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

BettiePage

scorpio_princess wrote: »

So you think that a house that is currently valued at, say, 100k will drop to just 20k in the near future? REALLY? In that case, should I put an offer in to the flat i'm living in that the landlord is trying to sell for 110k - 30k should do it

Please! I think some people are getting a bit carried away with all this. Yes I think prices will go down, but I really don't think 80% is anywhere near a realistic figure. If only!

Whilst I sort of agree with you, just a few years ago those properties that were worth £20-£30k are now worth about £100k. My point being, that if they can rise that much in just a few years, then why can't they fall that much too?

MrSafeGaz

Oliveru wrote: »

A good metaphor for the whole of the UK housing market I'd say

I think Rick62 unwittingly said it best that my statements don't add sensibly to peoples understanding of the issues because most people in this forum don't understand all the issues

I think there are plenty of people on the forum who understand the issues involved in the current climate and dare I say it, probably many who understand these issues in more depth than yourself.

Regardless, somebody with no idea about anything regarding the issues surrounding house prices could say that house prices will not fall by 80%. And you know something? They would be right.

neverdespairgirl

terryw wrote: »

I think the main thing to remember is that if you have bought to nest rather than to invest the value of the property is absolutely academic.

It isn't remotely academic, because you are paying the mortgage every single month.

In addition, if your loan-to-value is high, you may well have to pay a higher interest rate on your mortgage when the fixed period runs out.

m00m00

MrSafeGaz wrote: »

So what? What a meaningless guarantee. You could also guarantee that at least one house will rise in the long run. There are always exceptions.

I think you very much missed the point of my post.

MrSafeGaz

m00m00 wrote: »

I think you very much missed the point of my post.

Enlighten me?

Ahh, ok after reading again I get it. My bad

terryw

neverdespairgirl wrote: »

It isn't remotely academic, because you are paying the mortgage every single month.

In addition, if your loan-to-value is high, you may well have to pay a higher interest rate on your mortgage when the fixed period runs out.

Yes, the mortgage has to be paid every month but the borrower knew this when the loan when was taken out. So long as you have chosen to live in the property, the actual value does not matter. You have budgeted for that house at that amount per month.

Yes, one may well be in trouble if one has has foolishly taken a low interest rate for a very short period without thinking of the consequences if it is not possible to obtain an artificial subsequent low rate at the end of this period. Did these people really think that they would not have to pay a higher rate of interest when the fixed period ran out? Surely no-one could be that daft?

Extraordinary Popular Delusions and The Madness of Crowds is as true today as when it was written. Proof of reading this book should be a statutory requirement before anyone is allowed to open a bank account or enter into any financial contract.

terryw

P.S NeverDespairGirl...nothing personal that we disagree here, You usually have stimulating comments to make.

MrSafeGaz

terryw wrote: »

Yes, the mortgage has to be paid every month but the borrower knew this when the loan when was taken out. So long as you have chosen to live in the property, the actual value does not matter. You have budgeted for that house at that amount per month.

I know the masses generally think in this way but I think it is a mistake. Too many people see mortgages as 'something you just have to do in your life' rather than see it for the purchase that it actually is. Why do simple concepts such as buying something for cheaper if the opportunity arises go out of the window?

I don't understand how you can say that the actual value does not matter. Affordability is not the only factor when it comes into making a decision on a house, just because you can afford it does not mean buying it is a financially sound decision.

Take the scenario where you buy now for 100k and a year later prices have dropped 10%. You have now lost 10k + 25 years of interest on that which is around half the net annual income of the average wage.

jimm24

I will happily give 40% of current market value to anyone that wants it.I personally think that it will level out at under 10%

JonnyBravo

Oliveru wrote: »

my statements don't add sensibly to peoples understanding of the issues because .....most of what I write is a complete and utter waste of cyberspace

Sorry, I took the liberty of changing some of your words.

Those in bold are merely my slant on your inane ramblings so far.

Oliveru

MrSafeGaz wrote: »

I think there are plenty of people on the forum who understand the issues involved in the current climate and dare I say it, probably many who understand these issues in more depth than yourself.

I highly doubt that, many people live in a dreamworld about how our whole economic system works. Even people working in finance were taken by surprise by the credit crisis. The housing market is the tip of the iceberg for a country thats been running on lifelines of private and public debt for over a decade.

I don't claim to be an oracle, hell I could be wrong and houses might only fall 30% in value but at the same time I'm not going to discount 80% falls as a possibility so for you to say prices will definitely not fall by that much is being very presumptious as no one knows for sure what will happen.

Many people that are now saying there could be 30% falls are just reacting to the bad economic climate realised by the media since last August yet myself and many people from the HPC forums (and perhaps 1 or 2 people here) knew there would be a crisis well before then.

Our economy is all smokes and mirriors, if someone can tell me right now one really good thing we have going for us, one service that we can export thats unique and will keep our country going then I'm all ears. As far as I know the only unique thing we are exporting is dodgy financial practices but thats only because the banks decided to run their easy money debt scam from London

The problem these days is people trust governments, banks and businesses too much- They forget that all these institutions will always be constantly pushing to mess people over as much as possible. Our governments (Labour and Tories) are nothing more than a duo-monopoly of opposing parties which now have identical policies and are equally as corrupt as eachother.

The main reason China is going to prosper is because their government isn't run by short term interests or the interests of big business because it's not voted in by stupid idiots who don't do their research and find out exactly how things work. And yes I am calling most people in this country stupid idiots for sleepwalking into the financial mess our country is in now.

Someone said things will be very bad in this country to cause falls of 80% and they were right, but the reason I didn't go and rant about it all is because people are too ignorant to understand it.

1 in 4 people in this country work for the government and most private sector workers do domestic service jobs that require a consistent consumer demand for non-essential goods and services.

The fact is quality of life in this country is going to drop dramatically. I wasn't going to write a long ranting post like this but for you to say many people understand the issues in more depth than me is an insult. The reason I haven't backed my points up with facts and figures is because no one cares about "boring" stuff like this because they are all living the good life on cheap credit but when the SHTF they will start caring but it will be too late by then- but they deserve it for being so ignorant I just feel sorry for their children.

87% of land in this country is owned by aristocracy, the UK is a modern version of the medeival times in terms of income inequality with a brief higher quality of life due to the wonders of cheap oil. A huge wake up call is in order.