brian pearson

Indeed, very foolish but only a few months ago the tv was full of adverts encouraging this. The lenders who think they have security in the form of bricks and mortar will get a shock when the reposessed homes they will own don't sell at auction.

Almost everyone I speak to is paying off credit cards and deciding not to increase their borrowing. As this has been the lifeblood of the economy for the last ten years as well as the unsustainable property boom, tough times could be ahead.

I know not many agree with me but given the right conditions I think we could see a huge drop in house prices in the next few years. At a time when inflationary worries should be forefront in the mind of governments the cry to reduce rates to 'get us spending' will I think not work this time.

ChrisV

Things will get hard but they won't get aweful. We've got the olympics which will keep things going to a certain extent as people will keep spending for the olympics.

g hall

Virtually every commentator is talking up interest rate cuts we don't need that what is needed are tax cuts particularly at the lower end of the scale because all those stealth taxes(council tax, fuel tax etc.,) are murdering people on below average incomes and those on fixed incomes

The government HAS to stop being so profligate with other peoples money

__________________
"That government is best which governs least."
"This is a sharp Medicine, but it is a Physician for all diseases and miseries".
"To be "matter of fact" about the world is to blunder into fantasy --and dull fantasy at that, as the real world is strange and wonderful."
TANSTAAFL TANJ

brian pearson

The largely unwanted Olympic games will make a few people rich (probably already has) and cost a lot of tax payers money for what I heard described perfectly as a 10 day athletic meet !

Today : another rate cut....FTSE down over 2 %. Nothing will stop the steady rot now.

Zak64

Fat ferkin chance of that I fear. You made the point - other people's money! And that's the problem.

And why should they care, if/when they get booted out they're all of to directorships in the City. Or even better they can do a Mandy and p1ss off to Brussels to serve the Euroreich.

As Bill Hicks said "Satan's breast has many nipples to suck on!"

__________________
"There's no way to rule innocent men.
The only power government has is the power to crack down on criminals.
Well, when there aren't enough criminals, one makes them.
One declares so many things to be a crime that it becomes impossible for men to live without breaking laws."~ Ayn Rand.

Mikeuk

Brian, I'm sorry to rain on your endless parade of misery but I am seeing more sales now than there have been for months, and it is the view of all the agents I speak to that the market is slowly beginning to improve from a very low ebb.

Your apocalyptic vision really is a load of balls. I assume you do not own a house yourself, since you find the idea of others being affected by 'crashing' prices so very pleasurable

I have been in the business (admittedly at first just holding the end of a tape) since 1971 and I have only ever seen one significant drop in property prices. That was around 1989-1990 and the economic circumstances were very different then.

We have lived through plenty of recessions and property prices did not crash at those times.

Schadenfreude has its place but schadenfreude in anticipation of something that hasn't happened and almost certainly never will is - well - a bit odd.

mkpdavies

Apparently London and the SE are holding and even rising slightly, but other areas such as the Midlands are suffering.

I think what happens in the USA is key. They have way too much debt at the moment. It has to go pop at some point.

__________________
http://brits4ronpaul.blogspot.com/
http://wokinglibertarians.blogspot.com/
http://lpuk.org

My ignore list

Labour, Blue Labour, Lib Dems

Aardvark

Mike, The last time there was a crash our banks and our society were less exposed to global forces and the job market was based on UK industries rather than global ones. We are in uncharted territory here and volatility is worldwide rather than local. The factors that will affect prices - such as migration and world markets - are likely to be affected themselves by outside factors. I do not doubt your hands on experience of what is happening on the ground, but I think there are a lot of things that have yet to take effect.

I don't know as many rich people as I once did, but amongst the working classes spare cash is increasingly scarce. The latet fuel and energy hikes are crippling the people at the bottom end of the market and the increase in taxes is breaking the camel's back. The next budget will see most people off. The decision on NR will affect us all as the markets cold collapse even further than the last week. The only thing keeping the FTSE up today was the price of copper; not one UK job will be created as a result of that.

I lost massively on the last price collapse and have not been able to buy since. I wouldn't wish negative equity on any normal family, although if they stay put and can keep up the payments it doesn't matter. I'm afraid I do indulge in schadenfreude when I see the buy-to-let people learning that borrowing more than you can pay in order to make a quick buck is not a guaranteed moneyspinner or we'd all have done it. How am I suppose to sympathise with a woman on £50 k p.a who owes £1 million on properties she bought without ever seeing them.

Rapid increases in property prices are not good for an economy. Nor are rapid falls. The average man should be able to buy an average property and be able to fund it. Prices should rise gently so people don't lose, but also so that first time buyers can get their feet on the ladder.

__________________
When in Woking do as the Wokes do.

"I do not wish to form my opinions by thoughtlessly quoting others; I wish others to support their opinions by sensibly quoting me." Paul Wesson (Aardvark) 13th April 2008

brian pearson

Well I'm very sorry to have the ordasity to have an oppinion and ask others on this forum their views, yours included.

I bought my first house (hate the word property) when I was eighteen. This went up in price and my next one went down. My current home is very nice thankyou and has trebled in value since we bought it ten years ago. And you know what, I couldn't give a toss because unless I was to downsize or sell it and rent it really doesn't affect me.

I happen to think the way prices have gone in the last decade is worrying. I think the growth of amateur landlords and readiness of idiot lenders to dish out mortgages to anyone who can hold a pen and sign on the dotted line will prove to be a disaster.

Whilst people make money out of sky high house price inflation such as lenders, EA's, the treasury etc what good comes from it in the end. What good comes from first time buyers having mortgages five and six times their salary ? What benefits do speculators bring to the long term economy ?

The media obsession with making money out of houses, together with willing lenders has pushed the average shithole on a sink estate out of the reach of most first time buyers. Good thing ? Sustainable ?

No, I have no delight in seeing the downfall of others or schadenfreude as you put it. Although I will not shed a tear when the 'vested interests' in the property game who still try to talk all this nonesense up come unstuck.

As for your sunny outlook (forgot you are a vested interest) come to Nottingham and speak to the shiny suited agents. Things aint so rosy here. And todays reports of the highest repossesion numbers in years doesn't look too good either.

Like I said in a previous post Mike. I was wrong before and may be wrong again. Just my thoughts. You on the other hand are going to look a bit silly if I am right and then I can quote your 'load of balls' line. Or maybe you are a bit more worried than you want to let on. Like the unconvincing shiny suited, spiked haired, vested interested EA on the telly this morning. I don't think he believed a word of the bollox he was spouting.

youcanhandlethetruth

If the govt tells you everything is hunky dory then you've got nothing to worry about.

The only saving grace will be that the ignorant people who deserve to get shafted will be