Reply to: Boomed! House prices tumbling ever faster

[Bagpuss]

And then you ate him, didn't you?

No it was October he was out of season

[AtW]

When I wanted a loan (the only loan I've ever had) in 1975, I had to see The Bank Manager... and he was a most august Gentleman...

And then you ate him, didn't you?

[Cyberman]

Rates are obv going to go down - the KEY part will be the Tax cuts as you allude to - only issue here is the impact that will have on Government income - swings and merry pink roundabouts with stockings on.

Correct, but if HMG are going to spend billions to get us out of this crunch anyway which will further increase debt, they should 'spend' by way of tax cuts rather than throwing more money into the public service black hole.

[ratewhore]

Do they break these figures up by property type or location? If not, the figure is meaningless and I'm not interested...

[TykeMerc]

Steve Wright described the credit crunch as "going back to the days when banks only wanted to lend you money when you didn't need a loan"

Which in all probability is a good thing. For an awful long time people have been able to get almost unlimited credit with next to no security or sensible plans to repay, toxic debt was the result and the current recession was well any truely triggered by it.

[TheBigYinJames]

You have posted a few intelligent things today - well done.

Normal service will be resumed soon.

[Bob Dalek]

I'm not disputing that house prices are falling, but there is a difference between a static market and a housing crash.

Nobody is selling, due to a combination of no new entrants due to mortgage shortage and people hanging off for prices to bottom out. New entrants are the start of most chains, and when they dry up, the whole market stops. But stopped isn't the same as crash. These houses are still holding their value.

It's the poor saps who have to sell, due to financial circumstances, who are taking the hit. They are the ones driving the prices down. if anything we are seeing a BTL crash, but houses as primary homes are still keeping their value- you're not losing money on what you don't have to sell.

The problem will come when more and more people reach a stage where their finances, impacted by the rest of the tulip going on in the economy, are forced to joing the BTLers in selling their properties and not being able to.

You have posted a few intelligent things today - well done.

[TimberWolf]

When I took out an offset mortgage a few years ago it came with an overdraft facility, of up to 60K. I keep expecting them to withdraw or change the terms (it says they can at any time in the contract) but they haven't done so yet. Boomed.

[Liability]

Rates are obv going to go down - the KEY part will be the Tax cuts as you allude to - only issue here is the impact that will have on Government income - swings and merry pink roundabouts with stockings on.

[TheBigYinJames]

Its a great pity that the economy depends on people borrowing. When I was young credit was called the "never never". To get a mortgage you needed at least 10% deposit and had to be nice to your building society manager. Credit cards were almost unkown - people used cash from their wage packet. Even a loan to buy a car was a rarity.

Steve Wright described the credit crunch as "going back to the days when banks only wanted to lend you money when you didn't need a loan"

[BrilloPad]

I am in full agreement with what you say. Until banks start lending again and people want to borrow, we are in a period of stagnation.

To alleviate this stagnation HMG need to put money back into people's pockets. The way to do this is with fiscal measures such as reductions in interest rates and tax cuts. Taxes are far too high and one major reason why people have little money to spend.

One day our illustrious rulers will realise this, but hopefully not until they are out of power. They have the means to solve this crisis but have been brainwashed by their own doctrine that taxes are good for all of us.

Its a great pity that the economy depends on people borrowing. When I was young credit was called the "never never". To get a mortgage you needed at least 10% deposit and had to be nice to your building society manager. Credit cards were almost unkown - people used cash from their wage packet. Even a loan to buy a car was a rarity.

[Cyberman]

I'm not disputing that house prices are falling, but there is a difference between a static market and a housing crash.

Nobody is selling, due to a combination of no new entrants due to mortgage shortage and people hanging off for prices to bottom out. New entrants are the start of most chains, and when they dry up, the whole market stops. But stopped isn't the same as crash. These houses are still holding their value.

It's the poor saps who have to sell, due to financial circumstances, who are taking the hit. They are the ones driving the prices down. if anything we are seeing a BTL crash, but houses as primary homes are still keeping their value- you're not losing money on what you don't have to sell.

The problem will come when more and more people reach a stage where their finances, impacted by the rest of the tulip going on in the economy, are forced to joing the BTLers in selling their properties and not being able to.

I am in full agreement with what you say. Until banks start lending again and people want to borrow, we are in a period of stagnation.

To alleviate this stagnation HMG need to put money back into people's pockets. The way to do this is with fiscal measures such as reductions in interest rates and tax cuts. Taxes are far too high and one major reason why people have little money to spend.

One day our illustrious rulers will realise this, but hopefully not until they are out of power. They have the means to solve this crisis but have been brainwashed by their own doctrine that taxes are good for all of us.

[sasguru]

The problem will come when more and more people reach a stage where their finances, impacted by the rest of the tulip going on in the economy, are forced to joing the BTLers in selling their properties and not being able to.

Indeed. In the last downturn, house prices fell dramatically before the official recession then accelerated downwards as people started losing their jobs.
The drops we are seeing so far are on a small volume of transactions by forced sellers/people with small mortgages who can undercut.

[TheBigYinJames]

I'm not disputing that house prices are falling, but there is a difference between a static market and a housing crash.

Nobody is selling, due to a combination of no new entrants due to mortgage shortage and people hanging off for prices to bottom out. New entrants are the start of most chains, and when they dry up, the whole market stops. But stopped isn't the same as crash. These houses are still holding their value.

It's the poor saps who have to sell, due to financial circumstances, who are taking the hit. They are the ones driving the prices down. if anything we are seeing a BTL crash, but houses as primary homes are still keeping their value- you're not losing money on what you don't have to sell.

The problem will come when more and more people reach a stage where their finances, impacted by the rest of the tulip going on in the economy, are forced to joing the BTLers in selling their properties and not being able to.

[AlfredJPruffock]

if you look on hotproperty.co.uk for flats around docklands, you are still looking at 500K for a two bedder with a thames view.

Oil give yer a fiver forrit