Reply to: Why do papers make out its sad news when the most expensive thing you'll ever buy ...

[Sockpuppet]

Multi-quote for the win.

Well I suspect you're right. Trouble is, if prices are declining, people hold off buying, and construction companies (and wine bars) go bust. Someone somewhere gets hurt.

Exactly. I'm sitting here on a nice fat £80k deposit and I'm holding off buying. Friend moans at me asking me why I haven't bough. Well I say, house prices staying stable and much more likley to drop than go up in the near future - esp when the spending cuts kicks in and interest rate rises force people to sell.

That doesn't make any difference she says becuase if you pay £100k for a house and it falls to £80k all the other £100k houses have fallen and so in real terms you're no worse. Off.

That would be unless I paid £100k for a house I could buy for £80k a few months later in which case I'd be exactly (£20k + interest payments) - rental paid worse off.

So what?

The only people who lose out are those who bought at the top end of the market and contributed to the housing bubble by buying at inflated prices with low deposits. I have zero sympathy for these people.

I have some sympathy, though not much. No-one stopped to feel sorry for me 3 years ago when I was scrimping together some deposit and getting told to feck off by a lot of mortgage companies and laughed at by people with houses. So i'm not really feeling sorry for people now the roles have reversed.

And may I ask, what should someone do who needs a house when the price happens to be high? Also, what size of deposit would you say is not too low?

Rent, that's what I had to do. I don't think people need any kind of deposit just make banks stick to sensible lending limits based on x times your salary.

Ok so you bought your house for 250,000 on a 95% mortgage. have a kiddie. Then you lose your job. Your house is now worth 200,000. Check mate...

Its a crap situation to be in but such is life.

I did that but I don't have the £980K of loans, because I always knew it was a suckers boom so sold the BTLs in 2006 and took the profits to pay off the main residence.

Ah a sensible one. I'm not against people such as yourself making profit from houses. I'm just against people trying to make me feel sorry for those that rolled the dice and lost.

[ItsQuickerAntiClockwise]

Why would people only have bought with small deposits during the boom? Many people still put down decent deposits if they could, to get better deals.

And they will be able to ride this decline since they should stay in positive equity. However there were also an awful lot with 95-100% mortgages who have had this 'buy a house at any cost' drummed into them since birth.

I was watching this one couple on Location, Location. 100% mortgage, 250k, combined income for both was £53,000. This was in 2007. They were even going to get a seperate loan in order to kit out the house they bought if they needed all the money for the house itself.

Its idiots like these, not just the banks, which brought us to our knees.

People don't take any personal responsibility for this mess, its easier just to blame 'the banks'.

[Ignis Fatuus]

Troll or not, in real terms house prices will drop towards the long term average.

what are "real terms"? In gold, house prices are not overinflated. Maybe it's just money that is worth less.

[d000hg]

So what?

The only people who lose out are those who bought at the top end of the market and contributed to the housing bubble by buying at inflated prices with low deposits.

I have zero sympathy for these people.

So still no problem as far as Im concerned.

Why would people only have bought with small deposits during the boom? Many people still put down decent deposits if they could, to get better deals.

[Doggy Styles]

sas, you've made a friend.

[ItsQuickerAntiClockwise]

I did that but I don't have the £980K of loans, because I always knew it was a suckers boom so sold the BTLs in 2006 and took the profits to pay off the main residence.

HTH

Good move SasGuru ........ now come here you big lug and give us a hug .......

[shaunbhoy]

I did that but I don't have the £980K of loans, because I always knew it was a suckers boom so sold the BTLs in 2006 and now live in an eco-shed at the bottom of my parents' garden.
HTH

FTFY

[sasguru]

... I have none for the folks who got lucky by buying at the start of the boom and then remortgaged to extract equity to use as deposit for a buy-to-let and then repeated that several times until they had £1 million worth of property and £980k in loans.

.

I did that but I don't have the £980K of loans, because I always knew it was a suckers boom so sold the BTLs in 2006 and took the profits to pay off the main residence.

HTH

[doodab]

I have some sympathy for people who felt that they had to buy or get left behind and are now up against it (although I still think they should have thought twice), but I have none for the folks who got lucky by buying at the start of the boom and then remortgaged to extract equity to use as deposit for a buy-to-let and then repeated that several times until they had £1 million worth of property and £980k in loans.

It's the inevitable interest rate rises that will bring the real problems.

[Jeebo72]

Ahh yes, when you can't find a flaw in someone's argument, just call them a troll. Then you win!

yes you are are a tit ... tell me, when is the property boom at its highest and lowest levels? If you could tell me that, then you would be here. Personally I don't give a tulip cos I bought and paid for my house. Now run along sasjunior.

[MrMark]

Troll or not, in real terms house prices will drop towards the long term average.

True, dat. The Equalizer speaks troof

[The_Equalizer]

You have no "argument". You are just a green-eyed renter, desperate for a housepricecrash to get your slithery little hoof onto the ladder. Keep saving that deposit and living with your parents, and maybe one day you won't appear so desperate.

HTH

Troll or not, in real terms house prices will drop towards the long term average.

[shaunbhoy]

At least by living with my parents, I don't have to dust my Star Trek collection or wash my dishes since my mum does it all for me.

You see? It is not ALL bad. Do you have your own doorkey yet, or are you still working to a curfew?

[ItsQuickerAntiClockwise]

You have no "argument". You are just a green-eyed renter, desperate for a housepricecrash to get your slithery little hoof onto the ladder. Keep saving that deposit and living with your parents, and maybe one day you won't appear so desperate.

HTH

At least by living with my parents, I don't have to dust my Star Trek collection or wash my dishes since my mum does it all for me.

[shaunbhoy]

Ahh yes, when you can't find a flaw in someone's argument, just call them a troll. Then you win!

You have no "argument". You are just a green-eyed renter, desperate for a housepricecrash to get your slithery little hoof onto the ladder. Keep saving that deposit and living with your parents, and maybe one day you won't appear so desperate.

HTH