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Be Careful What You Wish For


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So yes a 3 bed semi in the south east for £100k may sound like a fantastic deal but if you’re unemployed it might as well be £500k as regards affordability.

So, I could go from a situation where I'm having to rent and chuck all my spare cash away as a deposit, to one where I have to rent and don't have any spare cash. Oooh, I'm quaking in my boots.

Sorry, but if you're already being kicked in spuds, the prospect of getting kicked in the spuds for a different reason isn't exactly the stuff of which nightmares are made.

(And, yes, I have been unemployed before, and yes, it does suck mightily.)

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So yes a 3 bed semi in the south east for £100k may sound like a fantastic deal but if you’re unemployed it might as well be £500k as regards affordability.

Be careful what you wish for.

We know how bad it will get. A massive fall in house prices will benefit me as I'm in a strong financial position. Be prepared, I am, so why should I feel sorry for those who aren't? After all, they have had their party at my expense so why shouldn't I now have mine?

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I’m a little perturbed by the reaction of some folk who are taking obvious

delight in the crumbling housing market.

The market is not crumbling. It is just starting to move a tiny bit back to where it was before it inflated an outrageous 300%. That is not a crumbling, it is a necessary correction and it is something worth delighting in (if it continues). If the last three new cars you purchased inflated by 100% each time, then would you consider the car market would be crumbling if they returned back to sensible levels? Part of the hysteria about the "housing crisis" forgets that the real crisis was letting property reach staggeringly expensive levels and doing nothing about it. The constant theme of the press and media that the relatively tiny change in current values is a "disaster" leaves out the important point that all that borrowing and equity tied up in such an inflated asset has truly been a disaster for other more meaningful investment, and has resulted in a fluff economy based not on real wealth creation but notional values against which massive cash borrowing has caused a black hole to appear.

An adjusted and sensible housing market would free up all that wasted borrowing for more constructive avenues. Apologies for repeating this, but housing profit is not real wealth, it is merely the transfer of TAX PAID wealth from those who could not afford it, to those further up the line who used other people's income to withdraw equity and spend it on luxuries. Yes I am thoroughly delighted that this is finally coming to an end, and so should you be.

VP

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Just thought I’d post my thoughts.

I’m a little perturbed by the reaction of some folk who are taking obvious

delight in the crumbling housing market.

Schadenfreude at it’s ugliest.

However, the contraction of the value of most people’s largest asset should not to

be taken lightly.

OK, some BTL’ers jumped on the easy-money wagon and are now getting their digits well and truly singed.

But for most, equity in one’s home is the barometer of financial security.

Erode this and you erode the confidence that allows homeowners to buy goods and services that pays wages for millions of people.

The whole UK economy has drifted towards this dependency on housing equity. A 20% correction will be painful but probably manageable.

The realms of 40-50% would be catastrophic for EVERBODY - whether homeowner or not.

So yes a 3 bed semi in the south east for £100k may sound like a fantastic deal but if you’re unemployed it might as well be £500k as regards affordability.

Be careful what you wish for.

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So yes a 3 bed semi in the south east for £100k may sound like a fantastic deal but if you’re unemployed it might as well be £500k as regards affordability.

Be careful what you wish for.

Unless you have been saving up while the bubble expanded.

If you didn’t get a mortgage 4+ X your salary, get a car loan, max out some credit cards because you thought it was a stupid thing to do, all you can do is watch the car crash happen and be grateful you not in the front seat without a seat belt.

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If you'd been here for more than 5 minutes you'd realise that this has been discussed for oh, at least the last 3 years. :rolleyes:

DO try and keep up. :P

First search results, :o

Careful What You Wish For . . .

http://www.housepricecrash.co.uk/forum/ind...hl=careful+What

Be Careful What You Wish For!

http://www.housepricecrash.co.uk/forum/ind...hl=careful+What

Be Careful What You Wish For....

http://www.housepricecrash.co.uk/forum/ind...hl=careful+What

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I wish people would of had the sense not to think that the house was their bank balance.

I am really looking forward to the next five to ten years because of the opportunities it will bring for sensible savers and not credit card junkies. :lol:

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So my current position is renting, £100K saved. House prices £200K.

Hypothetical housebuyer's (HH) current position: Buying, £180K mortgage, no savings, £20K equity.

Next year or two:

Me: no rent, £100K house, no mortgage, £5-10K savings, or, if inflation looks like ramping away, I'll get a mortgage for some of the house.

HH's position: Renting, £70K debt, no savings and no house.

Now when you put them side-by-side, I am open to accusations of schadenfreude. However, that is tempered by that fact that due to my thirft I have been priced out of the market as I wasn't prepared to lie for a loan at well over 3.5 times salary. Do I have sympathy for those who geared themselves into the stratosphere and caused prices to run so far away from me?

I believe you'll find sympathy somewhere between sh1t and syphillis in the dictionary.

Edited by Radge
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I’m a little perturbed by the reaction of some folk who are taking obvious

delight in the crumbling housing market.

And so we should, and everyone else. Cheaper homes are good for everyone - not just FTBers. The only people it isn't good for is those that have made stupid financial decisions based on the incorrect assumption that property prices only ever go up.

Schadenfreude at it’s ugliest.

I would argue that property speculators' actions - as they drove prices ever higher by jumping on the Kirsty Allslop bandwagon - were also tinged with Schadenfraude - enjoying exorbitant lifestyles while their combined actions put the dream of owning your own house out of the reach of many desperate first time buyers. You'll find that the vast majority of people on this site have no sympathy for the BTLers and property speculators but plenty of sympathy for the average families that may have to face up to the horrible spectre of repossession.

The whole UK economy has drifted towards this dependency on housing equity. A 20% correction will be painful but probably manageable.

The realms of 40-50% would be catastrophic for EVERBODY - whether homeowner or not.

Yes, but we are probably going to have to face up to 40-50% price declines because the housing bubble was so vastly over-inflated in the first place. A reversion to the norm is required, even though it may be very painful while UK PLC resets and reboots over the coming years.

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You can take comfort with the thought that when the market bottoms out the lunatic fringe here will be too busy counting their emergency cans of corned beef.

You seem to be tarring people who, have suffered from and recognised from an early stage the damaging effect of HPI and are venting their anger at it being allowed to be promoted as a good thing, with the same brush as the 'lunatic fringe'. Of course we are happy that this madness is ending and I for one have little sympathy for everyone who has been involved in it. Naivety is not an excuse.

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No, no, schadenfreude at its most gorgeous.

Taking delight at the misfortune of others is never less than ugly. Unfortunately, it IS becoming all too common on this site While there have in the past been reasoned, intelligent, arguments presented and while there continue to be posts linking to housing-related articles I might otherwise have missed, the site does of late seem to have descended to a "look at this muppet who bought a house" / "it's all thr fault of immigrants" level.

In the past I've deliberately directed people towards the site. Now, to be honest, I'm too embarrased to.

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Taking delight at the misfortune of others is never less than ugly. Unfortunately, it IS becoming all too common on this site While there have in the past been reasoned, intelligent, arguments presented and while there continue to be posts linking to housing-related articles I might otherwise have missed, the site does of late seem to have descended to a "look at this muppet who bought a house" / "it's all thr fault of immigrants" level.

In the past I've deliberately directed people towards the site. Now, to be honest, I'm too embarrased to.

what's wrong with calling people muppets who, thru their unthinking and greed, have destroyed their own finances as well as the broader economy?

oh sorry, shoot the messenger instead....

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As has been said by others... just differently:

The crash is only a symptom of the preceeding bubble. It was/is inevitable.

You'll find plenty of evidence on here of people trying to warn everybody in the months/years leading up to it that it was going to end in trouble, but they brushed our comments aside as 'tin foil hat conspiracists'. People didn't want to listen to us, and spoil their party.

What do you expect us to do now that all their predictions and warnings are coming true? Yes, of course humility is a course of action, however, these people jumping on the band wagon were laughing at us as they appeared to speed past us - now they are paying the price.

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Taking delight at the misfortune of others is never less than ugly. Unfortunately, it IS becoming all too common on this site While there have in the past been reasoned, intelligent, arguments presented and while there continue to be posts linking to housing-related articles I might otherwise have missed, the site does of late seem to have descended to a "look at this muppet who bought a house" / "it's all thr fault of immigrants" level.

In the past I've deliberately directed people towards the site. Now, to be honest, I'm too embarrased to.

Nonsense, taking delight at the misfortune of others is a firmly entrenched tradition of Great England, particularly if it involves foreigners, or inhabitants of the county adjacent to yours. Ignoble? Sure. Displaying lack of magnanimity? Yep. Cathartic? Yessiree.

Oh and I bet you fancy Kirstie Allsopp, too. :P

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I love all the anger expressed on this site. I've never felt like that about anything in my own life. It's fascinating. I guess this is what you get when people feel left out.

Anyway, in the interests of fairness, I've just written to Gordon and suggested that if things get really bad he should use tax payer money or simply print it to help support the market and keep the hard working families of Great Britain in their homes. Let's hope he is listening. :P

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