How far will house prices fall [volume 4]

[Digga]

Pork said:

I was speaking to someone over the weekend who was saying his Sis-in-law has over £1m in equity in her house. She's in her 30's, all of it is driven by house price inflation. He was very happy for her, but couldnt really grasp it when I said "all that means to me is houses are too dear - what's the benefit of that unless she doesnt want somewhere to live or is downsizing?"

MEW = Range Rover Sport/white Audi/BMW

[Seek]

Something to pass the time while waiting for the market to go down further go back up stabilize.
http://www.addictinggames.com/strategy-games/mortg...

[fido]

princeperch said:

http://www.rightmove.co.uk/property-for-sale/prope...

how on earth do they get this signed off assuming they are borrowing against it!

Because it's going to be trendy kids (with loads of daddy's cash) or foreign buyers with loads of cash - 50% LTV should keep any lender happy?

[Pork]

Digga said:

Pork said:

I was speaking to someone over the weekend who was saying his Sis-in-law has over £1m in equity in her house. She's in her 30's, all of it is driven by house price inflation. He was very happy for her, but couldnt really grasp it when I said "all that means to me is houses are too dear - what's the benefit of that unless she doesnt want somewhere to live or is downsizing?"

MEW = Range Rover Sport/white Audi/BMW

Ha. true. Why save up and buy something when you can add it to a mortgage and pay 25 years worth of interest on it!

O/T, you dont drive a grey MINI do you? I was up your part of the world recently (on the M6, nears Cannock)and saw one with a plate that was very similar to your username.

[MycroftWard]

Pork said:

Why save up and buy something when you can add it to a mortgage and pay 25 years worth of interest on it!

Yeah but think of how low the monthly payments will be!

[jonny70]

Pork said:

Ha. true. Why save up and buy something when you can add it to a mortgage and pay 25 years worth of interest on it!

.

So she will be paying the interest on he 30 gran she borrowed to buy the white range rover for the duration of the mortgage?

I assume these popel only think in the short term, and assume to rely on ever increasing value in property hence more and more equity.According to this i woner how her kids will afford houses in 15-20 years.

[Pork]

MycroftWard said:

Pork said:

Why save up and buy something when you can add it to a mortgage and pay 25 years worth of interest on it!

Yeah but think of how low the monthly payments will be!

Yeah, which is fine if you plan on clearing it up early and are using it as a way of getting cheap, short term money. I suspect many don't though!

[Pork]

British Dream of Owning Your Own Home is Dying Say Experts.

If this is right, average house price is now 11 x average salary!

[rover 623gsi]

and getting planning permission to build much-needed new homes remains extremely difficult, costly and time consuming

[Melman Giraffe]

rover 623gsi said:

and getting planning permission to build much-needed new homes remains extremely difficult, costly and time consuming

Even with relaxed laws

[BMWBen]

Melman Giraffe said:

rover 623gsi said:

and getting planning permission to build much-needed new homes remains extremely difficult, costly and time consuming

Even with relaxed laws

I thought that the stock of land which had planning permission but that isn't being built on is quite large...

Planning permission might be an arse, but it's not the problem here.

[Melman Giraffe]

BMWBen said:

Melman Giraffe said:

rover 623gsi said:

and getting planning permission to build much-needed new homes remains extremely difficult, costly and time consuming

Even with relaxed laws

I thought that the stock of land which had planning permission but that isn't being built on is quite large...

Planning permission might be an arse, but it's not the problem here.

Not down South

[MycroftWard]

Pork said:

MycroftWard said:

Pork said:

Why save up and buy something when you can add it to a mortgage and pay 25 years worth of interest on it!

Yeah but think of how low the monthly payments will be!

Yeah, which is fine if you plan on clearing it up early and are using it as a way of getting cheap, short term money. I suspect many don't though!

Yes, I suspect your right. Just refering to the fact that many people seem to focus on the monthly out-goings rather than the term over which said payments will be made.

[MycroftWard]

Pork said:

British Dream of Owning Your Own Home is Dying Say Experts.

If this is right, average house price is now 11 x average salary!

All these properties are owned by someone though aren't they. I see the main problem here as being the transfer of wealth from poor to rich that's been going on, people can still afford to own and buy property, just not the working class any more.

[Sonic]

Seek said:

Something to pass the time while waiting for the market to go down further go back up stabilize.
http://www.addictinggames.com/strategy-games/mortg...

Well i managed to finish with $7m in my pocket.. if only it was that easy

[turbobloke]

MycroftWard said:

Pork said:

British Dream of Owning Your Own Home is Dying Say Experts.

If this is right, average house price is now 11 x average salary!

All these properties are owned by someone though aren't they. I see the main problem here as being the transfer of wealth from poor to rich that's been going on, people can still afford to own and buy property, just not the working class any more.

From middle to top and bottom more like.

[Derek Chevalier]

rover 623gsi said:

and getting planning permission to build much-needed new homes remains extremely difficult, costly and time consuming

Who is in great need of these new homes apart from the housebuilders?

[Derek Chevalier]

MycroftWard said:

All these properties are owned by someone though aren't they.

The banks/Government?

[turbobloke]

"As the City is squeezed, expect London property prices to fall"

http://www.moneyweek.com/investments/property/uk/g...

[sugerbear]

Derek Chevalier said:

rover 623gsi said:

and getting planning permission to build much-needed new homes remains extremely difficult, costly and time consuming

Who is in great need of these new homes apart from the housebuilders?

If they were reasonably priced, loads of first time buyers.