Reply to: Why Britain's house price crash is far from finished

[GreenerGrass]

You have to be aware that there are a number of financial journalists who have been talking the market down for the last couple of years, Andrew Oxlade, and from Moneyweek we have perma-bears Merryn Somerset Webb, John Stepek and David Stevenson who while waiting for their 40% crash in property failed to predict both a 9 month bounce in house prices and a 40% increase in the stockmarkets.

The reason is they want to a) buy cheap London property for themselves and b) be proved right, but the cruel reality is that every temporary correction in prices (they are gutted they missed the bottom) is negated by their decision to rent for years instead of paying down the principal.

At some point in 2018, a decade after the "crash that never was" started, they will realise they have wasted many 10s or hundreds of thousands in rent, while many of us will have actually paid our properties off, aided by Britain's so called "Lost Decade" (or certainly lost half decade) of mega low rates.
As inflation takes hold from that point on their rents and interest rates will climb and property will be no more "affordable" than it is now.
The idea that houses will ever go back to averaging 3 times a single salary is absurd when working couples (rightly or wrongly for society) are the norm.

The perma-renting people praying for people to get repossessed now will be the ones to be pitied in years to come, as their savings are eroded by inflation and wages consumed by increasing rent. When Merryn Somerset Webb finally applies for a mortgage aged 55 she may struggle to get one.

[bodnobal]

House prices only ever go up apart from a major drop of about 20% or two

I think you need a new spelling machine.

[DimPrawn]

Why are ?

People aren't putting their house on the market and the stock that is on is selling like hot cakes at silly (high) prices, especially in the South where people have huge stashes of cash.

[TimberWolf]

http://www.rightmove.co.uk/news/hous...september-2009

Why are

10 properties coming off the market for every 8 coming on

?

[sasguru]

House prices only ever go up apart from a major drop of about 20% or two

And what is 20% if you have enjoyed a rise in the hundreds over the years?

UK property - safe as houses.

[DimPrawn]

http://www.rightmove.co.uk/news/hous...september-2009

[Stan.goodvibes]

I keep telling the folks on HPC that the crash has ended and the good times are going ahead full steam. They ban me everytime, I wonder why.

House prices only ever go up apart from a blip or two.

House prices only ever go up apart from a major drop of about 20% or two

[Stan.goodvibes]

I hope you've got somewhere to put the proceeds, because it looks as if cash is going to be trash. Now if only I knew somewhere safe I could put mine...

Let me give you my bank account details...

[bodnobal]

I keep telling the folks on HPC that the crash has ended and the good times are going ahead full steam. They ban me everytime, I wonder why.

House prices only ever go up apart from a blip or two.

[SantaClaus]

From an estate agent
Over the summer holiday period the UK housing market was the source of surprisingly positive news on the economic front. The improvement in market activity has continued, and been far quicker than in previous recessions.........

Boomed!

The key words in this post are the title:

"From an estate agent"

[craig_m67]

I'd stay in property in the UK at the moment if your planing on staying long term, the currency is toast from a global perspective but house prices (internally) seem to be remaining high (same, same but different - difference being your equity is worth a lot less OS).

Aussie dollar is doing pretty well.. although you probably should have gotten out last October (2.7).. not going to work for you at the moment (1.8) - sorry. You can also get 5% on at call cash deposits here easily

hmm.. i've not been anyhelp.. sorry

On another note, I have a wedge of cash i'm tempted to punt back and make good of the situation.. Anybody know a decent website that list the best deposit rates in the UK/EU??

[TimberWolf]

I'm going to panic soon

Okay, I'm getting concerned about my cash savings now and the time to panic may not be far off. Clearly savers are the sacrificial goats in the current crisis (with regard to low interest rates and currency devaluations so far, and huge inflation and possible collapse later) and my doubts that things will get much, much worse in due course are increasing rapidly.

Where can you get decent advice on how and where to flee from cash, specifically Sterling. I do not want any index linked product as these are and will be easily manipulated (e.g. "made-up" inflation rates). Gold is a bit too much of a punt for my liking, I'd prefer something that's safe and offers little return, except the original investment back. Any ideas?

[TimberWolf]

I'm selling up my final property now, hopefully catch the last of the greater fools and part them with their money.

I hope you've got somewhere to put the proceeds, because it looks as if cash is going to be trash. Now if only I knew somewhere safe I could put mine...

[DimPrawn]

I'm selling up my final property now, hopefully catch the last of the greater fools and part them with their money.

[sweetandsour]

My sister and brother-in-law have just sold their starter-home to move into a bigger place.

The buyers of their old place were investors living in Dubai. Does this tell us anything about the foundations of this new spurt in house-price growth?