Jump to content
House Price Crash Forum
Sign in to follow this  
Saving For a Space Ship

'how Falling House Prices Are Making Things

Recommended Posts

Guest DissipatedYouthIsValuable

"Well, I had hoped to destroy the futures of all the British young by buying up every single suitable FTB home in the country and ******ing the kids over with big rents to add to the misery of student debt. I thought this would be great once prices dropped, and had planned to buy half of Cornwall for no money down. But these banks are ruining my economy, they want deposits. God, how primitive, suggesting I might have to collect together some money first."

Share this post


Link to post
Share on other sites
Guest มร หล&#3
"Well, I had hoped to destroy the futures of all the British young by buying up every single suitable FTB home in the country and ******ing the kids over with big rents to add to the misery of student debt. I thought this would be great once prices dropped, and had planned to buy half of Cornwall for no money down. But these banks are ruining my economy, they want deposits. God, how primitive, suggesting I might have to collect together some money first."

Cornwall's a good choice. Ageing population, retirement areas . . .

Share this post


Link to post
Share on other sites
Coming up in a few mins.

May be of interest

Theres lots of ways that can be the case.

Higher interest rates (in terms of bank margins) than pre-crash.

Higher deposit requirements, particularly for those that live in areas where mortgages are similar to or less than rent, making saving a bigger deposit more difficult.

Negative equity trap forcing people to stay put.

Mortgage rationing.

Excessively high credit score requirements.

Etc, etc etc......

It's certainly true that buying a house is more difficult for most people when prices are falling. Whether thats good or bad depends on your outlook.

Share this post


Link to post
Share on other sites

It's coming up in 2 mins after the break.

In addition, they just had a feature about house flooding.

Estimated that 1 in 6 properties was at risk from flooding in UK. Cost of damage expected to rise from 2.5 to 4 billion if issues not addressed. They had a guy from the Assoc of Insurers dodging questions about uninsurable properties etc

Share this post


Link to post
Share on other sites
Theres lots of ways that can be the case.

Higher interest rates (in terms of bank margins) than pre-crash.

Higher deposit requirements, particularly for those that live in areas where mortgages are similar to or less than rent, making saving a bigger deposit more difficult.

Negative equity trap forcing people to stay put.

Mortgage rationing.

Excessively high credit score requirements.

Etc, etc etc......

It's certainly true that buying a house is more difficult for most people when prices are falling. Whether thats good or bad depends on your outlook.

NE has yet to trap 1 renter. :lol:

Share this post


Link to post
Share on other sites
It's certainly true that buying a house is more difficult for most people when prices are falling. Whether thats good or bad depends on your outlook.

Agree,

but if you include timeframes in the `outlook', then whilst buying a house is more difficult when prices are falling, it will be easier, and cheaper after they have fallen and stabilise/start to rise.

Which, to me, means that it is best to let the market fall quickly, then we can all become bulls faster.

Y

Share this post


Link to post
Share on other sites

Re-watch here (not available yet)

http://link.brightcove.com/services/player/bcpid1529573111

Summary: Desperate uber-b0llock V.I ramping imo. :rolleyes:

Low sale prices mean sellers will not put houses on the market, they will wait for things to pick up. This causes a lack of supply and rising prices.

Cuts to cr@p piece about 'for sale signs' becoming a rare beast in Birmingham :lol: Properties in limited supply, seller will rent them out instead of selling. (another excuse to post the Bham Rotundaa! thread http://www.housepricecrash.co.uk/forum/ind...showtopic=79345 ;) )

Ea's suggest this is happening across the country. Battersea is so tight, it's sealed bid time and properties selling over asking price. says Ea .

Lack of supply = Halifax say + 2.6%

Then they reel out the property trade assoc. Vi big guns.. more twaddle

Final comment from presenter .. 'Rally in house prices may not last long, but buyers are not having it all their own way'

After such a ramping vi article, the final comment seems like it could be used as a weak disclaimer for such apalling 'journalism' <_<

Edited by Saving For a Space Ship

Share this post


Link to post
Share on other sites

Its quite simple. The deposits have to be high to allow for the size of the fall still to come.

Let the falls happen and the size of deposit required can be reduced (caveat - not to extent of bringing back 100% mortgages - I hope!!)

So, the pain for ftb's is that they have to wait a while. So, which is better -


1. the pain of doubling the size of the debt they have to acquire and repay over 25 years or


2. much less debt but a relatively short wait to acquire it!

I wonder why the C4 programme didnt start from this viewpoint.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   291 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.