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ItsQuickerAntiClockwise
27th September 2010, 10:47
becomes cheaper?

I don't know too many people who would bemoan the fact that a house cost them £200,000 instead of £250,000.

Yet if you read the papers we should all be crying into our cornflakes.

The_Equalizer
27th September 2010, 10:53
Here's hoping that there's a shed load more tears then.

shaunbhoy
27th September 2010, 10:59
I don't know too many people who would bemoan the fact that a house cost them £200,000 instead of £250,000.



You don't know that many people that already own their own house then? How old are you?

:eyes

ItsQuickerAntiClockwise
27th September 2010, 11:03
You don't know that many people that already own their own house then? How old are you?

:eyes

Errrr, what are you on about???? :winker:

Sysman
27th September 2010, 11:06
You don't know that many people that already own their own house then? How old are you?

:eyes

The thing is that high house prices hit them as well if they want to upgrade. Or simply move for work.

shaunbhoy
27th September 2010, 11:12
Errrr, what are you on about???? :winker:

Something else that clearly went miles over your head peabrain!!

:winker:

CheeseSlice
27th September 2010, 11:21
Ahh the -ve equity chestnut.

Don't worry folks. When hyper-inflation kicks in over the next 2 years - after BoE has completed flooding the market with its 'money from thin air', you'll be able to pay your mortgage off with pocket change.

Although you may then have to trade it to a baker for half of his £1,000,000 loaf of bread. :eyes

MrMark
27th September 2010, 11:35
Ahh the -ve equity chestnut.

Don't worry folks. When hyper-inflation kicks in over the next 2 years - after BoE has completed flooding the market with its 'money from thin air', you'll be able to pay your mortgage off with pocket change.

Although you may then have to trade it to a baker for half of his £1,000,000 loaf of bread. :eyes

Hmm the German hyper-inflation suddenly took hold about 2 years after their bank had boosted the money supply...can anyone remind us when QE started in the UK?

The Death of Paper Money by Ambrose Evans-Pritchard (http://www.lewrockwell.com/orig10/evans-pritchard32.html)

Ignis Fatuus
27th September 2010, 11:42
becomes cheaper?

I don't know too many people who would bemoan the fact that a house cost them £200,000 instead of £250,000.

Yet if you read the papers we should all be crying into our cornflakes.OK, here we go again:

Have saved £50k. Bought a house for £250k. Put down 20% deposit, have mortgage of £200k. House prices drop by 20%. House now worth £200k. Want to sell up and buy somewhere else? OK, sell for £200k. No problem, new house only costs £200k. Now go to Building society and say you want a mortgage for the new house. But now you have 0% deposit.

That's why. Not because of lost opportunity to profiteer. Because of lost deposit, and in some cases more.

The_Equalizer
27th September 2010, 11:52
OK, here we go again:

Have saved £50k. Bought a house for £250k. Put down 20% deposit, have mortgage of £200k. House prices drop by 20%. House now worth £200k. Want to sell up and buy somewhere else? OK, sell for £200k. No problem, new house only costs £200k. Now go to Building society and say you want a mortgage for the new house. But now you have 0% deposit.

That's why. Not because of lost opportunity to profiteer. Because of lost deposit, and in some cases more.

Part of the spin-the-wheel and take your chances nature of the housing market. I say tough. If the market had been made more stable then a great deal of this would have been avoided. In general the cheaper the housing the better for everyone.

MrMark
27th September 2010, 11:56
Part of the spin-the-wheel and take your chances nature of the housing market. I say tough. If the market had been made more stable then a great deal of this would have been avoided. In general the cheaper the housing the better for everyone.

Well I suspect you're right. Trouble is, if prices are declining, people hold off buying, and construction companies (and wine bars) go bust. Someone somewhere gets hurt.

ItsQuickerAntiClockwise
27th September 2010, 11:57
OK, here we go again:

Have saved £50k. Bought a house for £250k. Put down 20% deposit, have mortgage of £200k. House prices drop by 20%. House now worth £200k. Want to sell up and buy somewhere else? OK, sell for £200k. No problem, new house only costs £200k. Now go to Building society and say you want a mortgage for the new house. But now you have 0% deposit.

That's why. Not because of lost opportunity to profiteer. Because of lost deposit, and in some cases more.

So what?

The only people who lose out are those who bought at the top end of the market and contributed to the housing bubble by buying at inflated prices with low deposits.

I have zero sympathy for these people.

So still no problem as far as Im concerned.

shaunbhoy
27th September 2010, 12:00
So still no problem as far as Im concerned.

Oi ItsThickerAntiClockwise!!
Leave the Property Market discussions to the grown-ups.

ItsQuickerAntiClockwise
27th September 2010, 12:02
Oi ItsThickerAntiClockwise!!
Leave the Property Market discussions to the grown-ups.


These would be the same grownups who complain about their warchest running dry after 3 months because even though they are contractors they failed to save for a rainy day???

shaunbhoy
27th September 2010, 12:04
These would be the same grownups who complain about their warchest running dry after 3 months because even though they are contractors they failed to save for a rainy day???

No.
Wrong again. Getting to be a habit of yours.
Stick to lurking until you can string some sensible posts together.

HairyArsedBloke
27th September 2010, 12:04
Deflation (http://en.wikipedia.org/wiki/Deflation)

ItsQuickerAntiClockwise
27th September 2010, 12:08
No.
Wrong again. Getting to be a habit of yours.
Stick to lurking until you can string some sensible posts together.

I don't do lurking. Im here as a shining light to expose some of the 'boys club' element that goes on in here.

shaunbhoy
27th September 2010, 12:10
I don't do lurking. Im here as a shining light to expose some of the 'boys club' element that goes on in here.

Well your 2 watt bulb needs upgrading then.

Not So Wise
27th September 2010, 12:11
Probably because most reporters are mortgaged up to the hilt because they bought properties they could never have got without the stupid lending over the last decade, same as their readers

CheeseSlice
27th September 2010, 12:35
Hmm the German hyper-inflation suddenly took hold about 2 years after their bank had boosted the money supply...can anyone remind us when QE started in the UK?

The Death of Paper Money by Ambrose Evans-Pritchard (http://www.lewrockwell.com/orig10/evans-pritchard32.html)

According to this (http://www.bankofengland.co.uk/monetarypolicy/qe/amount.htm), 5th of March 2009, so just over 18 months :eyes

Although we live in different times I do start to worry about the way BoE is trying something that (from what I've read) they have no hard evidence of what will happen. Both lowering the bank rate of borrowing and using QE both seem to take up to 2 years to take full affect, both of which have the effect of increasing inflation. All the BoE is trying to do is satisfy the short term need for money in the economy the form of credit and spending, not increase inflation.

sunnysan
27th September 2010, 12:38
Well if pain is shared like love then a lot of people will get hurt.

a) People who have overextended for a home.
Tough but, then you shouldnt have overextended yourself. It can go up and can go down.

b) Overextended BTL landlords.
Tough tulip, you play, sometimes you win , sometimes you lose.

c) Tenants
As Landlords go bellyup, this is going to cause a lot of grief for tenants as most IME, ASTs dont protect tenants much against the landlords, who go belly up. At the end of the day, the tenants on AST will always get shafted.

d) People who have had their house for < 8 years who want to move.
For reasons mentioned in a pevious post

e) Property pensions, looking to cash in on retirement and close to retirement.
Sorry chaps, but probabably still better than endowments

f) People who have investments in property and their primary home, are stable have been paying off for 10 years+ and have been fiscally responsible.
They will be worth less on paper, no big deal.

filthy1980
27th September 2010, 12:41
Ahh the -ve equity chestnut.

Don't worry folks. When hyper-inflation kicks in over the next 2 years - after BoE has completed flooding the market with its 'money from thin air', you'll be able to pay your mortgage off with pocket change.

Although you may then have to trade it to a baker for half of his £1,000,000 loaf of bread. :eyes

hallelujah!!!

someone who understands how the financial systems works

Ignis Fatuus
27th September 2010, 13:27
So what?

The only people who lose out are those who bought at the top end of the market and contributed to the housing bubble by buying at inflated prices with low deposits.

I have zero sympathy for these people.

So still no problem as far as Im concerned.You asked why people cared about dropping house prices, I told you why people care. You may not care about those people but that is another question.

And may I ask, what should someone do who needs a house when the price happens to be high? Also, what size of deposit would you say is not too low?

ItsQuickerAntiClockwise
27th September 2010, 13:33
You asked why people cared about dropping house prices, I told you why people care. You may not care about those people but that is another question.

And may I ask, what should someone do who needs a house when the price happens to be high? Also, what size of deposit would you say is not too low?

20% deposit minimum.

Question asked. Question answered.

Jeebo72
27th September 2010, 14:04
becomes cheaper?

I don't know too many people who would bemoan the fact that a house cost them £200,000 instead of £250,000.

Yet if you read the papers we should all be crying into our cornflakes.

Ok so you bought your house for 250,000 on a 95% mortgage. have a kiddie. Then you lose your job. Your house is now worth 200,000. Check mate...

MaryPoppins
27th September 2010, 14:06
Can we have a 'Don't Feed The Troll' smiley?

ItsQuickerAntiClockwise
27th September 2010, 14:20
Ok so you bought your house for 250,000 on a 95% mortgage. have a kiddie. Then you lose your job. Your house is now worth 200,000. Check mate...

Oh Im sorry, for a minute there I thought I was supposed to feel sorry for the idiot who bought at the top end of the market with just a 5% deposit. But Im sure you can't have meant that, since anyone that stupid deserves to suffer the consequences.

And Im sorry but I mean that. When he was desperate to get on board the housing ladder at any cost because of the 'gold rush' do you think he was sparing any thought for those who couldnt get on the ladder and realised that it wasn't prudent to do so. He didnt lose any sleep over first time buyers predicaments which were made worse by these morons buying into an overinflated housing system thus propping it up, so when the shoes on the over foot, don't expect any sympathy from me.

sasguru
27th September 2010, 14:21
Can we have a 'Don't Feed The Troll' smiley?

We have one: :winker:

MaryPoppins
27th September 2010, 14:23
<blah, lack of punctuation as per, blah>

so when the shoes on the over foot, don't expect any sympathy from me.

:spel

'other'

:rolleyes:

ItsQuickerAntiClockwise
27th September 2010, 14:25
:spel

'other'

:rolleyes:

The T and H buttons on my keyboard aren't working.

Jeebo72
27th September 2010, 14:25
Oh Im sorry, for a minute there I thought I was supposed to feel sorry for the idiot who bought at the top end of the market with just a 5% deposit. But Im sure you can't have meant that, since anyone that stupid deserves to suffer the consequences.

And Im sorry but I mean that. When he was desperate to get on board the housing ladder at any cost because of the 'gold rush' do you think he was sparing any thought for those who couldnt get on the ladder and realised that it wasn't prudent to do so. He didnt lose any sleep over first time buyers predicaments which were made worse by these morons buying into an overinflated housing system thus propping it up, so when the shoes on the over foot, don't expect any sympathy from me.

Oh yes, troll ... what a tit!

sasguru
27th September 2010, 14:27
The T and H buttons on my keyboard aren't working.

You're still ick.
HTH.

MaryPoppins
27th September 2010, 14:28
The T and H buttons on my keyboard aren't working.

You need a new keyboard. It's making you look like a right tosser.

ItsQuickerAntiClockwise
27th September 2010, 14:28
Oh yes, troll ... what a tit!

Ahh yes, when you can't find a flaw in someone's argument, just call them a troll. Then you win!
:eyes

Mich the Tester
27th September 2010, 14:30
The T and H buttons on my keyboard aren't working.

I seem o ave e same problem. W a can I do abou i ?

elp!

shaunbhoy
27th September 2010, 14:34
Ahh yes, when you can't find a flaw in someone's argument, just call them a troll. Then you win!
:eyes

You have no "argument". You are just a green-eyed renter, desperate for a housepricecrash to get your slithery little hoof onto the ladder. Keep saving that deposit and living with your parents, and maybe one day you won't appear so desperate.

HTH

ItsQuickerAntiClockwise
27th September 2010, 14:36
You have no "argument". You are just a green-eyed renter, desperate for a housepricecrash to get your slithery little hoof onto the ladder. Keep saving that deposit and living with your parents, and maybe one day you won't appear so desperate.

HTH

At least by living with my parents, I don't have to dust my Star Trek collection or wash my dishes since my mum does it all for me.

shaunbhoy
27th September 2010, 14:41
At least by living with my parents, I don't have to dust my Star Trek collection or wash my dishes since my mum does it all for me.

You see? It is not ALL bad. Do you have your own doorkey yet, or are you still working to a curfew?

:laugh

The_Equalizer
27th September 2010, 14:43
You have no "argument". You are just a green-eyed renter, desperate for a housepricecrash to get your slithery little hoof onto the ladder. Keep saving that deposit and living with your parents, and maybe one day you won't appear so desperate.

HTH

Troll or not, in real terms house prices will drop towards the long term average.

MrMark
27th September 2010, 14:51
Troll or not, in real terms house prices will drop towards the long term average.

True, dat. The Equalizer speaks troof

Jeebo72
27th September 2010, 15:04
Ahh yes, when you can't find a flaw in someone's argument, just call them a troll. Then you win!
:eyes

yes you are are a tit ... tell me, when is the property boom at its highest and lowest levels? If you could tell me that, then you would be here. Personally I don't give a shit cos I bought and paid for my house. Now run along sasjunior.

doodab
27th September 2010, 15:07
I have some sympathy for people who felt that they had to buy or get left behind and are now up against it (although I still think they should have thought twice), but I have none for the folks who got lucky by buying at the start of the boom and then remortgaged to extract equity to use as deposit for a buy-to-let and then repeated that several times until they had £1 million worth of property and £980k in loans.

It's the inevitable interest rate rises that will bring the real problems.

sasguru
27th September 2010, 15:12
... I have none for the folks who got lucky by buying at the start of the boom and then remortgaged to extract equity to use as deposit for a buy-to-let and then repeated that several times until they had £1 million worth of property and £980k in loans.

.

I did that but I don't have the £980K of loans, because I always knew it was a suckers boom so sold the BTLs in 2006 and took the profits to pay off the main residence. :glasses

HTH

shaunbhoy
27th September 2010, 15:16
I did that but I don't have the £980K of loans, because I always knew it was a suckers boom so sold the BTLs in 2006 and now live in an eco-shed at the bottom of my parents' garden.
HTH

FTFY

ItsQuickerAntiClockwise
27th September 2010, 15:16
I did that but I don't have the £980K of loans, because I always knew it was a suckers boom so sold the BTLs in 2006 and took the profits to pay off the main residence. :glasses

HTH


Good move SasGuru ........ now come here you big lug and give us a hug .......

Doggy Styles
27th September 2010, 16:11
sas, you've made a friend.

d000hg
27th September 2010, 16:22
So what?

The only people who lose out are those who bought at the top end of the market and contributed to the housing bubble by buying at inflated prices with low deposits.

I have zero sympathy for these people.

So still no problem as far as Im concerned.Why would people only have bought with small deposits during the boom? Many people still put down decent deposits if they could, to get better deals.

Ignis Fatuus
27th September 2010, 16:40
Troll or not, in real terms house prices will drop towards the long term average.what are "real terms"? In gold, house prices are not overinflated. Maybe it's just money that is worth less.

ItsQuickerAntiClockwise
27th September 2010, 16:46
Why would people only have bought with small deposits during the boom? Many people still put down decent deposits if they could, to get better deals.

And they will be able to ride this decline since they should stay in positive equity. However there were also an awful lot with 95-100% mortgages who have had this 'buy a house at any cost' drummed into them since birth.

I was watching this one couple on Location, Location. 100% mortgage, 250k, combined income for both was £53,000. This was in 2007. They were even going to get a seperate loan in order to kit out the house they bought if they needed all the money for the house itself.

Its idiots like these, not just the banks, which brought us to our knees.

People don't take any personal responsibility for this mess, its easier just to blame 'the banks'.

Sockpuppet
27th September 2010, 17:11
Multi-quote for the win.


Well I suspect you're right. Trouble is, if prices are declining, people hold off buying, and construction companies (and wine bars) go bust. Someone somewhere gets hurt.

Exactly. I'm sitting here on a nice fat £80k deposit and I'm holding off buying. Friend moans at me asking me why I haven't bough. Well I say, house prices staying stable and much more likley to drop than go up in the near future - esp when the spending cuts kicks in and interest rate rises force people to sell.

That doesn't make any difference she says becuase if you pay £100k for a house and it falls to £80k all the other £100k houses have fallen and so in real terms you're no worse. Off.

That would be unless I paid £100k for a house I could buy for £80k a few months later in which case I'd be exactly (£20k + interest payments) - rental paid worse off.


So what?

The only people who lose out are those who bought at the top end of the market and contributed to the housing bubble by buying at inflated prices with low deposits. I have zero sympathy for these people.

I have some sympathy, though not much. No-one stopped to feel sorry for me 3 years ago when I was scrimping together some deposit and getting told to feck off by a lot of mortgage companies and laughed at by people with houses. So i'm not really feeling sorry for people now the roles have reversed.


And may I ask, what should someone do who needs a house when the price happens to be high? Also, what size of deposit would you say is not too low?

Rent, that's what I had to do. I don't think people need any kind of deposit just make banks stick to sensible lending limits based on x times your salary.


Ok so you bought your house for 250,000 on a 95% mortgage. have a kiddie. Then you lose your job. Your house is now worth 200,000. Check mate...

Its a crap situation to be in but such is life.


I did that but I don't have the £980K of loans, because I always knew it was a suckers boom so sold the BTLs in 2006 and took the profits to pay off the main residence. :glasses

Ah a sensible one. I'm not against people such as yourself making profit from houses. I'm just against people trying to make me feel sorry for those that rolled the dice and lost.