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Debate House Prices


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How can house price's fall so much??

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Comments

  • chrisandanne
    chrisandanne Posts: 434 Forumite
    Hairy wrote: »
    This site is laughable! Money saving experts my !!!!! My friends were right when they said the internet was over run with numptys! Adios and keep dreaming you bunch of nomarks!

    Same friends who told him 'house prices only ever go up' d'ya think ? :rolleyes:

    Ax
    Don't believe everything you think.

    Blessed are the cracked...for they are the ones who let in the light. A x
  • pickles110564
    pickles110564 Posts: 2,374 Forumite
    or have 3 children in a 1 bed flat, or inherit a house

    They are even more stupid than the people who think we will have over a 50% crash.
  • pickles110564
    pickles110564 Posts: 2,374 Forumite
    ...and your rents going up 50% :eek:
    Why would my rents be going up?
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    fc123 wrote: »
    :eek: Gambling....:eek: It all starts with the first bet....;) if you win....then you want to go for a 2nd etc etc!!¬!!!
    She already did ... I bet you £1 she's on the DFW Board before the year's out....!
  • RoyalSwank
    RoyalSwank Posts: 541 Forumite
    Hairy wrote: »

    If you owned a house worth £300k and all you could get for it was £150k you simply wouldn't sell. So how the heck are house prices going to drop that much? People simply wont sell. Even if prices drop by 25% I doubt many people would sell, they would stay put, surely??

    There's been a lot mentioned about distressed sellers, but falling house prices can be beneficial to many.

    Say, for example, my house was 'worth' 300k, but I can only now sell it for 150k. Great, because I can now buy that bigger house down the road for 200k, as opposed to the 400k it was worth previously. I now only have to borrow an extra 50k in stead of 100k - I can now afford that bigger house I wanted.

    Most people have a lot of equity in their homes. The housing market is like a big conveyor belt and property downturns disadvantage those at the beginning and end of the belt (and distressed sellers).

    Even if property prices drop by 20-30 percent, we still face a major problem with affordable property in this country as we quite simply are not building enough homes.
  • Snooze
    Snooze Posts: 2,041 Forumite
    1,000 Posts Combo Breaker
    Snooze is deluded.:rolleyes:

    'Hairy' is probably another one of your aliases. :rolleyes: "His" posts have got your name written all over them; you know - no understanding of basic economics etc. :rolleyes:

    I see you've thanked all his posts already.... :rolleyes:

    Rob
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    RoyalSwank wrote: »
    Say, for example, my house was 'worth' 300k, but I can only now sell it for 150k. Great, because I can now buy that bigger house down the road for 200k, as opposed to the 400k it was worth previously. I now only have to borrow an extra 50k in stead of 100k - I can now afford that bigger house I wanted.
    Except the OP can't. He's at the "denial" stage. If you read his history he's somewhere in it over his head.

    When his house drops to £150k he'll still owe the bank £100k more.

    He'll end up in the newly formed Debtors Prison. Or the usual prison whwere you go for mortgage fraud possibly. Liar Loans are probably his route to riches.
  • Why would my rents be going up?


    Having lots of people who want buy but wont because its a falling market - will stimulate rents to move higher.


    So you, as jazzyjustlaw's landlord, can put the rent up by 50%.
  • Just read through the thread. It seems to be a very one sided affair with all you lot ganging up on the newbie original poster.

    My thoughts on this subject are that prices will drop over the next 2 year or so by about 20% (may vary quite widely by location). The market will start to grow again so that we are back to today’s prices (including inflation) in about 5 or 6 years.

    I believe this because there is strong evidence that there is higher growth in the number of new households being created then in houses being built. This has been happening for a number of years and if projected to continue.

    I agree that a proportion of households have to sell for certain reasons, and take a big hit by doing so. Others will not incur such a big loss because they have already built up a lot of equity. Many sellers will be trading up – so any loss in selling will be more than made up in buying.

    I do believe that the vast majority of people will not sell in this volatile environment. Even the folks moving up will probably hang on.

    Anyway, that’s my 2 cents – have a look at this regarding demand for houses outstripping supply: -


    http://www.cabinetoffice.gov.uk/~/me...ell pdf.ashx

    How much do you think the market will drop by and when (if at all) do you think it will recover?
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    fc123 wrote: »
    :eek: Gambling....:eek: It all starts with the first bet....;) if you win....then you want to go for a 2nd etc etc!!¬!!!

    Nah, I have more sense that that (-:
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
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