Can’t wait for the big crash

[HPcrashingdown]

I can’t wait for prices to come back down. It’s absolutely ridiculous how mental prices have gone. I will be just waiting with my hefty deposit ready to buy my forever home. It will be great.

OP. I hope you lose your job and can't get a mortgage.
Price crash wouldn't affect me, we have no plans to move and have stable jobs, you just sound like a twat.

I bought a small flat in 1998 for £80k. Everyone warned me what ann error that would be as “the crash was coming”. That flat is now worth 10x that.

you’re delusional if you think there’s going to be any dramatic reset. A slight downward turn yes. A period of stagnation, absolutely. But that’s the limit.

''@PegasusReturns · Today 08:38
I bought a small flat in 1998 for £80k. Everyone warned me what ann error that would be as “the crash was coming”. That flat is now worth 10x that.''

I have said this before in this thread but the fact that your flat is worth 10X that isn't really a benefit.

If you were to sell it, your next purchase would swallow any equity you might have built as that property would have also gone up massively in value.

You only make money on property if you downsize/move to a cheaper area.

There is something really weird about the British psyche when it comes to property: people convincing themselves that ridiculous high prices is a good thing & that it makes them feel wealthy that their property has gone up in price massively. Although logic tells you that this is a mug's game.

House prices should not so ridiculously out of sync with the average salary in the country.

Houses prices going down would actually benefit many people yet you can see on this thread that people will do anything to cling to the concept that high house prices are a good thing. To me that is just odd.

A correction is already on the way in many parts of the country with prices being reduced and properties taking longer to sell. We might not see a ''crash'' as such but I don't think it would be a bad thing if we did.

''@Happychappy12345 · Yesterday 23:13
We bought our house 2 years ago and it's almost doubled in price after bit of renovation.''

Says who? have you just sold your house at this ''doubled price''?

Because another delusion that many sellers have is that putting a bit of paint on the wall and changing carpets means they can expect to have doubled the value of their house. In the real world it doesn't work like that.

Perhaps make it clear that you're talking about your area in your post then, rather than excite the HPC posters?

Also, just as some houses have been reduced, it doesn't mean the whole market in your area has dropped by 10%. People reduce for all kinds of reasons. Some may need a quick sale and can take the hit, others may have been on the market for ages, so it's a bit misleading to say they've dropped sharply within 7 days.

These posts crop up regularly from posters trying to assist a supposed crash.

@Greenfairydust you seem to have misunderstood my post.

im not claiming rising house prices are a benefit, in fact I’m implying the opposite although neither benefit or detriment was my underlying point.

The fact is over the past 25 years house prices have grown exponentially. And every year an expert or other will claim a “massive crash is on the horizon”. Anyone who’s waited for that crash in the past 25 years will be sorely disappointed, property prices (even with dips and stagnation) have largely outstripped salaries.

a “crash” would be personally positive for me. I own my house mortgage free and I’ll help my 4 DC to buy their own places over the next 3-10 yrs so I’d be quids in. But I’d have to be a fool to ignore the devastation that such an event would cause beyond my own front door.

People add 10 or 15% trying it on - but end up having to knock it off- doesn't mean a crash just people being daft

@PegasusReturns What devastation?
Most property is owned outright or has massive equity. Lenders are much more likely to allow negative equity mortgages, ie. The debt moves with you, for those who must move, again a small number of people.
It would be a minority of people affected by any crash.
We’ve had crashes before, and recessions. Most people sail through.

Can't see a big crash happening. Prices are going to fall in the short term, stagnate for a bit then recover. Same as always.

@C4tastrophe when did we last have a property crash in U.K.? There were falls of 20% in prices in 2008 in some areas (large parts of London and SE were entirely untouched) but a 20% reduction is not the crash that people seem to be hoping for.

Look to ireland in 2007 if you want to see what a real crash looks like and the devastation I’m talking about.

The "crash" that is predicted is only around 10-15%. So we'll be back at 2021 values. That's still very expensive and factoring in higher mortgages it's not a great time for buyers.

House prices may fall
But they never fall lower than the previous peak

House prices are already coming down
No good having a deposit if the mortgage company take so long to get the mortgage sorted that house prices are on the rise again.

No more boom and bust.
Usually Labour inherit a pretty decent economy from the Tories.
This time it’s different.

Bought after 2008 FC in the housing slump afterwards
Will have paid off mortgage in 4 years
🤷‍♀️
Sadly, I think the biggest losers will be those who got fomo during the first lockdown/stamp duty holiday.
Many people moved to the country or coast and are now very out out that their employer wants them back in the office.
Any 2/3 year FR mortgages will have ended/be coming to an end and finding an extra £400/500 pm won't be easy for most.

Erm Theres a huge shortage of housing stock in the U.K., people coming in from all directions of the world and buying and a
government that has its fingers in all the pies and therefore no interest whatsoever to reduce the house prices.

Can't see a crash happening any time soon...

I thunk prices will start to rise next year, so if people are wanting to buy in the dip, this year may be the time to buy. Just don't expect to get a 50% discount.
People have held off for years thinking a crash was coming and have then not been able to get on the ladder.

@PegasusReturns
''a “crash” would be personally positive for me. I own my house mortgage free and I’ll help my 4 DC to buy their own places over the next 3-10 yrs so I’d be quids in. But I’d have to be a fool to ignore the devastation that such an event would cause beyond my own front door.''

What devastation?

You are conveniently ignoring the fact that there is a housing crisis that is affecting millions of people because they can't afford a place of their own and are at the mercy of private landlords who charge extortionate rents. Not to mention the people who live in overcrowded and poorly maintained homes because social and private landlords can't be bothered to maintained their properties.

Funnily enough that always gets left out...

A crash would no be devastating to the majority. Far from it.

The majority of private renters wouldn't be able to afford to buy even if there was a crash unless the government started to buy back the homes and turned it into affordable rental.. even if they had savings, the bank's would demand 20% deposits. The people who could pay that would be wealthier renters (who could probably afford to buy anyway) or people who already own property or perhaps FTB living with family (also fall into the category of being able to afford to buy sooner or later).

The problem is earnings. The average earner cannot adequately pay for market rent and costs, never mind saving a big deposit. Which every buyer needs whether or not there is a crash...

OP will be waiting forever for a crash that will never sufficiently materialise.

I don't think a crash would be a good thing. A fall of say 5% a year over say 10 years would be better for everyone. Youngsters would be able to buy a house and people would stop treating property as an investment and actually go and produce something worthwhile to help the economy and the future of the country. We are upsizing and would rather lose money on our place and save it on the bigger place.

Wages need to rise. That helps everyone with everything - food, energy, housing.

A crash in the price of housing only helps cash buyers - the last people who need or deserve it.

Yep. I had friends who bought a Brighton flat, just off the sea front, two bedrooms and a garden for £59k in 1998. How we all scoffed as the crash was coming any minute.

And how we looked at our feet when they sold it for more than double just 18 months later. I can’t imagine what it’s worth now.

Keep saving your pennies up love

as inflation rises, money depreciates. Your asset should as a minimum increase with inflation, simply to maintain its value. Anything less than this means your property is depreciating.

@Treetopviews I did say that there should be small increases, so at normal inflation levels, however I don't think inflation has been at 100% ( even back in the 70's and 80's it was peaking at 25% ) over the last few decades and yet house prices in some areas jumped by this amount in a couple of years ?