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underpressuretobuy

Do You Remember The Last Crash?

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I ask out of interest whether the people on this site are wise to the coming HPC because they saw the last one or not. I don't wish to reignite some of the venomous intergenerational arguments that there have been on this site. I am always of the opinion that you should view each person as an individual rather than as part of a specific group unless you learn otherwise.

Hope no one minds giving their age. :)

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put our house on the market in december 1992 for 250k. went to australia for xmas - new year. turned down a "derisable" offer of 215k whilst in australia and then paid mortgage of over £1500 per month for six months before ripping the arm off our eventual puchaser at 185k....very foolish and naive in those days.

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Which one?

1970

1976

1984

1989

years between above crashes...

6 years

8 years

5 years

Why has it taken 16 years to get to this one...! :(

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I would like to know more about peoples attitudes in the last crash. Was it very much like now? Was there huge denial? Then a huge amount of anger?

I've asked a few people who lived throught it (e.g. parents), but they were oblivious as they never sold during that time - too busy bringing up me i guess! Others just put the past in the past and refuse to even compare.

;)

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Guest Charlie The Tramp
years between above crashes...

6 years

8 years

5 years

Why has it taken 16 years to get to this one...! :(

Well those prior to 1989 were more reasonable price corrections by my own observations at the time,

the three years I bought at the trough. The 1989 crash was fuelled by the RTB scandal where buyers had the attitude everyones a winner ( sorry del boy ). By 1988 many of these RTBs were then able to sell with their massive profits made and move up the ladder trying to beat the ending of double Miras pushing up prices. My property increased to 120k in value 1989 from 80k at the beginning of 1988. I sure you are up to date from the trough around 1995/96 to present day.

That is the best I can explain it as I saw it.

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I am sure there was a lot of anger but what i remember was pure shock, desperation and despair. There was a sense that everything was going wrong and there was nothing you could do about it.

I don't think anyone who lived through that would be camplacent again. I assume that all those who are stretching themselves now or mewing are too young to remember the last time.

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I'm 41, but I was at uni through the last big crash. My parents didn't lose their house and I was renting. I didn't pay attention to anything that seemed irrelevant to my life.

I vaguely noticed there were some news items about negative equity, but that was about it.

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I ask out of interest whether the people on this site are wise to the coming HPC because they saw the last one or not. I don't wish to reignite some of the venomous intergenerational arguments that there have been on this site. I am always of the opinion that you should view each person as an individual rather than as part of a specific group unless you learn otherwise.

Hope no one minds giving their age. :)

I was 50 yesterday, and have ust woken up with the expected hangover. In 89 I got out by the skin of my teeth , sold up and left the UK to work abroad. Completely oblivious to what was happening in terms of property. My friends who I had encouraged to get onto the bandwagon that same year ended up with about 15 K negative equity.

You can imagine my guilt complex. There I was quoting " My flat's gone up on average 1k a month !" You HAVE to get on now otherwise ,,,,,,,

I managed to get my mate a job in Saudi with me and he recovered after a few years. There was real ANGER and real guilt though. He was so low at one point he felt like topping himself, How would the average Joe recover from that ? Average house price in his bracket was about 70K.

Total despair is what this bubble burst is going to bring. Think about that while we rub our hands with glee.

There's nothing worse than seeing people lose hope. It will not be pretty

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Guest pioneer31
Total despair is what this bubble burst is going to bring. Think about that while we rub our hands with glee.

There's nothing worse than seeing people lose hope. It will not be pretty

We've already got total despair - from the 20 and 30 somethings of this land.

What we will see is total despair transferring from one group to another.

I would be inclined to feel pity but on the other hand why should I? Everyone's been rejoicing for the last few years whilst millions of FTB's have had their lives suspended in limbo.

In an ideal world none of this should have been allowed to happen, but perhaps some long awaited pain relief is in sight for the most needy.

Edited by pioneer31

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You have to remember that the situation for some people was actually quite good in the early 90's. If you were an established home-owner with money in the bank your situation was quite pleasant cos the interest was pouring in.

Then, as now, there was a division. If people weren't involved they went about in ignorant bliss of the misery that afflicted a large proportion of the nation. And I am not just talking of negative equity. Anybody who had bought a house a few years prior to the crash was hit due to the every increasing interest rates.

This time is no different in respect of the fact that most of the nation couldn't give a tinkers and are happily going about their business. But what is different is that current economic circumstances are ready and able to impact on almost everybody.

Savers are not gaining. Job losses are increasing. Prices are rises on all fronts. Depleting fuel is starting to be an issue that people are noticing. Can't see that many in this bust aren't going to get hit to a certain degree.

Talking to a relation of mine who sells cars last weekend. They bought around the end of the last boom and consequently have a small mortgage. They should be laughing. Asked him how the fuel problems are impacting on car sales. Response:- Fuel has little to do with it. People are scared. It's got really bad these last 8 months. You try getting somebody to sign up for a 10k car when they are already up to their eyeballs in debt.

Made me sit up and think.

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Debt is exactly the problem this time. 1.1 trillion's worth of a problem too.

Hordes of people have racked up credit card and loan debt, and are right on the line.

Others have mew'd to cover it and a paying a mortgage for the amount of what their house is worth today not when they bought it a few years ago.

That's why high street sales are on their ****.

100 000 are months behind on their mortgage.

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years between above crashes...

6 years

8 years

5 years

Why has it taken 16 years to get to this one...! :(

Because it should have happened in 2001 when the dot com bubble blew

and millions in technology R&D investment went west. Also, since world+dog

spent a mint in upgrades 1998/1999 preparing for the year 2000 bug, there has been

little investment since in IT. The machine bought then are only just going EOL.

I have been scratching around to make a living since 2001 doing god-awful temp

jobs here there and everywhere. Ask anyone in R&D - our recession started

5 years ago.

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I was 36 in 1989; I'd been a homeowner for 14 years, in my second home, but wanting to move somwhere better/more suitable for my family (I had 3 young children). Pre-1989 I'd been very frustrated that high HPs were stopping me from moving up the ladder. I'd been predicting a crash since about 87/88, and, like this time, everyone thought I was crazy, not just for predicting it but also for wanting it. In 1989 my Brother-in-law bought an investment property/holiday home in Dorset, telling me he couldnt lose.

By 1994 prices had fallen about 40% in my area (Essex). I called the bottom of the market (a little premature as it turned out, but not much) sold my house for £95k and bought the one I'm in now for £180k (I'd saved a lot and also took out a big mortgage for those days). I could never have afforded this house prior to the crash.

My brother-in-law? He never got to use the holiday home, had to rent it full-time to help cover the mortgage. It didn't- there was a monthly shortfall. In about 1993 he sold it at about a 15k loss (he'd paid about 85k for it)

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Too young to pay much attention to it. I can remember John Major doing what Brown is doing i.e. blaming global factors.

I also remember my father laughing his socks off at some of the asking prices where he lived (Cheltenham), horrible little rabbit hutches. He was a bit of a wily operator my father, a couple years later bought a really nice house for next to nothing. I think he owns a yatch and a house in Florida now (fallen out of touch for various reasons).

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I ask out of interest whether the people on this site are wise to the coming HPC because they saw the last one or not. I don't wish to reignite some of the venomous intergenerational arguments that there have been on this site. I am always of the opinion that you should view each person as an individual rather than as part of a specific group unless you learn otherwise.

Hope no one minds giving their age. :)

I relocated with work in 1989 and bought a flat in 1990 for £65k. I put the flat on the market in 1994 and got a sale, after about a year, at £45k. I was glad to take the money and run, but it wiped out my earlier gains. Had to get out since I had relocated: but at least the mortgage was not too high and I'd a secure job.

I didn't buy again until 2000. Sold in 2003 to take profit and am now renting waiting for the bubble to burst.

I'm getting bored waiting for the crash thuogh - bring on the 50% falls.

R

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im 35 and remember the crash well for a few reasons.

first my fathers buisness went belly up, Local athorities increased buisness rates bt 3 fold over night in scotland.

I left school in 1986 and to be quite frank 3/4 of my class went and joined the line of the dole queue.There was absolutely no work to be had at all, and especially for a school leaver.

Im sure some of you remember signing on day at your local job centres where the queues used to stretch out the door and along the street.

I was lucky enough to get on a yts scheme working 40 hours a week for 25 pounds:)

This was the reality then in scotland the unemployment in some areas was around 50% with only government paid jobs seeming secure(as they look like now)

In the end at 19 i moved to london which has at the height of the housing crash, but being determined and willing to do anything to work i got by.

Something i realy remember about that time was a panorama program on tv that realy brought it home, it was following people that were having to live on beans on toast just to pay the mortgage, it followed these people about living on absolutely nothing just to survive.Sitting with no electricity and spending absolutely nothing.

This was at the height of the recession, becuase this realy wasint just a house price crash it was everything messing up together and thats what will happen again.

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Most young people today, buying everything on easy credit, have no idea what happened in the 1980s with mass unemployment everywhere apart from the South East.

In many areas you had 8 or 9 men out of every 10 unemployed and there was no point looking for work because there wasn't any.

There is no 'Boys From The Blackstuff' on the BBC nowadays and no Yosser Huges. I used to know loads of Yosser Huges back in the 1980s, several committed suicide out of desperation, and the local parks used to be full every afternoon of mass football matches, 20 or 30 a side per game, due to so many adult males having no work.

It is going to happen again. All those students with massive debts, and their parents supporting them, are going to be in dire straits. Their only 'hope' will be Uncle Same starting a big war which, sadly, I feel we are now heading towards.

I know of two gay men who bought a house in 1989 for 65K and by 1991 they posted the keys back to the Halifax and, supposedly, did a runner when the IRs rose and their house was valued at about 40 - 45K.

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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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