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Crash 2007

Crash 2007

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The STRs are making a big mistake in thinking that a property crash will somehow make property prices cheap when this is clearly not the case since property is expensive even during an economic slump.

The STRs believe that it will be easy to buy a property on the cheap during a crash in the hope of making alot of money by selling the property for a much higher price in the next property boom but the flaw in this argument is that there is unlikely to be another property boom for at least ten years which means that if the STRs buy a property soon after a crash they will effectively be spending alot of money in buying an asset that will not be appreciating in value for many years.

Buying a property during a crash will end up being a financial liability because the value of the property is likely to languish at the bottom for many years and will not rise in value to keep up with inflation, which means that the buyer will be continually losing money in having invested so much in an asset that is not rising in value to keep up with inflation.

The STRs would like to see a property crash to occur so that they can buy a property on the cheap but the major drawback is that when the crash does finally happen many STRs will be put off from buying a property even though house prices will be low because many STRs will be badly affected by any economic slump and will find it difficult to earn a living during a recession in which businesses are closing and going bankrupt and people are being thrown out of work and many STRs will face job insecurity and some will lose their job and find it difficult to find another job.

The STRs only chance of getting back onto the property ladder is if a severe recession occurs that manages to bring house prices back to normal which means that the STRs can look forward to going house hunting during an economic slump.

The STRs are clearly amateur property speculators who think that they can make it as serious property investors, but serious property investors know that timing is crucial and that there is no point in buying a property if it is not likely to appreciate in value for many years because it is just tying up money in an asset that is not rising in value to keep up with inflation which means that buying a property during a crash will end up losing money because the value of the property will be languishing whilst the value of the property will be continually being eroded away by inflation.

The STRs appear completely clueless about the property market and lack the necessary knowledge and understanding about the economic cycle and the basic way the economy works. The STRs are just fumbling around in the dark and don't have the foggiest idea what they are doing and are desperately hoping for events to go their way but this is just plain wishful thinking.

The STRs don't have any idea what the trigger will be that will cause a property crash; they don't know when the crash will occur; by how much house prices will fall; and when the trough in house prices will be reached. What is even worse is that the STRs are hoping to buy a property on the cheap during a crash without knowing when the next housing boom is likely to occur and by how much house prices will rise in the next property boom.

With all this uncertainty it makes you wonder why the STRs are bothering waiting for a property crash to occur because the STRs don't know when the next house price boom will occur and it is likely that the next property boom won't occur until a long and deep recession has occurred that has completely unravelled and unwound the current boom which will take many years.

It is only when the next recession has succeeded in bringing down the current economic boom and flattened the economy so that it has removed all the excesses and distortions of the boom and purged the economy of all the inflationary excesses of the boom, only then will the economy be in a state where another boom can then take place causing another housing boom to begin.

It is absolutely crazy and insane to buy a property during a crash when property prices are expected to be falling or languishing at the bottom for many years. Sensible property investors buy property when the economy is about to enter another boom that will cause house prices to rise rather than buying property when the economy is entering a long and deep recession that will keep house prices depressed for many years.

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The STRs are making a big mistake in thinking that a property crash will somehow make property prices cheap when this is clearly not the case since property is expensive even during an economic slump.

The STRs believe that it will be easy to buy a property on the cheap during a crash in the hope of making alot of money by selling the property for a much higher price in the next property boom but the flaw in this argument is that there is unlikely to be another property boom for at least ten years which means that if the STRs buy a property soon after a crash they will effectively be spending alot of money in buying an asset that will not be appreciating in value for many years.

Buying a property during a crash will end up being a financial liability because the value of the property is likely to languish at the bottom for many years and will not rise in value to keep up with inflation, which means that the buyer will be continually losing money in having invested so much in an asset that is not rising in value to keep up with inflation.

The STRs would like to see a property crash to occur so that they can buy a property on the cheap but the major drawback is that when the crash does finally happen many STRs will be put off from buying a property even though house prices will be low because many STRs will be badly affected by any economic slump and will find it difficult to earn a living during a recession in which businesses are closing and going bankrupt and people are being thrown out of work and many STRs will face job insecurity and some will lose their job and find it difficult to find another job.

The STRs only chance of getting back onto the property ladder is if a severe recession occurs that manages to bring house prices back to normal which means that the STRs can look forward to going house hunting during an economic slump.

The STRs are clearly amateur property speculators who think that they can make it as serious property investors, but serious property investors know that timing is crucial and that there is no point in buying a property if it is not likely to appreciate in value for many years because it is just tying up money in an asset that is not rising in value to keep up with inflation which means that buying a property during a crash will end up losing money because the value of the property will be languishing whilst the value of the property will be continually being eroded away by inflation.

The STRs appear completely clueless about the property market and lack the necessary knowledge and understanding about the economic cycle and the basic way the economy works. The STRs are just fumbling around in the dark and don't have the foggiest idea what they are doing and are desperately hoping for events to go their way but this is just plain wishful thinking.

The STRs don't have any idea what the trigger will be that will cause a property crash; they don't know when the crash will occur; by how much house prices will fall; and when the trough in house prices will be reached. What is even worse is that the STRs are hoping to buy a property on the cheap during a crash without knowing when the next housing boom is likely to occur and by how much house prices will rise in the next property boom.

With all this uncertainty it makes you wonder why the STRs are bothering waiting for a property crash to occur because the STRs don't know when the next house price boom will occur and it is likely that the next property boom won't occur until a long and deep recession has occurred that has completely unravelled and unwound the current boom which will take many years.

It is only when the next recession has succeeded in bringing down the current economic boom and flattened the economy so that it has removed all the excesses and distortions of the boom and purged the economy of all the inflationary excesses of the boom, only then will the economy be in a state where another boom can then take place causing another housing boom to begin.

It is absolutely crazy and insane to buy a property during a crash when property prices are expected to be falling or languishing at the bottom for many years. Sensible property investors buy property when the economy is about to enter another boom that will cause house prices to rise rather than buying property when the economy is entering a long and deep recession that will keep house prices depressed for many years.

Edited by Crash 2007

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The STRs are making a big mistake in thinking that a property crash will somehow make property prices cheap when this is clearly not the case since property is expensive even during an economic slump.

The STRs believe that it will be easy to buy a property on the cheap during a crash in the hope of making alot of money by selling the property for a much higher price in the next property boom but the flaw in this argument is that there is unlikely to be another property boom for at least ten years which means that if the STRs buy a property soon after a crash they will effectively be spending alot of money in buying an asset that will not be appreciating in value for many years.

Buying a property during a crash will end up being a financial liability because the value of the property is likely to languish at the bottom for many years and will not rise in value to keep up with inflation, which means that the buyer will be continually losing money in having invested so much in an asset that is not rising in value to keep up with inflation.

The STRs would like to see a property crash to occur so that they can buy a property on the cheap but the major drawback is that when the crash does finally happen many STRs will be put off from buying a property even though house prices will be low because many STRs will be badly affected by any economic slump and will find it difficult to earn a living during a recession in which businesses are closing and going bankrupt and people are being thrown out of work and many STRs will face job insecurity and some will lose their job and find it difficult to find another job.

The STRs only chance of getting back onto the property ladder is if a severe recession occurs that manages to bring house prices back to normal which means that the STRs can look forward to going house hunting during an economic slump.

The STRs are clearly amateur property speculators who think that they can make it as serious property investors, but serious property investors know that timing is crucial and that there is no point in buying a property if it is not likely to appreciate in value for many years because it is just tying up money in an asset that is not rising in value to keep up with inflation which means that buying a property during a crash will end up losing money because the value of the property will be languishing whilst the value of the property will be continually being eroded away by inflation.

The STRs appear completely clueless about the property market and lack the necessary knowledge and understanding about the economic cycle and the basic way the economy works. The STRs are just fumbling around in the dark and don't have the foggiest idea what they are doing and are desperately hoping for events to go their way but this is just plain wishful thinking.

The STRs don't have any idea what the trigger will be that will cause a property crash; they don't know when the crash will occur; by how much house prices will fall; and when the trough in house prices will be reached. What is even worse is that the STRs are hoping to buy a property on the cheap during a crash without knowing when the next housing boom is likely to occur and by how much house prices will rise in the next property boom.

With all this uncertainty it makes you wonder why the STRs are bothering waiting for a property crash to occur because the STRs don't know when the next house price boom will occur and it is likely that the next property boom won't occur until a long and deep recession has occurred that has completely unravelled and unwound the current boom which will take many years.

It is only when the next recession has succeeded in bringing down the current economic boom and flattened the economy so that it has removed all the excesses and distortions of the boom and purged the economy of all the inflationary excesses of the boom, only then will the economy be in a state where another boom can then take place causing another housing boom to begin.

It is absolutely crazy and insane to buy a property during a crash when property prices are expected to be falling or languishing at the bottom for many years. Sensible property investors buy property when the economy is about to enter another boom that will cause house prices to rise rather than buying property when the economy is entering a long and deep recession that will keep house prices depressed for many years.

Joined today? first post? Troll or disgruntled BTL'r supporting his tennant?

I guess that's why the complete content of your first post is total B-O-L-L-OCKS!!!!

I thought I'd heard it all.

Obviously not.

:lol::lol:

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Its a shame that when anyone makes a sensible post, they get shot down in flames

You all live in cloud cuckoo land.

House prices are on the increase, so are rents. Bank of England says rates are staying the same

Come on, you renters who have been moaning about house price crash for years ( yes years) now will surely wake up and smell reality.

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Warning to all you orange haired trolls,STRer here.

I have just sold my house and have 280K to either re-invest in another house or keep it in cash.I have decided the latter option.I am even relaxed about the prospect of another 5% annual increase in the indicies.

Here's the maths:-

Loose 1.£140000 gain in value of house.

2. £3000 renting (this is Northern rents not London)

Total £17000

Gain 1 £2800 cost of home improvements,this is the 1% of a properties

value that the average home owner spends per year just

to keep pace with the indicies which are not adjusted for

the improvement in the housing stock.

2. £2800 cost of repairs and renewals,this is the 1% of a properties

value on average spent on this item.

3. £500 water rates and buildings insurance.

4.£11200 investment income @ 4% net.

Total £17300

Of course this assumes continued above RPI increases in the HPI.Take the period 1989-1996.Rebasing the HPI at an index of 100 in 1989 and stripping out inflation,the index stood at just 60 by 1996.a shocking40% loss in equity after allowing for inflation.Of course people with mortgages and therefore more highly geared lost significantly more.At the same time people with cash did well.TESSAs were paying 15% tax free and National Savings Certificates were paying inflation plus 4.5%.In fact the index on savings on the best cash funds,after stripping out inflation,went from 100to 130 during the 1989-1996 period,more than double the HPI over the same position.

You orange haired trolls seem to be ignorant of financial history.I have seen postings concerning the 1989-1996 crash on this troll sub-forum stating it wasn't that bad,deluding yourselves or what?

Concerning renting a 280K property for 250pcm,of course you can't.But the financial illustration above is showing my course of action, which is why I am relaxed about further increases in the HPI.

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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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