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House prices to crash













Uncle Spielberg

Well-known member
NSC Patron
Jul 6, 2003
42,935
Lancing








Uncle Spielberg

Well-known member
NSC Patron
Jul 6, 2003
42,935
Lancing




clapham_gull

Legacy Fan
Aug 20, 2003
25,538
I had trouble getting my first mortgage and it wasn't that long ago. Northern Rock turned me down which is ironic.

I also originally had a mortgage advisor who wanted to lie about my income. I remember him screaming down the phone and telling me I was mad (and wasting money) because I wouldn't do what he said. Only anecdotal and I'm sure most aren't like that - not these days.

We ended going with a bank - at a high interest rate at the time, because my wife company at the time had a deal with them - whereas they could lend slightly more than usual for staff.

On a slightly different point - I look out a small loan to cover some of the expenses and the lender at the time refused to let me have the money unless I took out payment protection with them.

Hasn't that been retrospectively proved illegal ?
 




Spanish Seagulls

Well-known member
Nov 18, 2007
2,914
Ladbroke Grove
That is a MoneyWeek chart & is very true as an indicator. I predicted that this would happen as affordability was the key factor & it is all out of sync. There is going to be a good time for 1st time buyers to come but everyone actually owning have just got to sit tight & hope this government don't screw everyone & raise interest rates.
 




Uncle Spielberg

Well-known member
NSC Patron
Jul 6, 2003
42,935
Lancing
Look interest rates are artifically low. They will go up. That is inevitable. The only question is when.
 


Don Quixote

Well-known member
Nov 4, 2008
8,358
Interest rates will not be low forever. They want a bit of inflation at the moment to help with the debt but as soon as it gets too high interest rates will be put way up. Then we will start to see the housing market crash.
 


Uncle C

Well-known member
Jul 6, 2004
11,697
Bishops Stortford
The reason is people could not get a mortgage.

There is only ONE reason why houses do not sell. They are too expensive.

If every house was marketted at at a price of 1 penny then 100% of them would sell. So the real value of any house is not what the Estate Agent says, not what the homeowner thinks, but it is somewhere between 1 penny and the price it refuses to sell at.

Get that right, and every house will sell.
 




Uncle Spielberg

Well-known member
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Jul 6, 2003
42,935
Lancing
That is not the reason. If people want to buy at a price but cannot get the finance to do it this does not mean the property is overpriced.
 


May 22, 2008
570
There is only ONE reason why houses do not sell. They are too expensive.

If every house was marketted at at a price of 1 penny then 100% of them would sell. So the real value of any house is not what the Estate Agent says, not what the homeowner thinks, but it is somewhere between 1 penny and the price it refuses to sell at.

Get that right, and every house will sell.

Makes Nero sence what your saying !
A house is worth what a buyer wil pay for it.
Every property finds it's level.
 


Uncle Spielberg

Well-known member
NSC Patron
Jul 6, 2003
42,935
Lancing
That is correct. The house price crash if it happens will be down to the mortgage lenders and valuers. People still want to buy and at the prices now but most of them can't as they cannot get a mortgage. I am not over egging the cake here. People do not realise just how dire the mortgage market has been for 3 years and it will get worse as the bailed out banks who are doing most of the lending now will stop lending as they have to pay the loans back shortly. Unless there is a solution to the funding and liquidity problem the whole housing market will come to a complete standstill and that will force prices down.
 


Uncle C

Well-known member
Jul 6, 2004
11,697
Bishops Stortford
That is not the reason. If people want to buy at a price but cannot get the finance to do it this does not mean the property is overpriced.

Sorry, but I think it does. If the vendor reduced the price two things will happen

1. The people searching a mortgage might get one at the lower level.
2. New buyers will enter the arena.

So keep reducing it and it WILL sell long before it reaches 1 penny.

Lack of mortgages has an influence on what people can afford, not on setting realistic house prices. The free market does that.
 




Uncle Spielberg

Well-known member
NSC Patron
Jul 6, 2003
42,935
Lancing
I am sorry but you are wrong.
 




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