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AIBU?

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Original poster

To think the housing market is about to collapse

152 replies

sandrabedminster · 04/07/2016 20:07

We seem to be getting almost daily story's about it on the edge, no surprise really given the ridiculous prices.

Now standard life have suspended their commercial property fund.

Is it about to go back to 2008 all again?

OP posts:
Shiningexample · 04/07/2016 23:04

I hope not, an actual proper crash would just to too problematic!

EveOnline2016 · 04/07/2016 23:13

I hope it does, it may mean I can get on the property ladder.

Selfish I know but atm with no way of saving and no 100% mortgages I am stick in renting cycle.

Shiningexample · 04/07/2016 23:15

it's not selfish to want a secure affordable home Eve :)
it's a basic human need!

MachiKoro · 04/07/2016 23:16

barbies maybe HPC, maybe not. Definitely not an ordinary poster.
I thought politroll tbh.

DesolateWaist · 04/07/2016 23:19

That is madness Vulgar.

whois · 04/07/2016 23:21

Selfish I know but atm with no way of saving and no 100% mortgages I am stick in renting cycle

A property crash isn't going to come without a recession. Recession isn't going to bring back (fucking stupid) 100% mortgages. Without a deposit you're never going to own a home, crash or not.

PurpleDaisies · 04/07/2016 23:21

I think there are people trying to talk up a housing price crash.

We're moving to our forever home. Mortgage rates are fantastic-we're getting a five year fix for less than 2%. It will be fine for us because we're looking at the long term not a short term investment. I think it would be better if more people viewed houses as somewhere to live rather than an investment with a guaranteed return.

EveOnline2016 · 04/07/2016 23:25

If the housing market crashes then the deposit will be an easier goal to achieve.

The banks are not going to have a lot of housing stock just gathering dust. They will want those houses occupied and hopefully will get creative in getting first time buyers on the ladder.

whois · 04/07/2016 23:29

The banks are not going to have a lot of housing stock just gathering dust. They will want those houses occupied and hopefully will get creative in getting first time buyers on the ladder

Unlikely.

Sold at auction to BTL investors for cash more like.

People with money do well out of things like a house price crash. People who can't save aside anything every month even in times of economic prosperity do not generally.

CodyKing · 04/07/2016 23:37

I doubt there will be a crash - it will slow down for a while until jobs are secure.

But I think if they do drop - interstate rates will rise as banks don't like to miss an opportunity.

PopGoesTheWeaz · 04/07/2016 23:39

if there is, or if the pound drops further, god I hope there is some legislation put in place to discourage overseas buyers.

CodyKing · 04/07/2016 23:42

I'd agree on the over seas buyers who have non intention of ever living here or even renting the place out. Just create a dead economy. No occupancy no local spending.
I would say the same for a lot of sea side towns for the second homes.

whois · 04/07/2016 23:43

if there is, or if the pound drops further, god I hope there is some legislation put in place to discourage overseas buyers.

No chance. The government has already shown it will preserve the housing market at all costs by holding interest rates as close to zero as possible. Negative equity isn't a vote winner.

BengalCatMum · 04/07/2016 23:50

This reply has been deleted

Message withdrawn at poster's request.

bakeoffcake · 04/07/2016 23:51

Dd and her BF are trying to buy in Bristol. They saw several properties at the weekend with agents telling them that flats are being snapped up, 8 or 9 other people were viewing the flats that day and they would be snapped up by the end of the weekend. Funnily enough they had agents phoning them today asking if they were considering offersHmm

We've advised them to wait and see for at least a few months before buying. Having lived through 2 crashes, I really can't see prices rising much, it seems very sensible to wait if you're a first time buyer.

GarlicStake · 05/07/2016 00:00

What whois said. Gideon's economic miracle (excuse me, I just coughed) is pretty much dependent on continued property inflation. He needs everyone to keep getting into more & more debt.

If you're taking out a new mortgage now, do consider a tracker for the next few years. Bank of England rates will go down to 0%, and quite likely into negatives.

It's a bastard for people like my aged mum who have to live off very modest investments. But they aren't debt generators, so of no interest to the government.

thecatfromjapan · 05/07/2016 00:08

House prices are a worry BUT the other piece of information here is that it is commercial property being hit. That is because people are assuming fewer businesses buying/renting property - so less business investment - and closing - because investment drying up.

But, yes, it indicates a property price drop.

At the same time as a drop in businesses.

So, house prices may drop but if you lose your job ... that house may still be out of reach.

Project Fear becomes Project Reality indeed.

BengalCatMum · 05/07/2016 00:11

This reply has been deleted

Message withdrawn at poster's request.

Whatthefoxgoingon · 05/07/2016 00:14

I'd buy property in a crash, in cash. No point in leaving money in the bank, earning no interest.

Shiningexample · 05/07/2016 00:22

No point in leaving money in the bank, earning no interest
never mind that image having money in the bank and the bank charges you interest to keep it there

do negative interest rates mean that banks will pay me if I take out a loanConfused

I seem to remember Cyprus helped itself to large sums of money from citizens bank accounts a while back

imother · 05/07/2016 00:26

Negative equity is only a problem if you want to sell. It recovers when the cycle turns up again, but then so do houses you might want to buy!

I too wouldn't fix at the mo. Was looking at credit cards earlier - some offering 0% for 40 months. They must be pretty confidant of low interest rates generally & BofE rate?

GarlicStake · 05/07/2016 00:28

Makes total sense if that money is in the bank, fox. There are always people who really clean up in a crash.

For most folks, though, the situation's more likely to be horrible particularly when they lose their jobs and/or salaries fall.

I've been in negative equity through two previous crashes; it's no big deal if you're living in the place and your income's secure - or if you're a multiple owner with a rational business model. You just sit tight. Problems arise if the income stops or you absolutely have to move house.

Now I'm a social tenant and my worries are more life-threatening!

CiaoVerona · 05/07/2016 00:31

No,as of right now negative interest rates mean the Central banks charge banks to park money over night the theory being it will force banks to loan money and or force us to spend there is talk of if we go negative to charge us to keep savings in banks. I don't think any bank will go down that route due to the fear we'll all keep cash at home.

Yes, Cyprus was part of whats called a bail in meaning anyone with savings also looses money if a bank is insolvent its part of a European mandate to stop busted banks being bailed out and bankrupting countries like Ireland.

BengalCatMum · 05/07/2016 00:34

This reply has been deleted

Message withdrawn at poster's request.

Whatthefoxgoingon · 05/07/2016 00:37

Yes garlic unfortunately it's people like me who will benefit in a crash. I don't have a mortgage, don't want to move and took money out of the stock market pre brexit.

The typical first time buyer with a 10% deposit will find it very hard to get a mortgage in a proper crash.