It's not rocket science, is it?

Woby_Tide

Zammo wrote: »

Prices always go up in the long term. :rotfl:

erm.....even everyones favourite website can't dispute that

http://www.housepricecrash.co.uk/graphs-average-house-price.php

dudleyboy

snoopy78 wrote: »

If we are not sympathetic to those people who have 95%-100% mortgages and are now in negative equity or BTL who are now losing their own homes, it is because it was this reckless behaviour thought the last ten years that have resulted in high house prices.

Absolutely! I believe the expression is "you reap what you sow"...

dudleyboy

Woby_Tide wrote: »

erm.....even everyones favourite website can't dispute that

http://www.housepricecrash.co.uk/graphs-average-house-price.php

Well of course... but as a FTB which side of that red line would you rather be on...?!

Woby_Tide

dudleyboy wrote: »

Well of course... but as a FTB which side of that red line would you rather be on...?!

the non-sensationalist side

m00m00

anyone who uses the phrase 'long run/term' economically would do well to remember JM Keyne's (a far clever economist than any of the dross running the world today) view on it.

andys15

!!!!!!? wrote: »

Food prices shooting up.
Petrol and diesel getting outrageously expensive.
Heating oil, gas and electricity rocketing.
Banks willing to lend less and demanding larger deposits and better credit records.
Mortgage rates going up.
Central Bank interest rates more likely to rise than fall.
Pound looking shaky and previously cheap things (clothes and electronics) set to rise shortly.
Big month-on-month house price drops.


You really don't need to be Einstein to see where house prices are going to go.

This is exactly the reasons why I cant understand why people are jumping for joy in the fact that house prices may crash. Most of the people who are rubbing there hands in anticipation of a crash will still be screwed anyway. Mr or Mrs average first time buyer waiting to pounce, still wont be able to afford a house which has dropped by 50%. I dont know what the average price is, I believe about £170000. So say it becomes £80000. They will probably need say £8000 deposit, best case scenario. So a £72000 mortgage. Average salary £28000, so 2.5% the wage . If they get a decent rate of 6% its all looking super. Now factor in all your statements and the average man is screwed.
My take home pay is £82000, I have just bought a house which is 2.7 times my salary. Where I work we all earn roughly the same, and we are all noticing the pinch. I dont live an extravagent lifestlye, dont have the expensive sky package, fancy car(7yr old), loads of holidays. I have 2 kids and live in an average 3 bed detached. I remember being on just below the average wage, and we lived just the same as I do now(but more credit cards, which were all maxed out). I really dont know how people on the average wage survive in this day and age. And I really dont think a drop in house prices of 50% will help them out. The gits who it will help out is people who have pushed up the prices over the years and got out recently.

Woby_Tide

that said if you are struggling to run that size of household on £82k I'd suggest you need to start looking round this site a bit more, you're either hammering your mortgage down or your view on 'extravagant lifestyles' is probably a bit different to the average view of extravagant on here

andys15

Woby_Tide wrote: »

that said if you are struggling to run that size of household on £82k I'd suggest you need to start looking round this site a bit more, you're either hammering your mortgage down or your view on 'extravagant lifestyles' is probably a bit different to the average view of extravagant on here

not struggling mate. Just cannot understand how people in the current climate can manage.

dhassen

andys, if you can feel the pinch, what the hell do you spend your money on??? lol We're still renting at the moment but apart from noticing mortgages are getting more expensive we haven't felt any effect of the crunch (yet lol)
Don't have two kids though..... iv'e heard those things are expensive to run

dudleyboy

andys15 wrote: »

not struggling mate. Just cannot understand how people in the current climate can manage.

By going without, as it has always been.

I think most of those who are managing have been using, or about to discover, the OS board. I think most of those who are not managing have been using, or about to discover, the DFW board.

And I think most of those who remain are either living at Her Majesty's pleasure or are running the country.

Of course, with the latter, that doesn't necessarily mean they're in the cabinet...