House Market Crash

[craigie b]

Its a sad day for society when half the population needs and hopes for the misery of the other half. But, being a pragmatist, I can see the silver lining in this cloud.

[craigie b]

The thing is, it seems logical. I've been itching to get my first house, considering a 38 yr mortgage because the acceleration has been ridiculous in York. However, my itch has been fired by the thought that house prices will just rise and rise until it would be impossible for me to get a house. It seems I'm not the onlyone with this train of thought so it seems logical that the rise could be blamed on this.

I'm going to hold off now and just put money aside.

[Rob]

[FreshAL]

I'd like to think a housing crash would be the catalyst needed to wake up the sheep population to just how f-cked over they are being by the government.

It would be a political disaster, so the government will be working with banks to keep find ways to let people borrow more and more money. I agree with Siggi in so much as having the population in debt means they are too tied down to challenge the status quo.

You can now borrow 5 times your salary, traditionally, you could only borrow 3 times. There's talk of making mortgages inheritable, passing debt on to your kids.

Price rises will slow down, but I don't think we'll have a crash.

[NSR Mick]

[Irezumi aka Reuben]

If everybody refused to buy any house for a couple of month's prices would drop quick enough. The majority of people are stupid enough to want to be in exactly the same position as all those at the top.

[craigie b]

[Rob]

[Marcg868]

Well we're moving from a 4 bedroomed detached, in Bolton.

Been Valued at £275,000

Hopefully be moving to Bury or Horwich
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JACK, MISS YOU LOADS YOU LEGEND.

[Ste]

Tis easy and not such a problem unless you've bought a property intended as a short term investment. Prices crash, so when prices are very low suddenly lots of people are very interested in buying again. Which pushes prices back up.

Prices crashing won't particularly help the average buyer, dirt cheap properties when prices have crashed I'd expect to have lots of interest from rental companies and people buying them as investments. So the average person will then have a good choice of houses to rent or newly refurbished houses to buy once the market recovers.

[craigie b]

I can;t see prices falling below the current rate either, however it will give me a couple fo years to put some aside and let my wages catch up with the market price.

A fair point is the fact that building a house costs so much that a new house costing 100 od grand is probably just right given the builders cost then markup.

[owdamer]

I cant wait for the house prices to crash. I have a £50k mortgage & my house is currently worth about £90k. I dont know why as I wouldn't pay that much for it!!. I'm right on the bottom of the housing ladder so the type of house I live in will always be in demand anyway.

[Kickstart]

Hi

House prices are not THAT bad currently. I made the mistake of buying a house in 1989. At the time mortgages were easily available at 3.5 times single income. Interest rates maxed out for a short time at 15%, being above 10% until 1993. Basically means that payments on the same mortgage were 2~3 times what they would be now. Add inflation into in and houses are a lot more affordable than they were then.

Only real nasty is raising the deposit. Although you could get a 100% mortgage.

Will there be a crash? Doubt it. Suspect they will stop going up soon, and flatline for a good few years.

Do think house prices are hideously high, but they have been for ages.

All the best

Keith
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[Ant]

if the market did "crash" then i for one, wouldn't sell my house even though ive got it for sale at the moment, if its not worth more than my mortgage i'll stay put.
The thing that makes me laugh is we all buy houses and if they dont make money were pissed off (me included) but then will happily buy a bike/car and loose £1k a year on it!
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04 ZX10R ~

[gavin]

there isnt going to be a crash in house prices, not like '89 at least. it was lamont's mis-management of the economy and the uk's withdrawl from the ERM that caused the financial crisis that led to that crash.

the mechanisms put in place by gordon brown and eddie george and his successors mean that those things are unlikely to happen again.


keith is right, in real terms we are much better off now than in the late 80's/ early 90's..........however........... today, total personal borrowing is many, many times higher per capita than it was back then......if there is a forced economic crisis (however caused - economic mismanagement, act of terrorism, dispute with russia over gas supply maybe........individual debt overload [see below] ) the consequences will be much much worse than they were in 1989.........

[Kickstart]

[froggeh]

The sooner we ALL start renting, the better.

Everyone seems to see property as a way to make money... which is fine, except some people just want a home, and have to compete with investors...

get rid of private landlords.
get rid of "1st time buyer deals"
get rid of stupid amount more than you earn mortgages

If you wnat to own, the best way is to start a culture of long term fixed rate mortgages.... no boom/ bust

better still lease.

[Kickstart]

Hi

Possibly a solution would be to make income from houses (whether rent, or just increase in value) more taxable in the year it is earnt.

All the best

Keith
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Traxpics, track day and racing photographs - Bimota Forum - Bike performance / thrust graphs for choosing gearing

[Zimbo]

[Itchy]