Jump to content
House Price Crash Forum
Sign in to follow this  
apom

The Crash Is Here..

Recommended Posts

Okay.. we are seeing the drops..

The shops struggling.. the dazed investors.

a colleague was crying at work.. he had read the Express article.

He has a massive interest only mortgage for a house he can't afford.

he had made a mistake.. But from the press to the government he had been told that he was taking his last opportunity.

He is already in negative equity.. he knows it.

If they lower intrest rates.. which they may..

and if the market picks up.. which it won't..

Then the debt burden would increase.. pushing on the recession.. bringing down prices.

I see nothing on this site now but depressing stories about people loosing homes.. their dreams dashed.. huge lay offs in the retail sector..

a recession starting..

In years to come what is happening now will seem to be the most blo*dy obvious thing to have happened this decade..

Why is it not obvious to all now...?

Because the good years were very good and very easy to very many..

and how can this end..

We have seen it cleerly as we were watching the ride.. holding the bags and the candy floss.. as people went round and around..

at first we were a little jealous.. then we started to get cross..

Quite frankly.. now I am a little bored..

Come on guys.. your rubbish debt ladden fools.... useless to everyone and the economy.

move aside..

Share this post


Link to post
Share on other sites
Okay.. we are seeing the drops..

The shops struggling.. the dazed investors.

a colleague was crying at work.. he had read the Express article.

He has a massive interest only mortgage for a house he can't afford.

he had made a mistake.. But from the press to the government he had been told that he was taking his last opportunity.

He is already in negative equity.. he knows it.

Is he going to apply the 'first loss is best loss' approach, or compound the mistake by hanging on?

Share this post


Link to post
Share on other sites

People can't do otherwise..

If your home dips by as little as £10,000..

Then if you sold you would need to find £10,000 to close the mortgage..

People who a year ago saw rises of this amount and more as almost "unreal" money.. will see just how real it is when losses of these amounts are dropping their properties below what they owe on them..

7 times salary interest only mortgages with loans that paid the deposits are not uncommon.. and these people will be the overstretched.. the ones hurt first..

The ones hurt first will be the ones who will find it harder to react to the changing circumstance..

Being massively overstretched.. Imagine the feeling having made that sort of choice to see the value of your investment.. your home drop,...

Share this post


Link to post
Share on other sites
We have seen it cleerly as we were watching the ride.. holding the bags and the candy floss.. as people went round and around..

:lol::lol::lol::lol:

:unsure:

Brilliant analogy. Wish I had come up with it myself. Permission to steal and use in conversation.

Share this post


Link to post
Share on other sites
We have seen it cleerly as we were watching the ride.. holding the bags and the candy floss.. as people went round and around..

:lol::lol::lol:

Ding Ding Ding.... Next stop YMCA

Share this post


Link to post
Share on other sites
He is already in negative equity.. he knows it.

My head tells me that NE should in theory be a lot worse than it was in the 90s, because of the sheer level of borrowing and self-cert fraud.

The stories haven't really percolated through to the media in any big way yet, just give it time though.

At this point, I'm looking forward to seeing how the market will cope in the winter, and for next spring I am looking for the rise in asking prices to be a LOT more muted than they were this year. The huge rise in spring asking prices this year was completely unjustified.

Now at this stage, I'm looking for YoY prices not only to go negative by the main indices but to stay negative - this will be the test as to whether we have a real crash or not.

Share this post


Link to post
Share on other sites
:lol::lol::lol::lol:

:unsure:

Brilliant analogy. Wish I had come up with it myself. Permission to steal and use in conversation.

Feel free..

I feel bad for these people..

I felt bad for them even when mewers were taking the P*ss out of my car.. Secure enough that I had actually paid for mine..

But I have been frustrated also.. the economically niave on a direct course for financial disaster have got in my way..

Having to watch as they pressed self destruct in the never ending tail of "Look.. all this free money... What free money? Where did all my free money go...? is my house worth less again? how do I pay for this mortgage....? what do I do.. ?.. help...?"

Just hurry up already....!!!! arrrgh..

there is now no free money.. there was never any free money... if people made money.. it was only because others were niave and kind and stupid enough to give it to them...

Anyyone who is relying on.. or considers.. any rise in prices of housing to be money that they own.. will be entering into hard times..

Whatever anyones thoughts of the crash are now...

In a few years it will be the most painfully obvious thing that could have even happened..

Hind sight..?

No butthead..

It does not require hindsight if its happened before countless times..

It just requires...

a small economic understanding.

Share this post


Link to post
Share on other sites

Before you all rush for the violins:

A recession is unfortunate but feeling sorry for one or a few people who are going to get slammed because they believed all the hype and over-mortgaged themselves is not exactly looking at things from a broad view. It is NOT a disaster, quite the opposite. There might be a few thousand people who will "suffer", mainly through rather stupidly mortgaging themselves to the hilt. But there will be I would guess HUNDREDS OF THOUSANDS of others who having been completely shut out from housing and refused to play the pyramid game, and DIDN'T mortgage themselves to the hilt, who will welcome the current scenario with open arms, because there is a distinct possiblilty they might one day get a roof over their heads that they can actually AFFORD.

What would we rather see, a few people saved from their own silliness, or a well overdue wake up call to all those who've spent YEARS playing the market and producing the vast debt, paper money, false economy and insanely pushing up prices for every one else.

VP

Edited by VacantPossession

Share this post


Link to post
Share on other sites
Before you all rush for the violins:

A recession is unfortunate but feeling sorry for one or a few people who are going to get slammed because they believed all the hype and over-mortgaged themselves is not exactly looking at things from a broad view. It is NOT a disaster, quite the opposite. There might be a few thousand people who will "suffer", mainly through rather stupidly mortgaging themselves to the hilt. But there will be I would guess HUNDREDS OF THOUSANDS of others who having been completely shut out from housing and refused to play the pyramid game, and DIDN'T mortgage themselves to the hilt, who will welcome the current scenario with open arms, because there is a distinct possiblilty they might one day get a roof over their heads that they can actually AFFORD.

What would we rather see, a few people saved from their own silliness, or a well overdue wake up call to all those who've spent YEARS playing the market and producing the vast debt, paper money, false economy and insanely pushing up prices for every one else.

VP

Totally agree - but it frustrates me to hear 'experts' calling for interest rate cuts in order to help out those who foolishly over-borrowed...

Share this post


Link to post
Share on other sites
Guest Riser
I don't think the 'experts' are too worried about those who foolishly over-borrowed. They are more interested in being able to reel-in a new batch of suckers so that they can keep their jobs.

I suspect we are actually past that stage, the lenders know that the "new batch of suckers" present an ever increasing risk to reward ratio, the fiat money they are lending may not actually cost them anything but the cost of recovering bad debt hits the bottom line.

Barclays gave an indication of where we are heading now, increasing interest rates by 2% to offset bad debt, this is the start of the credit squeeze and it is going to get vicious. People are going to realise the banks are not all smiles and spaceships, they are selfish hungry money monsters who could not give a stuff for the man in the street.

Share this post


Link to post
Share on other sites

Remember that Barrett the slimey sniggering Irish/Canadian huckster who runs Barclays Bank told the Parliamentary Select Committee investigating the credit card companies flim flam loan sharking tactics that only mugs and suckers borrow money on their Barclaycards.

Just watch the other big credit card chancers and scammers follow suit. Higher interest rates, Annual charges, roll over late and exceeding limit charges. They are going to put their mug punters through the mincer

Share this post


Link to post
Share on other sites
Guest STR2004
Before you all rush for the violins:

.... There might be a few thousand people who will "suffer", mainly through rather stupidly mortgaging themselves to the hilt. But there will be I would guess HUNDREDS OF THOUSANDS of others who having been completely shut out from housing and refused to play the pyramid game ....

VP

I doubt that £1.1 trillion of UK debt (circa £900 billion in mortgages) equates to a few thousand people over extending themselves. It's the masses that have over-extended themselves and unfortunately for us Gordo and the BOE are fully aware of it meaning GB will do everything within his power to prevent (well try to) things getting nasty. I know there are many thousands of FTBers who are simply priced out of the market - even I am and I have a sizeable deposit. Every new headline demanding rate cuts to ease the burden of those in massive debt infuriates me but it seems that GB and TB are on their side. I assume that this is because those in debt are in the majority and politically that's what counts?

Share this post


Link to post
Share on other sites
Before you all rush for the violins:

A recession is unfortunate but feeling sorry for one or a few people who are going to get slammed because they believed all the hype and over-mortgaged themselves is not exactly looking at things from a broad view. It is NOT a disaster, quite the opposite. There might be a few thousand people who will "suffer", mainly through rather stupidly mortgaging themselves to the hilt. But there will be I would guess HUNDREDS OF THOUSANDS of others who having been completely shut out from housing and refused to play the pyramid game, and DIDN'T mortgage themselves to the hilt, who will welcome the current scenario with open arms, because there is a distinct possiblilty they might one day get a roof over their heads that they can actually AFFORD.

What would we rather see, a few people saved from their own silliness, or a well overdue wake up call to all those who've spent YEARS playing the market and producing the vast debt, paper money, false economy and insanely pushing up prices for every one else.

VP

Absolutely SPOT ON!

Anyone who saw Repossession, Repossession, Repossession on 'Tonight with Trevor McDonald' will know that a lot people have been stupid! One couple MED'd to pay off debts. They didnt actually pay off the debts - they bought a car, went on holiday etc and suddenly found that their Mortgage went up! - The cheek of it, I thought it was FREE? On top of that they still had to repay the debts that they MEW'd for.

I have no sympathy for stupidity. There is a simple rule in life that I was taught at about 4 years old.

YOU GET NOTHING.. FOR NOTHING!

Stupid people your day of reckoning has come but I'm buggered if I want to see houses remain high to protect these knobs! They have made their bed - now sleep in it (if its not been reposessed that is :P ).

The sensible people who have refused to join this scam - we will reap our rewards, admittedly at the expense of others but we have suffered at the expense of others too - PAYBACK TIME!!!!

MOVE ALONG...MOVE ALONG..... NEXT RIDE.......... :lol:

Edited by teddyboy

Share this post


Link to post
Share on other sites

Know a couple who sold up in 2004 (they have been at the game for a few years and I can truly say their success was a bit ugly at times as they changed and became a pain in the neck) Now, this house was bought in a great area and they did it up as the husband was a builder. I'm sure they must have made a lot of money. The reason they sold was to buy land and build a house purely as a business venture. 'Raise capital', they said. The land though was taken out on a high mortgage. The capital was to build the house. This land didn't even have planning permission :blink: They had a very good friend in planning you see and they would sort it out. However, the planning permission did not go to plan and they had to wait quite a while. The house has now only started to go up ( it should have been finished in July) They have also rented a house all this time so more money down the drain.

This house is up north and will be at the high end of the market (not going to mention amounts as the impact can change depending on where you live) They will probably need to advertise in the broadsheets. It should be ready to sell by christmas (their words)

I just think it is going to be one big painful failure. I may be wrong but the market around here has slowed a lot. I can imagine the type of people they will be marketing their house to will be make it their business to be in the know about the property market and this house will just languish on the markets for months unless they lower their price.

It hasn't happened yet - it may even be a success.

The Scotland on Sunday had a double page spread on Brown and the economy. It was also very bearish and gave you tips on how to 'batten down the hatches'. The headlines are here (daily express). If I was them I would be very worried.

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • 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.