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House Price Crash Forum

Bewareftb

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About Bewareftb

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  1. My advice dont listen to people like this who are probably drowning in debt and know that the only way out for them is inflation. The recession is not over and there is a very good chance of double dip later in the year. House prices are only going to go up (I think not) He was probably saying the same thing just before they fell 20% In my opinion and they have to fall by at least 20%. If you are going to offer then make sure it's at least 15-20% off the asking price if they dont accept then just walk away.
  2. That has to be the biggest load of BS I have read in a long time. Affordability is low because of low interest rates that will sooner or later go up. You only buy now if you can easily afford the repayments based on 5-6% although they could also go a lot higher than this. The choice is simple if you cannot pay back a mortgage at 6% along with increased taxes to pay for bank bailouts then you should not buy. If you do you risk repossession
  3. Has this got anything to do with it by any chance http://www.guardian.co.uk/books/2007/may/1...iness.economics The four iconic jobs in 21st-century Britain, according to a thinktank called the Work Foundation, are not scientists, engineers, teachers and nurses but hairdressers, celebrities, management consultants and managers. One way of looking at Britain is as one big offshore hedge fund churning speculators' money while asset-strippers draw up plans for the few remaining factories to be turned into industrial theme parks. The essence of successful ******** is that the really top-notch exponents not only manage to convince others but also manage to delude themselves
  4. Has this got anything to do with it by any chance http://www.guardian.co.uk/books/2007/may/1...iness.economics The four iconic jobs in 21st-century Britain, according to a thinktank called the Work Foundation, are not scientists, engineers, teachers and nurses but hairdressers, celebrities, management consultants and managers. One way of looking at Britain is as one big offshore hedge fund churning speculators' money while asset-strippers draw up plans for the few remaining factories to be turned into industrial theme parks. The essence of successful ******** is that the really top-notch exponents not only manage to convince others but also manage to delude themselves
  5. We all know that rightmove stats are just an indicator of sentiment of sellers rather than reality however this is still a massive fall. -2.2% DOWN It pretty much confirms what we have been saying on here for months that the crash still has a lot more life left in it yet. Houses are still overvalued no matter what index you look at. The only way to fix that is either massive pay increases which isnt going to happen or further falls the latter seems a lot more likely to me. Banks are right to restict loans to persons able to pay when interest rates hit 6% which is going to happen sooner or later. My feeling is that the deposits have probably run out now so we should therefore expect falls for the remainder of the year bottoming out sometime in 2010 then a slow recovery where pices bouce along the bottom and are not allowed to get out of control. We will all be better of financially in the long run not just people with a vested interest.
  6. The second consecutive month of increasing discounts on auction properties could point to a further downturn in house prices. “The widening of the auction discount over the past two months is perhaps the first indication that the nascent housing rebound is already fizzling out.†The auction price index showed that more than 40 per cent of properties sold at auction in July went for a discount of between 10 per cent and 40 per cent While interest rates have yet to rise and unemployment is some distance from its peak. This has led many economists to expect house prices to resume their decline. In my opinion once the small amount of money that was was waiting for "THE BOTTOM" or what they thought was the bottom has been spent we are back to a situation where the majority of people need mortgages to buy. 3X earnings mortgages are what banks should give to people so further drops are inevitable. The alternative is that we completely destroy are nations economy by loaning to people who cannot afford to pay or dont ever intend to repay their mortgages and have our credit rating downgraded as a nation. That would be a great insult to our nation & would make borrowing costs much higher in the process. What i see happening on the ground is a flood of property has come onto the market in JULY and only the very best or heavily discounted property is selling.
  7. Certain parts of the country are probably still overvalued by 60% still but overall my guess is about another 20% down on a national level.
  8. If the boom is back the bust will be even bigger the next time. We need stability not Boom Bust. A great depression will probably follow another boom not a severe recession like this one. You have been warned.
  9. BBC LINK http://news.bbc.co.uk/1/hi/business/8196549.stm Expected 7.7% ACTUAL 7.8% If/when unemployment reaches 4 million prices will crash by a lot more than i expected initially.
  10. "But an even gloomier forecast from the Centre for Economics and Business Research says it could approach four million" And house prices are rising Why anyone would buy now is puzzling. Consumer spending lags unemployment because it takes a while for the unemployed to stop spending using up savings etc. People buying now need to be sure they can make payments based on 6% interest rates, they are going to rise when they all come off the fixes rates. IF YOU CANT PAY A MORTGAGE BASED ON THE LONG TERM AVERAGE OF SAY 5% YOU SHOULD NOT BUY NOW IF YOU DO THERE IS A GOOD CHANCE YOU WILL BECOME ANOTHER REPOSESSION STATISTIC WHEN YOUR FIXED RATE EXPIRES.
  11. Deluded because the over-reliance on debt-driven consumption, speculation and financial engineering was what got us into this mess in the first place. Chronically sick because each of the recessions of the last 30 years has ripped a bit more out of the UK's industrial base and hence aggravated a problem ever-present since the second world war: we consume too much and produce too little. The above is so true, it's good to see someone in the mainsteam media telling it how it actually is for once. We as a nation are overindebted and need to save more. Both public and private. We need to purge the debt from the system by having much lower house prices and then rebuild our economy based on sound fundamentals. MESSAGE TO ALL ESTATE AGENTS, SURVEYORS, ETC. WE AS A COUNTRY DO NOT NEED HIGHER HOUSE PRICES WE NEED AN ECONOMY BASED ON SAVINGS AND EXPORTS NOT HOUSING BUBBLES AND DEBT. HOUSE PRICES NEED TO RISE WITH INCOMES NO MORE SO IF THE AVERAGE WAGE GOES UP BY 3% A YEAR THAT IS WHAT HOUSES SHOULD BE DOING. IF WE HAVE NO GROWTH IN WAGES THEN THERE SHOULD BE NO GROWTH IN HOUSE PRICES. Where we are at the moment is still overvalued by about 20% overall and more in some regions of the country. We need stability not booms and busts.
  12. 1 - Houses are still very overvalued in this country. At least 20% falls are still needed more in some areas. 2 - Mortgages are restricted and banks are actually starting to realise that the whole system nearly collapsed because of their landing practices. Lending will never reach the madness of the biggest boom ever again in my opinion. Taxes will have to rise to pay for the bankers dodgy lending (You & me will have to pay the cost of bailing out the banks in years to come) 3 - Unemployment is set to keep rising and will proably hit 4 nealy 4 million according to the latest CEBR report. That means more repossesions and distressed sales. 4 - The boom will probably be in the stock markets around the world not residential housing. 5 - Japan has a population density far greater than ours and still had a massive crash that lasted for years. Conclusion: THIS CRASH IS FAR FROM OVER MORE FALLS ARE ON THE WAY. ANECDOTALLY LOOKING ON HOME.CO.UK THERE ARE A LOT MORE FALLS THAN I WAS SEEING JUST A WEEKS AGO SO THE CRASH IS VERY MUCH BACK ON
  13. FINAL THOUGHT BEFORE THE WEEKEND HOUSE PRICES ARE STILL WAY OVERVALUED IN THIS COUNTRY & NEED TO FALL BACK IN LINE WITH WAGES. DO NOT LISTEN TO THE MEDIA THEY WERE WRONG BEFORE AND THEY WILL BE WRONG AGAIN. HOUSE PRICES WERE SUPPOSED TO BE FLAT ACCORDING TO MOST MEDIA COMMENTATORS (they fell 20%) ANOTHER BOOM IS NOT ON IT'S WAY SO DO NOT UNDER ANY CIRCUMSTANCES PANIC BUY. WAIT UNTIL PRICES FALL ANOTHER 20-30% AND THEN BUY YOU WILL ALL BE BETTER OFF FOR IT IN THE LONG RUN. LESS DEBT & MORE MONEY TO SPEND ON ENJOYING LIFE. It may take a few months for all the bullish sentiment to wear off but it will happen before the year is out.
  14. People seem to have such short memories. A few weeks ago PWC released a report saying that house prices would not recover until 2020 & what we were seeing is a false dawn Economists have warned that they expect further price falls due to rising unemployment, which is expected to rise from 7.2% to nearly 10% in the next 18 months, the potential of falling wages and the ongoing problems in the mortgage market. If you want to spend the rest of your life drowning in debt for the privilege of having a roof over your head then buy now if not wait until prices come down to realistic levels then buy. It's simple really.
  15. Also Nationwide are based on approved applications only, which may not always go through to completion.
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