Reply to: Personal Debt

[AtW]

I'll be buying in the same area so the percentage of the larger sum is greater than that of a smaller sum, also higher end properties will suffer bigger percentage drops than average houses... win win.

Well, good luck to you.

[Sysman]

No not same as the last time, the likes of your parents weren't heavily borrowing on the rising value of their houses (certainly not to the extent of now). People remembered house prices falling there was no sentiment of houses being a one way bet. It has the potential to be much worse than last time.

Perhaps closer to the late eighties/early nineties, when a lot of folks who would traditionally have rented most of their lives became property owners.

[gingerjedi]

Prices don't fall (or grow) universally - some places (the ones you want to buy) will fall by 17%, but others (like yours) could fall by 37%.

I'll be buying in the same area so the percentage of the larger sum is greater than that of a smaller sum, also higher end properties will suffer bigger percentage drops than average houses... win win.

[AtW]

Bring it on, for someone like me who has over 50% equity and wants to move from an average 3 bed semi to a 4/5 there's no downside.

300k -27% easily outweighs 200k -27% ...kerching!

Prices don't fall (or grow) universally - some places (the ones you want to buy) will fall by 17%, but others (like yours) could fall by 37%.

[Platypus]

No not same as the last time, the likes of your parents weren't heavily borrowing on the rising value of their houses

That's a good point.

[gingerjedi]

Bring it on, for someone like me who has over 50% equity and wants to move from an average 3 bed semi to a 4/5 there's no downside.

300k -27% easily outweighs 200k -27% ...kerching!

[Bagpuss]

So, same as last time then? My folks could remember the housing crash of 1972 (?) while all those 80's yuppies were whining about negative equity (in 1992)

Edit: Maybe it wasn't '72 but early 70's I can't remember!

No not same as the last time, the likes of your parents weren't heavily borrowing on the rising value of their houses (certainly not to the extent of now). People remembered house prices falling there was no sentiment of houses being a one way bet. It has the potential to be much worse than last time.

[DimPrawn]

Better sell it for any price before the Global Warming gets it...

You can have it for £10K cash aTw.

Oh I forgot, you can't afford it at that price.

[AtW]

It's midway between Coral Bay and Paphos, Near the Tomb of the Kings road, 150m from the sea.

Better sell it for any price before the Global Warming gets it...

[DimPrawn]

Whereabouts is it?

I had the most wonderful contract once, it entailed sitting by/in the pool of a hotel near Paphos, posting to this (or was it the previous) board from a laptop wrapped in a surgical waste bag, and proof-reading/correcting a pile of cryptography books that the client, a publisher, was going to publish/reprint.

Keep thinking of going back, this time for a holiday.

It's midway between Coral Bay and Paphos, Near the Tomb of the Kings road, 150m from the sea.

[Platypus]

There are people who own houses who believe they cannot fall in price, they can't remember negative equity and their whole financial wellbeing is tied up in the assumption of ever accumulating equity. That's why it is "different this time" is so much as it could be the biggest f up we have seen.

So, same as last time then? My folks could remember the housing crash of 1972 (?) while all those 80's yuppies were whining about negative equity (in 1992)

Edit: Maybe it wasn't '72 but early 70's I can't remember!

[Bagpuss]

Thus bringing house prices back to historical norms... winners and losers as per usual, move along, nothing to see.

There are people who own houses who believe they cannot fall in price, they can't remember negative equity and their whole financial wellbeing is tied up in the assumption of ever accumulating equity. That's why it is "different this time" is so much as it could be the biggest f up we have seen.

[Sysman]

How many times have I heard that before, including recently muttered by myself

I expect the foreign housing markets relying on UK money will be hit hard.

The Spanish housing market hass been hit before by hard times in the UK. Perhaps France as well this time?

[gingerjedi]

The report suggests that for affordability to return to its long-term average, house prices would need to fall 27pc.

Thus bringing house prices back to historical norms... winners and losers as per usual, move along, nothing to see.

[Bagpuss]

Why? What did they ever do to you?

Nothing apart from exacerbate the financial crash that will effect us all

The 21st century will be defined as the era adults started behaving (financially) as children