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eric pebble

Unfolding Housing Crisis: It's Only Just Begun.....

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IT'S ONLY JUST STARTED.....

Bill Gross of PIMCO, only the greatest bond manager on Planet Earth, says we're in the "first inning" when it comes to the unfolding housing crisis. Look out, world; Mr. Gross and I are on the same page.

Rest assured, when the developing assortment of real estate bombs lays waste to the finances of most of my fellow Baby Boomer brethren, Americans will be walking around bitter and depressed, wanting to know "What happened?" At this point, most are just scratching their heads, wondering why Larry Kudlow's "Goldilocks Economy" is turning out to be cold porridge and a broken chair, but my guess is folks won't be that interested in getting to the bottom of everything until they're standing in line for soup.

Buoyed by these artificial value increases (that is, increases not driven by real estate market fundamentals or growth in personal income) and based on a sense that rapidly "appreciating" home values would continue in what many expected to be an "improving" economy, increasingly wacky mortgage instruments began to find their way to market. As Greenspan looked on in approval, zero-down loans popped up everywhere, soon to be followed by, ahem, LIAR LOANS -- that is, "stated-income" ("Go ahead, jot down whatever you want") loans and "stated asset" ("No, seriously -- we're not the least bit concerned that you have no collateral") loans. "Rising" home values also brought to the world a litany of teaser adjustables (initial 1% interest rate and so forth), and soon the same $2000 monthly payment was able to bring a buyer even more leverage -- say, a $750,000 home, along with enormous negative amortization (i.e., the borrower's loan balance would increase substantially each year). "No problem," suede shoe mortgage brokers would tell either suspecting or unsuspecting borrowers. "When the teaser ends and your rate and payment jump, you can just refinance again or sell the house for a nice profit."

http://www.marketoracle.co.uk/Article3918.html

Edited by eric pebble

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Yes your right it's only just started and yet even before prices started to fall it blew out norther rock and has made a lot of well imformed people nerverus but they are keep quiet whilst they try to get out the maket before it goes flop big time.

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Yes your right it's only just started and yet even before prices started to fall it blew out norther rock and has made a lot of well imformed people nerverus but they are keep quiet whilst they try to get out the maket before it goes flop big time.

They did this ages ago ---

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26 'reduced' or 'new price' banners on the EA adverts in our weekly local paper - first time it's gone over 20 since the reductions began to appear about 4 months ago.

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26 'reduced' or 'new price' banners on the EA adverts in our weekly local paper - first time it's gone over 20 since the reductions began to appear about 4 months ago.

I still know of around 20-25 people who just CANNOT sell their pwoperty - some for over a year.... They're getting pretty stroppy now...... :lol:

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I still know of around 20-25 people who just CANNOT sell their pwoperty - some for over a year.... They're getting pretty stroppy now...... :lol:

Don't forget all the people trying to leave the UK that Gordon Brown has told to get on their bike. They can't sell either look as though bargains are coming up galore again early 90s revisited.

http://britishexpats.com/forum/showthread.php?t=518829

below is one of the excepts I wander what happens when the Cheap Companies start going broke. The Property MYTH has been BUSTED.

We have just had the same rationale conversation in pizza hut We are in the paper again tomorrow (now at £25005 under original valuation), will give it 2 weeks then reduce another 20K, if we don't get anything at that price, Easter will be more or less over and we are going to try and sell to one of the cheap companies and know they will offer approx £65,000 under valuation - needs must for us, Jason flies on the 3rd April

Edited by joey

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Local paper was unbelievably thick last night (Thursday is property night). The paperboy actually had to deliver them in two bags - first time I've seen him do this* :blink:

* Not a scientific test. The lifting capacity of your paperboy may vary.

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Don't forget all the people trying to leave the UK that Gordon Brown has told to get on their bike. They can't sell either look as though bargains are coming up galore again early 90s revisited.

http://britishexpats.com/forum/showthread.php?t=518829

Reading the forum ex pats is quite scary sooner or later these people will become forced sellers and in my opinion that’s when the real damage will be done to the housing market some are already knocking thousands off asking prices and still getting no interest, buyers are offering half the asking price, maybe in a few weeks this may be the level at what seller will have to accept.

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Guest DissipatedYouthIsValuable
Local paper was unbelievably thick last night (Thursday is property night). The paperboy actually had to deliver them in two bags - first time I've seen him do this* :blink:

* Not a scientific test. The lifting capacity of your paperboy may vary.

Perhaps he had pellagra and rickets due to his parents preference for buying BTLs over feeding him, and couldn't carry a heavy bag.

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Guest grumpy-old-man
I still know of around 20-25 people who just CANNOT sell their pwoperty - some for over a year.... They're getting pretty stroppy now...... :lol:

yep Eric, loads of detached houses been on the market for 1-2 years near me, we have been monitoring :rolleyes: a fair few.

property bee should be useful in a few months time. :lol:

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House has been on the market on/off since April 07... buyer last year at 275k couldn't sell theirs.... dropped to just under 250k, buyer again this year who has admited that their house didn't sell when it was on the market previously so we are def in for the long haul. we did have a cheeky offer for 220k which we declined but it now looks favourable.... we need the money - we aren't sat on a fortune... going to validate in April just have to see how we go on from there.....

...just goes to show. a 275 agreed sale less than 12 x months ago is likely to end up being a 220k sale this year. Interesting stuff....

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Don't forget all the people trying to leave the UK that Gordon Brown has told to get on their bike. They can't sell either look as though bargains are coming up galore again early 90s revisited.

http://britishexpats.com/forum/showthread.php?t=518829

That forum has more smileys than MSE. I didnt think that was even theoretically possible.

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After having 4 viewings and notes of interest, i had a verbal offer of £8000 under. The price is set at offers over as that how it works here in Scotland. My house has been on the market since last friday. What a cheek that person has. I've decided to wait and see. Bloody EA they told me that at the moment houses here in my town & of my size are goin for 27% over asking price. i would settle for 10% never trust the EA's

:lol:

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yep Eric, loads of detached houses been on the market for 1-2 years near me, we have been monitoring :rolleyes: a fair few.

property bee should be useful in a few months time. :lol:

One guy I know - it's doing his head in! He can't believe it!! :lol::P

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This has the makings of a bloodbath. I'm only on the first page of that expats thread and some poor sod has been offered half price.

Mind you if asking prices of £320K for a bungalow are typical it's hardly surprising.

Edited by greencat

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This has the makings of a bloodbath. I'm only on the first page of that expats thread and some poor sod has been offered half price.

Mind you if asking prices of £320K for a bungalow it's hardly surprising.

How Much?

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This has the makings of a bloodbath. I'm only on the first page of that expats thread and some poor sod has been offered half price.

:lol::lol::lol::lol:

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This has the makings of a bloodbath. I'm only on the first page of that expats thread and some poor sod has been offered half price.

Mind you if asking prices of £320K for a bungalow are typical it's hardly surprising.

Yup- --- The fact that it was EVER possible to ask £320k for such a pile of crap just beggars belief...

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I still know of around 20-25 people who just CANNOT sell their pwoperty - some for over a year.... They're getting pretty stroppy now...... :lol:

They are obviously asking for too much, then.

We just agreed the sale of two of our little terraced houses up in Lincoln for £80K each, last Friday. To an investor, bizarrely.

They had been on the market a month, no more.

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They are obviously asking for too much, then.

We just agreed the sale of two of our little terraced houses up in Lincoln for £80K each, last Friday. To an investor, bizarrely.

They had been on the market a month, no more.

Wow you robbed them. Were they toward Harmston/Hykeham end of town or up the hill?

Either way for those places £50k is about right. You must have got stung when the university built the accomodation to house all students all over Lincoln.

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Wow you robbed them. Were they toward Harmston/Hykeham end of town or up the hill?

Either way for those places £50k is about right. You must have got stung when the university built the accomodation to house all students all over Lincoln.

They are both in the mesh of streets around Portland Street / Cross Street etc.

We didn't get stung at all because we were not mainly renting to students.

Although when we started buying up there (1998 - 2000) we thought maybe we would rent to students, in practice, we rarely ever have done so. Maybe one house out of ten, and only then sometimes.

We paid between £18,000 and £34,000 for our places up there.

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  • 293 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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