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Pluto

Crash Only Happen When Forced Sales Kick In

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I can remember forced sales and how they accelerated the crash of the late 80's.

My brother in-law put his house keys in an envelope and shoved them through the Halifax's door at 8PM on a Saturday night. He wasn't the only one.

Forced sales will kick when jobs start to dwindle. A redundancy starts the whole slippery slope.

1) Lose Job;

2) Get in mortgage arrears;

3) Problems start to appear between couples (it's amazing how financial problems tear couples apart);

4) Put house up for sale (no takers)

5) Get desperate..negative equity now

6) Turn in Keys.

This is how the 2006 Housing Crash will go. At the moment you have most homeowners in denial. In denial mostly about the economy. The really do not see the link between house prices and the economy. It happened in the dot-com bubble. Most folks did not see the link there between the equity price and the company.

This crash, in my opinion will be worst than any we have seen. It seems each economic bubble gets bigger and so does the bust.

No more boom or bust my a.rse.

Tick..Tock...Tick....Tock

Edited by Pluto

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No more boom or bust my a.rse.

Tick..Tock...Tick....Tock

Agreed. Seen 3 properties up for "auction" in my area of North London in the past couple of months. Haven't seen that sort of thing in more than 5 years, so it shows things are turning. The number of For Sale signs is all over the place - lot's unsold and coming off till next years (obvious, to sellers) Spring Bounce, but now more stuff coming on where people are desperate to get rid. Quite a few properties half way through redevelopment up for sale to, as "Property Ladder" types realise they are losing more and more every day on the damn things.

Nomadd

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I clearly remember it all kicking off when it hit the Thames Valley and suddenly Thames Valley firms were closing down by the shed-load. Prior to that all the millions of lost jobs in Wales, Scotland and the North of England did not mean much more than figures to the Media - who seemed to reel out the latest jobless total as if they meant nothing - but when it hit the Thames Valley it was suddenly a collapse.

HPs cwent down almost overnight but, of course, they had been down in most oft he UK for a decade.

1. Am seeing auctions in this part of the World now. Haven't seen that for 4 or 5 years.

2. Remember people who did post their keys back to the lender.

This crash, in my opinion will be worst than any we have seen. It seems each economic bubble gets bigger and so does the bust.

The Economist reckons this is the biggest bubble of them all. I am hoping for a late Autumn rally and then intent to get my cash out of my PEP/ISA.

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The Economist reckons this is the biggest bubble of them all. I am hoping for a late Autumn rally and then intent to get my cash out of my PEP/ISA.

Me too. Getting nervous now. Could end up following the crowd into the abyss. I think I'll be talking to my insurance man over the next day or so.

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I believe that this time around the majority of forced sellers won't be owner occupiers handing back the keys. It will be the swathes of Buy-To-Lets (including investment clubs) whose 'in it for the long-term' strategy is unsustainable without capital growth to offset negative cash flows.

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There are forced sales and forced sales. As executor, I am about to sell my late father's flat in the NW for nearly three times the £40k he paid for it in 1996. I am accepting an offer 15% below the original summer asking price (have dropped that price once since June after I told the Agent he'd overpriced it and he had to reduce it - voila -a sale!). Probate sale, no need to hang on for "best" price (!) - glad to get it off my hands and distribute the money to my siblings.

When we complete I will have just set the new market price for that block and road - which looking at NetHousePrice.com is the same as flats in that block there were going in... APRIL 2003!

We are all talking about it (HPC), many are seeing it, I am DOING IT.

Edited by Tempest

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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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