UK Landlord Forum / Life

Its going to happen people,
There is talk about it in all the correct places that talk about these things.  Get ya money in place guys and lets go shopping !.
I will find out more but i think the times is doing an article today about it.


Badger

Yeah, my friend literally messaged me about 10mins regarding a crash coming!

Where did you read/hear the news?

BBC:
http://news.bbc.co.uk/1/hi/business/7049930.stm



"The IMF says there is evidence to suggest that the UK and a number of other European nations are also vulnerable to a price correction.

It points to the fact that UK house prices have risen far higher than incomes over recent years.

But, it adds, a lack of supply could continue to hold up UK prices. "

I can just smell it in the air son.  Half heard something last night, but my mind was somewhere else
Think we need it, it will act as a reboot to the system, a reboot i think is long over due,
Some times a working model needs to shut down as to run well again.



badger

Problem is, I don't think people have had enough pain yet for it to really crash. If they bring down the rates again now it'll just help inflate the bubble. The last time we had a major crash there were seriously rising reposession rates for about 6 months before it really started to bite. People were rioting and all sorts.

It might sound cruel, but it seems a simple fact of life that people won't stop over-extending themselves until they get really, really stung for it, so I can't see the prices correcting that much right now.

That said, my grandmother's place still hasn't sold and there are some v. nice places on the market around here that a few years back wouldn't have been on the  books long enough to get a board outside.

V

How long has your grandmother's house been on the market for?

The classic signs of a house crash is low employment and high interest rates, and neither of those are in play right now. I think the market will just ripple slightly.

However, I think the media have made consumers hold back with all this crash talk. People want to buy, but they're waiting for things to settle.

Even if there is a crash, everyone will start buying, and demand will shoot up again...

Not untill wages go up and the rate is right, its all a see saw act eh !



Badgerdghnmhjk,mnh

I think my grandmother's place went on the market around May/June time. There is a buyer who's offer we accepted on the basis that they were in a cash position, but it turns out they lied. According to the agent they're still really keen, but I'll believe that when their cash has cleared into my account.

The media are responsible for all kinds of things. I'm not a fan of the media. They put ratings above every other principle of humanity.


V

Mainy media fuelled - call me the Nostradamus of property 'there will not be a crash'!!! The shortage of housing is to much the rental demand is too much - the only way prices will start levelling is if the government allows a dramatic increasse in the number of properties to be built, untill then demand will outweigh supply and prices will increase, also fuelled by ridiculous sales methods - again this morning offered a virtual no money down deal in Doncaster (in top 10 worst town) with 20% discount from developer!! Makes you wonder why the developers giving so much away doesnt it, and what are the chances of getting a tennants mortgage to cover an over inflated mortgage

Quote from: hopson on October 19, 2007, 06:33:08 AM
Mainy media fuelled - call me the Nostradamus of property 'there will not be a crash'!!! The shortage of housing is to much the rental demand is too much - the only way prices will start levelling is if the government allows a dramatic increasse in the number of properties to be built, untill then demand will outweigh supply and prices will increase, also fuelled by ridiculous sales methods - again this morning offered a virtual no money down deal in Doncaster (in top 10 worst town) with 20% discount from developer!! Makes you wonder why the developers giving so much away doesnt it, and what are the chances of getting a tennants mortgage to cover an over inflated mortgage

I agree.

I can't help but feel the media re making things seem a lot more unstable than they actually are.

Is the demand for new housing just social demand though,  i thought it was this kind of housing the industry was falling short on,
As for private, if people can not afford then there is no real demand.  Ok we can say there are 2 mil people out there that need to buy privatly, but how many of them can afford to in the first place.
I am sure there are safe guards in place to ensure that we will not suffer a crash like the last time, i also think though that some aspects of the property market are still out of the moneymans hands, there are always new things to bite ya ass that people havnt thought about yet !!!!!!

Badger

Quote from: Badger on October 19, 2007, 07:55:28 AMif people can not afford then there is no real demand

A good point and well made

I hate it how you two always stick together!

Ive still got it son. never really lost it, its always been there


Badfinger

I'd hate to think where that bad finger has been.

The more people who cant afford to buy means that more people need to rent (somewhere to live), so the stronger the demand for rental - increases yield and encouraages the buy to let investor who can afford to buy to keep buying, win win

Quote from: hopson on October 19, 2007, 01:23:10 PM
The more people who cant afford to buy means that more people need to rent (somewhere to live), so the stronger the demand for rental - increases yield and encouraages the buy to let investor who can afford to buy to keep buying, win win

The problem will occur when rental demand is high, but at the same time investors get scared of buying...