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Not so funny when its someone you know :(

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 :confused:

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.
«13

Comments

  • Snooze
    Snooze Posts: 2,041 Forumite
    1,000 Posts Combo Breaker
    You can take a horse to water but you can't make it drink...

    You did all you could, let it go..

    :confused:

    Rob
  • SquatNow
    SquatNow Posts: 2,285 Forumite
    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.
    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.
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    Part of the Furniture Combo Breaker
    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
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • benood
    benood Posts: 1,398 Forumite
    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
    mr.broderick Posts: 3,778 Forumite
    1,000 Posts Combo Breaker
    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 :confused:

    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
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    looby-loo_2 Posts: 1,566 Forumite
    If she has bought it to do up and live in it wont make any difference.
    Doing voluntary work overseas for as long as it takes .......
    My DD might make the odd post for me
  • SquatNow
    SquatNow Posts: 2,285 Forumite
    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.
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • SquatNow
    SquatNow Posts: 2,285 Forumite
    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.
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • Your sister means little to you to belittle her on here in such a fashion.
    Nobody realizes that some people expend tremendous energy merely to be normal.

    Albert Camus (1913 - 1960)
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