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ONLYBONE

Interest Rates To Drop

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Hi guys, it has been a while since I posted but I have been reading HPC every day to support the cause, which seems to be getting stronger day by day. However, I am beginning to think the risks to society as a whole of a crash are so huge, everything will be done to prevent it. I know all the arguments about supply & demand etc and the market always finds fair value at some point, but this really is the whopper of whoppers.

With retail sales faltering I am pretty sure there will be a cut in rates before xmas to get things going, this will not be good for property prices falling, because the muppets buying houses just don't appreciate the precarious position we are in and are addicted to rising house prices like some drug. Combined with falling oil prices, the B of E can drop rates without worrying about inflation too much.

If you want to see evidence of this, just the rumour of a rate cut last week gave Countrywide shares a boost and some of the housebuilders started to pick up again from recent lows. It truly is madness, but does show the power of the institutions buying these shares and the massive importance of residential property and the perceived ongoing strength of the sector.

I think the whole system is corrupt and is divided between the haves and the have nots. I would dearly like to see the balance shifted to give most people a chance of buying a house, but there is a real possibility that it just isn't going to happen.

If you remember the dot com boom, it was actually the collapse of boo.com (the American sporting retailer) that started the ball rolling. In the same vain we need a high profile bank, mortgage broker, builder, estate agent or BTL to go tits up. I find it hard to see what will cause this and who it would be. The only other option would be a massive demonstration in London from FTB's or anyone else affected by the housing land grab. However, I feel there would be little real sympathy from homeowners and people would forget in a couple of days, so it would be a good PR exercise but still wouldn't change the status quo.

I hope I am wrong, not because I want to buy a house ( I am seriously thinking of buying a canal boat instead) but because the hamster wheel is spinning so fast when it does come off it is going to cause some serious damage, better this happens sooner rather later.

Saturday morning rant over, time to enjoy the sunny day.

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With retail sales faltering I am pretty sure there will be a cut in rates before xmas to get things going, this will not be good for property prices falling, because the muppets buying houses just don't appreciate the precarious position we are in and are addicted to rising house prices like some drug.

Too many people are already maxed out. An interest rate cut might slow the rate of repossessions a bit but it won't really help the economy out of the hole it's in.

Combined with falling oil prices, the B of E can drop rates without worrying about inflation too much.

Oil is just taking a short breather, thanks mainly to the IEA reserves release. Will start heading back up before the end of the month.

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Hi guys, it has been a while since I posted but I have been reading HPC every day to support the cause, which seems to be getting stronger day by day. However, I am beginning to think the risks to society as a whole of a crash are so huge, everything will be done to prevent it. I know all the arguments about supply & demand etc and the market always finds fair value at some point, but this really is the whopper of whoppers.

With retail sales faltering I am pretty sure there will be a cut in rates before xmas to get things going, this will not be good for property prices falling, because the muppets buying houses just don't appreciate the precarious position we are in and are addicted to rising house prices like some drug. Combined with falling oil prices, the B of E can drop rates without worrying about inflation too much.

If you want to see evidence of this, just the rumour of a rate cut last week gave Countrywide shares a boost and some of the housebuilders started to pick up again from recent lows. It truly is madness, but does show the power of the institutions buying these shares and the massive importance of residential property and the perceived ongoing strength of the sector.

I think the whole system is corrupt and is divided between the haves and the have nots. I would dearly like to see the balance shifted to give most people a chance of buying a house, but there is a real possibility that it just isn't going to happen.

If you remember the dot com boom, it was actually the collapse of boo.com (the American sporting retailer) that started the ball rolling. In the same vain we need a high profile bank, mortgage broker, builder, estate agent or BTL to go tits up. I find it hard to see what will cause this and who it would be. The only other option would be a massive demonstration in London from FTB's or anyone else affected by the housing land grab. However, I feel there would be little real sympathy from homeowners and people would forget in a couple of days, so it would be a good PR exercise but still wouldn't change the status quo.

I hope I am wrong, not because I want to buy a house ( I am seriously thinking of buying a canal boat instead) but because the hamster wheel is spinning so fast when it does come off it is going to cause some serious damage, better this happens sooner rather later.

Saturday morning rant over, time to enjoy the sunny day.

They can run, but they can't hide..

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Yes society is corrupt, but its only natural for people to protect their posessions and power. This country isn't bad compared to the 3rd world and even America i would think.

Interest rates might drop, because I can imagine the BOE have a little slack even though inflation is creeping up. I say this because i'm sure the inflation figures can be fudged and the government will be more concerned about the lack of growth in the economy.

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Bit of advice needed - I have £50,000 on my credit card, will a 1/4 % rate cut make this debt more manageable for me? and should I be looking at buying a house if there is a rate cut?

:D:D:D

Edited by since the beginning

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Why is anyone upset that rates are dropping. So are house prices. Houseprices are about confidence. Rates are about plugging the holes in a sinking ship. Now if I manage to get a house at 20% off and 1/4% less interest locked in... I am a happy gal :D

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I think the problem is that interest rates appear to be at the bottom part of the cycle and a couple of cuts now will mean that by the time that house prices have fell that they will be on their way up. Hopefully most of us will have big enough deposits that it wont be too much of a problem.

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Bit of advice needed - I have £50,000 on my credit card, will a 1/4 % rate cut make this debt more manageable for me? and should I be looking at buying a house if there is a rate cut?

:D  :D  :D

No. I recommend adding to your debt to finance a million pound portfolio. A Spencer Michael course springs to mind.

Good luck in your future career.

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Luvd the rant but why do you think oil prices will come down as just about all the experts seem to be saying the trend is upwards? The Richard Branson effect? On interest rates, a cut will make everyone feel richer and isn't low interest rates what's fuelled the boom and boosted confidence and sentiment for many years? So lowering then must matter? Am i right or am I right?

Edited by Vivaldo

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I hope I am wrong, not because I want to buy a house ( I am seriously thinking of buying a canal boat instead) but because the hamster wheel is spinning so fast when it does come off it is going to cause some serious damage, better this happens sooner rather later.

Saturday morning rant over, time to enjoy the sunny day.

mmmm...... canal boat.... lovely! :) There are some beauties out there. I've always fancied one, love most of the ones I've been on, but knowing nothing about them, and I guess not viewing them as a primary home, I've never really investigated.

Question: have canal boat prices risen in line with land house prices?

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I really wouldn't worry about a quarter point rate cut.

the benefit of a cut is being more than offset by hikes in utility bills.....unless you expect the price of wholesale gas and oil(both dependant on global supply and demand....of which demand is outstripping supply), to fall off a cliff anytime soon then the hpc is still on.

the best measure of whether it's happening is retail sales and disposable income after basic living costs....and that trend is firmly downwards.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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