House prices DOOM

[scooterscot]

Don't be so sure.

We did meet once. FF Ring days - heydays of contracting. Viag > Eplus era.

From the water face the Bismarck tower and look to the left for the modern house with the garden sloping down to the lake. I turn a blind eye to the chicks sunbathing nude in the little bit of private road between the garden and the lake.

In fact I petitioned the Berg Statwhatever to open that road up to the public - but hey, how would the Siemens family travel from the Schloss Berg to home....

Are you sure? Don't know what those acronyms mean.

You must get awesome evening sunsets from your place....

[jamesbrown]

CEBR have been predicting a crash for over a decade

House prices won't go anywhere unless interest rates rise.. which won't happen thanks to globalisation and outsourcing.

If there's any sign of the bubble being burst you can guarantee the Government will step in and fiddle with the system. Help to buy..interest payments, mortgage holidays blah blah

Your prediction is that house prices won’t fall while all other asset prices tank?

[BrilloPad]

Why is this DOOM? I say BOOM.

Why does anyone care what their house is worth? And young people deserve a chance.

If people bought speculatively, then **** em///

[scooterscot]

Why is this DOOM? I say BOOM.

Why does anyone care what their house is worth? And young people deserve a chance.

If people bought speculatively, then **** em///

In fairness, the many many accidental BTL'ers would probably never have been had Brown never raided the pensions. Were interest rates back to their normal 5-6%... then no one in their right mind would have chased 6% yield on a BTL with all the stress that comes with managing it.

[BrilloPad]

In fairness, the many many accidental BTL'ers would probably never have been had Brown never raided the pensions. Were interest rates back to their normal 5-6%... then no one in their right mind would have chased 6% yield on a BTL with all the stress that comes with managing it.

All true. But only part of the story. The other part is that young people have been stuffed. Luckily for the government their strongest complaint has been a nasty Facebook post.

I am hoping COV19 will bring about some reduction of inequality. I fully expect to be disappointed.

[CoolCat]

“ More than £30,000 will be wiped off the average value of a UK home by the coronavirus crisis as the property market is brought to a standstill and incomes fall, the Centre for Economics and Business Research (CEBR) has warned.

Its economists predicted that prices will tumble by 13pc by the end of 2020 as transactions dwindle and home buyers are hit by a deep recession. A slump that deep would push the average house price to the brink of falling below £200,000.”

House prices set to slump GBP30,000 in frozen market

How could most people afford to buy even in good times?

On the other hand with governments printing money full speed ahead, its stands to reason that any tangible assets are going to be worth more per unit currency. So such pressures will need to work their way through.

[AtW]

On the other hand with governments printing money full speed ahead, its stands to reason that any tangible assets are going to be worth more per unit currency. So such pressures will need to work their way through.

Printing money to keep people not starving while they have to stay at home, hardly helping large purchases like houses.

[CoolCat]

Printing money to keep people not starving while they have to stay at home, hardly helping large purchases like houses.

yea but to give a simple example if the government doubles the amount of currency issued all they have done is increased the price of everything by 2 times. no extra wealth was created. printing money leads to inflation.

[jamesbrown]

yea but to give a simple example if the government doubles the amount of currency issued all they have done is increased the price of everything by 2 times. no extra wealth was created. printing money leads to inflation.

There is a massive demand shock. This is not going to be inflationary.

[AtW]

yea but to give a simple example if the government doubles the amount of currency issued all they have done is increased the price of everything by 2 times. no extra wealth was created. printing money leads to inflation.

We are now 10 years into Japanese scenario, plus deadly pandemic - will see soon how that works put