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House prices to plunge 35 per cent in no-deal Brexit


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HOLA441
On 20/09/2018 at 19:58, Simhadri said:

What about opportunity cost of paying rent for 15 years and never seeing a penny back ? Missing basics is no comparative study.

Interesting that you mention opportunity cost.

For much of the last 15 years it has been possible, using savings accounts alone, to earn more interest on the money that would otherwise be tied up in a house than is paid out in rent. I know this for a fact as, prior to FLS & TFS, I was receiving twice the amount in interest than I was paying out in rent. 

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HOLA442
6 hours ago, tm_81 said:

Of course, the real fear mongering is that after Brexit, house prices will ONLY fall by 35% .. We need MORE !

I agree we need more. Lots more.

But please remember that "35% down" is not what his prediction was.

As covered earlier, what he said was that he thinks house prices would be 35% lower than they would otherwise be. This could still be an enormous rise (but we here all hope not).

ie, my own made-up graph to explain the point:

593571195_CarneyHP-35lower.png.c8b37e41641e95fcc5c35206750b4bb4.png

Edited by mrtickle
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HOLA443

Don't put too much into what a politician says.....

In a few years, this fluff about 35% will just be another blurb in history but it won't change the underlying rules of the financial systems thats been in play for 100s of years - that we have to, we all have to jump (when and how high).

We're all lab rats being forced down financial corridors. Those that obey and reward the financial system, get a few crumbs back. Those that don't, are made to be f*cked over- its been like this way for 100s of years - just bend over and get with the program. Just get on with the life that's been scheduled to you and don't get too fussed about it being "fair" - Some people are the hidden kings and we ain't them - we is just peasants.

So following on with this in mind.....it is "good advice" to buy a house. If you had difficulty, you could always resort to renting a room out etc. Lodgers have been used for income for 100s of years. This is still the case today.

Those that ignore the rules our masters have set for us always get f*cked in life.

The sentiment of "I refuse to overpay for a sh*thole" is admirable, but it only hurts the person carrying this out. Its almost on the same level as "I refuse to put money into a pension because it doesn't pay"

Sure you can argue that they are different, but in the end, they are still financial instruments that we are all forced to play.

We're just puppets on a string - 35% ? paaah

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HOLA444

An interesting perspective rockerboy and its a compelling argument.  Sometimes its hard to see it any other way but I do hope you are wrong but fear you may be correct.  Its clear that most of our politicians have no real desire to change things to benefit the majority and operate on absurdly short timescale when it comes to looking forward.

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HOLA445

I’m renting 20 minutes from Euston (London midland line) and prices are affordable.  I’ve looked at house prices here and they’re crazy low compared to somewhere like Enfield which isn’t as good for commuting for me.  So much investment in this area  and no need for a car, however I come on this group and now I have doubt lol.  

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HOLA446
4 minutes ago, morty said:

I’m renting 20 minutes from Euston (London midland line) and prices are affordable.  I’ve looked at house prices here and they’re crazy low compared to somewhere like Enfield which isn’t as good for commuting for me.  So much investment in this area  and no need for a car, however I come on this group and now I have doubt lol.  

Welcome

don't worry. you will soon develop furious anger all the time at house prices and will sit on the fence for 15 years expecting prices to drop but they won't  ;)

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HOLA448
5 minutes ago, hurlerontheditch said:

Welcome

don't worry. you will soon develop furious anger all the time at house prices and will sit on the fence for 15 years expecting prices to drop but they won't  ;)

15 years ? maybe a few years for me.  I registered here because I was thinking about buying and wanted an alternative point of view.  I know people that bought ten years ago and they’re sitting pretty now.  My plan is to get the mortgage/house and live my life, hoping I will have something in future.  

The banks own all the property wouldn’t any fall be adjusted for with economic policy?  

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HOLA449
1 minute ago, morty said:

15 years ? maybe a few years for me.  I registered here because I was thinking about buying and wanted an alternative point of view.  I know people that bought ten years ago and they’re sitting pretty now.  My plan is to get the mortgage/house and live my life, hoping I will have something in future.  

The banks own all the property wouldn’t any fall be adjusted for with economic policy?  

If you can afford it, buy and don't worry about it, you don't need to. who knows what will happen in future

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HOLA4411
1 hour ago, dougless said:

An interesting perspective rockerboy and its a compelling argument.  Sometimes its hard to see it any other way but I do hope you are wrong but fear you may be correct.  Its clear that most of our politicians have no real desire to change things to benefit the majority and operate on absurdly short timescale when it comes to looking forward.

Some financial actions it pays for people to do, buying a home is one, but the right home, right price, right time, right location.....this is variable......Saving into a pension, that will pay, saving a cash reserve in the right place being prepared to change at short notice, that can get you out of trouble so to avoid paying o/d and credit card fees and interest good sensible advise and will pay......other than that, cut down on unnecessary spending on stuff and services including insurances, keep monthly outgoings/dds to a minimum, remember loyalty for business rarely pays, complacency and apathy never pays.....fail to plan, plan to fail.;)

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HOLA4414
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HOLA4415
1 minute ago, Bruce Banner said:

Judging by the numbers of VIs registering and posting, I would say that the likelihood of a substantial fall in house prices is increasing :D.

Never really thought about it before - but if someone has a mortgage free house, is it correct to consider them aligned to VI?

 

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HOLA4417
54 minutes ago, morty said:

15 years ? maybe a few years for me.  I registered here because I was thinking about buying and wanted an alternative point of view.  I know people that bought ten years ago and they’re sitting pretty now.  My plan is to get the mortgage/house and live my life, hoping I will have something in future.  

The banks own all the property wouldn’t any fall be adjusted for with economic policy?  

What does sitting pretty mean.....they feel safe, the REPAYMENT mortgage and the REPAYMENT is affordable, no landlord to up the rents or kick them out.....can get on with living, no pressure.....now hold a stake in society?;)

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HOLA4418
21 minutes ago, winkie said:

Marriage....what's that all about, keep up with the times.....nobody requires a certificate to prove they are committed to another.;)

Marriage is a big gamble these days imo. 1 in 2 chance that one will lose half their s**t in the event of a divorce. I don't like those odds one bit. 

Property prices haven't come down by 35% in my county. They are coming down though as reality sets in. I assume Carnage is referring to the London and Home Counties with his 35% figure.

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HOLA4419
4 minutes ago, MattW said:

Marriage is a big gamble these days imo. 1 in 2 chance that one will lose half their s**t in the event of a divorce. I don't like those odds one bit. 

Property prices haven't come down by 35% in my county. They are coming down though as reality sets in. I assume Carnage is referring to the London and Home Counties with his 35% figure.

....lose ones shirt or lose ones skirt......relationships are built on trust, something you can't buy......35% is just a figure, some who are forced to sell will see a greater loss than those who can bide their time.....a long time, which brings with it the extra costs of holding but not gaining.......lots of empty property about.;) 

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HOLA4420
1 hour ago, Bruce Banner said:

Judging by the numbers of VIs registering and posting, I would say that the likelihood of a substantial fall in house prices is increasing :D.

Put your money where your mouth is? (or fingers are)

Even the site founder isn't going to put his neck out as he's been so spectacularly wrong on his 'predictions' based... on his sentiment.

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HOLA4421
2 minutes ago, cashinmattress said:

Put your money where your mouth is? (or fingers are)

Even the site founder isn't going to put his neck out as he's been so spectacularly wrong on his 'predictions' based... on his sentiment.

I bought a little house last year because I wanted a permanent UK base and I fully expect it to be worth less than I paid for it in five years time.

Who is the site founder?

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HOLA4422
4 minutes ago, Bruce Banner said:

I bought a little house last year because I wanted a permanent UK base and I fully expect it to be worth less than I paid for it in five years time.

Who is the site founder?

Good for you, you buy a place for what it can do for you, not on how much it might make  you......want to do that buy bonds, stocks, shares, currency, gold sliver or funny coin or any other gamble out there.....a home should not be a gamble.;)

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HOLA4424
25 minutes ago, Bruce Banner said:

Who is the site founder and how do you know what he thinks or what his sentiment is?

Interesting Question ! As I undestand it, HPC was set by by this guy

http://jonathandaviswm.com/jonathan-davis-media/

He is still honary spokesman but he sold up in 2006 to these guys

https://www.fubra.com/

 

info from here..

https://raisingtheroof.blogs.nytimes.com/2008/07/15/turns-out-uk-sites-predicting-a-property-crash-were-clairvoyant/

For all of us long suffering HPC'ers  - Ever get the feeling our HPC "champion" is not the person you may think he is?

Seems strange to think that the person who set this site up, was always a well and truely paid up member of VI.

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HOLA4425

Check out the comments on raising the roof

Man - some interesting comments in the article

Jonathan Davis has been wildly wrong in his predictions for years. calling the top of a bubble 6 years out and selling your house in 2002 seems like a monumentally bad decision. claiming you were right all along now just makes you look even more stupid. even if prices fall 35% they will still be a lot higher than when you sold, and you won’t have paid off the mortgage you could have. its basic maths, think i will go elsewhere for my financial advice mate.

 

My husband and I are pleased that we sold our small house taken out a long term rental agreement (at a favourable rate) on a very much larger house and made excellent investments with our capital. We have followed the housing market situation and are mightily relieved to be off the housing ladder. Thanks to Jonathan Davis at Armstrong Davis and HPC we’ve been very well advised and only have praise for their collective wisdom.

 

Both are dated 2008, I do hope that Val in Surrey bought another house before they boomed even more.

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