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slater14

Just Got This Email Through - Not Nice!

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Courtesy of Money Week - and that lovely Merryn Somerby Webb.

The worst may be over for house prices, says Clare Francis in The Sunday Times, who predicts that the "doomsters" have over estimated the threats. We're not so sure.

As the chart shows, 30,000 families were taken to court by their mortgage lenders between July and September, and orders for repossession rose by two-thirds to 19,687 - almost doubling from summer 2003.

And don't forget that in October 1990, The Times claimed the long slide in house prices was already over. It wasn't. It lasted another five years.

Dear oh dear....

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Edited by slater14

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If you want make yourself feel better, go look at the old news items from the last crash. The media continually called the bottom all the way through, but 'rome' still burned.

Do you think they will behave differently this time?

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Since around 17% of this 1.2 trillion consumer debt mountain is unsecured credit card debt, and debt repayment to income ratios are at nosebleed levels do not be surprised to see even more repossessions.

However, just because defaults by ORDINARY homeowners are increasing, doesn't mean house prices will fall back significantly. The reason is that because of the exteme population growth and fixed housing stock, investors can take advantage of tax breaks to purchase these homes and rent them out even in the face of rising interest rates.

If anything this merely hastens the polorisation of the credit market from ordinary buyers to investors and underlines the future.

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The worst may be over for house prices, says Clare Francis in The Sunday Times, who predicts that the "doomsters" have over estimated the threats. We're not so sure.

Dear oh dear....

Interesting point raised by Andrew Farlow (second paper); in the media bulls are always referred to as "experts" and bears as "doomsters".

With bias like this can we believe anything we read in the media?

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Interesting point raised by Andrew Farlow (second paper); in the media bulls are always referred to as "experts" and bears as "doomsters".

With bias like this can we believe anything we read in the media?

I must admit, I'm very impressed with the Money Week people. They have been talking about housing since I got my first issue (around 5 months ago) and all they've been saying for the time I've subscribed is:

it looks like a bubble, it smells like a bubble, it tastes like a bubble - put your money elsewhere.....for now.

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  • 302 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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