Reply to: Blow up another bubble Gordon

[OwlHoot]

Overwhelming evidence based upon a sample of 4 old people who make up a completely representative sample of the population?

Be fair DS, Cybertroll did also ask around his bowls club, and many of the old codgers also have equity in their property.

[BrilloPad]

This may be hard for your little brain, but the majority of people in this country are old and getting older.

And more senile judging from you.

[BrilloPad]

Bit of a problem here though isnt there.

The last bubble has pushed house prices way up. The only way to get on the ladder is massive loans and most people wont be able to save even a 10% deposit.

There has been no spectacular collapse in house prices and there wont be unless unemployment kicks in big style. People are still capable of servicing their mortgages and there is still a housing shortage in the UK.
The market has stagnated because nobody can get a decent loan so nobody is selling.

What to do?

Tax on rental income.

[The Lone Gunman]

This may be hard for your little brain, but the majority of people in this country are old and getting older.

Many of the older folks who do have equity are relying on using that equity as a pension. What happens to them if the housing register is worth fook all?

Or are you telling me NL have played a blinder by letting us all ride the big bubble to make our houses worth a fortune and when it pops we will all be sitting pretty?

Surely there is no financial crisis if the whole country has more assets than debts. Well played Gordo.

[d000hg]

You may have missed all the stories about folk releasing equity by taking out new mortgages or moving up the property ladder and thus inflating the market so I forgive you.

My impression is still that most homeowners will be in nagative equity if house prices fall.

Obviously, if you have proof otherwise I would be happy to read it, otherwise I am entitled to my opinion.

I don't think it is a majority, though of course it depends how much prices fall.
You have to remember just how much prices have gone up in the last 10 years.

[Cyberman]

Overwhelming evidence based upon a sample of 4 old people who make up a completely representative sample of the population?

This may be hard for your little brain, but the majority of people in this country are old and getting older.

[DiscoStu]

Overwhelming evidence based upon a sample of 4 old people who make up a completely representative sample of the population?

[Cyberman]

You may have missed all the stories about folk releasing equity by taking out new mortgages or moving up the property ladder and thus inflating the market so I forgive you.

My impression is still that most homeowners will be in nagative equity if house prices fall.

Obviously, if you have proof otherwise I would be happy to read it, otherwise I am entitled to my opinion.

Yep. I have overwhelming evidence. My parents have 500K equity, my brother-in-law 350K, my brother 400k, and me 300K, all with no mortgage. Then there are many friends of family that I know are sitting on property with no mortgage. Only people that have bought within the past few years, or remortgaged for major work will have negative equity, but they will be in a large minority... no more than 30% of homeowners is my guess and probably much less.

Within about 12 years, as I reiterate, the majority of people in this country will be pensioners that have owned property for decades. Whereas there are 4 workers paying tax for every pensioner at the moment there will only be 2, and pensioners will make up over 50% of the population due to the post-war baby boom. So pure commonsense says that the majority have lots of equity.

[The Lone Gunman]

The majority have been homeowners for years and thus have considerable equity. You've obviously not heard of the upcoming demographic crisis within 10 years due to the vast numbers of pensioners there will be. Wrong again LG.

You may have missed all the stories about folk releasing equity by taking out new mortgages or moving up the property ladder and thus inflating the market so I forgive you.

My impression is still that most homeowners will be in nagative equity if house prices fall.

Obviously, if you have proof otherwise I would be happy to read it, otherwise I am entitled to my opinion.

[Cyberman]

I bet that for the majority of home owners the proportion of those who own outright or have little or no mortgage is a lot less than many.

I accept that "all" might have been an over estimate.

The majority have been homeowners for years and thus have considerable equity. You've obviously not heard of the upcoming demographic crisis within 10 years due to the vast numbers of pensioners there will be. Wrong again LG.

[The Lone Gunman]

All in negative equity ? Many people own houses with little or no mortgage, so you're talking out of the wrong orifice.

I bet that for the majority of home owners the proportion of those who own outright or have little or no mortgage is a lot less than many.

I accept that "all" might have been an over estimate.

[Cyberman]

I saw that too. Once the unemployed reach tipping point and have to sell up then this rollercoaster is on a huge downward turn.

Housing will become affordable again though. Obviously those who already have houses will all be in negative equity, but the poor will be able to buy in again.

All in negative equity ? Many people own houses with little or no mortgage, so you're talking out of the wrong orifice.

[The Lone Gunman]

http://www.telegraph.co.uk/finance/f...ince-1971.html

The number of Britons out of work increased by 281,000 in the three months to the end of May, the most for a quarter since records began in 1971. The unemployment rate jumped to 7.6pc from 7.2pc.

I saw that too. Once the unemployed reach tipping point and have to sell up then this rollercoaster is on a huge downward turn.

Housing will become affordable again though. Obviously those who already have houses will all be in negative equity, but the poor will be able to buy in again.

[Cyberman]

http://www.telegraph.co.uk/finance/f...ince-1971.html

The number of Britons out of work increased by 281,000 in the three months to the end of May, the most for a quarter since records began in 1971. The unemployment rate jumped to 7.6pc from 7.2pc.

No return to boom and bust. Things can only get better.

[DimPrawn]

There has been no spectacular collapse in house prices and there wont be unless unemployment kicks in big style.

http://www.telegraph.co.uk/finance/f...ince-1971.html

The number of Britons out of work increased by 281,000 in the three months to the end of May, the most for a quarter since records began in 1971. The unemployment rate jumped to 7.6pc from 7.2pc.