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House Price Crash Forum

Shaun

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About Shaun

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    Chester and Montego Bay
  1. Some one said,,,,,,,,,, Don't take my word for any of this. Sit down with a spreadsheet and really work things out thoroughly, taking into account inflation, interest payments, true rental costs, maintenance and so on. You'll find that the only people to have really done well out of house price inflation are the bankers and politicians Well with everything there is a right ans a wrong time to buy........But I do not agree with the last line of the above statement....... Some have done OK from property if they bought when "cheap"............ Sure with mortgages bankers have had thier cut .....generally!!! But now is a bad time to buy......and it will remain so until we have a proper ajustment to earnings. Over the centuries there have been "bubbles" in various things, the first of which in recent times was the Dutch Tulip bubble in the 16th centuary...... Then the South Sea bubble etc etc..... This crash is just another version....... Property has been over hyped and over inflated.......end of story..... Shaun.
  2. Auntie said..... The most telling incidence of all is that, although this thread is barely two days old, it has had over 10,000 hits. Its the power of appearing on TV methinks........... For years I have been warning of this house price "correction" to clients and friends and the inscrupuless lending by the mortgage providers and mortgage brokers, fueled by self cert (lying) and multiple of salary lending never heard of........ I felt like a lone voice!!! But I did not come across this site until "yer man" appeared on the Box.......... So here I am now!! I'm a qualified "but non practiicing" IFA (I work for a provider now) and have been in Financial Services for over 30 years, in the last 5 or so years I have been quite frankly shocked at the goings on of the lending institutions, mortgage brokers EA's and the FSA........... I own property and rent out property and have for 15 years, so I do have some experience and interest in the property market. You just watch how bad this gets....... You ain't seen nothing yet................
  3. Someone said witnessed an EA unwittingly calling a double-digit Sorry for my total ignorance........ what is a EA? Thanks in enlightenment....... Shaun.
  4. Mrs O said Or do you think that the levels of debt people are in compared to incomes is a sound financial principle to be working on? No the level of debt that is around, not just in the UK but worrldwide is not a sound principal.....its a fools paradise...... that will lead to a crashes around the world........ At this time renting is quite attractive against buying property at the current prices. I own property because I bought YEARS ago...... today I would rent my place to live rather than buy at these mickey mouse prices...... This whole thing with increasing house prices has been about the thought of making easy money and pure plain greed........ Anyone want to buy a tulip?
  5. Mr Bemused ( who puts himself down as a "Bear" by the way ) said...... Now I wouldn't argue with you that the market is somewhat overheated at present, So what are you on about old boy? You agree with what we are saying............THE PROPERTY MARKET IS OVERVALUED............ We agree with you...... We think its overvalurd as well....... You also said...... but basic economics tells you that in the long-term, if there is a shortage of something, its price is more likely to go up than down. Well, Mr Bemused, there is a shortage of something....... its called cheap credit on properties that are overvalued.....WORLDWIDE..... caused by inprudent lending............... Thats why lending is costing more .......... Its called a "correction in the market"................ Remember House Prices can go down as well as up!!!! Shaun.
  6. I agree that many "rentals" are trading at a discount AGAINST CURRENT OVER INFLATED PROPERTY PRICES....... Two of my own properties certainly are, I would, on the face of it, be better off selling and taking the cash and getting my income from the cash....... but I do not look at it like that..... I bought these houses over 10 years ago and my income to purchase price is very acceptable thank you..... But the new "bwoys" at this buy to let milarky are not generally in the same position, especially if they have bought in the last 2 years or so....... These are the guys who will get burnt..... Oh ......and the other poor sods who were lent massive loan to values by bandits like the Northern Rock....
  7. It depends if your rental income from your buy to let covers the mortgage, if it does not then you may have the double whammy of decreasing house prices and a mortgage that is not fully paid by rent collected...... A depreciating asset (for how long is the question) that is costing you money on a monthly basis.......ouch!!! It certainly is for many the time to rent rather than buy!! We already have a million PLUS empty homes, if we go into resession and some of our eastern immigrants go home (and they are starting to.....I have lost one tenant this month who is going back to Poland as the exchange rate has gone against the pound and its not worth his while working here....according to him!!) then there will be more empty property making rents cheaper!! Long term property prices will come back but this may be a long haul.... Shaun.
  8. Well Mr Impartial let me take your points one by one....... if its a comic book website then why your interest in it?, why bother reading it? Just a thought...... As to the "spokesperson" advising multiple property owners to sell..... It would depend on the amount that the property owners paid for these properties and the real return that the owner is getting from it as a percentage of cost of purchase to income. If you bought a house for £50K and your getting £600pcm then thats a return on your investment of over 14% so your right, this would not be good advice for everyone........ But in reality there are masses of people out there that have these buy to let properties that are not making money.....thats a fact...... If you buy one for £180k and your getting £700 pcm then thats a return of less than 4.6%....... for these people pouring money into property as a buy to let investment is probably not a good idea. Or do you think otherwise? I would love to know what you think is going to happen here to property prices...... are you letting us proprty prices will go up? Your not Gordon Brown are you?
  9. Its idiots like this woman who are telling people its all alright its only going to be a 4% drop that have blagged the masses into debt in the past....... by doing things like promoting buy to let as the new pension for all.....Wrong.... The idiots who have bought buy to let properties in the last few years are lucky if they are making 5%....... You can get 6% fairly risk free from a savings account...... Make sure you only have 35k in each institution..... We will see some banks go bang for sure!! I live in Chester and here a 3 bed town house costs about 180K CURRENTLY , you would be lucky to get £700 pcm rent .....£650 would be more realistic.......but lets say you got the £700 ....thats £8400 pa (assuming let all year around) against a mortgage of 180K done on 100% self cert ........ Well..... This is a return of less than 4.6%........ and this is their pension???? Idiots....... conned by this goverment, the FSA and the lenders and valuers and mortgage brokers...... Its been the big property con.........
  10. Well I saw ch 4 and the chap from this site...... He is right about a 40 % crash....... last time this happened was 1974...... but I do not think it will take 4 to 5 years, two years max The Lenders, Estate Agents Valuers and the Goverment have all contributed to the massive over inflation in house prices. The goverment took out house Prices from the RPI figures to "get inflation down"..... The banks needed to lend more money on the back of low interest rates.....margins were being squeezed.......... The punters were happy to borrow stacks of cheap money on the back of seemingly ever increasing house values, made up by valuers ....employed by the banks and building societies...... Now they are all in denial, the goverment should be dragged out and shot, the FSA is incompetent and should be shut down, the Banks fueled by greed along with Estate agents and mortgage Brokers getting fat on fees and commissions....... I am in Financial services and people "in the business" knew it was going to go wrong but despite a few of us shouting about it the herd just carried on......... lending more and more to people who could not afford to borrow on the multiples allowed ............. Its like the tulip bulb bubble in Holland centuaries ago, or the South sea bubble...... Sheep or what..... All those dinner parties bragging about their house prices!!! What nuts. Now why did Mr Blair decide to "get out" while the going was good I wonder?
  11. Well the guy on CH4 who said 40% drop in 4 to 5 years will be probably right. The muppett who said 4% drop was on something .... For the last 5 years plus the mugs have been suckered by the banks and Estate agents as to property price values...... It was in the banks interests and Estate agents interests to con the billy bunters, its as if they cannot learn from History...... Or do not want to... What goes up must come down....... In the 90's crash the lenders said "no more 4 times salaries as multiples.....yeah right, before the northern rock "debarcle" you could borrow over 6 times........ What a joke!! And debt generally is out of control, we are in for some hard times!!!
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