Not so funny when its someone you know :(

Sinking_Feeling_4

Sigh.

As a potential FTB, I've been enjoying the steady stream of "doom & gloom" about the housing market recently. I've known for some time that house prices were very overpriced, and a substantial correction was/is in store.
I've even been guilty of occasionally gloating over the tales of clueless buyers who overextended themselves and are now finding themselves in trouble.

Things are different now. My sister just exchanged contracts on a property. The place is a dump, and at least 40% overpriced IMHO. But she's not to be deterred, she's actually boasting about having negotiated to buy 3% under the asking price

Doesn't seem to be taking any of the recent housing news seriously, spouting the usual bull slogans such as its just a correction, house prices will start rising even more once the credit crunch has blown over, if I don't buy now I'll miss the boat, they're not building any more land... Nothing I say will change her mind.

She's got a reasonable deposit, so is shielded from negative equity at least for a couple of years. But it's just sad to see all that hard-earned money about to go up in smoke.

Of course, maybe I'm the one that's wrong, and she's doing the smart thing. But I seriously doubt it.
Shame.

Snooze

You can take a horse to water but you can't make it drink...

You did all you could, let it go..



Rob

SquatNow

Sinking_Feeling wrote: »

She's got a reasonable deposit, so is shielded from negative equity at least for a couple of [STRIKE]years[/STRIKE]. But it's just sad to see all that hard-earned money about to go up in smoke.

Try months. A 200k house fell by an average of £5000 this month.

Sinking_Feeling wrote: »

Of course, maybe I'm the one that's wrong, and she's doing the smart thing. But I seriously doubt it.

You're right, she wrong. Hold your nerve. Crashes are always long and drawn out and take years. A 2.5% drop in a single month meens prices will fall massively.

Gorgeous_George

Maybe she is right (but I don't think so).

Maybe prices will stabilise as the credit crunch fades into the distant memory (a tad unlikely).

Maybe the credit crunch will worsen and lenders will demand 80% deposits (!).

I think divorce, suicide and people suffering severe mental health issues will be rife. Losing equity in a home that you want to stay in may be the least of people's problems.

GG

benood

Cheer up, I'm sure you'll secretly enjoy lording it over her in years to come, in the meantime you'll have to continue being patronising instead.:p

mr.broderick

Sinking_Feeling wrote: »

Sigh.

As a potential FTB, I've been enjoying the steady stream of "doom & gloom" about the housing market recently. I've known for some time that house prices were very overpriced, and a substantial correction was/is in store.
I've even been guilty of occasionally gloating over the tales of clueless buyers who overextended themselves and are now finding themselves in trouble.

Things are different now. My sister just exchanged contracts on a property. The place is a dump, and at least 40% overpriced IMHO. But she's not to be deterred, she's actually boasting about having negotiated to buy 3% under the asking price

Doesn't seem to be taking any of the recent housing news seriously, spouting the usual bull slogans such as its just a correction, house prices will start rising even more once the credit crunch has blown over, if I don't buy now I'll miss the boat, they're not building any more land... Nothing I say will change her mind.

She's got a reasonable deposit, so is shielded from negative equity at least for a couple of years. But it's just sad to see all that hard-earned money about to go up in smoke.

Of course, maybe I'm the one that's wrong, and she's doing the smart thing. But I seriously doubt it.
Shame.

Spam if ever there was it.

PasturesNew

I convinced a friend to sell her house, not rent it, last November. And to accept what others might have considered a "silly/low offer" back in January... then I was on tenterhooks waiting for her to complete. Which she did last month.

I don't think she's any idea how much I saved her. And at the time I stuck my neck out as she was asking for help deciding and I made her decision, whereas everybody else was telling her it was her decision, then berating me for being so interested and I shouldn't get involved.

I know I did a good deed. She might remember/feel lucky in the future. The rest still feel it was none of my business, so relationships are forever soured.

She had very little equity in a bit of a poor area.

looby-loo_2

If she has bought it to do up and live in it wont make any difference.

SquatNow

Gorgeous_George wrote: »

Maybe prices will stabilise as the credit crunch fades into the distant memory (a tad unlikely).

I agree. I love it when people talk about the Credit Crunch "ending".

They say the housing market will start back up again where it left off.

No-one can explain *HOW* the credit crunch ends. They just say "well it just does". in reality anyone who understands the REASON for the credit crunch knows it can't end for a couple of DECADES.

It like when people said that if prices crashed they would sell at the "peak".

"Who to?" I asked... "Buyers" apparently. No need to lower the price... don't accept offers, the "buyers" will be here shortly with infinite bootloads of £50 notes that they just must get rid of by the end of the week.

SquatNow

looby-loo wrote: »

If she has bought it to do up and live in it wont make any difference. Be happy for her.

Until she comes to remortgage and can't and is stuck on SVR for the next 10 years. Or she has kids and needs a bigger place.

At which point she's FUBAR.

existentialist

Your sister means little to you to belittle her on here in such a fashion.