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Yields are a key point ...... getting 2% on your money in a Bank (maybe even 0% soon!) or 8% by renting out a property - tempting. However, your capital faces the real risk of falling in value ... and there is the conflict.
There will be a number of false dawns, there were 'last time' aswell. A number of occasions of positive growth in HP follwed by falls again. Some will be fooled by this and have their fingers burnt. Only those who have the courage of their convictions to wait will benefit. The wait maybe long, but the time will come to..........DIP YER BREAD!!!!!!!!!!!!!!!
Lets not get carried away about a little bit of a dip on House Prices happening now .So what if they drop 10% or 15% for a year ,maybe two .
We have had years of them rising 10% or more per year ,year on year .!!!
It will recover ,albeit probably more slowly than we have become used to previously ,but as sure as eggs are eggs ,they will be going back up .!!!!!!!!
Lets not get carried away about a little bit of a dip on House Prices happening now .So what if they drop 10% or 15% for a year ,maybe two .
We have had years of them rising 10% or more per year ,year on year .!!!
It will recover ,albeit probably more slowly than we have become used to previously ,but as sure as eggs are eggs ,they will be going back up .!!!!!!!!
Lets not get carried away about a little bit of a dip on House Prices happening now .So what if they drop 10% or 15% for a year ,maybe two .
We have had years of them rising 10% or more per year ,year on year .!!!
It will recover ,albeit probably more slowly than we have become used to previously ,but as sure as eggs are eggs ,they will be going back up .!!!!!!!!
LOL as I was just about to post that the SN doom mongers will be along any time now to start mocking you and as above... here they are .
Not sure whether you're right or not btw, but that is just the point - no one knows what the market is going to do.
Banks are collapsing, there is a world recession, jobs are going at a massive rate - this has never happened before. Almost no industry is being left untouched.
This isn't just "going to get better" - it will have effects and ramifications that will last a long time - who knows how long but I'd say at least a decade.
I reckon houses will drop 50% (they already have in some areas) in price and not recover for a long time - if at all.
Then if/when we do get out of it, taxes will have to pay for this mess. It'll take probably a 10% rise in income tax (or other stealth taxes) to cover it in anything less than a century.
Come back in a year and see how things are going. I cannot believe how many "homeowners" (in the majority of cases mortgaged up to the hilt with little or no equity - so actually the banks own their homes with the massive loan they have given) are still in such denial.
Yes if you live in your house and plan to use it as a "home", own a good chunk (or all) and aren't deluded, you are fine - but how many "homeowners" are in that situation? Not all that many.
Meanwhile those on the never never celebrate every time their is an interest rate drop and don't save - they take that £100 extra a month and spend it on some else on the never never. Then blame everyone else when they end up bankrupt with no home.
Yes renting is better than being mortgaged right up but it's not as good as owning outright - but hey, I can live with it and so can many others on here who thing along the same lines.
So come on, let's mark this date, the 19th January 2009 and see where we are on Jan 19th 2010.
Lol !!!
Cup half empty comes to mind .
It is not a matter of life and death .
They are events,they have happened before ,they will happen again .
I would rather enjoy the good things in life now before its too late ,rather than be looking back and thinking if only .....
If it goes tits ,then pick urself back up and have another go .!!!
To never try is to never have lived .
Most of these people who you say have been reckless ,were maybe ,just maybe trying to do a little better for their families,not blatantly trying to get themselves in the Mire .
Most of your tone suggests you are happy that they failed .I dont know why .
Making lives better for their families by mortgaging themselves up to the eyeballs and getting stupidly in debt?! That's a rather strange thing to do for family improvements.
No I'm not the harbinger of doom. In fact this situation is good for us - but only right now.
As for the good things in life - let me guess. Massive TV? BMW on the never never. Holidays in flashy resorts that are actually a bit naff? Membership of an overpriced golf course?
Sorry but to me and my family, the good things in life - the beach, the countryside, bit of travel in Europe, going out on the boat, being outdoors and active - don't cost much at all.
If it goes tits up when you in the debt mire, you don't pick yourself up and carry on - you suffer and so does your family.
I know because my Dad lost well over a million quid in the last major recession and struggled for years, having been well off. The main reason? Big mortgage and very little savings despite earning plenty.
He's a lot more careful now as should you be.
Now I haven't mentioned our own money ONCE so why assume it's to do with that? It's not. It's about silly people burying their heads in the sand and then blaming everyone else when they lose all they once "owned"
And just for reference, not long ago I was labouring for £6 an hour.
A month after getting back from travelling the world (having had a well paid job) I farm labouring to fill in while I looked for a proper job. Done all sorts of admin and temp jobs too - so don't give me that loadsamoney cr4p. We have a bit but compared to many, we have sod all. Not that it matters anyway.
But thanks for the advice anyway.
Last edited by Matteeboy; 19 January 2009 at 21:50.
Too bloody right. In the early 2000's, I wasn't in that much of a rush to buy property as house prices were moving along with inflation and I thought that I'd buy when I was ready. At that time I could afford a 2 bed semi with a garage on an average wage.
Then within the space of a few years I could only afford a crappy one bed ex-council flat in a less than favourable area. This was by now on a salary a few £k above average. The only reason the prices seemed to go up was due to cheaper credit and some bint with big jugs on the telly encouraging everyone to do up old properties.
Luckily I eventually saw the light and got a BTL in late '06. It went up in value by 45% in 18 months for no particular reason (highlights the ludicrous bubble that had been created). I then decided there must be some sort of sh!t storm coming and sold in June at 5% off that peak. Now sitting with a deposit and waiting to comit.
Am I pleased millions will be out of work? No, I dont even want to consider what that is like and my sympathy is with them.
No sympathy for those who borrowed beyond 3.5 x though. They should have waited for the reality check that deep down everyone knew was coming.
Yes if you live in your house and plan to use it as a "home", own a good chunk (or all) and aren't deluded, you are fine - but how many "homeowners" are in that situation? Not all that many.
I think you would be surprised at how many houses have little, if any, mortgage on them ........ it's easy to think that 'most' properties have bg debts on them - they haven't in reality.
If
I know because my Dad lost well over a million quid in the last major recession and struggled for years, having been well off. The main reason? Big mortgage and very little savings despite earning plenty.
.
A poxy million quid ?? my dad lost 20 million plus in the last recession and he still never saves a penny and does not give a flying fcuk. He always said live every day like it may be you and one day you will be dead right. Any idiot can make it once doing it twice is a little bit more special. When times are good live it up and when times are bad you suffer same as everyone else. Thats life
My dad bought his new build detached house, 4 bedrooms, garage and large front and rear gardens for 66k, private estate, no council scummers, overlooking the river tyne and a marina filled with nice bobbing boats.
i personally would be more then happy of the prices came down to these levels.
would be nice, but as it stands, i simply can not see the prices dropping back down to that level
they might come down to around 200k ish but i cant see them dropping further.
i would also be more then happy if he left some of his 75million fortune to me
as it stands at the moment, i cant afford to buy a place, and i renting a 2 bed apartment on the other side of the marina, that costs me more in rent, then it was costing him to buy his place
Last edited by StickyMicky; 20 January 2009 at 06:35.
I think I'm just from a different generation.I don't like to owe anybody anything if at all possible.
I think my parents generation and theirs were the same.Hence the reason they all (in the main) have a mortgage free property.
It doesn't seem to bother people anymore.The talk about 'pick yourself up and start again' is a bit difficult if your house has been reposessed ,you have been pursued for the shortfall,you are made bankrupt and your credit is stuffed and possibly you couldn't even rent.
I'm not doing the doom thing,but that scenario petrifies me.I'm with Matt on the look for simple pleasures front and I hope this rather greedy generation does change its thought process and doesn't become blind to the fact it can go very wrong.
And yes,house prices will increase again at some point as they always have done.Its just going to take time for the wage to borrowing ratio to get back to something approaching normality
