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sam

The 0.25% Rise Now Seems A Distant Memory

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The 0.25% raise in interest rates last month now seems like a distant memory, loads of data has come out since and you really get the feel that the property market has more than taken it on the chin.

I am still pretty sure we will get another rise soon(i am not 100% though), and i think the same will happen with that one, bit of excitement then things quiten down.

Life is too complex for us not to get some major shock in the next 10 years, and that is what we are going to need to get the crash we want, otherwise i think it is just going to be a slow painfull fall for EVERYONE, and over a long period and after we have reached peak.

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The 0.25% raise in interest rates last month now seems like a distant memory, loads of data has come out since and you really get the feel that the property market has more than taken it on the chin.

I am still pretty sure we will get another rise soon(i am not 100% though), and i think the same will happen with that one, bit of excitement then things quiten down.

Life is too complex for us not to get some major shock in the next 10 years, and that is what we are going to need to get the crash we want, otherwise i think it is just going to be a slow painfull fall for EVERYONE, and over a long period and after we have reached peak.

I couldn't see why posters were so euphoric about it. It won't reduce prices, so it probably just means that buying a house is even more difficult for them.

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The 0.25% raise in interest rates last month now seems like a distant memory, loads of data has come out since and you really get the feel that the property market has more than taken it on the chin.

I'm not trying to be rude here Sam, but you need to think before you post.

The latest rise hasn't filtered through to the general economy yet

Next months mortgage co figures or November's Land Reg figures will be interesting.

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I'm not trying to be rude here Sam, but you need to think before you post.

The latest rise hasn't filtered through to the general economy yet

Next months mortgage co figures or November's Land Reg figures will be interesting.

No offence taken PG, but!!!!

I have only been home for 30 minutes, had a quick surf, and the news just does not look good for us Bears, i am sorry but it looks awfull.

I just cannot work it out, i know what i consider to be a varied and mixed bunch of people, unless they are being left huge piles of Dosh or are doing a little armed robbery in their spare time, i just cannot work it all out.

The clever ones these days are averaging around the £30k mark, but most earn less, yet it just goes on and on, and not just the houses, the cars and holidays and all the fancy gadgets as well.

I am still certain that this is all down to reckeless lending, but how reckless are these T***S going to get, reckless enough to take the whole Country down.

Sometimes i wish i was one of the ignorant or stupid, that way i would be joining in with everyone else, or is it a case that i am ignorant and stupid :huh: and have got it all so horribly wrong

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The 0.25% raise in interest rates last month now seems like a distant memory, loads of data has come out since and you really get the feel that the property market has more than taken it on the chin.

I am still pretty sure we will get another rise soon(i am not 100% though), and i think the same will happen with that one, bit of excitement then things quiten down.

Life is too complex for us not to get some major shock in the next 10 years, and that is what we are going to need to get the crash we want, otherwise i think it is just going to be a slow painfull fall for EVERYONE, and over a long period and after we have reached peak.

Sentiment is more important than the actual .25%

http://www.housepricecrash.co.uk/forum/ind...showtopic=35142

Remember it was ONLY a .25% decrease that stopped the market from going into negative HPI just over a year ago

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This is zero political will for higher rates. Labour have all but told us rates will stay low under them, I think they will pull all tricks in the book to ensure it. We just have to accept we are the lost generation who pay the price of short term economic growth.

Edited by simon99

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I don't even think September's HPI reports would show the full result of the rise. Remember they are based on mortgage approvals, which would be from 15Aug to 15Sept (I think), and as it takes around 2weeks to get a survey done after your offer.

Rightmove would be interesting, but i'd be looking a little later for Haliwide reports. If it is massively positive (over +1%) I will be amazed.

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The 0.25% raise in interest rates last month now seems like a distant memory, loads of data has come out since and you really get the feel that the property market has more than taken it on the chin.

I am still pretty sure we will get another rise soon(i am not 100% though), and i think the same will happen with that one, bit of excitement then things quiten down.

Life is too complex for us not to get some major shock in the next 10 years, and that is what we are going to need to get the crash we want, otherwise i think it is just going to be a slow painfull fall for EVERYONE, and over a long period and after we have reached peak.

Just chill with the still and keep putting money away armageddon is already starting across the pond.

won't be long now.. before it starts.. then you have to wait we are talking 2009/10 here before you should even think of buying.

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Thats all very well but people were saying the same in 2001.

And 2002, 2003, 2004, 2005......."don't buy for the next 4 or 5 years!"

And will 2009/10 be the bottom of the market, Impartial? Or will that be when it's starting to rise? How far will it have fallen? How far will it rise? Will it rise ever again?

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The 0.25% raise in interest rates last month now seems like a distant memory, loads of data has come out since and you really get the feel that the property market has more than taken it on the chin.

I am still pretty sure we will get another rise soon(i am not 100% though), and i think the same will happen with that one, bit of excitement then things quiten down.

Life is too complex for us not to get some major shock in the next 10 years, and that is what we are going to need to get the crash we want, otherwise i think it is just going to be a slow painfull fall for EVERYONE, and over a long period and after we have reached peak.

I received my revised repayment notice from the Building Society this month and sure enough the repayments had risen. I dislike changes in my cash-flow situation; whereas the repayments have been constant for just over a year, this rise really alarmed me. Bearing in mind the recent rises in Council Tax and Gas/Electricity prices, this increase in mortgage repayments really was the last straw. I decided that now was the time to get rid of my mortgage debt for good. To cut a long story short, I sold some personal assets and managed to redeem the mortgage at last.

I suspect the situation won't be so easy for others struggling with the really huge mortgages that the current high house prices require. So, what action could people take? The options appear to be as follows;

- sell the house and move into rented accommodation

- sell the house and "downsize" (move into a cheaper house)

- sell everything you've got and reduce the mortgage

- declare yourself bankrupt (it’s allegedly getting easier these days).

This is exactly what appears to be happening in the United States at present with inventories of unsold houses rising and prices falling. If interest rates continue to rise here, I expect the property market in the UK to follow the pattern of the US. Don't hold your breath, but I suspect that a crash may be happening sooner rather than later.

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I couldn't see why posters were so euphoric about it. It won't reduce prices, so it probably just means that buying a house is even more difficult for them.

Erm, buying a house will be more difficult for first-time buyers. Hmm, what does that mean for the market?

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Erm, buying a house will be more difficult for first-time buyers. Hmm, what does that mean for the market?

Well I wouldn't assume it means that prices will fall. There's not a direct proportional link between IRs and house prices.

Also, the last 5 years has shown that there's no direct correlation between house prices and FTB affordability.

Edited by Casual Observer

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Well I wouldn't assume it means that prices will fall. There's not a direct proportional link between IRs and house prices.

Also, the last 5 years has shown that there's no direct correlation between house prices and FTB affordability.

If people think that houses will only be less affordable next year, 'affordability' seems to have remarkable elasticity.

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If people think that houses will only be less affordable next year, 'affordability' seems to have remarkable elasticity.

People's view on affordability normally only covers the initial monthly repayments. That's why prices are still rising, because enough people can afford the monthly repayments - most people don't apply long term risk assessments!

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Guest pioneer31

People's view on affordability normally only covers the initial monthly repayments. That's why prices are still rising, because enough people can afford the monthly repayments - most people don't apply long term risk assessments!

more fool them.

I think the Brits overall are a bit thick. How many times do people get sucked into a deal because the monthly repayments are low - they never stop to ask the total amount repayable Similar with houses, they never stop to think that IR's can go up and down.

A legacy of shunning maths at school "what's the point in algebra, what's the point of maths?" say the kids of today.

If they can't see why that statement is silly then I really can't help them.

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Erm, buying a house will be more difficult for first-time buyers. Hmm, what does that mean for the market?

The invention and hyping of more "affordable" mortgages such as shared ownership, all of which will be snapped up by an endless supply of eager idiots.

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I think there were a lot of members ,me included,who were naive enough to believe that the committee would do the right thing for the economy and go for back to back rises.With GDP likely to be at 2.7% and CPI at 2.8% by the year end of the year a base rate of 5.0%,assuming one more rise,would be extremely loose and will send property higher.A Base rate of CPI plus GDP would be considered inflationary neutral.

I honestly think the committee has lost the plot and the 2% cpi target with it.What is the point of saving in this climate if you have no confidence that the committe is prepared to protect the purchasing power of those savings.With the likes of Blanchflower joining I think the era of free money to borrowers in view of rising asset prices may continue for some time yet.

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more fool them.

I think the Brits overall are a bit thick. How many times do people get sucked into a deal because the monthly repayments are low - they never stop to ask the total amount repayable Similar with houses, they never stop to think that IR's can go up and down.

A legacy of shunning maths at school "what's the point in algebra, what's the point of maths?" say the kids of today.

If they can't see why that statement is silly then I really can't help them.

But it's not just a case of you "helping" them. You're competing with them in the housing market, they're driving prices up, so their bullishness is a self-fulfilling prophecy.

The invention and hyping of more "affordable" mortgages such as shared ownership, all of which will be snapped up by an endless supply of eager idiots.

But it's a new feature that we ignore at our peril. It can't be ignored, just because it's "crazy". Same with parental contribution - if it's a new feature then it has to be taken into account when considering affordability.

Edited by Casual Observer

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Guest pioneer31

But it's not just a case of you "helping" them. You're competing with them in the housing market, they're driving prices up, so their bullishness is a self-fulfilling prophecy.

but I'm not competing with them.

I will not enter this contest until I see a chance of success.

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The invention and hyping of more "affordable" mortgages such as shared ownership, all of which will be snapped up by an endless supply of eager idiots.

Nothing wrong with shared ownership. i used to arrange those mortgages for buyers back in 1996 and - believe me - far from feeling like idiots, they're laughing now.

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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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