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House Price Crash Forum

During The Last Crash


FTBvish

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HOLA441
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HOLA442

I'd like to know this. What was the 'word on the street' at the time?

I keep asking those who lived though it, but I don't know anyone who can't give a real answer. All I get is stupid answers like: 'house prices halfed in a few weeks' ( :lol: ), 'house prices won't fall this time' (even when I don't ask about today's house prices) and 'they will not be a recession'... blah blah blah...

The info I can get is from the 'net (mainly this website and its links).

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HOLA443
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HOLA444
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HOLA445

You get the shivers reading some of that!

OMG. I've gone cold all over. Is it pinned somewhere. Moderators please pin on the home page.

It brings it all back. I knew my memory was right. But that is so close to what we are experiencing now. Its scary and also because it is so like...'groundhog day'. :blink:

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HOLA446
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Guest Charlie The Tramp

But what was the word on the street? Did people go through the stages? Denial - panic etc etc?

Those in NE and facing repossession....panic, those selling....denial, those buying.. hold back IRs too high prices comng down.

The rest not a clue what was happening more interested in the storylines of the Soaps.

Well that`s how I saw it.

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HOLA449

I have read all of those... very interesting.

But what was the word on the street? Did people go through the stages? Denial - panic etc etc?

At first it was ignorance. We partied while there was the odd piece in the press. Then we partied while grown ups(those in their forties) had serious conversations, and told us we better save some of our earnings. Then when the parties stopped we were confused. Then in denial as the press said it was just a blimp. When we got the money in stops and starts...we partied some more.

Then the money stopped for good. The party was over...recession was the new word...and we were in shock. Then we were frightened...the world turned nasty. People got nasty. Company owners got very nasty. Freinds became scarce. Then we got very angry and this was the bottom of the market. We became hard, suspicious, paranoid. We could not trust anyone.

No-one had warned us...or had they? :o

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HOLA4410

I was living in London in the early 90s. My job required flexibilty, so buying was not even on the radar, even though I earned a decent salary with a good potential for future earnings with very very secure prospects of employment, recession or no. Therefore, I was totally unaware of the market. However, I lived in a studio flat(bedsit, but it was really really nice, I was single at the time) in Islington. The couple I rented off had got into negative equity on that place, but she'd got pregnant, so they needed a 2 bed flat. The only way they could do it was rent this flat out. They bought in Stoke Newington. The full significance of this situation did not register at the time, although I did think "Oh dear". I'm sure they weren't the only ones in that situation at the time.

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HOLA4411
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HOLA4414

OMG. I've gone cold all over. Is it pinned somewhere. Moderators please pin on the home page.

It brings it all back. I knew my memory was right. But that is so close to what we are experiencing now. Its scary and also because it is so like...'groundhog day'. :blink:

Interesting point

In 2005, i'm older and wiser, I don't read that many papers and I have a much better idea of how the markets work

In 1989 I also didn't read that many papers, but I was younger and less savvy and I was sitting on over £1 million in equity in my properties

These weren’t BTL’s, but old Victorian houses that no one else would buy and we developed them into habitable flats (for a profit)

Then we suddenly made profit over and above, what we would expect from our hard work in the shape of HPI

I couldn’t complain, but I did say consistently throughout the late 80’s

“This is wrong”

Ball park figures, we would buy an old house, apply for planning permission, do the hard work and make 50K for the hard work and our investment, but suddenly, we made another 50K because of HPI

I knew the market ‘MAY’ have peaked in August 1988 and actually advised my sister in law NOT to buy

I sort of knew things were going down a bit, but regardless I did not cash in at the right time

That lost me about 1 million, which if you’re only 27 years old is a bit of a shock, but coming to the POINT

Many people on this site can see the obvious and if I could have seen it last time it would have helped, but you have to bear (excuse the pun) in mind, that most people are not as clued up about the market/economics until it hits them in the pocket

This will happen – have NO doubt

But a little patience is required – by comparison to the last HPC, we are still in 1989 and as the above should illustrate, in 1989 I would have been in total denial/ignorance

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