Worldwide recession & house market slump - won't happen

[Luci459]

Aibu to think that that won't happen?!

House prices will bump back up as usual. Stop going on.

Pulling out of house sales is not the way to go.

Youve convinced me

Let me guess, your house is on the market. People are pulling out because they lost their jobs and now cannot qualify for the mortgage not because they no longer fancy it.

🤣🤣🤣

No, my house isn't on the market?!

Well why do ppl on MN keep telling ppl to pull out of sales!

Because the AirBnB business model has been proven very flimsy and buy-to-let isnt the sure fire income most small landlords thought it was.

Existing tenants cannot afford to pay rent, but whose going to take on a new tenancy right now and holiday homes are a no-no just as winter was starting to be over.

People will downsize through straightened circumstances, and - sadly - the property assets of the deceased will be sold and the proceeds distributed.

Well after being shut in tiny hell holes with no yard, no ability to have your own apple tree. And recirculated apartment air. More people will want their own place. No wage and getting evicted out of rentals who in their right mind would want to rent long term.

Ok, if you say so...

You again

How can you NOT see that there will be a global recession??

FFS, people have lost jobs, people are have to use up any savings they have to survive.

It may not be the Armageddon that some are predicting, but there most definitely will be a global recession. People will be very cautious about spending after this.

Stop trying to encourage people to take on massive fucking debt at this time unless it's absolutely necessary.

Well a global recession was deemed highly likely even before this happened. It’s yet to be seen how this will play out of course but it would cost money that the U.K. government simply doesn’t have to ride this out in the medium to long term so the only hope is to reach peak quickly and then get back to normal.

Where did you get your degree in economics?

😂😂

Aibu to think that that won't happen?!

Oh it will, half the world is shut down, unemployment rising here and rising quicker in US.

You can also guarantee that taxes are going to rise in this country too. The Chancellor maybe the "saviour" with his rescue package, but boy will he screw us to get the money back. Once we are out of this any decent sized firm will restructure to save money or pay back what they've borrowed. Restructure generally means redundancies. It's going to be pretty shit to be honest.

Anyone remember the 2008 government strap line "we are all in this together". Well this governments current catchy one (which FFS I wish they would stop trotting out, we can read!!!), is going to be replaced by the one from 2008.

Businesses are going to the wall, the money, taxpayers money will need to be repaid, from grants and furloughed staff & self employed claiming 80%, stocks & shares have plummeted affecting investments & pensions. Banks withdrawing mortgage products with tougher terms re LTV ratios, higher deposits etc. Can you see the issue.

Carry on with your sale and purchase then if you are so confident.

Report back and let us know how that works out for you.

Too late.
Its already started.

Are you an estate agent?

Compelling argument OP

Lol OP seriously?! Keep sticking your head in the sand if it helps.

Yes we shall just print more money and all will be fine

Yay problem solved

I had to double check the date today - belated April Fools?

I'd love you to be right, but a couple of lines saying so won't make it so.

Explain it to me.

It's already started OP. This is going to be on a completely different scale to 2008.

Compelling argument OP

Many lenders have already reduced the ltv ratios for mortgages, I think one bank is now only lending 60% of the value.

They're clearly expecting a fall in prices, or they wouldn't be doing it. Even if they're wrong, the reduction in mortgage lending will practically guarantee it, as FTBs will have even less chance of raising a deposit.

And, as my plumber pointed out, an awful lot of the people dying will own houses that will come on to the market in due course, which will increase supply and reduce prices.

The cost of all the money from the Magic Money Tree will have to be repaid somehow, and a lot businesses will go to the wall, being unable to withstand the loss of several weeks trading.

I think it's going to be grim.

www.housingtoday.co.uk/news/house-prices-forecast-to-slump-amid-15-fall-in-gdp/5105289.article