What Are You Going To Do If Prices Don't Fall?

[Kazuya]

Too much of this going on in this thread...

[Bruce Banner]

Too much of this going on in this thread...

Sorry, but one has to slap down insolent children or they become insufferable .

[ScaredEitherWay]

If house prices didn't move for 10 years, then at some point (maybe next week, maybe in 2020), I'll see a house I want, at a price that is agreeable and I'll buy it.

If house prices go downwards, I won't feel any urgency to look carefully for one.

If house prices go upwards, I'd buy one within 3-6 months.

Simples.

['Bart']

What are you going to do if, just supposing, house prices don't crash, but remain flat for say 10+ years?

Carry on with my life (such as it is).

[Guest BetterOffOnBenefits]

Do our lives suddenly open up and flourish once we've bought into the property market?

Becoming a homeowner in the UK is a strange phenomonen

People congratulate you on your immense achievement and you can become a part of normal society again.

Not any old ****wit can walk into a bank/building society and ask for a loan, you know!

Be in debt and be proud!

[pie-eater]

We'll just carry on renting until we find what we want at the price we're willing to pay.

We have the cash to buy outright but renting is so much cheaper so that's the way it will stay for now.

We could buy the rental we're in with money to spare (and it's for sale), but it's £75k over-priced, so we rent and see the nil viewings it attracts with some mirth.

The rent we pay is about 60% of an IO mortgage on our valuation, so in no rush to offer on it.

Plus, the roof is looking dodgy and the boiler needs replacing.

[gus]

Now that's something I'd pay to see

But you can see TMT now, albeit in an intermediate phase, as a hottish, babette waitress at the Morrison's restaurant c/o Carmarthen Motorway Service Station.....don't delay.

[Johnny Storm]

I'm here because I enjoy it.

It gives me a sense of satisfaction when I expose the VIs that try to use this site to entice unsuspecting first time buyers to throw away their life savings in the pyramid scheme that is NuLabour's housing bubble.

I don't enjoy being called a liar by a snotty nosed idiot like you though. Why do you feel the need to post "renting is dead money" or other such estate agent quips in every thread that has a large number of guests reading it?

Your enjoyment is as relevant as someone who loves cream buns going onto a slimming forum to post how lovely cream buns are.

Added to blocked list, I suggest you do the same to me so you dont feel compelled to waste your time replying to my thoughts.

[Bruce Banner]

Your enjoyment is as relevant as someone who loves cream buns going onto a slimming forum to post how lovely cream buns are.

Added to blocked list, I suggest you do the same to me so you dont feel compelled to waste your time replying to my thoughts.

Firstly, with regard to cream buns, this is housepricecrash.co.uk and Johnny Storm is the one urging people to buy a house at near the top of the biggest housing bubble this country has ever seen.

Renting whilst waiting for prices to drop is the sensible option if one believes that the housing market is due for a major correction (which I do), and if one finds it agreeable, so much the better.

Johnny Storm is on a mission to convince anyone who will listen that renting is a terrible waste of money, which it isn't, as I, and others, have proved numerous times by posting the figures.

I am unsure as to Johnny Storm's motives for continuing to post falsehoods on this site. I can only assume that he may have got a job as an estate agent, or that he has taken leave of his senses.

I am glad that he has added me to his ignore list, as it will mean that we can avoid these arguments when I correct his numerous posts urging people to buy a house and continually making the fatuous claim that renting is dead money. Also, it will avoid him calling me a liar when I accurately post details of my circumstances as an example.

[Guest Noodle]

Firstly, with regard to cream buns, this is housepricecrash.co.uk and Johnny Storm is the one urging people to buy a house at near the top of the biggest housing bubble this country has ever seen.

Renting whilst waiting for prices to drop is the sensible option if one believes that the housing market is due for a major correction (which I do), and if one finds it agreeable, so much the better.

Johnny Storm is on a mission to convince anyone who will listen that renting is a terrible waste of money, which it isn't, as I, and others, have proved numerous times by posting the figures.

I am unsure as to Johnny Storm's motives for continuing to post falsehoods on this site. I can only assume that he may have got a job as an estate agent, or that he has taken leave of his senses.

I am glad that he has added me to his ignore list, as it will mean that we can avoid these arguments when I correct his numerous posts urging people to buy a house and continually making the fatuous claim that renting is dead money. Also, it will avoid him calling me a liar when I accurately post details of my circumstances as an example.

Are you a BTL landlord, Bruce?

Many here are.

[Johnny Storm]

Renting whilst waiting for prices to drop is the sensible option if one believes that the housing market is due for a major correction (which I do), and if one finds it agreeable, so much the better.

Johnny Storm is on a mission to convince anyone who will listen that renting is a terrible waste of money, which it isn't as I've proved numerous times by posting the figures.

As someone who has rented probably longer than you, I can show its been a "terrible waste of money" and also quite futile. The rent is spent, the prices continued to go up , not down.

I suspect there are 95% of people who are in my position, ie working to pay rent. So if you are so rich (allegedly) that you can pay your rent out of the pitiful interest that savings get now days, then perhaps that is the way to go. Though personally if that was my position, I wouldnt be wasting my time posting on a HPC website.

However, for the everyday working people like myself, renting aka gambling on money spent on rent being less than a drop, is a risk. Its a risk that has been a money loser.

The trouble with HPC is its a bit like a cult, with a lot of people reaffirming ideas. I do wonder in retrospect, if I had not seen HPC, nor believed what was written by posters, and I had actually bought in say 2002. I would now be 8 years through a mortgage, I would have bought for say £120K.

But retrospect is always 20 20. I just dont like pretending that things I have already done, and has proved a waste of money is actually the correct thing to do now. We all gambled, we all lost. Personally I will gamble for another year, thats enough time to see what the governments changes will result in, and enough time for me to raise another £50k in my deposit fund.

Are you a BTL landlord, Bruce?

Many here are.

I think my friend Noodle has probably hit on the nail on the head.

Edited July 28, 2010 by Johnny Storm

[Bruce Banner]

Are you a BTL landlord, Bruce?

Many here are.

Indeed, many here are, but most of them are trying to convince people to buy now in an attempt to keep prices from falling, as they know that falling prices will wipe them out unless they have substantial equity in their properties, which many don't. I'm not, I merely advocate renting as the sensible option to buying.

[Bruce Banner]

I think my friend Noodle has probably hit on the nail on the head.

So much for the ignore facility .

[Guest Noodle]

Indeed, many here are, but most of them are trying to convince people to buy now in an attempt to keep prices from falling, as they know that falling prices will wipe them out unless they have substantial equity in their properties, which many don't. I'm not, I merely advocate renting as the sensible option to buying.

I advocate trying to live in anything other than a house, you know, like a pikey. Much cheap like that in Blighty.

[Bruce Banner]

I advocate trying to live in anything other than a house, you know, like a pikey. Much cheap like that in Blighty.

Strange you should say that, I'm not living in a house at the moment and I'm not in Blighty, although I'm paying the rent on one.

[Guest Noodle]

Strange you should say that, I'm not living in a house at the moment and I'm not in Blighty, although I'm paying the rent on one.

See you've got that all **** about face Brucie.

The idea is to have a house abroad and live in a temporary box in Blighty. So far . . . this has worked fairly well.

[theworknomad]

These smug posters living in Switzerland make me laugh!

Swiss has to be one of the most boring and sterile places on earth.

For instance why do expats who live there continue to post on British forums?

[Guest Noodle]

These smug posters living in Switzerland make me laugh!

Swiss has to be one of the most boring and sterile places on earth.

For instance why do expats who live there continue to post on British forums?

I'm sure it has it's charms my dear.

Awful lot of expats on here, thing is we've created our ultimate Blighty . . . only digitally.

[Bruce Banner]

I'm sure it has it's charms my dear.

Awful lot of expats on here, thing is we've created our ultimate Blighty . . . only digitally.

I'm not an expat, just on holiday (in France).

I sold my business and retired a couple of years ago. Not wealthy but with, hopefully, enough money to see me out without becoming a burden on my kids, or the state.

[theworknomad]

Yea I am sure there are lots of expats on here.

I think it must have something to do with not being able to let go of the old country. Been there myself so know what it's like.

I can understand people leaving for places like Thailand (cheap, climate, food, exciting culture, women? lol) Australia/NZ (climate, easy culture, good jobs), US/Canada (bigger countries, easy culture, eng speaking) but NOT SWITZERLAND!

As for Swiss, then look around at some of the comments on Expat forums..I know three Swiss guys in NZ and they would never go back themselves and can't understand why any normal person would go there, unless you are happy with always staying in and counting your money!

Zurich is the most boring place in the world, and I have been to MANY cities and many places! The Swiss are by far the most boring and most introverted and the most racist people in the world. I have never been treated more disrespectfully than in Switzerland. Don't tell me I need to go out in the countryside - it's the same: city or country, Switzerland is just plain BORING! And if you want great mountains, the scenery is much better in Germany, Austria, France or Italy.

Everything is so overpriced for nothing. What i dislike the most is customer service. They re so rude. Also, u take out Swiss people but they never take you out and they re loaded with money.

I lived in Geneva for 3 years, and I strongly agree that it is a VERY BORING PLACE! Also very male chauvinist, racist, and anti-semitic. I was so lonely even though I worked full time for a Swiss company and surrounded myself with Swiss people. The good news is that, while I was there, I developed a profound appreciation for my own country. I am back in the US and have absolutely no desire to ever go back to Switzerland.

[Guest Noodle]

I'm not an expat, just on holiday (in France).

I sold my business and retired a couple of years ago. Not wealthy but with, hopefully, enough money to see me out without becoming a burden on my kids, or the state.

I know Bruce, I was joking.

Retiring abroad is, in my opinion high risk, medical cover in your dotage is patchy at best.

[Guest Noodle]

Yea I am sure there are lots of expats on here.

I think it must have something to do with not being able to let go of the old country. Been there myself so know what it's like.

I can understand people leaving for places like Thailand (cheap, climate, food, exciting culture, women? lol) Australia/NZ (climate, easy culture, good jobs), US/Canada (bigger countries, easy culture, eng speaking) but NOT SWITZERLAND!

As for Swiss, then look around at some of the comments on Expat forums..I know three Swiss guys in NZ and they would never go back themselves and can't understand why any normal person would go there, unless you are happy with always staying in and counting your money!

My old mate Alex is Swiss, can't stand the place. Saw him in Scotland last time and he said, if he goes back he's to do a week in jail for a little speeding offense involving him, a GSXR1000 and a Swiss dual carriageway.

Said the whole place was set up for old duffers waiting for God. He had nice little racket going involving ferrying German's cash across the border, so there are bonuses to being born there.

(Avoid the women in Thailand and it's a fantastic place to live, just never get horny and you'll be fine).

Edited July 28, 2010 by Noodle

[Mikhail Liebenstein]

In response to OP, 10 years is a long time to wait for an event which might not even happen.

Average person lives 70yrs... 1/7th of your life waiting...

I'd just buy what I could afford and get on with living my life.

You make a very good point.  There is also the fact that many on this site have been around since 2004, and I am not sure we are ever going to see prices below 2004 nominal levels, as prices were  10-15% over the long run average in 2004 and since then we have  had 6 years worth of inflation.

That said I might be biased as I did get my house for the 2004 price at the bottom of the 2009 dip, but even then that was an exceptionally good deal due to the vendor circumstances.

[Mikhail Liebenstein]

You make a very good point.  There is also the fact that many on this site have been around since 2004, and I am not sure we are ever going to see prices below 2004 nominal levels, as prices were  10-15% over the long run average in 2004 and since then we have  had 6 years worth of inflation.

That said I might be biased as I did get my house for the 2004 price at the bottom of the 2009 dip, but even then that was an exceptionally good deal due to the vendor circumstances.

This seems to reveal a possible outcome in line with what i wrote above:  http://www.telegraph.co.uk/finance/economics/houseprices/7913776/House-prices-will-fall-over-next-five-years-says-Niesr.html

I seriously do feel this crash is following previous crashes, there is a panic phase at the start, monetary policy gets loosened, there is then a slow period of real falls but nominal stagnation as the rest of the economy is inflated/grown to the point where it can again sustain the level of debt.  

 The scary bit this time is all the extra money that abounds, the analogy is that it is like fuel on a camp fire.  You can keep pouring it on and nothing happens until a match is lit.

[Guest BetterOffOnBenefits]

However, for the everyday working people like myself, renting aka gambling on money spent on rent being less than a drop, is a risk. Its a risk that has been a money loser.

I always interpret 'gambling' with taking a wild chance or stab in the dark, like a roulette wheel or lotto. All the economic pointers and historical events have told us that this period of madness had to end. It should have ended about 5 years ago.

To be fair, I don't think anyone in their wildest nightmares envisaged the scenario that has unfolded. It is unprecedented

If a man smoked 100 cigs a day and swigged a bottle of vodka and then lived until 120, you'd be beside yourself with disbelief.

Same with this housing market