House Prices/Credit Crunch/Recession etc - Article from FT..

[Tom Hark Preston Park]

What I find a real piss take is the BBC still have all the old proeprty buying programmes on in the mornings with the presenters going on about £ 50000 profits in a year and buy now before its too late and property investors buying at auction spending £ 10000 on improvements and selling for £ 40000 more. Are the BBC mad or just insensitive bastards ?.

IMHO the property programmes on TV have been the primary responsible cause for the stupid punting on property in the past couple of years. It's been The South Sea Bubble or the Dot Com Madness all over again. Lot of gullible people out there who would be FAR better investing in some slug of a current account and buying a lottery ticket once a week.

 

[Storer68]

They are a DEAD MAN WALKING government anyway and will lose in 2 years time no matter what happens especially if that BELL END , Brown is still in charge of their rabble.

but the change in faces won 't change the numbers.........

i don't suppose cameron can rustle a couple of billion at the drop of a hat when he gets in (and he will, get in that is - no one is ever going to re-elect this shower)

 

[Uncle Spielberg]

If you are a first time buyer you are now being asked for a CASH DEPOSIT of around £30,000 That's about three years take home for most of them....

Re Mortgage Mum and Dad's house they will have loads of equity. Call it an inheritance in advance. Not a problem really.

 

[Uncle Spielberg]

IMHO the property programmes on TV have been the primary responsible cause for the stupid punting on property in the past couple of years. It's been The South Sea Bubble or the Dot Com Madness all over again. Lot of gullible people out there who would be FAR better investing in some slug of a current account and buying a lottery ticket once a week.

That stupid tart on location x 3 has a lot to answer for

 

[Storer68]

Re Mortgage Mum and Dad's house they will have loads of equity. Call it an inheritance in advance. Not a problem really.

why. its their house.

 

[Tom Hark Preston Park]

That stupid tart on location x 3 has a lot to answer for

I blame Sarah Beaney meself

 

[Uncle Spielberg]

why. its their house.

Thats what Mums and Dads are for.

 

[Barrel of Fun]

IMHO the property programmes on TV have been the primary responsible cause for the stupid punting on property in the past couple of years. It's been The South Sea Bubble or the Dot Com Madness all over again. Lot of gullible people out there who would be FAR better investing in some slug of a current account and buying a lottery ticket once a week.

Agreed. Location! Location! Location! will be replaced with Repossession! Repossession! Repossession!

I was looking into buying a flat with my old man and sister/brother-in-law. I would have been the sit in tenant with a spare room for the sister/brother-in-law to stay whenever they wanted.

We went round numerous flats. None of them had their original charm. They had been ripped to the bare bone and obviously redecorated following a property programme on loop in the background.

Tacky wooden floors. Pots with twigs. Bathrooms with champagne displayed in the sink. Too many amateur 'property developers' who thought they were top of the business. Poorly hung doors. Crap paintwork. All that for an elevated price well beyond what they were worth.

Thankfully, I saw this moment coming and stopped looking.

 

[jevs]

If I made a statement saying

" House prices will fall by 60% next year ". It looks good and may sell a few papers but it is not going to happen. I have my finger on the pulse. Prices will fall by 15% from the start of this correction , early 2008 until the middle of 2009.

I predict by Summer next year, money will be in much greater supply in the markets, rates will come down, criteria will slacken and loan to values will increase. With prices 15% lower people will stampede to the estate agents and lenders and prices will gain that 15% within the nexy year to two years.

Anyone that predicts or wants a 50% fall is living in cloud cuckoo land. Halifax Plc have today announced major reductions in the fixed rates, tracker rates and fees, other lenders will follow suit. We could be seeing the early seeds of a recovery in lending. Lets hope so.

If you can get a decent 3 bed house next year for £ 200k people will be snapping them up and this will ripple up the ladder. If Darling does something about Stamp Duty by raising the exempt level to at least £ 150000 and levelling above
£ 150000 at 1% that will make a massive diference. First time buyers will be able to buy next year that have not for several years and an injection of first time buyers in the market again will ripple up the ladder.

I expect things to be tough for another year and this year is all about survival for estate agents and mortgage brokers but I certainly intend to be around when the upturn starts next year.

Jesus f***ing christ....they've let him out to predict the economy ...it was bad enough when he predicted this summer's weather would break all records

 

[Tom Hark Preston Park]

Jesus f***ing christ....they've let him out to predict the economy ...it was bad enough when he predicted this summer's weather would break all records

 

[beorhthelm]

If you are a first time buyer you are now being asked for a CASH DEPOSIT of around £30,000 That's about three years take home for most of them....

you base that on what the Daily HousePrice told you in their screaming headline, or did you actually take a look for yourself? because when i wandered to the first lender i thought of, Nationwide, they seem quite happy to take the tranitional 10%. so unless first time buyers are being forced to buy 300k properties, it seems the fear mongers are spinning a little fib based on average prices, while first time buyers go for 1/2 bed flats for half that.

 

[Bert365]

im in the middle of buying a flat for 160 grand i belive prices will rise again next year

 

[hitony]

Re Mortgage Mum and Dad's house they will have loads of equity. Call it an inheritance in advance. Not a problem really.

What if you dont have a mum or dad ? like they died years ago and there is no inheritance to call on ?

 

[Uncle Spielberg]

Jesus f***ing christ....they've let him out to predict the economy ...it was bad enough when he predicted this summer's weather would break all records

Not bad old chum but I do not remember predicting a record breaking summer

 

[Freddie Goodwin.]

Times are hard & supermarkets & oil companies struggle to post record profits.

Makes me mad that oil prices etc have hiked up the price of milk, butter, cheese by about 40% in last 6 mths yet Sommerfield has been able to halve the price of a box of Stella to just £6.00

 

[Uncle Spielberg]

Just get pissed every night and before you know it the credit crunch will be over.

 

[Caveman]

Having been a dedicated professional in the industry for 2 decades with professional qualifications of course I know nothing. The mugs and losers will hang on and on and on the clever people will buy when the time is right like they did in the mid 90's when people like those on here weere predicting never ending property price falls and are not owning millions pound plus portfoilios. Still hang on for 5 years if you want.

Not many people are siding with US, but I think he is talking the most sense here.
People who have borrowed silly money will sink. Those who are already sitting safely on the ladder and use their head will profit further, all-be-it 2 years or 5 years.

 

[hitony]

Just get pissed every night and before you know it the credit crunch will be over.

Sound professional advice

 

[beorhthelm]

Makes me mad that oil prices etc have hiked up the price of milk, butter, cheese by about 40% in last 6 mths yet Sommerfield has been able to halve the price of a box of Stella to just £6.00

just demonstrates that most of the price of Stella is for branding and marketing and it costs bugger all to actually make. meanwhile, very slim margins on basic foods. This is why healding inflation isnt going up as much as people think when they look at milk and bread prices, the "basket of goods" used for the inflation calculation includes lots of manufactured, processed products which havent gone up.

 

[Freddie Goodwin.]

But just how much does a house cost? I know that's a vague question, but, for an average 'affordable" home, roughly how much would it cost to build in comparison to it's market value?

When you buy a new car the value falls greatly almost immeadiatly but a house, which may have been built many decades ago for just a few hundred £'s would now be valued in hundreds of thousands.