How far will house prices fall [volume 4]
Discussion
JagLover said:
Melman Giraffe said:
I think this tread should be -
When will mortgage interest rate start to rise?
This will IMO cause prices to fall due to mortgagees unable to pay higher amounts thus more property coming on the market.
Good PointWhen will mortgage interest rate start to rise?
This will IMO cause prices to fall due to mortgagees unable to pay higher amounts thus more property coming on the market.
and the answer is only when lax monetary policy starts to produce inflation that is too high even for the BOE to ignore.
Melman Giraffe said:
JagLover said:
Melman Giraffe said:
I think this tread should be -
When will mortgage interest rate start to rise?
This will IMO cause prices to fall due to mortgagees unable to pay higher amounts thus more property coming on the market.
Good PointWhen will mortgage interest rate start to rise?
This will IMO cause prices to fall due to mortgagees unable to pay higher amounts thus more property coming on the market.
and the answer is only when lax monetary policy starts to produce inflation that is too high even for the BOE to ignore.
House prices to rise 16% in the next 3 years http://www.telegraph.co.uk/finance/economics/house...
hmm I am not convinced we have payday loan companies popping up every where, static’s saying the average family cant afford to live and pay monthly bills on their wages , people are dipping into savings to keep their head above water , cost of living rising at a fast rate, wage rises are not ..in fact peoples pay is being cut by a growing population ( migration) offering to do the work cheaper the average Joe is skint, and they recon house prices will rise 16 percent am I missing something ?
hmm I am not convinced we have payday loan companies popping up every where, static’s saying the average family cant afford to live and pay monthly bills on their wages , people are dipping into savings to keep their head above water , cost of living rising at a fast rate, wage rises are not ..in fact peoples pay is being cut by a growing population ( migration) offering to do the work cheaper the average Joe is skint, and they recon house prices will rise 16 percent am I missing something ?
jonny70 said:
Your missing the point , We can all get rich by buying and selling massively over priced property to each other? The credit crunch was just a blimp.
So how do these purchasers pay the bills and get the mortgage?I think this propaganda by the loan companies; estate retailers and builders to create a panic buy which in turn will create house inflation…….but I don’t think the general home buyers will take the bait. They cant afford to !!!!.... BTW I have a 500k house for sale be quick you can have if for 650 before it goes up to 700k lol
GEWAGON said:
House prices to rise 16% in the next 3 years http://www.telegraph.co.uk/finance/economics/house...
hmm I am not convinced we have payday loan companies popping up every where, static’s saying the average family cant afford to live and pay monthly bills on their wages , people are dipping into savings to keep their head above water , cost of living rising at a fast rate, wage rises are not ..in fact peoples pay is being cut by a growing population ( migratio offering to do the work cheaper the average Joe is skint, and they recon house prices will rise 16 percent am I missing something ?
If mass migration from Bulgaria and Romania occurs from December next year then the demand for housing could explode, certainly in places like London.hmm I am not convinced we have payday loan companies popping up every where, static’s saying the average family cant afford to live and pay monthly bills on their wages , people are dipping into savings to keep their head above water , cost of living rising at a fast rate, wage rises are not ..in fact peoples pay is being cut by a growing population ( migratio offering to do the work cheaper the average Joe is skint, and they recon house prices will rise 16 percent am I missing something ?
porridge said:
If mass migration from Bulgaria and Romania occurs from December next year then the demand for housing could explode, certainly in places like London.
so how can poor people from poor countries afford over inflated houses prices ? and if you mean investers will buy them and rent to them , no succesfull invester would purchase and rent out with less than 8% gross yield. GEWAGON said:
porridge said:
If mass migration from Bulgaria and Romania occurs from December next year then the demand for housing could explode, certainly in places like London.
so how can poor people from poor countries afford over inflated houses prices ? and if you mean investers will buy them and rent to them , no succesfull invester would purchase and rent out with less than 8% gross yield. 
GEWAGON said:
so how can poor people from poor countries afford over inflated houses prices ? and if you mean investers will buy them and rent to them , no succesfull invester would purchase and rent out with less than 8% gross yield.
You are aware 1st gen migrants won't be 2 people to a 1 bed flat. Charging per person = yield.Today's papers full of more gloom.
-New York now has more City type jobs then London
-Hong Kong to overtake the city by 2015
-London bonus pool in 2013 expected to be 1.6 billion, which is down 64% from 2012 and 86% below 2007.
Confidence to take on huge mortgages isn't going to be there for many.
-New York now has more City type jobs then London
-Hong Kong to overtake the city by 2015
-London bonus pool in 2013 expected to be 1.6 billion, which is down 64% from 2012 and 86% below 2007.
Confidence to take on huge mortgages isn't going to be there for many.
^ http://www.telegraph.co.uk/news/worldnews/europe/s...
Who on earth will want to lend to homeowners who can't be evicted? Not that i'd touch Spanish debt with someone elses.
F8cking useless socialist governments.
Who on earth will want to lend to homeowners who can't be evicted? Not that i'd touch Spanish debt with someone elses.
F8cking useless socialist governments.
turbobloke said:
P-Jay said:
...but for far too long homeowners have been winning and anyone trying to join them losing...
In the housing boom years to mid-2007 it was relatively easy to join, much easier than for many of those who joined before the credit strings were loosened.As far as the house price trend is concerned, as soon as those people make it and 'join', would their sentiment as homeowners not switch to being rather annoyed at losing in their new position in any way?
It may be annoying to some and more pleasand for others but the marketplace is what it is for everyone. Obvious but no less true. We can maximise our own chances of doing what we want to do, and little more.
In regards to the sentiment of homeowners I truly hope the last few years have taught us that for most people a booming housing market it a bad thing unless:
You die - which has a lot of it's own downsides of course.
You want to downgrade.
For everyone else:
The pub bore, might get a warm feeling of wealth that they're "sitting on a nice pile of equity don't you know" but unless they fall into the top two categories of winners it's never 'real' money and just leads to reckless public borrowing based on a misjudged idea of wealth.
The upgrader - Yay, your house is worth 30% more than you paid for it! Sadly the next house you want is worth 30% more and as it's a larger figure the gap has grown - it's going to cost you more.
The 'I’m going to live in it till I die' absolutely zero impact at all.
Then of course there's the BTL and 'part time property mogul' - There are some very good landlords out there, but the 2000's boom led to a glut of very poor ones who saw it as a get-rich-quick scheme, who don't have the income to maintain their properties properly, aren't treating as a business and bought a lot of flats that were built simply to provide cheap properties to sell them - that no one wants to live in.
P-Jay said:
The pub bore, might get a warm feeling of wealth that they're "sitting on a nice pile of equity don't you know" but unless they fall into the top two categories of winners it's never 'real' money and just leads to reckless public borrowing based on a misjudged idea of wealth.
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?"P-Jay said:
In regards to the sentiment of homeowners I truly hope the last few years have taught us that for most people a booming housing market it a bad thing unless:
No chance. The last few years have merely established "the new normal". In the hope this might provoke some counter argument, as time moves on, I'm becoming more and more convinced that there is no chance of houses seeing an material nominal downwards movement. People (very little influence), governments ( a wee bit more) and most crucially, bug businesses (the drivers in all of this) will not ever let it happen.things are getting a bit silly now in some pockets of the east.
this is in no material way different at all to my flat and is in fact about 10pc smaller.
http://www.rightmove.co.uk/property-for-sale/prope...
how on earth do they get this signed off assuming they are borrowing against it!
this is in no material way different at all to my flat and is in fact about 10pc smaller.
http://www.rightmove.co.uk/property-for-sale/prope...
how on earth do they get this signed off assuming they are borrowing against it!
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