Prices will fall by 50% in four years

dopester

pickles110564 wrote: »

I have always said that houses are only sold for what they are worth.In thickie terms for you to understand, the price they are worth is what they get after you complete on the deal. Therefore no crash, correction or whatever else you want to call it, Houses are selling for what they are worth.

Yeah I've noticed your stance with this. No crash, correction ect - even when a house sells for 50% less than the year before, cause it's just selling for what it's currently worth innit.

Seems to me you are deliberately trying to avoid the description "crash" for no real reason other than to be annoying.

shindigger

pickles110564 wrote: »

Glad to see you are still wishing for misery on normal home owners, cant wait for the bad luck to hit you.
By the way a curse is on you until you stop wishing misery on others.;)

Bad luck? What bad luck is that then?
"Normal" homeowners will be largely ok. Speculative idiots will perhaps not be.
I see only greed and lemming/sheep like tendencies.
In time everyone will benefit from this.
Socially and economically.

mitchaa

I will eat my own hat if the average property price falls down to £90k:rotfl:

Everyone will then be buying multiple homes.

Mr and Mrs Average on a combined income of £60k pa (Will be in 5yrs) will easily be able to afford a 3 x salary based mortgage giving them £180K to play with. Thats assuming banks restrict lending to 3x, which i dont think they ever will.

Based on the £180k....you can either buy a mansion or indeed 2 x average priced homes:rolleyes:

Yeah right!!!

1 bed flat on my credit card i think, some of you lot are in the clouds, can i have a bit of what you're having please;)

pickles110564

shindigger wrote: »

Bad luck? What bad luck is that then?
"Normal" homeowners will be largely ok. Speculative idiots will perhaps not be.
I see only greed and lemming/sheep like tendencies.
In time everyone will benefit from this.
Socially and economically.

So all those poor families hocked up to their eyeballs just trying to survive then need to sell their home so they can relocate to another area.Oh look what you paid fro your house is way over the top to what it is worth now.
What lender in the current climate is going to take them on then?

dopester

mitchaa wrote: »

1 bed flat on my credit card i think;)

Would that be you egg credit card... given they've withdrawn millions and even the Economics Editor of the Telegraph was recently refused a new credit card recently

Methinks you are not understanding what a credit crunch is.

Have you seen how the level of savings are spread out in the UK? Admittedly the Scots are high up the list comparatively, but still looks dire to me.

And you are still assuming a healthy labour market where no one gets pay-cuts, given less hours or made redundant. £30K x 2 incomes.. yeah that is normal for UK and will surely remain so. In your world credit crunches don't go on to have significant negative knock-on effects on employment in so many sectors.

PasturesNew

mitchaa wrote: »

I will eat my own hat if the average property price falls down to £90k

Everyone will then be buying multiple homes.

Even if they came down to £9k I'd still only buy one. The right one, small and meeting my needs.

One small house is all somebody needs. With increasing bills the smaller the house you can get the least is taken from you in running costs like council tax, heating and for maintenance.

pickles110564

PasturesNew wrote: »

Even if they came down to £9k I'd still only buy one. The right one, small and meeting my needs.

One small house is all somebody needs. With increasing bills the smaller the house you can get the least is taken from you in running costs like council tax, heating and for maintenance.

PN I start to worry, I am getting to like you:o

pickles110564

dopester wrote: »

Would that be you egg credit card... given they've withdrawn millions and even the Economics Editor of the Telegraph was recently refused a new credit card recently

Methinks you are not understanding what a credit crunch is.

Have you seen how the level of savings are spread out in the UK? Admittedly the Scots are high up the list comparatively, but still looks dire to me.

And you are still assuming a healthy labour market where no one gets pay-cuts, given less hours or made redundant. £30K x 2 incomes.. yeah that is normal for UK and will surely remain so. In your world credit crunches don't go on to have significant negative knock-on effects on employment in so many sectors.

So what your saying is the credit card companies will cut my £20K limit down?

slipthru

pickles110564 wrote: »

So what your saying is the credit card companies will cut my £20K limit down?

Yes they will cut it to 10p

mitchaa

At the moment you can still get a joint mortgage based on 4-4.5 times joint salary.

Go onto any high street mortgage lender, pop in your details and they will still lend you 4-4.5x income multipliers.

If things do tighten up through a credit crunch, i would expect this to drop back down to 3x multiple. (Why hasn't it already?)

50% falls equate to a price around £90k.

I can only assume wages go up, so the £25k average wage at moment will rise to around £30k in 5 yrs giving Mr and Mrs Average a 3x £60k

I do not think wages will drop, how can they, people are already on very tight budgets, if i for 1 was asked to take a pay drop i would vote with my feet and straight into another job.

I was awarded a 5.45% annual inflation increase last week. My company do a Jun-Jun FY. Police/armed forces/nhs etc all have annual payrises as do most people.

Big companies have unions to fight for them, (Mine does hence 5.45%)

So i dont think a drop in the average wage is on the cards if im being honest, as i doubt anyone can realistically afford to take a pay cut. If they were asked to do so, i would imagine a lot voting with their feet.