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House prices are on the brink of a massive collapse

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I smell a government prop or two in the air.  No way the government are NOT going to blink with all this "doom and gloom" news.  We can't have the economy recovering through lower mortgages and rents....keep the slaves enslaved.

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15 minutes ago, canbuywontbuy said:

I smell a government prop or two in the air.  No way the government are NOT going to blink with all this "doom and gloom" news.  We can't have the economy recovering through lower mortgages and rents....keep the slaves enslaved.

They'd be mad too. They've already realised they need to get the young on side and on my twitter feed the young seem to be getting excited about this crash coming, they're looking forward to being able to buy a house. And the lad who has bought an "executive" flat in Nine Elms in the last 12 months has stopped telling everyone they need to save hard to get a deposit for a place :D I think he's already in negative equity, which I feel sorry for him about but after his showing off and arrogance the last 12 months, sod him!

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10 minutes ago, scb said:

They'd be mad too. They've already realised they need to get the young on side and on my twitter feed the young seem to be getting excited about this crash coming, they're looking forward to being able to buy a house. And the lad who has bought an "executive" flat in Nine Elms in the last 12 months has stopped telling everyone they need to save hard to get a deposit for a place :D I think he's already in negative equity, which I feel sorry for him about but after his showing off and arrogance the last 12 months, sod him!

Has anyone ever shown any real concern about the level of rent we are paying, not in my experience.  The only reaction I ever get is 'you could be buying a house if you are paying that much'. Few people ever think about the morality (or immorality) of the situation that renters find themselves in.  Sod them all; negative equity - bring it on.

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Just now, dougless said:

Has anyone ever shown any real concern about the level of rent we are paying, not in my experience.  The only reaction I ever get is 'you could be buying a house if you are paying that much'. Few people ever think about the morality (or immorality) of the situation that renters find themselves in.  Sod them all; negative equity - bring it on.

.....This^^^^^ it is almost like renters don't count for anything, let them waste their wages enriching the owners????;)

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22 minutes ago, scb said:

 And the lad who has bought an "executive" flat in Nine Elms in the last 12 months has stopped telling everyone they need to save hard to get a deposit for a place :D I think he's already in negative equity, which I feel sorry for him about but after his showing off and arrogance the last 12 months, sod him!

tell the lucky sod i will pay 1997 prices CASH too. 

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30 minutes ago, dougless said:

Has anyone ever shown any real concern about the level of rent we are paying, not in my experience.  The only reaction I ever get is 'you could be buying a house if you are paying that much'. Few people ever think about the morality (or immorality) of the situation that renters find themselves in.  Sod them all; negative equity - bring it on.

+1

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1 hour ago, canbuywontbuy said:

I smell a government prop or two in the air.  No way the government are NOT going to blink with all this "doom and gloom" news.  We can't have the economy recovering through lower mortgages and rents....keep the slaves enslaved.

What makes you think the government don't want a crash?

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Seems this is something else to blame on Brexit - rather than unsustainably high house prices.

We will see how the government respond - a Corbyn government  is hardly going to cause house prices to go up more. Will those props be so easy to get through anymore?

Edited by MARTINX9

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33 minutes ago, dougless said:

Has anyone ever shown any real concern about the level of rent we are paying, not in my experience.  The only reaction I ever get is 'you could be buying a house if you are paying that much'. Few people ever think about the morality (or immorality) of the situation that renters find themselves in.  Sod them all; negative equity - bring it on.

Let me add another ^^^This.

Nobody cares about the immorality and destruction of high house prices.  If they cared, we wouldn't be here a full 15+ years later.  The government have never, do not, and will not care about you and your family. Ever. 

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16 minutes ago, frederico said:

What makes you think the government don't want a crash?

Well, it would make a change if they did want a crash!

Thing is - why the HELL didn't they want a crash back in 2009 or so? They triaged it.  Why did they prop up prices for so long? Seriously, I think banks, EAs - the whole chain of dependencies - would be rolling in cash now if there was a crash back then.  Free up the money, free up disposble income.  High house prices = rigor mortis of the economy. 

Edited by canbuywontbuy

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6 minutes ago, canbuywontbuy said:

Well, it would make a change if they did want a crash!

Thing is - why the HELL didn't they want a crash back in 2009 or so? They triaged it.  Why did they prop up prices for so long? Seriously, I think banks, EAs - the whole chain of dependencies - would be rolling in cash now if there was a crash back then.  Free up the money, free up disposble income.  High house prices = rigor mortis of the economy. 

In 2009 most of these idiots would have thought house prices were reasonable. Carney even said they were 'starting from a low base' or something similar. They think 500k is loose change you find down the back of a chesterfield.

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It's very noticeable that after they mention negative equity they then have to explain what it is. People really genuinely won't understand the concept. A bit like the difficulty we had getting our minds around the unpossible concept of negative interest rates. 

Also its weird that these house crash stories are appearing in the MSM simultaneously with the Draghi/Carney hints of maybe possibly following the US with raising IRs. 

 

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1 hour ago, MARTINX9 said:

Seems this is something else to blame on Brexit - rather than unsustainably high house prices.

We will see how the government respond - a Corbyn government  is hardly going to cause house prices to go up more. Will those props be so easy to get through anymore?

Indeed. The economy is a hollowed-out shell, household debt is at its highest level ever while savings have never, ever been so low; interest-rate talk is all about increases; property prices are stupid-high, BUT... if prices fall it will all be down to 'uncertainty'. Truly, this is the age of Peak B***s***.

Edited by mrpleasant

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Even if we do get a correction...I worry that it is unlikely to be deep enough...even if we get falls of 20% from todays prices (which would be described by most as a significant crash) where does that take us back to...around where I live this takes us back to 2014 or 2015 - big deal.

Also a crash in prices doesn't magic up lots of new houses for folks to live in - the nation won't become better housed.  The redistribution implications of a crash will be complex...hopefully the BTLers will be wiped out but many will ride it out.  If lots of people are waiting to enter the market when prices show signs of correcting then that will support the market and take the steam out of the correction...there will only be a real correction if folks can't enter the market and can't take advantage of the falling prices - this I expect will come about eventually through recession and unemployment in parallel with increased interest rates - just hope you are one of the lucky ones that can take advantage but most will only be able to watch.

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2 hours ago, frederico said:

What makes you think the government don't want a crash?

Help to Buy Bail Banks means their liability to bankers is up to £120k in the regions and up to £240k in London on each property resold at a lower price.

It still doesn't seem to be known as another bank bailout but if/when prices start falling, imagine the negative publicity.

 

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3 hours ago, frederico said:

What makes you think the government don't want a crash?

No gov wants a crash on its watch as it makes them unelectable for a long time.

One of the reasons the Blair creature won three GEs is people refused to vote tory following the 1990 hpcrash.

 

So they kick the can down the road...

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1 hour ago, Wayward said:

Even if we do get a correction...I worry that it is unlikely to be deep enough...even if we get falls of 20% from todays prices (which would be described by most as a significant crash) where does that take us back to...around where I live this takes us back to 2014 or 2015 - big deal.

 

It could just be a leg down

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19 minutes ago, Democorruptcy said:

Help to Buy Bail Banks means their liability to bankers is up to £120k in the regions and up to £240k in London on each property resold at a lower price.

It still doesn't seem to be known as another bank bailout but if/when prices start falling, imagine the negative publicity.

 

What a great business banking is.

Up to £75,000 of each bank's liability to each customer is guaranteed by the taxpayer, and up to £240,000 of it's assets per HTB mortgage customer is also guaranteed by the taxpayer. Heads they win, tails we lose.

Part of the price we pay for our extortionately subsidised, privatised rent-a-currency monetary system.

 

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14 minutes ago, thisisthisitmaybe said:

No gov wants a crash on its watch as it makes them unelectable for a long time.

One of the reasons the Blair creature won three GEs is people refused to vote tory following the 1990 hpcrash.

 

So they kick the can down the road...

I think this is arguable, didn't Blair get elected in 97, the crash occurred in 90, prices were stagnating until 2000, I should know I bought in 92 and moved house in 99, prices started going crazy around about then. ( I sold my first house around about 1991, those times were nasty)

I think  sept 11th and the tech bubble crash contributed to a reason for loose monetary policy and regulations. Also after the 1990 crash they put in self regulated lending controls which mysteriously went AWOL from 2000 onwards.

I'm 

I've no idea what will happen now, but I know the policies of the last 10 years have only achieved more debt. In the end the debt will suffocate you.

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13 minutes ago, The Spaniard said:

What a great business banking is.

Up to £75,000 of each bank's liability to each customer is guaranteed by the taxpayer, and up to £240,000 of it's assets per HTB mortgage customer is also guaranteed by the taxpayer. Heads they win, tails we lose.

Part of the price we pay for our extortionately subsidised, privatised rent-a-currency monetary system.

 

The really good bit for banks is that if the scheme has inflated prices, people borrow more over longer mortgage terms, so pay loads more mortgage interest. So the banks generate more profit from those mortgages but if anything goes wrong with the others, the governbankment hands over our taxes. It's like a gambler going into a casino and keeping the profits from the winning bets but having the stakes from the losing bets returned. 

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