Property Meltdown

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Re: Property Meltdown

Postby Pixel8r » Sat Apr 18, 2020 12:53 pm » Safari 13.0.5 Safari 13.0.5  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440


Dominic has a short memory. I remember the housing crash of the 90's. I bought a property in 1992 that was very reasonably priced there were loads of them around at the time. The belief that housing prices only go up is a recent thing developed since the expansion of derivatives from 2000. So we have only seen this phenomenon for the last 20 years, not 50.
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Re: Property Meltdown

Postby Laura » Fri May 15, 2020 1:47 pm » Google Chrome 75.0.377 Google Chrome 75.0.377  Android Android  Screen Resolution: 1024 x 600 1024 x 600

https://www.housepricecrash.co.uk/forum ... 1103576386

"Today, again, the property industry is calling for the suspension of all stamp duty to kickstart the market."

Quite right. After all, the property industry has had minimal intervention to date to help it.

Apart, that is, from Dual income mortgages, Interest only mortgages, buy-to-let tax advantages and unregulated lending, lowest ever interest rates, relatively lower Basel capital requirements/risk weightings for property backed assets, Funding for Lending, NewBuy Guarantee, FirstBuy Scheme, Homebuy, Help to Buy equity loans, Help to Buy mortgage guarantee, Shared Ownership, Housing Benefit, Support for Mortgage Interest payments, Build now pay later scheme, New Homes Bonus, Affordable Homes Programme, Get Britain Building Fund, Builders Finance Fund, Right to Buy, Proposed building standard and regulation cost cutting, Looser residential planning approval rules than for offices/commercial property, Releasing more public land for private rather than public uplift, New homes zero-rated for VAT, Build to Rent Fund, Stamp duty reforms, Rental Deposit Loan Scheme, Help to Buy ISA, main home inheritance tax allowance, 'Discounted' starter homes, Expropriated HA properties, Housing Growth Partnership, 40% HTB-London, blah blah, blah...
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Re: Property Meltdown

Postby Pixel8r » Sat Jun 13, 2020 11:26 am » Safari 13.1 Safari 13.1  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Phil Spencer reveals his prediction for house prices in 2021 – it’s going to get a lot worse…

‘My personal prediction (and I’m not an economist), would be about minus five per cent straight away. And minus about 12 per cent in a year’s time,’ he adds. ‘I think it’ll get worse.’
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Re: Property Meltdown

Postby Pixel8r » Sat Jun 13, 2020 11:48 am » Safari 13.1 Safari 13.1  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Still waiting for our 1000oz houses :angry-tappingfoot:

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Re: Property Meltdown

Postby Laura » Sun Jul 05, 2020 7:39 am » Google Chrome 75.0.377 Google Chrome 75.0.377  Android Android  Screen Resolution: 1024 x 600 1024 x 600

An hpc poster spotted a superb post on mumsnet.
I've pasted all of it, as he/she has; for posterity in my case.
https://www.housepricecrash.co.uk/forum ... 1103580605

somenerve Sat 23-May-20 09:09:37
would you like to elaborate on that?

On an individual level it may seem great when a bank is willing to give you lots of money, at a low rate, to buy that house you want. But what it actually does it push prices up.

You may think prices go up because of supply and demand of, well, houses, and that’s certainly part of it: but what got us to the point where people on decent salaries, without an inheritance, are finding it impossible to buy a house they can live a good life in (rather than barely squeeze into for a couple of years and hope to sell at a profit, probably in a place where they can’t find a job), is the supply of money available to borrow. Don’t believe me? Maybe you’ll believe the Bank of England, itself the chief culprit: positivemoney.org/2019/09/bank-of-england-confirms-positive-money-analysis-of-house-prices/

The system is set up for young first time buyers stepping onto a low rung of the ladder, then spending their productive working lives climbing it. If it isn’t obvious to you that this system and “the ladder” is broken, we’re probably never going to agree on anything. It’s even worse if you didn’t order your life just so, and run into a situation where, as a previous poster put it,

we thought we had time on our side, since house prices back before about 1998 ish were only 3 times normal wages. You could even find houses at just double wages in cheap areas. Then they doubled, we all thought they'd fall again and waited: then they doubled again, tripled, and finally quadrupled and that was that, most people were locked out unless they had parents to help. It changed so quickly.

A lot of people “don’t get it” because they got extraordinarily lucky with timing and figure the ladder worked for them, of course it’ll work for you, if you just “make sacrifices” (this is where avocados usually come into the conversation). It may be the only sacrifice you can make at that point is to restrain yourself from slapping them.

I get that if you’ve managed to buy a house, the thought of it suddenly losing value, even if that’s just theoretical at the moment, can be scary, and it will make you angry when people suggest prices should come down (“crash” is the preferred terminology for maximum psychological effect). They’re trying to take money from your pocket!

Look at it from their point of view. (Well, from mine.) As a saver suffering many years now of extraordinarily low interest rates, the fact that rates have been kept low to prop up the market you’ve bought into means money has been taken from my pocket.

Also, you’ve purchased what in all likelihood is a very overpriced house, helping to set a price for whatever street you live on, your transaction yet another little data point in the great housing spreadsheet of the nation. Perhaps you’ve used “help to buy” or shared ownership or some other crackpot scheme cooked up to keep the whole wheeze going (another one of those things that may or may not be great for you, but is awful on a larger scale). I don’t know your circumstances. Maybe you’ve even worked nose to the grindstone at three jobs and have never caught a whiff of avocado other than from the bathroom suite at your nana’s. It doesn’t matter. What matters is that a) you’ve just done your bit to keep prices high, and b) many, many of you now figure you’re a protected species: that your possible negative equity is a worse fate than not being able to buy in the first place.

Sorry, but chances are you’ve become part of the problem. Don’t believe me? Believe an articulate homeowner: www.telegraph.co.uk/news/2016/06/07/i-w ... gage-indu/

We’re now at a point where otherwise nice people may be actively rooting for a Covid crash or a Brexit crash or any crash really, not because they want to inflict pain on you personally, but because it looks like the only way for them to have a shot at owning a house.

This is where homeowners usually say but the economy will be trashed!! Banks won’t lend!! Be careful what you wish for!!! I would suggest that they’re more concerned about their money making machine breaking down than they are about the predicament of non-homeowners.

As far as I’m concerned, the status quo is a worse option. Housing sucks up far too much money, which could be better spent elsewhere in the economy. Uncounted years of life are spent servicing debt that needn’t be. “Affordability” is king, pay less for longer so really pay a lot more in the end because who cares? You’re planning to be long gone…

Unless something big happens to shake things up, the future looks to be even more debt servitude, and at best, owning a small slice of a house because we mustn’t ever let them come down in price. Anyway, the economy is already ******ed. If it isn’t for you personally, good for you; but it is for a lot of people, simply because it isn’t working very well to provide decent options for shelter and stability.

Tl;dr: if you don’t see a BIG problem, it suits you to not be looking very hard
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Re: Property Meltdown

Postby markinspain » Mon Jul 06, 2020 5:28 pm » Firefox 78.0 64 bits Firefox 78.0 64 bits  Windows NT 64 bits Windows NT 64 bits  Screen Resolution: 1920 x 1080 1920 x 1080

In my opinion, it´s the commercial property market that´s the tidal wave waiting to break. So many private pensions invested in reits too.

Watch on youtube.com
People say, "Don't you miss it, Mark?" I say, "What, England? Nah. f**king place. It's a dump. Don't make me laugh. Grey, grimy, sooty. What a sh*t hole. What a toilet. Every **** with a long face shuffling about, moaning, all worried. No thanks, not for me." They say, "What's it like, then, Spain?" And I'll say, "It's hot. Hot. Oh, it's f**king hot. Too hot? Not for me, I love it."
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Re: Property Meltdown

Postby Pixel8r » Mon Jul 06, 2020 7:32 pm » Safari 13.1.1 Safari 13.1.1  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

markinspain » Mon Jul 06, 2020 5:28 pm wrote:In my opinion, it´s the commercial property market that´s the tidal wave waiting to break. So many private pensions invested in reits too.

I agree, sorry can't listen to that computer-generated speech.
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Re: Property Meltdown

Postby Laura » Tue Jul 14, 2020 11:56 am » Google Chrome 75.0.377 Google Chrome 75.0.377  Android Android  Screen Resolution: 1024 x 600 1024 x 600

A beyond belief Melt up, with new buzz phrase "freehold btl" :wtf: :shock:
Old wine - New exciting box, benefitting from added liabilities? :yawn:

https://algarvedailynews.com/property-n ... ria-resort

Prices including full furniture packs range from €363,050 for a one-bedroom suite to €979,950 for the premium two-bedroom apartment with private pool and garden space.
These freehold buy-to-let apartments will be the first Viceroy branded residences in Europe. Owners have up to 10 weeks (70 days) usage of their property per year, whilst benefitting from privileged use of all hotel amenities, and for the first five years are guaranteed a healthy annual 5% net return on investment (including all service and management charges).
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