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House Price Crash Forum

spectrum

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About spectrum

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    HPC Newbie
  1. I have to disagree, we are no-where near. The reduction in interest rates has only postponed the problem and the downside momentum as you describe it is the natural course of events which, unfortunately, is both inevitable and necessary. The slide is a natural return to the REAL values of properties, the correction will only be over when those values are arrived at. A house is a building to live in and every household calculates a budget to do just that. The budget is met by money earned - wages. If the wages are restricted due to lack of work or a reduction in pay then the budget is squeezed and the value of the house adjusted accordingly. Historically and traditionally interest rates are much higher than at present, therefore the current rates are undervalued and should not be considered when establishing the value of a house. Low rates are a nice benefit but NOT a measuring stick of any worth. Take a realistic estimate at the accepted and traditionally established cost of borrowing, look at how much dosh is coming into a house and you can calculate a TRUE value for the place you live in - based on what you able to pay in everyday economic conditions. I would suggest that we are still looking at a potential drop of between 25% and 40% before housing becomes affordable to first time buyers and the ordinary man in the street
  2. spectrum

    The Unemployed

    I refer to my previous post. How could this excellent idea be extended to include the disabled?
  3. spectrum

    The Unemployed

    Unemployment is a widespread affliction. It is mastered by lazy slobs but devastates the undeserving. My pet hate is the disabled - at least the ones who have somehow managed to achieve the holy grail of claims - Motability. These are the people who occupy the disabled parking spaces in shiny new cars, provided and maintained for them by the government but who stroll about the place apparently unaffected by the problem that got them the prize in the first place. My definition of a disabled person is one who nevers gets out of his pyjamas and suffers from horrendous weeping bed sores. The benefits should be limited to a hand pushed wheel-chair and a bottle of ointment every two weeks. And they should be made to shop at Kwik-Save
  4. More importantly, what will happen when they do? will the banks who are effectively overcharging by failing to pass on the savings they currently enjoy absorb the hike? Only when the true cost of borrowing is recognised will we begin to see the true state of the house price crisis. Then things will get interesting
  5. I would welcome opinions - Are we seeing green shoots? Has it all bottomed out? Are we continuing to slide? My view is that the government and the banks remain in denial of the dreadful situation affecting the economy and want to recruit the general public to share these opinions. In the case of the government - they cannot afford to admit the mess we are in until after the next general election. In the case of the banks, they simply cannot afford to admit the mess full stop. When the truth is eventually accepted and acknowledged and the market is forced to return to the real world, i.e. interest rates are raised ("you can't buck the market") I suspect we will see a plunge in house prices which has not been prevented, but merely postponed. I believe house prices are still 30 - 40% overpriced and that this adjustment has yet to be experienced. I run my own business - we are actually doing quite well - but I come into contact with others on a daily basis who are in a dreadful mess.
  6. spectrum

    Bank Bail Out

    I own and run (with great difficulty) a small business, principally involved in manufacture. I get f**k all in the way of tea and sympathy. If I **** up I will be reminded by countless observers that the U.K. is no longer manufacturing base and that I should re-examine my business model. No doubt developing ideas to export to China in order for them to be copied and ripped off by anyone talented enough to position themselves as middle men between greedy western customers and impoverished eastern slaves. I am not complaining about the position I occupy, far from it. I enjoy doing what I do. I AM complaining about the digusting attitudes shown towards unfashionable businessmen like me compared to that demonstrated towards the thieving scum which makes up the failed moneylenders who have driven this country into the ground. Financial assistance should be considered for all, not just the likes of Jaguar and especially not the banks. Small businesses are the backbone of this country, I know I am biased but GB can only survive as a manufacturer. By the way I don't need assistance.
  7. spectrum

    Buying Gold

    I don't have huge sums to put by, nonetheless I would prefer to invest the little I have in something more tangible than a savings account in any of the high street banks. Can anyone offer an opinion on Gold and the best way to buy it.
  8. It isn't so much a "thing" as a way of thinking readily and comfortably adopted by people encouraged to take themselves FAR too seriously in all walks of life - T.V. "personalities" famous for simply appearing on T.V., Internet businesses flogging ordinary stuff through websites which used to sell perfectly well in places called shops whilst demanding (and getting) disgusting amounts of financial backing to do so, unimaginably huge pay packets for moderately talented sportsmen, unentertaining television personalities and incompetent executives working in the various areas of the financial world who ALL, like I say, take themselves FAR too seriously and have been paid FAR too much for doing so. The ridiculous cars, gaudy oversized electrical appliances, "designer" mobile phones are just the commonplace badges displayed everywhere by the tasteless beneficiaries of Blair / Browns legacy.
  9. It appears to be the case that the banks do what suits them where interest rates are concerned, passing power to the Bank of England was fine when everything in the garden was rosy, as soon as the pressure was on they stopped playing the game - look at how they failed to pass on rate reductions. They are little more than money grabbing loan sharks at the end of the day, they will do whatever they need to do to get you to invest your hard earned cash with them. My personal opinion is that anyone with savings should favour an Irish establishment where you at least get security
  10. No. I believe your chickens come home to roost. Will Gordon brown sleep soundly and not consider or regret his actions? I doubt it. The same will apply to a great many others down the line, in government and in industry. I am sure many will get away with having made decisions which have affected innocent or naive members of the public - but I am equally certain that the financial institutions of this country depend ultimately on how and where the average man in the street manages his financial affairs. One example alone: Savers are transferring their money across to Irish banks for practical purposes. If this doesn't hurt the very "banks" who treated them poorly in the U.K. in the first place I don't know what will. Ultimately a great many of these disgusting people will be accountable for their past behaviour. That's good enough for me.
  11. I am still a newby. I have to say I have seen more common sense and honesty published on this site throughout the past month than has been published in the entire British press over the past three years. I feel (due to the fact that I fully share the opinions voiced) that contributors have every right to feel a sense of satisfaction. Enjoying the crisis? I am thrilled that the shits responsible for it will now pay, i.e. U.K. Banks suffering loan repayment defaults and the transfer of savings to R.O.I. Does that make me a bad person? I don't care - I certainly consider myself morally more credit worthy than the British Government and U.K. financial system. If anyone wants to make a moral judgement on the situation as a whole begin with the City of London.
  12. I see that the drop in house prices for the past 12 months (to September) is quoted on Google as being a record. 12.5% I think was quoted. Assuming that last September the market was still bouyant - as so many banks / building societies / estate agents and certain newspapers suggested at the time, does this mean that the drop should actually begin to be calculated from the point when they acknowledged the problem starting? Last September the market was flat / stable / stagnent etc. i.e. it wasn't going anywhere and thus, the 12.5% which has disappeared from property "values" started to go sometime afterwards. It hasn't taken a year to go! Time will tell of course and, if this is the case, the "record" drop will increase quite dramatically next month and the month after and the month after when the months which DID record a drop are brought into the picture. My personal view is that the true drop is nearer 20% at the moment and it will drop by 40 - 60% during the next 12 - 24 months. Unless the problem is going to be a "short term correction" my peers confidentally say......
  13. A chap in my local pub advised me to keep a bit of cash available in case there was a run on one of the major banks. I took this opinion before joining this forum (I am still a newby) I would be interested to take any opinions - is he panicking for no good reason?
  14. spectrum

    New Member

    I work in pyrotechnics. It has been terribly upsetting seeing at first hand a century of technology exported to China for the sake of greedy middle men, all too eager to remind everyone that "U.K. manufacture is dead" as some sort of justification for their lazy freeloading. We will probably never recover this situation Of course China had us by the short and curlies but this is not quite the case now.....the cost of living over there is rising as is the cost of transporting their tat across to us...maybe the same is happening with their real estate. You cannot beat the real, tangible things in this world. At the end of the day get rich quick schemes whether it be importing goods and inflating their cost by n000% or shifting money around in an office in Canary Square are utterly false. It is a shame that so many innocent people have to suffer for so few fat cats to earn their scoff at the trough.
  15. I had a dreadful experience a few years back which - whilst slightly off-topic, is still relevant to the general theme of this site. During the last period of uncertainty, easrly 1990's, I had become the proud owner of a modest terrace house in Lincoln. Personal circumstances changed and my wife and I fell into difficulties (young family, redundancy, interest rate hikes etc.) I accumulated arrears on the mortgage but managed to turn myself around (or so I thought), started a new business which took ages to get going and began to pay off the arrears whilst keeping up with the monthly outgoings. My mortgage was with the Halifax, the WONDERFUL Halifax! One sunny day, out of the blue, I received a letter informing me that enough was enough and that we were to either be out of the property on a given day and time OR pay up the outstanding balance of the mortgage in full. I must admit I had received warnings but since receiving them had managed to make genuine progress for 6 consecutive months including arrears recovery, I had kept in touch with my local branch and had begun to feel that I was getting through the problems which had dogged me / us. A court date was issued for January and we got through the Christmas with three young children and kept our spirits up as best we could. I made an agreement with the mortgage company representative to clear every penny of the arrears within one year and resolved to do just that - it was a struggle but the business was just beginning to show promise and I was optimistic, couldn't be any other way in the circumstances. I overpaid each month by around £30.00 to allow for small unexpected charges but at the end of the year remember paying the final payment according to the arrangement and informing my wife, with pride, that we would buy a bottle of champagne to celebrate. I felt really good having been a financial leper for so long. ONE WEEK LATER - I received a letter, a duplicate of the one I had taken a year previously telling me to get out of the house, any pets left behind were possibly liable to be detroyed, furnishings not removed would be sold off and Halifax could keep the dosh, locksmiths, bailiffs and various other scum to be involved - to keep things right and proper no doubt. But I had paid everything owed!! I rang the Halifax Head office in Milton Keynes and spoke to an individual (I won't name him unless someone asks me to and assures me it will not breach forum rules). Here is how it worked out: Apparently, without telling me, the first letter was chargeable to me at around £400.00. (an expensive bundle of photocopied papers) This was deducted from my mortgage account without warning and despite the voluntary overpayment I was still short - by about £60.00 or thereabouts. because I had therefore technically failed to clear the arrears on my mortgage account I had breached the order. To add insult to injury they charged me another £400.00 for the second bundle of scrap paper, when I protested I was told that I had been informed on the original application form for the mortgage and that it was up to me to remember this. I stated that I would fight it and not pay the second charge as it was unfairly levied and the smug little shit informed me, with unconcealed satisfaction that it had already been deducted from my mortgage account and thus I had paid it already. I hope he features in the streamlining of the Halifax and someday gets to experience some of the misery he appeared to enjoy dishing out. Not bitter, a lesson learned!
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