[News] Another 2008 in the making?

[dwayne]

What like last time in 2008?

Most definitely! I lost my job and got a years pay out. With that money I bought a property that had just lost 20% of its value and 13 years later I'm massively quids in.

The best opportunities arise at times of crisis. Like when the market crashed just after covid.

The housing bubble needs another pop.

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[Paulie Gualtieri]

Property prices can and will continue to fluctuate to the end of time however we are on a totally different landscape that we were in 2007/2008 in secured lending.

I’ve worked in banking for 20+ years in risk and started my journey in the sub prime days so have seen it all.

Self cert has been abolished and righty so

Stress testing of +3% for affordability (unless fixed for >5 years)

The amount of capital that banks have to hold these days under risk weighted assets and sensible LTV

You might be surprised to know that despite Covid and furlough my firm has an arrears rate of less than 6% currently. This is achieved by a sensible forbearance strategy as its in everyone’s interests to keep people in their houses.

New entrants to the market will sometimes gamble on lax criteria and control but will be dealt with by the regular promptly. There was a firm in the last few years that tried to circumnavigate the ban on self very mortgages by domiciling themselves in Luxembourg via a corresponding banking relationship but they were promptly stopped before launching the product.

Sure there will always be risks but there’s a lot more governance these days.

 

[Rodney Thomas]

Most definitely! I lost my job and got a years pay out. With that money I bought a property that had just lost 20% of its value and 13 years later I'm massively quids in.

The best opportunities arise at times of crisis. Like when the market crashed just after covid.

The housing bubble needs another pop.

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Your gain is anothers loss. Can't say I'd be jumping for joy at that.