Jump to content
House Price Crash Forum
Bruce Banner

Prices Have Fallen And Now There Are Bargains To Be Had.

Recommended Posts

Time to "snap up a bargain" is the rally cry of the stupid.

It looks like a couple of my owner occupier neighbours, in denial regarding house prices, have clubbed together to buy a flat in the complex that has been on the market for over six months with the price down 20%. Of course, it was overvalued to start with ;).

I think the next two or three years will be interesting, I'm expecting to see six months of falls followed by a month or two of stagnation as the stupid pile in again, another six months of falls, and so on....

Share this post


Link to post
Share on other sites

It looks like a couple of my owner occupier neighbours, in denial regarding house prices, have clubbed together to buy a flat in the complex that has been on the market for over six months with the price down 20%. Of course, it was overvalued to start with ;).

Share this post


Link to post
Share on other sites

Even though the average house price rose by 33% from 1987 to 1997, and was purposefully manipulated to rise by 250-264%, [dependent on whether you believe the halifax, cml or the nationwide figures] from 1997 to 2007

There are houses near to me, which rose by 300% in that same ten year period. And are still priced at that.

Some of the estate agents would undoubtedly be prepared to call their vendor, on behalf of an interested party, to offer a 20% discount.

But so what?

Even with 50% reductions, these houses would still have risen by 150% in ten years. [Yet they needed to steal our money to bail out the banks, to keep them so massively overinflated]

Whereas local wages may have gone up by 3 or 4 grand.........

When they do drop by 50%, unfortunately many will jump in.

The game is rigged. Its theft.

[With the web, more and more people are going to realise this, and some unforseen backlash will occur at some point in the future, against our political corporate masters]

Youve gotta hate this country.

By that time, of course, I'll be a dead or a bitter old man, having worked most of my life as a debt slave, to pay to keep other peoples houses massively overinflated.

Already served over ten years paying for someone else's mortgage and retirement.

Edited by Dan1

Share this post


Link to post
Share on other sites

Prices Have Fallen And Now There Are Bargains To Be Had

Not where I live :(

150k houses I'm looking at have risen by 20k in the last 18 months.

Fingers crossed they'll fall but I've been waiting a long time and no sign of it so far

Share this post


Link to post
Share on other sites

Not where I live :(

150k houses I'm looking at have risen by 20k in the last 18 months.

Fingers crossed they'll fall but I've been waiting a long time and no sign of it so far

Do you live in Dylan?

Share this post


Link to post
Share on other sites

Who posted in the comments as Sibley?

9. I wish there were a Spring bounce in Maidstone. My properties dropped by over 20% since peak 2007 prices and I'm in negative Equity struggling to pay my mortgage. Luckily Ting Tong's started working nights to help 'ends meet'

- Sibley, Bangkok Posted: 29 March 2011, 1:25pm

Edited by Caveat Mortgagor

Share this post


Link to post
Share on other sites

Who posted in the comments as Sibley?

9. I wish there were a Spring bounce in Maidstone. My properties dropped by over 20% since peak 2007 prices and I'm in negative Equity struggling to pay my mortgage. Luckily Ting Tong's started working nights to help 'ends meet'

- Sibley, Bangkok Posted: 29 March 2011, 1:25pm

:lol::lol::lol:

Share this post


Link to post
Share on other sites

Even though the average house price rose by 33% from 1987 to 1997, and was purposefully manipulated to rise by 250-264%, [dependent on whether you believe the halifax, cml or the nationwide figures] from 1997 to 2007

There are houses near to me, which rose by 300% in that same ten year period. And are still priced at that.

Some of the estate agents would undoubtedly be prepared to call their vendor, on behalf of an interested party, to offer a 20% discount.

But so what?

Even with 50% reductions, these houses would still have risen by 150% in ten years. [Yet they needed to steal our money to bail out the banks, to keep them so massively overinflated]

Whereas local wages may have gone up by 3 or 4 grand.........

When they do drop by 50%, unfortunately many will jump in.

The game is rigged. Its theft.

[With the web, more and more people are going to realise this, and some unforseen backlash will occur at some point in the future, against our political corporate masters]

Youve gotta hate this country.

By that time, of course, I'll be a dead or a bitter old man, having worked most of my life as a debt slave, to pay to keep other peoples houses massively overinflated.

Already served over ten years paying for someone else's mortgage and retirement.

You aren't working to keep everyone's house price massively inflated for them. You are working so that bankers can have larger bonuses and our corrupt politicians can take their brown envelopes from them.

If people have bought a long time ago and are mortgage free they are OK.

The banks are making their money out of anyone buying since early boom.

£100k house mortgage was £600 a month, now the house is say £250k the next people buying it need a £1,600 mortgage. An extra £1k a month for the bank.

Share this post


Link to post
Share on other sites

You aren't working to keep everyone's house price massively inflated for them. You are working so that bankers can have larger bonuses and our corrupt politicians can take their brown envelopes from them.

If people have bought a long time ago and are mortgage free they are OK.

The banks are making their money out of anyone buying since early boom.

£100k house mortgage was £600 a month, now the house is say £250k the next people buying it need a £1,600 mortgage. An extra £1k a month for the bank.

+1

Doesn't matter how many times I tell people this they look at me as if I am mad!

Share this post


Link to post
Share on other sites

You aren't working to keep everyone's house price massively inflated for them.

Eh?

Without taxpayer funds, Lloyds would be forced to flog their repossessed house's at auction, for the maximum bid they attract, rather than being able to keep a massively overinflated undisclosed price tag on it, and withdraw it and sit on it indefinitely.

If the government had not bailed out the banks with taxpayer funds, the banks assets would not have kept their overinflated value would they?

Edited by Dan1

Share this post


Link to post
Share on other sites

+1

Doesn't matter how many times I tell people this they look at me as if I am mad!

They look at you as if you are mad because they make a "profit" when house prices rise.

Ignoring legal fees, stamp duty, surveys, moving costs etc.

If they bought at £100k and are selling at £150k they think they have made £50k i.e. 50% HPI

If they are then buying one at £240k they have a £90k gap (£240k - £150k) to find i.e. debt to service, on top of any existing debt on the first house.

But the £240k house would have been just £160k without the same 50% HPI

That would have been just a £60k gap (£160k - £100k) to find.

The 50% "profit" is a 50% increase in the debt they have to service (£90k up from £60k)

Over the length of a mortgage at say 6% they will have to pay nearly double that

All that extra debt to service is extra profit for the banks. At 6% over 25 years each £1 borrowed costs £1.92 to repay. 92% for the bank.

Share this post


Link to post
Share on other sites

Time to "snap up a bargain" is the rally cry of the stupid.

It looks like a couple of my owner occupier neighbours, in denial regarding house prices, have clubbed together to buy a flat in the complex that has been on the market for over six months with the price down 20%. Of course, it was overvalued to start with ;).

I think the next two or three years will be interesting, I'm expecting to see six months of falls followed by a month or two of stagnation as the stupid pile in again, another six months of falls, and so on....

...tell them it's a false dawn and expect further falls for years to come....and tell them you don't want to know who they are backing at the Grand National .... :rolleyes:

Share this post


Link to post
Share on other sites

£100k house mortgage was £600 a month, now the house is say £250k the next people buying it need a £1,600 mortgage. An extra £1k a month for the bank.

For someone who's been on this site for 3 years you've sure made a great effort not to read any of it.

Share this post


Link to post
Share on other sites

Eh?

Without taxpayer funds, Lloyds would be forced to flog their repossessed house's at auction, for the maximum bid they attract, rather than being able to keep a massively overinflated undisclosed price tag on it, and withdraw it and sit on it indefinitely.

If the government had not bailed out the banks with taxpayer funds, the banks assets would not have kept their overinflated value would they?

I meant it wasn't done just to help them. Yes people have had their houses values kept higher than they should be but that was done to help the banks not them. The main sufferers are those people who are buying at bubble prices because they have so much more debt to service which is great for banks.

Share this post


Link to post
Share on other sites

+1

Doesn't matter how many times I tell people this they look at me as if I am mad!

Most people would argue that paying your own mortgage off is better than paying your landlord's one off...

OK, I'm playing devil's advocate, but I never intended to rent for 5 years, as I have. My rent is the equivalent to a 250k mortgage.

I regret not buying two years ago when prices around here fell by around 20%. We're now ABOVE 2008 peak prices, thanks to rate cuts that saved the market and which decimated my savings that were paying most of my rent.

I could have paid off 50K of that by now and enjoyed creating a home for my expanding family.

Now I am sat in a cramped, rented flat with prices rising faster than I can save.

It's utterly s h i t.

And when I see posts on here heralding 'bargains to be had' and 'prices falling 30%', I simply think, 'if only'.

What will it take to finally take London prices down, ffs?

(edit for spelling and extra ranting...)

Edited by red

Share this post


Link to post
Share on other sites

...tell them it's a false dawn and expect further falls for years to come....and tell them you don't want to know who they are backing at the Grand National .... :rolleyes:

I wouldn't dream of getting involved, I just smile and say 'good morning', or 'good evening'.

I think they are a little envious of my four to five months holiday a year, while they are struggling with their mortgages, both of them having bought in the last two years.

The flat was bought from one of those 'home buying companies' who bought it two years ago from a chap who couldn't keep up with the mortgage, I think they probably made a loss, or at best broke even.

Share this post


Link to post
Share on other sites

Most people would argue that paying your own mortgage off is better than paying your landlord's one off...

If you live in a 200k house you owe 5% of it per year to the landlord.

If you buy a 200k house with leverage you owe 5% of it per year to the bank.

If you buy a 200k house with your own cash you lose 5% of potential interest per year.

Capital appreciation or depreciation are the kickers for property. Do you want your cash in bricks, or gold, or something else?

Like with any other market. Buy the dips and sell the peaks. Just take into consideration your own happiness, security, do you want to be able to paint the wall a different shade of vanilla? How much is that worth to you?

Edited by fadeaway

Share this post


Link to post
Share on other sites

You should tell these people the story of the old bull and the young bull at the top of a hill.

Just for anyone else like me who hasn't heard the proverb..

The old bull and the young bull were standing at the top of the hill overlooking a paddock of many gorgeous young heifers. The young bull said, "Let's charge down the hill, knock over that fence and service one of those heifers each". The old bull wisely replied, "Why don't we saunter down the hill, open the gate, take a sip at the water trough and then service ALL of those heifers?"

The lesson to be learned here is that instead of being young, immature and stupid, quickly ruining any shot you have, you should play your game like a gentleman; slowly and with much thought.

Wise words indeed :)

Share this post


Link to post
Share on other sites

If you buy a 200k house with leverage you owe 5% of it per year to the bank.

And if interest rates go up to 10% then you owe them 20% of your £100,000 house.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

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.