How far will house prices fall [volume 5]
Discussion
Zonergem said:
But they need to be able to pay for it, by having a job and through access to credit.
Neither of these are going to be particularly certain over the next 12-24 months.
Sure, but if people don't own they rent and they need to be able to pay for that. We are not too worried about completing on our first house in April as our mortgage will be less than our rent. It helps we are not going to be leveraged up to the hilt, I suppose.Neither of these are going to be particularly certain over the next 12-24 months.
Taylor James said:
I'd far rather own property outright than have cash in the bank now. Anything can happen to that cash, protection schemes for £85K or not. An unencumbered property is a far safer bet. A run on the banks can't be ruled out.
That's pretty apocalyptic...I can see where you're coming from but jeez, if we get to that point society has keeled over and nobody is worrying too much about house prices.One thing that might bring prices down is landlords having to sell because no tenants...are they covered under the new aid packages?
With the activity restrictions and corona chaos looking like going on for at least three or four months it does feel like that has to have a downward impact on house prices, but then after the GFC they bounced and maybe the thing that keeps them high this time is the real assets argument in a time of systemic collapse.
Good luck keeping the squatters out though!
EDIT: one other thing that may well crash prices is access to credit. If the banks are about to have a major credit/liquidity crisis, or we are get into a vicious and grinding recession, appetite for lending as silly multiples is surely going to be through the floor?
Edited by 711 on Thursday 19th March 22:40
I feel for my brother who just moved into a new house this week and has a job that's now looking pretty shaky.
In London can see mass evictions of tenants who fall behind in the rent in a couple of months and also rental prices tanking simply as there's not going to be enough demand at the current price points, similar happened in Aberdeen when the oil prices crashed and still haven't recovered.
In London can see mass evictions of tenants who fall behind in the rent in a couple of months and also rental prices tanking simply as there's not going to be enough demand at the current price points, similar happened in Aberdeen when the oil prices crashed and still haven't recovered.
Taylor James said:
I'd far rather own property outright than have cash in the bank now. Anything can happen to that cash, protection schemes for £85K or not. An unencumbered property is a far safer bet. A run on the banks can't be ruled out.
I've been wondering whether I should pay off my "kids" mortgages and they can pay me back monthly, perhaps interest free.Solicitor emailing today, we've not paid our initial deposit yet.
With a 4 year old (whose now off of school) and other half working in the NHS (NICU so unable to Work at home) we've probably enough stress to not want to add to it by moving into rental and then moving again
I work for a company which has 60% uk govt work, so about as well insulated as we can be in the private sector (apart from toilet roll manufacturers, obviously), but a lot of what we do is time and materials based...if our workforce is impacted we dont get paid...and jobs get lost (eventually).
Think we'll keep actions in regards the sale ticking over.....but very slowly....and be clear that sale is subject to us finding somewhere (we're not looking that hard). If the buyer pulls out in the meantime at least we can avoid any agent fee's.
With a 4 year old (whose now off of school) and other half working in the NHS (NICU so unable to Work at home) we've probably enough stress to not want to add to it by moving into rental and then moving again
I work for a company which has 60% uk govt work, so about as well insulated as we can be in the private sector (apart from toilet roll manufacturers, obviously), but a lot of what we do is time and materials based...if our workforce is impacted we dont get paid...and jobs get lost (eventually).
Think we'll keep actions in regards the sale ticking over.....but very slowly....and be clear that sale is subject to us finding somewhere (we're not looking that hard). If the buyer pulls out in the meantime at least we can avoid any agent fee's.
Anyone else think house prices can't crash given Government incentives?
Underwriting wages.
Mortgage holidays.
Interest free business loans.
People aren't going to be having their houses repossessed. There might be limited demand over next few months, but will also be limited supply. Once it blows over, it will return to as was?
Might it even push prices up - lots of money getting pumped into economies, but people can't easily spend it?
Underwriting wages.
Mortgage holidays.
Interest free business loans.
People aren't going to be having their houses repossessed. There might be limited demand over next few months, but will also be limited supply. Once it blows over, it will return to as was?
Might it even push prices up - lots of money getting pumped into economies, but people can't easily spend it?
Edited by 156651 on Friday 20th March 17:32
156651 said:
Anyone else think house prices can't crash given Government incentives?
Underwriting wages.
Mortgage holidays.
Interest free business loans.
People aren't going to be having their houses repossessed. There might be limited demand over next few months, but will also be limited supply. Once it blows over, it will return to as was?
I suppose the horrendous thought is if chunky numbers of people succumb, releasing properties onto the market.Underwriting wages.
Mortgage holidays.
Interest free business loans.
People aren't going to be having their houses repossessed. There might be limited demand over next few months, but will also be limited supply. Once it blows over, it will return to as was?
Sheepshanks said:
I suppose the horrendous thought is if chunky numbers of people succumb, releasing properties onto the market.
That is true, big supply increase could push prices down, but let's hope we don't end up in a situation with millions dead because of the steps that are being taken. 711 said:
In the area I’m looking at 3 places sold yesterday at very near asking.
Are people buying up property as a hedge against inflation or crashed stock markets?
If I could, I would ... houses are real (hence "real estate") everything else is somewhat fictional ... a share in a stock is potentially worth nothing. Cash in the bank can be devalued to nothing. Gold can be confiscated. It's very hard for government to pick up your house and take it away. Although they can impose property/land tax - which is likely one of the ways this will unwind. Are people buying up property as a hedge against inflation or crashed stock markets?
156651 said:
Anyone else think house prices can't crash given Government incentives?
Underwriting wages.
Mortgage holidays.
Interest free business loans.
People aren't going to be having their houses repossessed. There might be limited demand over next few months, but will also be limited supply. Once it blows over, it will return to as was?
Might it even push prices up - lots of money getting pumped into economies, but people can't easily spend it?
I think two things will happen that benefit people who have homes purchased with debt.Underwriting wages.
Mortgage holidays.
Interest free business loans.
People aren't going to be having their houses repossessed. There might be limited demand over next few months, but will also be limited supply. Once it blows over, it will return to as was?
Might it even push prices up - lots of money getting pumped into economies, but people can't easily spend it?
Edited by 156651 on Friday 20th March 17:32
1: Government will pull every lever to keep credit cheap which will keep prices high / payments affordable.
2: Inflation will erode the debt more quickly.
It's clear that the government don't want the market to set the real rates so they will do what they have to to prevent that. Even if it means running the printing presses 24/7 to provide 'liquidity'
Sheepshanks said:
rm163603 said:
1: Government will pull every lever to keep credit cheap which will keep prices high / payments affordable.
2: Inflation will erode the debt more quickly.
Can we have inflation (at levels that would make a diference) and cheap credit at the same time?2: Inflation will erode the debt more quickly.
711 said:
In the area I’m looking at 3 places sold yesterday at very near asking.
Are people buying up property as a hedge against inflation or crashed stock markets?
In my area (well, one of them) prices on properties I’ve been eyeing up have dropped over 10% in the last couple of months.Are people buying up property as a hedge against inflation or crashed stock markets?
The determinant here will be need to sell.
I was due to exchange on a new build last friday and complete 27th March. I have heard nothing from anyone. Prior to last week the developer was on at me twice a day chasing and the solicitors were on email daily.
I went past the house yesterday and it's all completed. Garden done and all internal work done and fitted.
I feel quite in limbo obviously worried as now the economy has changed and my first time buyers may has suffered from this.
With radio silence it's very strange, my wife is still packing boxes up, I haven't the heart to tell its unlikely we will be moving
I went past the house yesterday and it's all completed. Garden done and all internal work done and fitted.
I feel quite in limbo obviously worried as now the economy has changed and my first time buyers may has suffered from this.
With radio silence it's very strange, my wife is still packing boxes up, I haven't the heart to tell its unlikely we will be moving
jonwm said:
I was due to exchange on a new build last friday and complete 27th March. I have heard nothing from anyone. Prior to last week the developer was on at me twice a day chasing and the solicitors were on email daily.
I went past the house yesterday and it's all completed. Garden done and all internal work done and fitted.
I feel quite in limbo obviously worried as now the economy has changed and my first time buyers may has suffered from this.
With radio silence it's very strange, my wife is still packing boxes up, I haven't the heart to tell its unlikely we will be moving
Have you considered contacting your agent/solicitor rather than posting here? I went past the house yesterday and it's all completed. Garden done and all internal work done and fitted.
I feel quite in limbo obviously worried as now the economy has changed and my first time buyers may has suffered from this.
With radio silence it's very strange, my wife is still packing boxes up, I haven't the heart to tell its unlikely we will be moving
jonwm said:
I was due to exchange on a new build last friday and complete 27th March. I have heard nothing from anyone. Prior to last week the developer was on at me twice a day chasing and the solicitors were on email daily.
I went past the house yesterday and it's all completed. Garden done and all internal work done and fitted.
I feel quite in limbo obviously worried as now the economy has changed and my first time buyers may has suffered from this.
With radio silence it's very strange, my wife is still packing boxes up, I haven't the heart to tell its unlikely we will be moving
Chase the hell out of your solicitor! I cannot imagine that a developer would want a deal to fall through.I went past the house yesterday and it's all completed. Garden done and all internal work done and fitted.
I feel quite in limbo obviously worried as now the economy has changed and my first time buyers may has suffered from this.
With radio silence it's very strange, my wife is still packing boxes up, I haven't the heart to tell its unlikely we will be moving
156651 said:
Anyone else think house prices can't crash given Government incentives?
Underwriting wages.
Mortgage holidays.
Interest free business loans.
People aren't going to be having their houses repossessed. There might be limited demand over next few months, but will also be limited supply. Once it blows over, it will return to as was?
Might it even push prices up - lots of money getting pumped into economies, but people can't easily spend it?
As a staffy, my work have very kindly said at worse we'll get 80% salary paid.....................Underwriting wages.
Mortgage holidays.
Interest free business loans.
People aren't going to be having their houses repossessed. There might be limited demand over next few months, but will also be limited supply. Once it blows over, it will return to as was?
Might it even push prices up - lots of money getting pumped into economies, but people can't easily spend it?
Edited by 156651 on Friday 20th March 17:32
.................................Unless we have to take time off to look after out children, then it is "unpaid parental leave". Oh well, the Lancashire power station I work for will have to Scooby Doo then. t
ts.And as per wifes company whom have said the same despite her being in NHS supply chain Pharmacutical Production Management.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff