Petem95

http://firstrung.co.uk/articles.asp?...articlekey=797

The article on this page has snippets from articles in The Times from the late 80's house price crash (articles from between '88 and upto '96)

Anyone who has been following house prices over the last few years will find it frighteningly familier - you can tie up exactly what stage the current house price slump is at by looking at the sort of articles were getting now and comparing them to the ones from the last crash

davegtt

lol

OllyK

Look, NL have promised there will be no more boom or bust. They have the economy under control and Gordon Brown's predictions of 3.5% growth this year will sort everything out. Thought I spout PL's crap for him

fast bloke

I can't see any mention of interest rates in that article, or the fact that Norma was pissing about with them on a daily basis to shore up the value of Sterling. The 'crash' didn't really gather momentum until the UK joined the ERM, at which point, no-one could really predict how affordable mortgages might be. Once rates had jumped from 10% to 15% then back to 12%, people could no longer buy at the lmit in case the situation reoccurred, so it took a number of years before confidence in affordability was regained. Now that BOE controls rates, they wont change them for political purposes, so massive hikes or cuts are unlikely.

Leslie

The Chancellor has certainly gone a bit quiet recently.

Looks like he can;t bring himself to tell us that all is going to plan when it patently is not, as he usually does, since he is going to have to increase the basic rate of tax before very long.

Les

TheBigMan

There was boom/bust in the 80's.

However soon there will be boom.....BBBUUUSSSSTTTT!!!

Watch this space. NL's economic policy seems very short sighted to me.

fast bloke

do I detect a pattern here

Petem95

Are you finally admitting that you're wrong and prices are going to crash fast bloke?

fast bloke

They won't crash - they will drop in some areas and stagnate in others. You haven't yet told me what % decrease you need to call it a crash.

The value of our house has doubled since October 2005, so a 40% drop would still see me better off than having sold up, rented instead of paying a mortgage and putting the equity in an inflation beating investment. I think a 10 or 20% drop in Northern Ireland is a possibility, but if I had waited from October 2005 until a 20% drop actually happened, I would still need and extra 150k to move up

davegtt

Ohhh give over, none of thats relevant, the crash is coming, we're all doomed

Dream Weaver

Are people really that bothered? All the pretend finance "gurus" that come on here spouting this house crash rubbish at least once a week (for the past 8 years!!), and reckon they have portfolios full of properties - do you honestly give a **** whether there is a crash on its way or not?

99.999% of us live in a house that we probably own. Ours has gone up a bit since we bought it 3 years back, but we plan on being here at least 10 years so even if there is a crash, prices will slowly rise so in 7 years time we would still be OK - prices go up and down, but in the long term no-one loses out on house prices in reality.

Honestly, these threads are getting so boring now, and the majority of us really don't care either way.

Deep Singh

I think it will bother people who HAVE to sell for one reason or another (remember repos are at a 10 year high and rising). They may find themselves in negative equity