UK house prices post biggest fall since October 2008 - Halifax data today Weds 7th Dec

[jimmyjammy001]

Just a quick note for anyone looking to buy, in particular first time buyers who run the extreme risk of running into negative equity if buying with a low deposit

UK house prices post biggest fall since October 2008

Also its important to note that "Property prices are up more than £12,000 compared to this time last year, and well above pre-pandemic levels (+£46,403 vs March 2020). "

I suspect there will be bigger falls yet still to come as well

Well not really @DeadHouseBounce because my mortgage is fixed till it is paid off in 6.years time

Why is it worse for the rise to be decided by "Japanese men in suits" as opposed to your rent being increased by your landlord? Also, most people are on fixes, so won't be affected until further down the line.

And landlords have mortgages too. In fact, they are probably overleveraged. And they will prioritize their home over yours. Its good to rent if you have a family home to boomerang to if the worst happens and you can't find a replacement home in two months. But if you don't, then you have to pick the least worst option. do you trust yourself to do whataever it takes to pay your mortgage at whatever interest rate or do you trust the landlord?

What on earth makes you think the median household income in London is £100k? It's well below that.

Median weekly pay in London in 2021 was £765, which equates to around £39k a year. When you factor in that a lot of households don't have two earners, the median household income isn't going to be anywhere near £100k.

commonslibrary.parliament.uk/research-briefings/cbp-8456/

I will try to help you along, obviously you think in very general and simplistic terms on the economy and have taken offence at the idea that your house isnt worth what you thought. My view is that home ownership is fine if that is what someone wants, what isnt fine is a decade and a half in the making property bubble running on cheap rates and economically ignorant sentiment, by most sensible measures that is a Ponzi Scheme and it benefits only money lenders and older people who downsized at the right time. If you can even get a basic grasp of what is happening globally with central banks etc. you will discover that the era of "cheap money" is over and your property is no longer worth what you once thought it was - but the good news is that this will eventually be great news for society as people start to grasp that there is risk and cost involved in borrowing large sums of money!

tbf the cheap credit/low interest rates have really damaged our economy.

higher salaries, better productivity & lower asset inflation is far better for the economy.

I did not know that. our household income is now 91k and i thought we were around average. Also income cap for shared ownership in london is 90k so 100k would be a good round number for that too.

If you can even get a basic grasp
It's so kind of you to try and help us but we are just too dumb and silly to ever have the faintest hope of starting to understand your amazing and brilliant level of analysis , please mister @deadhousebounce stop wasting your brilliance on us, we will never ever be able to appreciate your stupendous intellect🙏

But you dont get your rent increased by your landlord every week! Stop believing the silly nonsense you read in letting agent press releases - smart long term landlords set a fair rent and pick good tenants - and keep them - idiots try to hike rent to cover their debt mistakes and end up with the same debt at rising interest rates and double council tax on an empty property that they cant sell, any landlord that doesn`t understand how rent is set by wages/economic conditions over their own borrowing costs is going to be in trouble in the coming months/years.

Everyone knows that it is not risk free, but they needed a roof over their heads and also there are quite a lot of rich people (and children of rich people) who have decided to take the risk as they have the family back up if things go pear shaped

My mortgage rate isn't being changed every week either. I'm on a 5 yr fix.

And with a shortage of private rentals, people don't get to choose whether they rent from a good landlord, or a shitty one.

I fully agree. It hasn't been a good thing at all.

Exactly. 100k median for London, LOL, FFS. London is built on cheap mortgage debt (at eye watering levels) benefits, and some bankers skimming the pot. There are people with London Bubble mortgages who are going to be absolutely destroyed by the attempt by our Great Masters to "normalise" financial conditions.

The value of the asset you borrowed that debt against moves very quickly though when borrowing conditions change.

@DeadHouseBounce the weird fonts and use of words like Grand Masters (inter alia) are making your come across as somewhat unhinged.

Yes, they dont move the market that much though, they just react to the market by throwing Mummy or Daddys bits of paper into the fire, the market was created and moves with cheap credit to the masses, now ending.

Yes some people with property empires are going to be in an untenable position when (if😬) interest rates go back to what they 'ought' to be. I think some are starting to appreciate now that property prices are influenced by the supply and demand of credit, previously this seems to be an unfamiliar concept to most people?

I dont change the font, I dont know why it changes and I don`t really care, it can be my trademark. Have you never heard terms like Masters of The Universe on the media to describe bankers? Do you think the media are all unhinged as well, or maybe you are unhinged, or is it just a little label you throw out when someone challenges your economic view?

London is built on cheap mortgage debt (at eye watering levels

I think you are right on this, far more mortgage debt here than other areas. I know people with huge interest only mortgages. The trouble is many have assumed prices will keep going up.

But surely you can see that's just because we are too lowly to appreciate his intellectual superiority☝🏻😶

many have assumed prices will keep going up
Even worse they thought that zero interest rates were the New normal 😬
The synergistic implications of these two wrong assumptions could be terrifying 😬

Why is it worse for the rise to be decided by "Japanese men in suits"

Simply because what they decide has global ramifications for your debt, for your job and for your house price, people with a large mortgage debt can`t just give notice on this debt because the men in suits say they will have to pay more to carry the debt.

I think those are the ‘savvy’ ones who mew’d, mew’d, and mew’d again to release the golden equity.
I suppose if they bought super low maintenance apartments in desirable locations down south they may be ok, but if they’ve been buying 150 year old terrace houses in the NE where housing benefit sets the rentals, they may not be.