Starcrossed Posted December 11, 2005 Share Posted December 11, 2005 When I first found this site 18 months ago, and ever since, there have been debates about the general impact of a crash in house prices on the economy and how many individuals will be financially ruined. There was at this time a fairly common view on here that only a small percentage of home owners will lose their houses directly as a result of lower prices because most home owners have the cushion of equity in any houses bought up to 2002/03. Of course, the counter argument is that BTL and MEW make the difference this time and will be the ruin a lot of people. It crossed my mind earlier today that this 18 month period in which prices have been nationally flat (with a possible slight decline) has seen ever increasing numbers of people buying at the peak and taking on big mortgages. For every month that goes by at this level of prices, thousands of people are taking on a mortgage at the peak price and adding to the impact of declines when they occur. It would have been better for all concerned if prices had begun to drop quickly last year - this would have saved many people that have subsequently bought from potential financial ruin. Quote Link to comment Share on other sites More sharing options...
since the beginning Posted December 11, 2005 Share Posted December 11, 2005 Unless mug 1 is being replaced by mug 2. Quote Link to comment Share on other sites More sharing options...
enworb Posted December 11, 2005 Share Posted December 11, 2005 Somone forgot to tell Joe public about the supposed crash. That's why there hasn't and won't be a crash! It's still most peoples dream to own a home, at almost any cost. Quote Link to comment Share on other sites More sharing options...
BearLite Posted December 11, 2005 Share Posted December 11, 2005 Somone forgot to tell Joe public about the supposed crash. That's why there hasn't and won't be a crash! It's still most peoples dream to own a home, at almost any cost. And then it turns into a nightmare because they have overstreched themselves to buy at the top of the market. Quote Link to comment Share on other sites More sharing options...
apom Posted December 11, 2005 Share Posted December 11, 2005 Mortgage lenders are now saying that BTL are too risky because of an oversupply.. and BTL's have been stopped by at least one big lender for these new builds.. They quote declining prices.. Sipps were also a big customer to these new builds.. What percentage of poptential customers do you think the new build market lost this week.? Quote Link to comment Share on other sites More sharing options...
Take me to the cleaners Posted December 11, 2005 Share Posted December 11, 2005 1/3 of people paying more than 1/3 of their income? Quote Link to comment Share on other sites More sharing options...
Fancypants Posted December 11, 2005 Share Posted December 11, 2005 When I first found this site 18 months ago, and ever since, there have been debates about the general impact of a crash in house prices on the economy and how many individuals will be financially ruined. There was at this time a fairly common view on here that only a small percentage of home owners will lose their houses directly as a result of lower prices because most home owners have the cushion of equity in any houses bought up to 2002/03. Of course, the counter argument is that BTL and MEW make the difference this time and will be the ruin a lot of people. It crossed my mind earlier today that this 18 month period in which prices have been nationally flat (with a possible slight decline) has seen ever increasing numbers of people buying at the peak and taking on big mortgages. For every month that goes by at this level of prices, thousands of people are taking on a mortgage at the peak price and adding to the impact of declines when they occur. It would have been better for all concerned if prices had begun to drop quickly last year - this would have saved many people that have subsequently bought from potential financial ruin. sad but true. Try to fight the market and it will only hurt you even more. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted December 12, 2005 Share Posted December 12, 2005 Somone forgot to tell Joe public about the supposed crash. That's why there hasn't and won't be a crash! Hrm, nobody told the public about the dotcom crash before March 11th 2000 either, thank god that didn't happen, in fact thank god nothing can happen unless the public are specifically told about it before hand. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted December 12, 2005 Share Posted December 12, 2005 god this is a dull forum... Quote Link to comment Share on other sites More sharing options...
Catch22 Posted December 12, 2005 Share Posted December 12, 2005 Hrm, nobody told the public about the dotcom crash before March 11th 2000 either, thank god that didn't happen, in fact thank god nothing can happen unless the public are specifically told about it before hand. Thats a really good answer Buying Bear, it's abit like saying nobody would buy the top of the market if they knew it was the top of the market. Quote Link to comment Share on other sites More sharing options...
dunroamin Posted December 12, 2005 Share Posted December 12, 2005 god this is a dull forum... thats coz its a forum dedicated to discussing whether something that has already happened will happen. we should all wean ourselves off it and move on really ...... Quote Link to comment Share on other sites More sharing options...
munro Posted December 12, 2005 Share Posted December 12, 2005 god this is a dull forum... Yep...that's what I've been thinking today too Fred...'n I'm sure it's because something has changed. Not sure quite what it is but I'm sure the smug gits have had their day. Arf arf. Now what was that classic post about Charlie and the little old lady? That one'll be with me for years...!! Quote Link to comment Share on other sites More sharing options...
Once in a lifetime Posted December 12, 2005 Share Posted December 12, 2005 god this is a dull forum... Fred, I think you got the ability to login and come back as a super-troll. (to get the forums juices flowing again) P.S. I miss laurejon (R.I.P.) Quote Link to comment Share on other sites More sharing options...
Michael Posted December 12, 2005 Share Posted December 12, 2005 Fred, I think you got the ability to login and come back as a super-troll. (to get the forums juices flowing again) P.S. I miss laurejon (R.I.P.) Laurejon and ZZG and even BBB greatly missed......... Quote Link to comment Share on other sites More sharing options...
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