A little bit of positive news perhaps - http://www.telegraph.co.uk/finance/e...age-debts.html

People resisting calls to spend their way to prosperity and using common sense to do the right thing instead.

 

This is what we are doing. Our mortgage is interest only. It was coming off its special rate of 4.99 fixed and I was worrying because at the time rates were going up. I checked the mortgage details and after the special rate it goes onto 0.49% above base for the life of the mortgage. I was planning to move to repayment and fixed at a similar rate when base rate began falling. The mortgage dropped from c£500 to c£99 in a short space of time so I put £300 a month into an ISA and added the £100 into shifting the card debt quicker.

House prices round here are still too high really. You get the odd one or two talking about buying another place to rent but the rental market here is saturated. 10 years ago houses were cheap and many bought BTLs. These BTLs were snapped up by workers converting one of the refineries to LNG. The LNG plant is finished and from what I've read very well automated so the BTLs are empty. Some have been picked up by the workers building the power station but they are all on very good wages so only want the nice countryside homes not the run of the mill semi's.

 

I see that new rules are about to be implemented which will limited Mortgage Funding still further.

No more 'Liar Loans', tight limits on multiples, strict affordability checks, etc.

This can only result in even less buyers able to pay the prices being asked - it will strangle the funds available to buy homes - resulting in quite a price correction to come.

There are only two ways this can move forward ...

1. Stagnation, no-one moves.

2. Falling House Prices to match the funding abilities of buyers.

It must surely be number 2. which wins out in the end .... the falls will be whatever it takes to bring the average house price in line with an average couples wage (x3).

With an 'average' family income of £50,000 it would result in an average house prices of £150,000 ..... in crude terms.

With the average house price currently sitting at around £170,000 it would indicate a drop of £20,000 on a £170,000 house to bring the ducks in line.

That's a fall of around 13% to come. Factor in the fact that it always overshoots and we are probably looking at a drop of 20% in 2011.

 

But on a more positive note the Ftse is on the up .The general feeling of the Majority rather than a couple of old doom mongers is that the economy is getting back on track ,so you can ignore all the nonsense of a double dip .!!!!!!

Onwards and upwards folks .You heard it here first .!!!!!!

 

Agreed. Pete is just spreading all this crap around as he missed the boat!

 

 

how in the hell have you managed to get a double post two years apart

i'm sure I saw this same post on page 2 of this thread

 

 

 

Now, I will be the very first to admit that my memory is terrible .....

So, I looked back at Page 2 - and you are talking nonsense .... no double post at all - I accept your apology.

 

Great news for (long term) BTLs though, fewer people able to get mortgages will still need somewhere to live.

Win win for us.

 

As I keep saying it's all rosy from here on in.

Listened to the PM earlier. All good news. Long term interest rates can only go down and coupled with mass unemployment and low wage inflation, coupled with tighter mortgage lending and the criteria being tightened, house prices can only soar from here on in.
On the back if this explosion on property, a boom i'm calling it, this time next millenium we'll all be millionaires.





Or dead.

 

Why dont you pour your half empty cup into Petes half empty cup and together you can share a full cup!!!!!!!

 

Reality is sometimes not the easiest thing to hear..

 

You are quite annoying, but that is quite funny

 

No one will move as the majority will not want to loose the cash. Just cause the banks say property has dropped doesn't mean every single person is prepared to sell at those rates as if they did buying a new property would be a doddle. You sell your property for say 15% less that what it was worth 2 years ago and move up in the property ladder?? Unfortunately the home you want to buy the sellers won't sell for less than what it was worth in the boom as they have no great need to sell. There is how your theory is wrecked and that is exactly how the market is.

If people can't afford the mortgage on new properties thwe banks will just have to start longer term mortgages to allow people to buy. A couple of years ago house builders were building massive homes and I always wondered how people could afford them but now the trend is moving to small houses. Plots have been redisgned and more smaller houses have been added where there were supposed to be big 6 bedroomed detached houses.

 

There is no 'CASH' .... just a House!!

There is no value whatsoever until the bricks and mortar are exchanged for Cash.

People who perceive they are losing cash if selling a house for what it's worth need their bumps feeling and I doubt they are in the majority ..... most people have 2 brain cells and realise that a price needs to suit a buyer, whether they like it or not.

This may be why we have some stagnation .... too many people with one single braincell?

 

The house you want to buy is say £300k the sellingprice of yours is say £200k but then the banks devalue your property to £170k and the person you are buying off won't budge on price! There is an extra £30k to find so I think you would be loosing cash

 

I can't believe the posts on here. A house is bricks and motor, not a cash machine.

This is what caused the recession!

 

It is often an investment (like shares ,gold etc )as well ,which is why people are quite passionate about the subject .

 

Everybody tardes up at some point unless you happened to buy a cheap massive house 1st time around. Trading up involves cash and the less yours is worth the more debt you have to get, wether you agree with it or not its just a fact!

 

Ok I did think you really believed in the stuff you wrote, and were just a bit 'special' but now I can see you're just trolling!

If someone asked me how much I thought house prices would fall over the next 5 years or so 6months ago I probably would've said 30%. Ask me now and I reckon 50% or even more.

The house of cards supporting the obscenely overpriced housing market just looks set to fall down in a big way. It's not just economic uncertainly, high and increasing unemployment and the lack of funds banks have to lend, but these stricker lending rules coming into play (which should've come in years ago to prevent this massive house price bubble ever occurring) are just going to devastate the housing market.

I feel sorry for those FTB's who were encouraged by banks and EA's to buy into such an overinflated market

 

Give over

Bring out your dead .Bring out your dead !!!!!!

 

Except they will sell because the house the want to move to will also be cheaper.

Please get a clue.

By your logic the housing market cannot fall!

Were you alive in the early 90's?

 

Except they will sell because the house the want to move to will also be cheaper.

Please get a clue.

By your logic the housing market cannot fall!

Were you alive in the early 90's?

 

Thats where the flaw is as a lot of people still won't sell cheaper, if everyone did it would be perfect. I know someone recently who moved , they accepted the loss on thier property but the people they were buying from would not so they still had to pay them top dollar for the new home. I know it cost them over £30kextra to complete the move. People only sell cheaper if they are desperate.

 

and cash is one huge confidence trick

 

Wrong. You sell for what the market dictates.

Example. Five identical houses all sell for X.
Mr "y house is worth what is was in 2007" wants to sell for x+30%.

Why doesn't his house sell?

 

What happens when the X houses have sold and only Y is left .

You pay Y price because you love the house and want it .!!!

 

You find another house at X. Why pay for Y when it's clearly over valued?