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House Price Crash Forum

andybw

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About andybw

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  1. Question for Bruce Banner. Bruce, I have just read through this thread and you constantly use your situation of renting a 350K house for less than 933 pcm to back yourself up. However, if your landlord gave you 2 months notice, would you be able to find a similar property. I doubt it very much. If you do believe so then could you post your postcode/or partial postcode so we could investigate for ourselves.
  2. In the days of rising prices we did not see properties dropping their asking prices as rises always caught them up. Now selling prices have stagnated we are seeing price drops from the initial inflated estate agent asking prices. This seems quite obvious to me. You do not need dropping selling prices to see loads of asking price drops. People will always try to get the best price they possibly can.
  3. Unfortunately Bloo Loo we already have mortgages so banning them would be impossible. They are simply large secured loans. Even if secured loans were banned loans would still exist, they would simply become easily available to those having the most and difficult to get for those having the least.
  4. Also I would say to Yogi that at some stage credit requires paying back. Even with the easiest credit terms this factor will put a limit on the demand due to credit.
  5. I would say reading your posts Toto that you are wrong in the assumption that things have to be bought on credit. Fair enough this is a bit abstract with something that costs as much as a house but at some point we will reach the point where we consider the cost of the bricks in the ground, save up, and buy it even if no credit were available. Fair enough prices would be reduced but there is a bottom level. The lowest price depends on credit but the price does not reduce to zero if no credit is available.
  6. So with the basic value of bricks and mortar embedded in property, supply and demand sets the price. This hasn't changed. Credit has already been reduced for the last 3 years and has dropped prices. Due to aspiration of sellers price reduction is a slow process. But there will be a bottom limit that prices can fall to due to reduced credit. I think we are almost there. Yes I think house prices will reduce further but it will be job losses reducing demand not lack of credit. How much is a house actually worth. It is worth whatever someone is willing to pay for it!!!!
  7. And with even absolutely no credit there will still be some demand. Just that people would have to have saved up in order to pay for what they want. Demand is not only all about credit I would say.
  8. SarahBell. Whilst we remain a democracy and not a communist state the idea that the state should be able to seize someones property is a bit abhorrent. Although I aree it might be appropriate looking at the state of the properties in the programme there must be limits to the states powers or we head toward communism. What is terrible is what is happening now that the councils simply manoevre the housing benefit into doing these properties up a bit with the slumlord getting the remains. Taking that result to its logical conclusion is improvement to the property and capital appreciation for the landlord paid by the state. What we need is property owned by the council for these people to live in. Wait a moment, we had that before Right to Buy!!
  9. Also I'd like to add. Why not introduce a compulsary landlord registration scheme with inspections of properties, fees for inspections could cover the cost. I must admit though for all you renters out there this would inevitably push rents up. How many HPC'ers would become NIMBY's when rent rises started.
  10. The landlords on this programme owned a huge amount of properties. I'd imagine they could only do this by using mortgage interest relief in order to gear up to the max. The huge amount of properties allows them to risk manage non payers. Risk managing non payers allows them to take on DSS desperate for any property, house them in the disgusting conditions that were shown and then extract money from the state(our taxes) through housing benefit. The answer - Bin mortgage relief on buy to let properties and eventually at least some of these slumlord empires will eventually collapse.
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