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Guest KingCharles1st

Is There Another Factor For These Unbelievble Price Rises We Are Seeing?

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Guest KingCharles1st

It just defies belief in our current climate.

Could it just be that there are so many people who now have absolutely no equity, that they cannot sell at a lower price- because they have remortgaged again and again- or bought at the peak- and now realise its not possible to do anything other than sit tight and pray.

Now there is little talk of "negative equity" at the mo- but surely this must be the case with quite a lot of people already, if they even factored in a house move to a similar price property even next door- with stamp duty- solicitors fees etc.

VI spin MUST keep this bomb in the air- because if it drops- its going to go be unbelievably disasterous..

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Hope you're right that there's a bearish explanation.

I note that volumes and borrowing are both down YoY so it seems perplexing that prices should continue to levitate.

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Guest DissipatedYouthIsValuable
Hope you're right that there's a bearish explanation.

I note that volumes and borrowing are both down YoY so it seems perplexing that prices should continue to levitate.

Well, if borrowing is down generally, one has to ask by which route is newly 'printed' money entering the economy?

It must be coming in somewhere.

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I reckon it's money from abroad, who see UK homes as 'something that always goes up'.

Note: when it stops, these people will be even keener to sell than BTL folk!

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It just defies belief in our current climate.

Could it just be that there are so many people who now have absolutely no equity, that they cannot sell at a lower price- because they have remortgaged again and again- or bought at the peak- and now realise its not possible to do anything other than sit tight and pray.

Now there is little talk of "negative equity" at the mo- but surely this must be the case with quite a lot of people already, if they even factored in a house move to a similar price property even next door- with stamp duty- solicitors fees etc.

VI spin MUST keep this bomb in the air- because if it drops- its going to go be unbelievably disasterous..

In summary: people still think they can ride this out.

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In summary: people still think they can ride this out.

Aslong as they are earning money and paying off the mortgage. Why not? Works for me. Now i'll get worried when unemployment looks likely. But then having no work is a problem whatever your circumstances.

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Guest KingCharles1st
Well, if borrowing is down generally, one has to ask by which route is newly 'printed' money entering the economy?

It must be coming in somewhere.

Its easy- you can make 100,000 quid by changing the price of your house from 300-400K or whatever- and the bonus is you dont even have to print the money!

:P

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forign money, russians, london, property funds, banks, and people jumping back in because the crash didnt appear when everyone expected it, and the BOE stepped in a dropped IRs before HPI went negative... the uk seen as a safe haven,

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It just defies belief in our current climate.

Could it just be that there are so many people who now have absolutely no equity, that they cannot sell at a lower price- because they have remortgaged again and again- or bought at the peak- and now realise its not possible to do anything other than sit tight and pray.

Now there is little talk of "negative equity" at the mo- but surely this must be the case with quite a lot of people already, if they even factored in a house move to a similar price property even next door- with stamp duty- solicitors fees etc.

VI spin MUST keep this bomb in the air- because if it drops- its going to go be unbelievably disasterous..

I have long since thought that there is a significant amount of debt held against property based on Valuations that:

1: No property in the area has actually ever achieved.

2: Of such an amount that even committed Bulls would be using the phrase “How Much”

It has been a few years since I was surrounded by mewers drunk on their wealth.

The speed boats and jaguar of one guy I knew… bought as if he had struck it big and not actually bolted in the region of £50,000 to his mortgage…

It beggared belief…

Watches on wrists that cost many thousands, the expensive suits… It used to be all people talked of in the posh restaurants of Exeter..

False aires and graces…

When people look at £200,000 as no money at all…

I look at it as £8000 a year…

Or £666.66 a month…

Before interest…

I look at £200000 as £916.66 a month at 5.5% interest only..

Interest only mortgages cost the above, and your repayment vehicle has to generate… a devil of an amount..

6% and it will be £1000 IO…

4.2 it was £700…

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Aslong as they are earning money and paying off the mortgage. Why not? Works for me. Now i'll get worried when unemployment looks likely. But then having no work is a problem whatever your circumstances.

Not if you have shi* loads of cash in the bank it doesn't

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the BOE stepped in a dropped IRs before HPI went negative... the uk seen as a safe haven,

NAIL - HEAD - HIT.

GB knew exactly what he was doing and if I ever meet him I'm gonna lay the nut on him. I suspect e doesnt give a cr*p about the consequences becuase he's no longer chancellor.

Just a thought to cheer us all up on this bad bear news day - I believe that the 'uber bull' from Charcoal - Ray Boulger reckoned that if rates rose any more than once more then the market was f***ed. Well thanks to todays news that looks like a certainty now - 6% here we come. Personally I think we won't see price falls until August / September but then they will come thick and fast.

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Personally I think we won't see price falls until August / September but then they will come thick and fast.

Fixed-rate expiries will certainly be coming thick and fast, but I'm still on the fence as to whether that will have translated into falling house prices by then. I'm more confident that it will have translated into falling numbers of sales and new mortgage approvals though, for all the reasons the thread starter cited. Existing OOs won't be able to afford to move, BTLs will be on the verge of fleeing and potential FTBs staying out until the direction of prices is clear.

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NAIL - HEAD - HIT.

GB knew exactly what he was doing and if I ever meet him I'm gonna lay the nut on him. I suspect e doesnt give a cr*p about the consequences becuase he's no longer chancellor.

Just a thought to cheer us all up on this bad bear news day - I believe that the 'uber bull' from Charcoal - Ray Boulger reckoned that if rates rose any more than once more then the market was f***ed. Well thanks to todays news that looks like a certainty now - 6% here we come. Personally I think we won't see price falls until August / September but then they will come thick and fast.

....why should we listen to the likes of the 'Charcol Spin Man' who is only speaking to protect his own back garden.....if the market goes down it balances out and can be good for many people....why

is a spokesman, an intermediary for lenders, putting forward such a one sided point of view......do brokers have bricks and mortar BTLs....?

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