Prices will fall by 50% in four years

StevieJ

sabretoothtigger wrote: »

If Brit posted that June 2008 it shows he had some foresight but did not anticipate lower rates and the inflation we have

Also sterling has fallen 20% so that percentage should be added onto any fall from peak to trough

Sterling is irrelevant apart from the effect on inflation, most (what were called ) bullish posters at the time suggested that inflation would take care of any house price correction and would be as near a win/win solution as we were going to get. This was rejected forcibly by the 90% crash by christmas brigade of which Brit was the leader

Pobby

exil wrote: »

" inflation is rising fast ". That doesn't suggest to me house prices are going to fall 50%. And quite frankly, if they do, then my offspring may actually be able to afford to buy a house, which sounds like a good thing to me.

Goes for the youngsters in my family. Even with jobs ( shock, horror, probe ), they have hardly any chance of renting let alone buying. HPI, what a dreadful mistake and many people are paying for it !

Thrugelmir

StevieJ wrote: »

Sterling is irrelevant apart from the effect on inflation, most (what were called ) bullish posters at the time suggested that inflation would take care of any house price correction

Unfortunately inflation has squeezed incomes this time round. As Companies are not in a position to recover the cost of imported product by increasing retail price. So wages which account for the majority of most businesses operating cost is being held down with below inflation increases.

Not helped either by the fact that productivity is now lower than 10 -15 years ago. Seems we've grown lazy.

StevieJ

Thrugelmir wrote: »

Not helped either by the fact that productivity is now lower than 10 -15 years ago. Seems we've grown lazy.

Strange isn't it, because in this technological age I would see that as a lack of investment

alinwales

i remember brit1234's signature around the time of this post (and for a year after as i bought in 2009) with his doomsaying of the housing market. I laughed a bit. I guess he still rents (if he can afford the increases) or he lives in a cardboard box clinging onto his cash.
Anyhoo, my house was valued last week, and it's the same now as it was nearly 3 years ago. OK, factor inflation in and it's a small drop, but hey I'm still happy!

heathcote123

sabretoothtigger wrote: »

If Brit posted that June 2008 it shows he had some foresight but did not anticipate lower rates and the inflation we have

Also sterling has fallen 20% so that percentage should be added onto any fall from peak to trough

Cripes, they govt lowered interest rates to support the housing market? Who could have guessed that?

I think you are being overly kind on the inflation thing. The whole point of not buying and expecting a crash is that it crashes in nominal terms - if it's only going to collapse in real terms there is no point holding back - you just get a mortgage and see it shrink....

sabretoothtigger

Get a mortgage and fix the rates would be alot safer. The government is an active borrower, they have to not only renew debt but are spending more. They ask others to lend then have to return back more then inflation which means higher rates then 0.5%

Im not against owning a house vs renting, its better then plain cash yep. Depends how stable your job prospects are but gold would allow you to travel to wherever the work is with some capital and so would be the best choice for some

heathcote123

brit1234 wrote: »

You will see over the next few months that 50% falls in house prices will increasingly spoken of as reality sets in.

:j

Behold, the prophet, he speaks!

brit1234

DaisyWheel wrote: »

Brit passed with flying colours:
http://idiottest.net/

Nollag time to go back to hospital.



By the way can you return to this thread and answer the question? I know you are scared to debate and run away with childish name calling but have some courage this time.

brit1234 wrote: »

Oh poor Nollag, that's a bit of deflection failure by you. I'll repeat the post and this time answer the question!



Do you not see that these foreign buyers are here to invest not live? Do you see stamp duty up from 0.5% to either 7 or 15% might be now off putting? It kind of cancels out the weak pound advantage.

Now foreign businesses have to 28% on capital gains from these properties on top as of budget day. Because they set up a business just to buy a residential property to avoid paying 5% stamp duty and only pay 0.5% stamp duty instead I believe the now have to pay 28% capital gains tax.:D

Over night there is a massive deterrent but hey Nollag doesn't thing it will have an effect. The high end estate agents say it has caused a meltdown in 7 hours.

Maybe I would have more respect for your views if you could back them up. However you always fail to do this and result to insults. Come on Nollag back your stuff up, lets have a intellectual debate.

http://forums.moneysavingexpert.com/newreply.php?do=newreply&p=52041323

thorsoak

You know what? All this reminds me of a certain Financial Advisor I worked with, back in early 2006. After a bit of a hiccup in his own affairs, he was forced to sell his house, after which he announced that he had sold his property and was going into rented accommodation because the sky was going to fall in - sorry - the property market was about to crash!

He carried on saying this whilst prices rose higher and higher. 5 years later, he is still in rented accommodation, his so-called profit (with which he was going to buy a property for cash at such a low price we would all be green with envy) left after debts were paid when he sold his house has dwindled, and as I understand it, he is amongst those who frequent these boards calling for the price of properties to be reduced, and continuing to talk them down .....

Sound familiar?