I received the attached and would never normally reply, but due to the nonsense I felt impelled to respond to them.
Below are my responses to the utter drivel. No response yet received from them, however I will keep you updated if they reply.
Why do you peddle this nonsense? It is spin to try and save your sorry skins in the biggest downturn we are likely to see in our lives.
Now is absolutely NOT the time to buy!!
In response to your reasons:
Interest rates ARE falling but not mortgage rates to the same degree. MANY MANY products are being pulled by the banks. The reason we are in this mess in the first place is due to irresponsible lending of cheap money in the previous rate cuts. People in work is also falling in particualar the building, estate agency and finance industries. Huge rate cuts down to 0% didn't help the Japanese housing market. Why would they help ours?
Banks lowering rates so that I can borrow more to pay off my existing debts is not really Economics 101. There will be a price for cash going forward, and hence mortgages, commercial loans and overdraft rates will be higher than everyone expects. We need to have a few years of paying off debts and saving.
Prices have NOT fallen dramatically. 1 yearly drop of 15% comes nowwhere near compensating the 300% increases we have seen during the past 10 years.
There is so much choice for a reason. Many people want to sell and few want or can to buy. SUPPLY and DEMAND works both ways. If there are more sellers than buyers, then this means that prices are still inflated and until the real fall happens we will continue to see fewer sales. Commodities are worth what somebody is willing to pay and at present there is no-one willing to pay these still hugely over inflated prices. We have to get back to realistic multiples of earnings.
Turmoil does not mean good. The current turmoil has resulted in the global economy going into a recession that could potentially be a world changing event.
The financial institutions are NOT recovering. They are now writing down even more losses and we are seeing very poor profits coming from them all. Even Santander who are apparently cash rich are in desperate need of a rights issue to bolster its balance sheets. This is so far without the huge write downs that are likely to come from CDO's.
Your whole argument seems to revolve around the fact that prices have come down alot so it must be a good time to buy. Why buy in a market that is currently collapsing. We will certainly not see any up move in prices for some years to come so no rush, however most believe that the BIG move down has not happened yet. Buying a house now is as silly as trying to catch a falling piano.
Buy to let is dead. Too many banks and individuals have been ruined by this game. There is still a poor return on this investment unless you purchased nearly a decade ago.
Ask yourself why builders will take low offers? They know where the market is heading? Why buy from a panicking expert?
You say that there may be a further fall in prices. So WHY attempt to convince people to buy?
I look forward to your response.