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Drayal

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About Drayal

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  1. Between homes waiting until the market returns to sensible pre madness prices but worried about cash sum for purchase in building society / bank. I read last year that the FSA couldn't afford to compensate people with money in a bank / building soc 25th on the list (in other words a small one). Every day I read that we need another trillion for something or other whilst the figures related to GDP at billions seem small in comparison and I know that the UK have not even begun to see the effect of millions of 125% LTV and 7 x's income etc., the defaulting of which in the US led to global meltdow
  2. 90% falls its hard to say how much prices will fall but I have read that US property prices only inflated 78% and are down 40% and falling , and people unable to keep up mortgage payments (not just subprime), broke the global economy. UK prices inflated 190% in 10 years, a rise that should have taken 40 years in line with wages. 10 short years ago a property worth £250000 (a very ordinary 3 bed family home in Dorset VERY ordinary), was referred to as being worth "a quarter of a million" that is when the very ordinary house was worth £80000. So who is really to say where this market will go wi
  3. BOE & FSA confirmed last week that mortgage lending in the future will be regulated almost certainly on the loan to income ratio as it provides a better formula for affordability and it stood the test of time prior to the madness that allowed house prices to go up 190% in 10 years. Clearly if property prices are now going to get in line with wages (and who could have EVER thought they didn't need to lending at 6x's + income . {Of course it made a lot of people very wealthy the 190% increase, those that bought and sold etc.}), then property prices are going to fall if an average wage is con
  4. Did you see that todays news re 17% drops in house prices etc said that "property loan to income was more affordable than it had been in 6 years" . Doesn't this confirm that RECOVERY means returning to where we were before the 190% inflation in house prices in the last 10 years? How can it mean otherwise? Mortgages have to have some kind of relationship to earnings and I believe we are about to return to the 3.25 median for loan to income not some vague "affordability" notion that has seen 5 million people thrust into negative equity and a million or more repossesions on the cards
  5. I posted this thread and have been very interested to read what everyone has said. Of course there are going to be sellers holding out for the highest price these are difficult times. On the one hand buyers do not want to find themselves with property worth 20% less or more the minute they move in, but sellers do not want to find themselves selling at 25% off and unable to find anyone else to drop 25% for them to buy. The reason I posted this thread was because Rightmove and Savills have both said that the property market begins to move with 25% reduction on 2007 prices. Even with a 25 % reduc
  6. I am newish on here and I am wondering why nobody replied to this, there were a lot of q's regarding house prices etc yesterday. Did you look at the thread 40% off prices? There were others yesterday too. Have you looked at the allaboutmy property. com (I think it is it is the map they use on Rightmove you can put in a road or postcode and it tells you sold prices in 2008, 2007, 2006 of properties in that road). From my perspective, and we are in a difficult position needing a property (currently staying with reluctant family), if I was to buy anything it would have to be 25% off 2007 peak be
  7. WHAT EVER? WON'T BE SELLING EVER? To be honest if you really need to get what you can get because things ARE NOT GOING TO GET ANY BETTER for a long long time. Read some of the other threads re wage - multiples etc., house prices are coming down down down and that is not wishful thinking but based on FACTS. The UK could not afford to support house prices going up 190% , sensible lending is back and back to stay, unless you want to stay where you are forever, even if you are going to end up with negative on a sale, I CAN'T SEE IT GETTING ANY BETTER for a long long while. Just do your sums on 3.2
  8. There is an archived link to a Motley Fool article saying to offer 40% less than the asking price. In the past few weeks Savills and the Director (?) I think of Rightmove (might be archived) have both said that property prices need to come down and spoke of 25% off 2007 prices. SO WHAT PRICE ARE HOUSES SELLING FOR? Has ANYONE out there offered 25% off and had it accepted? In Dorset Rightmove seem to have added 10% to 2007 prices or more, what is your experience of this? The POINT is that getting 25% off a 2007 price is NOT PICKING UP A BARGAIN when you consider that house prices could fall to
  9. If Northern Rock ARE lending at 3.5 why didn't we hear about the loan to income ratios last week when we all were bombarded with THE ROCK IS BACK giving 90% loans to first time buyers. WHY AREN'T THE PRESS doing their sums instead of bombarding us with HOUSING MARKET ON THE WAY TO RECOVERY headlines. As has already been said in the other replies an income of £30000gives you a mortgage of £105000 THAT IS WHAT IS GOING TO DEFINE THE FUTURE OF THE HOUSING MARKET. This should NOT be leading to people despairing that "they will never get on the housing ladder" HOUSE PRICES WILL HAVE TO FALL IN LINE
  10. Lord Turner FSA said last week, look on archive news blogs, that mortgage regulation linked to loan to income made more sense than simply LTV. I believe the median is 3.25 one wage and 80% two or some say 2.5 two if it is higher than 3.5 one. I can't see how this is NOT going to happen, and it will not mean people will not be able to borrow enough because of course HOUSE PRICES WILL HAVE TO FALL IN LINE WITH INCOME. Strange idea I know, to only lend what people can truly afford long term but it worked really well for the UK up until the past few years when the WHOLE WORLD WENT MAD! OF COURSE H
  11. I feel like RANTING too.....about the spin that is being put on reports related to house prices and mortgage lending. I feel the BBC and ITV and all the Radio stations should FORCE EVERYONE to sit down and write 100 times a day. 1. Lending currently is NOT the problem with regards mortgages. ( Lenders are currently lending to those that can afford it. The past 5 years of irresponsible lending people and BANKS could not afford it. ) 2. First Time Buyers are NOT currently losing out. (They only have to wait a little while to be in a MUCH better position than they have been in for years.) 3
  12. I agree it is all worrying and upsetting but perhaps not quite as worrying and upsetting as being one of the 5 million borrowers about to go into negative equity and perhaps lose their home unable to afford a svr. It is so hard to read Rightmoves boss saying that offering 25% less than a 2007 price helps houses sell only to read that apparently houses are selling like hotcakes to people looking for a good investment and people from overseas "making the most of sterling being weak". How can there be such conflicting news around house prices? I guess most of it is spin but it's sadly spin that m
  13. Can anyone explain why repossessed property is auctioned for a song ? Why would the government allow property that has already lost at least 15% to be sold at auction for 50% of its value? If there is such a huge surge of interest by people out looking for a bargain in the normal market, so much so that the property people are telling us they are getting multiple offers, then why aren't repossessed homes sold through the normal channels? Surely if these homes were advertised at 20% from peak they would be snapped up if we are to believe the government / agents current spin! Currently the big
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