When will the housing cycle start again?
Discussion
“Hedge your bets here” when will house prices start rising again. I remember reading a FT article many years ago (before mega property rises) that the average house price around 2045 will be around £450k.
Clearly it is all a cycle, but when you do guys think prices will start picking up? For what it’s worth, I’m being trying to sell my property (in a good location in London) to no avail. So I have decided to put it out on rent.
thebullettrain said:
“Hedge your bets here” when will house prices start rising again. I remember reading a FT article many years ago (before mega property rises) that the average house price around 2045 will be around £450k.
Clearly it is all a cycle, but when you do guys think prices will start picking up? For what it’s worth, I’m being trying to sell my property (in a good location in London) to no avail. So I have decided to put it out on rent.
To get back to the current level in undjusted terms, around ten years, ajusted for inflation, maybe 20.Clearly it is all a cycle, but when you do guys think prices will start picking up? For what it’s worth, I’m being trying to sell my property (in a good location in London) to no avail. So I have decided to put it out on rent.
http://www.telegraph.co.uk/money/main.jhtml?xml=/m...
Stop falling in about 4 years and the don't expect any huge increases. They're gonna drop like stones until the average man can afford the average house - so about 40-60% is required.
The boom has been caused by the banks adn cheap credit and the removal of these from the game will rapidly bring on the price downfall.
It's gonna be SO MUCH worse than the 90's but afterwards young families will be able to purchase a family home and so on. The UK might turn in to a place worth living in again.
The boom has been caused by the banks adn cheap credit and the removal of these from the game will rapidly bring on the price downfall.
It's gonna be SO MUCH worse than the 90's but afterwards young families will be able to purchase a family home and so on. The UK might turn in to a place worth living in again.
ACEparts_com said:
Stop falling in about 4 years and the don't expect any huge increases. They're gonna drop like stones until the average man can afford the average house - so about 40-60% is required.
The boom has been caused by the banks adn cheap credit and the removal of these from the game will rapidly bring on the price downfall.
It's gonna be SO MUCH worse than the 90's but afterwards young families will be able to purchase a family home and so on. The UK might turn in to a place worth living in again.
Thats what the way I'm hoping its going to go. Hopefully the Tories can kick the filth out of England and get some pride back in being English. The boom has been caused by the banks adn cheap credit and the removal of these from the game will rapidly bring on the price downfall.
It's gonna be SO MUCH worse than the 90's but afterwards young families will be able to purchase a family home and so on. The UK might turn in to a place worth living in again.
I say this from my sunlounger in Australia....
ACEparts_com said:
Stop falling in about 4 years and the don't expect any huge increases. They're gonna drop like stones until the average man can afford the average house - so about 40-60% is required.
...
That is if the average man actually has anything left after he's filled his car up, purchased food and gas/electric!...
Banks and Building Societies HAVE to lend.
They can't pay you and I interest on our savings without charging higher interest to borrowers. Lending is the life blood to profits which generate dividends for their shareholders to prop up the share price. Once the current credit crunch caution and hysteria ends by the end of the year lenders will be back to their old tricks. One will break ranks and the rest will follow to maintain market share.
The pent-up demand for mortgages will release a flood of new buyers onto the market. Shortages of property from those holding back will see prices nudge back up next year (In My Humble Opinion)
Boom-Bust-Boom-Bust.
It's what drives an economy driven by financial services rather than heavy manufacturing
They can't pay you and I interest on our savings without charging higher interest to borrowers. Lending is the life blood to profits which generate dividends for their shareholders to prop up the share price. Once the current credit crunch caution and hysteria ends by the end of the year lenders will be back to their old tricks. One will break ranks and the rest will follow to maintain market share.
The pent-up demand for mortgages will release a flood of new buyers onto the market. Shortages of property from those holding back will see prices nudge back up next year (In My Humble Opinion)
Boom-Bust-Boom-Bust.
It's what drives an economy driven by financial services rather than heavy manufacturing
SkinnyBoy said:
Thats what the way I'm hoping its going to go. Hopefully the Tories can kick the filth out of England and get some pride back in being English.
I say this from my sunlounger in Australia....
What about us non-English Brits (the Scottish, Northern Irish and Welsh for a start)? Are we welcome in your vision of England? Stay in Australia please.I say this from my sunlounger in Australia....
audidoody said:
Banks and Building Societies HAVE to lend.
They can't pay you and I interest on our savings without charging higher interest to borrowers. Lending is the life blood to profits which generate dividends for their shareholders to prop up the share price. Once the current credit crunch caution and hysteria ends by the end of the year lenders will be back to their old tricks. One will break ranks and the rest will follow to maintain market share.
The pent-up demand for mortgages will release a flood of new buyers onto the market. Shortages of property from those holding back will see prices nudge back up next year (In My Humble Opinion)
I think you're in for quite a disappointment. They can't pay you and I interest on our savings without charging higher interest to borrowers. Lending is the life blood to profits which generate dividends for their shareholders to prop up the share price. Once the current credit crunch caution and hysteria ends by the end of the year lenders will be back to their old tricks. One will break ranks and the rest will follow to maintain market share.
The pent-up demand for mortgages will release a flood of new buyers onto the market. Shortages of property from those holding back will see prices nudge back up next year (In My Humble Opinion)
audidoody said:
Banks and Building Societies HAVE to lend.
They can't pay you and I interest on our savings without charging higher interest to borrowers. Lending is the life blood to profits which generate dividends for their shareholders to prop up the share price. Once the current credit crunch caution and hysteria ends by the end of the year lenders will be back to their old tricks. One will break ranks and the rest will follow to maintain market share.
The pent-up demand for mortgages will release a flood of new buyers onto the market. Shortages of property from those holding back will see prices nudge back up next year (In My Humble Opinion)
Boom-Bust-Boom-Bust.
It's what drives an economy driven by financial services rather than heavy manufacturing
They still make a significant revenue from their curent mortgages that are outstanding so new lending is not as essential as you say. I think banks will be focusing on stability rather than trying to gain market share by tempting new customers in. They can't pay you and I interest on our savings without charging higher interest to borrowers. Lending is the life blood to profits which generate dividends for their shareholders to prop up the share price. Once the current credit crunch caution and hysteria ends by the end of the year lenders will be back to their old tricks. One will break ranks and the rest will follow to maintain market share.
The pent-up demand for mortgages will release a flood of new buyers onto the market. Shortages of property from those holding back will see prices nudge back up next year (In My Humble Opinion)
Boom-Bust-Boom-Bust.
It's what drives an economy driven by financial services rather than heavy manufacturing
ACEparts_com said:
Stop falling in about 4 years and the don't expect any huge increases. They're gonna drop like stones until the average man can afford the average house - so about 40-60% is required.
This is assuming that the 'average man' didnt buy 10 years ago and doesnt already have a decent chunk of equity behind him (not spent on TVs, 3-series BMWs and holidays).Timmy35 said:
audidoody said:
Banks and Building Societies HAVE to lend.
They can't pay you and I interest on our savings without charging higher interest to borrowers. Lending is the life blood to profits which generate dividends for their shareholders to prop up the share price. Once the current credit crunch caution and hysteria ends by the end of the year lenders will be back to their old tricks. One will break ranks and the rest will follow to maintain market share.
The pent-up demand for mortgages will release a flood of new buyers onto the market. Shortages of property from those holding back will see prices nudge back up next year (In My Humble Opinion)
I think you're in for quite a disappointment. They can't pay you and I interest on our savings without charging higher interest to borrowers. Lending is the life blood to profits which generate dividends for their shareholders to prop up the share price. Once the current credit crunch caution and hysteria ends by the end of the year lenders will be back to their old tricks. One will break ranks and the rest will follow to maintain market share.
The pent-up demand for mortgages will release a flood of new buyers onto the market. Shortages of property from those holding back will see prices nudge back up next year (In My Humble Opinion)
Edited to say: Lenders can't afford for house prices to drop dramatically. Their balance sheets are built on the capital value of their secured assets. If house prices drop 40 per cent , half of them will be technically insolvent.
Edited by audidoody on Tuesday 8th July 11:42
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