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House Price Crash Forum


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  1. It is all about supply and demand. But the fact is that when the building firms sees no profit from work they will stop building. This will in turn restrain the supply and push the price up. Some replies given examples of "builder lower the price as they were out of work or house sold for a fiver" are not typical healthy economy views. What those examples described is "racing to the bottom" and will cause poverty among the general public. Such penomena will not last long.
  2. We are talking about a national building firm, one of the biggest in this country not some cowboy build who's got no clue of what they are doing. The house was done to a fairly high standard and also sort of suits everyone's taste (neatural deco etc). My point is, obviously they have tried very hard in every respect to keep the cost down while make the house appeal to the buyers. It is very well to talk about supply/demand but there is a rock bottom that you can not fall further.
  3. Obviously this topic will cause much of “discussion” on this forum. Ok here are the facts: I recently purchased (April 2012) a second hand house that was built and completed on April 2008. I have received a document named NHBC (its a garantee for new build house, lasting 10 years) which stated the following: • The house was sold on April for just fewer than X GBP • Out of those X GBP, y GBP (45% of X) is planning permission/plot cost • Out of those X GBP, Z GBP (40% of X) is building cost (material + labour) • Rest are marketing cost and building firms profit. 200k GBP < X < 400k GBP I only paid approx. 80% of the x GBP but I am not here to talk about how well/badly I have done. My point is that how can people here expecting the house price to fall further when it cost more to build at the first place? Supply and demand can shift from time to time but the bottom line is that it will never fall much below the cost of making. Please discuss.
  4. I am not a cash buyer. But the mortgage offer and my saving statements has been passed to the EA. They said it is an valid offer. I have in my hand, a piece of paper saying "sorry your offer, £94,500, was not accepted" with EA's logo and Signiture. it was 9% above the price in Land Registery data. Thank you.
  5. I was shocked when I discover this: Back in Dec 2008 I offered an house with £88,850. EA comes back and tells me that there is a bidding war and I am not the highest bidder. I increased my offer to £94,500 in writing. Kind of liked the House and I can afford it. Still got it refused as EA said there was a higher bid. I quit the bidding war since then and never heard anything back from EA. Today when i read the www.houseprices.co.uk, I found the same house was sold £87,550 in Feb according to Land Registry. I could not believe what I saw. There should not be anything wrong with my offer as I proved the fund to EA with my saving statement and a valid mortgage offer. I think I still have all the letters from EA, even that one saying "sorry your are not the highest bidder with £94,500". Does anyone out there know how to report an EA? It would nice to see those ******* get into trouble. Regards Hotmail
  6. I use to think that the recession is still far away until I meet my friend Rick last week. Rick and I were friends since the University. We were flat mates for two years, joined same sport team and really close. After that, he trained and worked in law firm in London. Rick qualified as a solicitor and lived in a luxury two bed room flat in east London. I use to stay there during holidays and jealous about his life style. He bought the flat from his landlord in late 2006 at £295,000 with an interest only, 100% mortgage. His monthly payment for the mortgage was far less than the rent and, in a few years time he can even make a profit if the house price keeps rising. The house price downturn starts in his area in 2008 and he was bit concerned but not really worried. Back then, he was even joking that the low interest rate would be good for him. Last month, he was made redundant. He did not see this coming and was totally shocked by the news. The job hunting did not go well and he could not find a job with decent salary to support the mortgage payment. I saw him last week and the man was stressed. At the moment his insurance are covering the mortgage payment and will continue to do so for a year. He tried to rent one room out but could not find anyone. He tried to sell the flat and no offers were made. He said he does not know what to do if he could not find a job. He does not want bankruptcy as it will kill his career. I hope he can get a job ASAP and get out the mess he is in. It was awful.
  7. Well why would I change my name? I have rights to have that name here, ok? Plus your name and my name is not that similar. If it annoys you so much, could you please change your name? Forget it or live with it, your choice. Regards Hotmail
  8. Well I said it many times that I am not a native english speaker. But I do believe that the post I was making has made a clear point and was supported by facts. The fact of I am bad at english does not mean that I do not understand economy. I can speak 日本語, 中文, 한국어 and read German. Does that increase my credit of knowing economy?
  9. I dunt know what your are talking about. Borrowing the way out of a recession has been proven to be effective many times by history.
  10. They are not twit. They just have to act as a retard to get elected.
  11. Dear all: Lately I spent some time on this forum. Many deep thoughts were posted and discussed here. I also noticed one thing; a lot of people here are blaming Labour for this recession. It is not all Labour government’s fault. The recession we are in now, is a common capitalism problem. It is caused by greedy nature of human beings. People want to enjoy a low tax, good public service and more cheap credits to buy stuff. What they do not realise is that; it is not possible have both at the same time if there is no boom. More will be paid in the bust time. Imagine in an election: "Labour is going to up the tax, reduce the public spending and saving for the coming recession"; they would not win, would they? I believe the Prime Minister saw this recession coming years ago but he can not do anything to stop it. He is not as stupid as G.W.Bush. It is just to please the voters. He would not be elected by saying “oh there are bubbles and we need to cutting spending”. Politicians do lie, as the truth hurts. In Brown’s case, I think he rather did well. I am more concerned about the Conservatives. The shadow PM said absolutely nothing about credit crunch before it happened. I can understand that the currently government was trying to put lie to keep the country going but can not understand why conservatives would not point it out. They are the one that is truly clueless about what is going on. And the policy from Conservatives is just so wrong for this recession. They are talking to cutting spending. I laughed so hard when I saw that. This is the last thing you want during recession and it will make the recession go deeper. The way to get out of current recession would be borrowing more, spending more and pay back later in the bull time. It boosts the consumer spending and helps family’s bills. It was how the US gets through the great depression. It worked then and it will work now. In the bull time we need a sheep to lead tigers and in the bear time we need a tiger to lead sheep. Unfortunately we can not have a sheep to lead tigers in the bull time as the tigers are too hungry. But at least we can use a tiger to lead us in this bear time. Regards Hotmail
  12. Most people on this forum will tell you that the house price is falling and your offer is too high blah blah blah. Your seller, a "property developer", should know the house price falling better than you does and if he does not want to sell, it means that he may have other options. I am sure that you know what you are paying for. From the story you tell, you seem to be streching yourself too much. I hope you got some money for legal service and mortgage fees. At this moment, if I am buying a house of 200k, I would have at least 220k available just in case anything want wrong.
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