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House Price Crash Forum

yodiggity

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About yodiggity

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  1. It was a two fold problem: Shareholders had to be given the right to decide on the takeover and Darling refused a waiver to enable Barclays to do the deal. Darling also refused to back stop Barclays purchase of Lehman (as Barclays were a UK entity) and the US refused to do so for the same reason. I would bet my last cent that if Darling and the Bald Eagle were given their time again they would have underwritten this deal. Rightly or wrongly, the view that IB's should be taught a lesson, that someone had to fail to prove a political point was bloody expensive and near catastrophic. It may have been morally or ethically right, but when you've started to steer a course where you bail out one bank, you bail out all the others. Something that they ended up doing anyway.
  2. Leave my investment decisions to me, i let gold take care of my deposit for the last 3 years. now it's around a few banks.
  3. Does it stick in my throat that in order to buy a house now I have to put my hard earned nest egg into it when I really do believe that house prices may fall further. Too damn right. Do I personally want to buy a house rather than rent for the rest of my days or in the near future. Yes I do (and that is down to personal choice, so you cannot knock that). I'm nearly 40 and the thought for having to find rent in my 50's is somewhat depressing. What are the upsides of me sitting back? Possibly gaining another 10/20 percent in house price falls. How long would I have to wait? 1/2/3 years? If it's 3 then that's 18k x 3 years. Are IR's going to hit 10%? Who knows. I do know that if IR's are hitting 10% the likelyhood is that we will have seen a very fair amount of wage inflation to get inflation up to where it needs to be to push rates that high. The risk I have is that my cash becomes worthless, as it is doing year on year. You say stocks? How would I have done over the last 3 years? So this is where I sit, cash in the bank depreciating, as I don't want to lose the value in my deposit and be open to fluctuations in market value of other asset classes. The risk of massive inflation, which in reality is going to murder me more than any interest rate hikes. Especially as I have a near 50% deposit. I am prefectly hedged to buy a house. The only issue I have is that they reality is, there just aren't any good ones for sale.
  4. I don't think so actually. You tell me where to safely put cash. £1200 pcm is the going rate for properties around where I live, it's actually a good size for the money. This isn't Kensington and Chelsea either, this is just plain old East London suburbs.
  5. not a troll no. i have sat on the sidelines for 4 years after selling and travelling in 2005. my 300k in the bank returns me £112 interest a month and is depreciating through a mix of real and stealth inflation. i live in a 2 bed flat pay 1300 a month. for the same 1300 a month (alright minus the massive £112 in interest i am earning) i can get a 300k mortgage and buy the house for 600k. leaving me at face value 112 worse off by expenditure, but gaining me a house. i am not a troll, i just have a valid question for my current predicament. i honestly feel that houses will eaither stagnate of gently fall over the next 3 years. tell me where i am going wrong.
  6. How many on here are looking to buy a house when prices return to so called normal levels? How many on here have the money to purchase now, but refuse to because they feel that prices are insane or out of whack with their true value? Look don't misunderstand, I'm no bull. And please just because I haven't posted on here before there's no need to take the patronising view that I am unqualified to comment just becuase I may question some long/ firmly held beliefs that question your fundamental views. There are plenty of contradictory flags at the moment. Unemployment is rising, and demand is falling, yet some believe that interest rates are going up and will kill off or harm the house owners. I've sat and watch Japan for 20 years, no such ramping of IR's there. Houses came off rapidily in the early 90's but have stagnated ever since. Those sitting on the sidelines, where do you put your cash? Watch it lose money by stealth inflation and low IR's on deposit adding rent onto that for tenants? Or stick it in a home and watch it depreciate that way. These are painful times to be a home owner or a tenant. I am just curious as to people's view, what they think they are going to acheive by sitting on the sidelines and how long people are prepared to put their lives on hold, before they look back one day, have been renting for 20 years, their kids have grown up and they've never had the home that they always wanted to bring the family up in.
  7. Meh, we've all got lives to lead. Bringing up kids, rather than sit around all day waiting for houses to be given away free on your cornflakes, just buy one, live it it and enjoy your life. Ask yourself this, when these so called houses reach affordable levels (at the moment I can buy a 600k house for the same price I am renting my 300k flat, throwing away 18k a year on rent). Who are you going to be up against? Some wasteland bereft of buyers? Unlikely, you are going to be up against ever other sod on here wanting a bargain, along with the umpteen people that I know who are sitting around waiting for house prices to tumble. The very reason why it's not going to happen it that THERE IS DEMAND AT EVERY PRICE ON THE WAY DOWN. There is a stack of people like you and like me sitting on the sidelines waiting for the bottom, if that's the case. We have seen the bottom.
  8. Just a question and this is one that I am having to ask myself as I am a 37 yr old tenant. When are you all planning to buy? Or aren't you? When is the bottom? When they are giving houses away for free? Do you all want to rent for the rest of your lives? I am not asking this to be glib or smart. It's a genuine question. If there are 1000's of people renting, make that 100's of 1000's and I know many like myself who are in this position, looking to buy one day. How will prices crash if in reality there is a steady stream of people of differing incomes all looking to get themselves into a house should affordability allow? So I buy a house for 500k, isn't there then someone willing to pay 475k for that house should I need or want to sell it. Or is it now worth 200k because houseprices are re-based? Afraid not. I ask this question, because my rent is £1200 pcm, I can buy an equivalent house and pay £1500 pcm at the moment. Albeit with a good deposit. I can name 20 other people in the same position all with large deposits renting because they worry house prices 'may' fall. Not because they cannot afford to buy, but because they see a house as a trade rather than a home. I know this becuase I am guilty of it myself. As are plenty of you. They are sitting there pinning their hopes on world capitulation on, the reality of which, if it happens will mean that their money is worthless anyway and won't be able to buy a house anyway. The reality is we are all screwed one way or another. We can buy and pay up. Or the worst happens and we are unemployed, lending is dead and we go back to subsistence farming. I would suggest that plenty of us want the medium, houses to fall in value, but only by enough so that they are completely affordable for me, so that I can buy that big house that I feel entitled to. Just a stream of random thoughts. I can go either way. Do I think there's trouble ahead maybe. Do your kids still need to eat? Live somewhere? Go to school? Go on holiday? Hmmmm I thought so. The world still turns, there is not nuclear winter yet.
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