large sacrifices to protect yourself financially. How many people on here are thinking seriously about their children and grandchildrens future? If you are you would be researching into the stuff I discuss in this post.

How many people here are angry because their pension fund has had a 30% 'haircut' ? Yet these same people will laugh at me for proposing such strange investment alternatives.

Oliveru

LillyJ wrote: »

If the value of sterling in terms of inflation falls by 50% then we are all !!!!!!ed anyway unless our wages rise by 50%.

Well that is what I'm proposing. Also many people will lose their job because when belts tighten people will buy less and our consumer economy will suffer.

Our economy is based on debt and greed, the greed of the banks offering cheap credit and the debt of people for taking it then greedily getting mortgages and buying white goods without saving a penny of their income.

Here is a good exercise, how about everyone says how much they can afford food and oil to increase in price before their expenditure is higher than their income?

I can afford food and oil to double in price because I live at home with my parents and don't travel far to work. Is there anyone that will admit they can't afford this happening?

Luckily those of you who are renting will be much better off because rent prices will drop drastically as people simply can't afford to rent at current prices and choose to live with family etc. Those stuck on a mortgage will be worst off.

bandraboy

Prices in Singapore dropped at least 40 per cent after the Asian Financial Crisis.

I was working there at the time. I also got to stay in some nice places at amazingly low rents as all the foreign workers/expats had gone home because of lack of jobs.

Singapore has a similar reliance on foreign workers as the UK.

Also my sister suffered from massive negative equity in the early 90's in the UK. It led to bankruptcy and severe health problems that lasted several years.

That has made me feel that something was amiss with this massive ramp up in house prices we've had in the last few years, so I've done a lot of reading up on it. I'm no expert but I believe the expert advice I've read over an government minister, estate agent etc....

I know it's horrible to have to stare it in the face but once again the good times are over.

LilyJ please take note and start reading up - not in the newspapers. It's gonna be awful!

I can imagine around 40% without taking into account the value of the pound at the time.

LillyJ

Oliveru wrote: »

You don't have to move abroad to protect yourself, just invest in assets that are not dropping in value in order to protect your wealth- My suggestions would be the Chinese RMB, gold and silver or even foreign property in certain places if you can afford it.

If you stay in the UK without any savings your worse off as inflation will push up the cost of living (food and other imports, oil etc). If you have savings in sterling you will be better off not your savings will still be devalued, if you stay in the UK yet have some savings that are not being devalued (like my above suggestions) you will be in the best position.

So you can see that it does not take large sacrifices to protect yourself financially. How many people on here are thinking seriously about their children and grandchildrens future? If you are you would be researching into the stuff I discuss in this post.

How many people here are angry because their pension fund has had a 30% 'haircut' ? Yet these same people will laugh at me for proposing such strange investment alternatives.

I've just spent my savings on a house.:rotfl:

Wouldn't put them in foreign property if you paid me.

You are living with your parents. I have a partner and don't have that option. I also would rather stand on my own two feet at 23 years of age. I just hope you are prepared to wait a long time to buy your house at 80% off, as when you are 45 and living at home, still waiting for your £20k house, you can't go crying to mummy that you got it wrong.

I really think you ought to start living your life rather than putting it on hold waiting for something that isn't going to happen.

By the way I can afford petrol to double (I cycle to work as I don't want to get obese and I only work a short distance away). OH drives as he works 10 miles away (ocassionally cycles but works shifts so it's a bit dangerous at night on the dual carriage way). I can also afford food to double. I can also afford my mortgage very easily. I can also afford it on the SVR. OH has an entirely recession proof job. Mine is pretty protected as well but his is garaunteed and set in law.

But the main thing is, I am happy and not speculating about 80% crashes. I think people who are waiting a few years to buy whilst they rent are sensible if that is the choice for them but (most) people on here are realistic about the price drops and are simply hoping to save money.

Oh well, maybe we will go to nuclear war with North Korea. If Birmingham gets wiped out by a nuclear weapon, I reckon the price of my house will be pretty badly hit, don't you?

LillyJ

bandraboy wrote: »

I know it's horrible to have to stare it in the face but once again the good times are over.

LilyJ please take note and start reading up - not in the newspapers. It's gonna be awful!

I can imagine around 40% without taking into account the value of the pound at the time.

:rotfl: I think I have done my fair share of reading up thanks! I note this is your first post on here. You might want to read some of my previous posts on this board before you start making assumptions!

I am sorry but I am not sure what part of my life is going to be "awful"! Please enlighten me! Oh wait, you know nothing about my situation do you??

Oliveru

LillyJ wrote: »

I've just spent my savings on a house.:rotfl:
Oh well, maybe we will go to nuclear war with North Korea. If Birmingham gets wiped out by a nuclear weapon, I reckon the price of my house will be pretty badly hit, don't you?

Please don't devalue my thread by comparing my suppositions to nuclear wars. I am glad you are able to afford living costs going up but many can't and many will fall into poverty so don't pretend it's not a big deal when for many people it is a life changing event.

You say I am speculating on 80% falls, and I say you are speculating on lower falls as you wish to retain the wealth in your homes value. If you didn't wish that you wouldn't be making such ridiculous comparisons to things like nuclear war- it's clear you have a vested interest in house prices just like I do so it's hypocritical to call me a speculator when you yourself are speculating by simply disagreeing with me!

You seem very offended at the thought of such large house price falls, most likely because you want to believe you were better off buying than renting when in fact the opposite may end up being true.

LillyJ

Oliveru wrote: »

Please don't devalue my thread by comparing my suppositions to nuclear wars. I am glad you are able to afford living costs going up but many can't and many will fall into poverty so don't pretend it's not a big deal when for many people it is a life changing event.

You say I am speculating on 80% falls, and I say you are speculating on lower falls as you wish to retain the wealth in your homes value. If you didn't wish that you wouldn't be making such ridiculous comparisons to things like nuclear war- it's clear you have a vested interest in house prices just like I do so it's hypocritical to call me a speculator when you yourself are speculating by simply disagreeing with me!

You seem very offended at the thought of such large house price falls, most likely because you want to believe you were better off buying than renting when in fact the opposite may end up being true.

:rotfl: I am only just buying now and have only put up £700 so far so there is nothing stopping me pulling out. SO currently I have no value in my home as I don't actually own it yet (still in rented). So really I have no vested interest at all.
I think they will fall, but for personal reasons want to buy now. I don't think they will fall 80%.

I am not comparing this to nuclear war, simply stating that my house would probably drop by 80% if Birmingham was hit by a nuclear weapon. Surely you can't disagree with that?!

bandraboy

Yeah I'm a first time poster, although I've been lurking for years and haven't noticed your posts before.

I don't know who you are or your financial position. You could be the PM's wife for all I care.

But even if you are in a good position, you have family and friends. All I know is during the last recession, although I did very well thanks very much, it was painful to see family, friends and colleagues trying to scrape things together.

My assumptions were from your posts - which sounded like you were in denial - and not even wise to the current economic state of the West.

I'm not suggesting 80 per cent falls - that would be extreme. But they're not going to just fall by 15 per cent either.

And I hadn't thought about the effect on the real value a decline in the value of sterling would have.

It will make a significant difference for me - as all my savings are in foreign currencies.