Northern Rock

[shaunbhoy]

and in principle assets that they have might go down in price next year big time.

You continue to wish!

[AtW]

You continue to wish!

I actually wish there was no crash right now beacuse it will affect me too, but it seems that we are reaching the point when it will actually happen.

[shaunbhoy]

but it seems that we are reaching the point when it will actually happen.

We have been reaching that point for the last 5 years if you believe some on here. Luckily for those of us with property, the value of our assets has risen by around 30% whilst we have been vacillating at tipping point.

[AtW]

Luckily for those of us with property, the value of our assets has risen by around 30% whilst we have been vacillating at tipping point.

It only matters if you sell now to fix your profit and rent until house prices are rock botton when you buy again. In this case your strategy makes sense. But will you do that? I think not.

Many people got cheap loans using raising value of their property - those of them who overstretched themselves will be in big trouble.

[Iron Condor]

Is nationalisation such a loser for the tax payer?

Bank of England prints 100 billion at 0% interest, charges customers 6% on 100 billion mortgage book = 6 billion per year in gross profits for tax payers.
Even if repossessions rise and parts of the book are repossesed at 60p on the pound this probably wont add up to more than a billion or 2 a year in losses.
Still leaves many billions a year in profits for the tax payer.

Rather than adding to inflation the newly printed 100 billion has the benefit of adding much needed liquidity to the financial markets, at a time when the amount of money available to everyone seems to be shrinking..

[AtW]

Bank of England prints 100 billion at 0% interest, charges customers 6% on 100 billion mortgage book = 6 billion per year in gross profits for tax payers.

Genius, why not "print" enough money to buy the most profiteable companies in the market then and keep 'em national, let's start from BMW, Intel etc

[shaunbhoy]

It only matters if you sell now to fix your profit and rent until house prices are rock botton when you buy again. In this case your strategy makes sense.

Not totally the case. You see I did not buy a property with a view to it being an investment vehicle. For me it is somewhere to live as well. I will simply stay put until all of the kids have decided to fly the nest then downsize and pocket the profits. Easy.

[AtW]

You see I did not buy a property with a view to it being an investment vehicle.

Just like many others you fail to comprehend that MACRO-economics is driven by masses and your personal example might have zero influence on the market - you might be allright because you can always send your kids sell Big Issue and thus make up for revenue shortfall to pay off your morgage, however most people are in debt to their necks and some are still buying right now.

Second thing you miss is that you seem to think that market collapse requires people like you to collapse - not at all, it will be enough for those who got into property market in the last few years to go to the bottom and this will affect everyone, even though majority of people bought houses before peak was reached.

[shaunbhoy]

Just like many others you fail to comprehend that MACRO-economics is driven by masses and your personal example might have zero influence on the market - you might be allright because you can always send your kids sell Big Issue and thus make up for revenue shortfall to pay off your morgage, however most people are in debt to their necks and some are still buying right now.

I couldn't give a fiddler's f@rt what effect it has on the market as long as it has zero influence on me.

Second thing you miss is that you seem to think that market collapse requires people like you to collapse - not at all, it will be enough for those who got into property market in the last few years to go to the bottom and this will affect everyone, even though majority of people bought houses before peak was reached.

People will only be affected if they are forced or even want to sell. If you are in neither of those camps then the value of your house has little impact upon you. You need only stay put and ride it all out.

[sasguru]

I couldn't give a fiddler's f@rt what effect it has on the market as long as it has zero influence on me.



People will only be affected if they are forced or even want to sell. If you are in neither of those camps then the value of your house has little impact upon you. You need only stay put and ride it all out.

It's not worth arguing with atw on these matters - he hasn't a clue about the complexities of a modern western economy. If he was Chancellor we'd be back to central planning quicker than a turd down a drain.