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Tedc
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29-11-2018, 01:10 PM
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Today's Doom & Gloom - House Prices Dropping.

That seems to be the theme for today's doom & gloom story.

But is it really so bad that house prices are dropping?

Personally I've ridden on rapidly rising house prices for many, many years.

However, if less and less far eastern buyers are rushing over here to buy up all the houses, and if the prices are falling, is that not good news for the young and anyone looking to get on the ladder?
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29-11-2018, 01:11 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

Don't own a house, so I couldn't care less.
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29-11-2018, 01:46 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

Let them drop. The best thing that could happen in this country. House price drop, equals rent drop, equals more money in a persons pocket equals more money to spend on the high street, equals more levelling out .

The 43 million homes in London, should be only allowed to achieve a certain price too, as most are sitting there as investment properties by foreign owners who don't even live in them.

Housing market was fixed to make room for private rentals to take off the pressure of councils building more houses, and to open the door to private investors from all over Europe to plough money into the financial sectors and make the rental system into big business which it never was until 1980's.But it back fired IMO , leaving many unable to afford to buy ,the interest rates can't really get any lower, and they can't afford the private rentals . Meaning the councils have had to home thousands anyway ,under different schemes. Costing the council tax payer even more !
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29-11-2018, 02:27 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

I can't say I see it as bad news, ok my share in our property will drop but the mortgage is paid and it won't hurt us all the while we live here. Might give next generation a chance at renting a property privately too. So seems ok to me.

Same with commercial properties if they come down in price they might actually sell round here we have so many empty commercial properties because they are so expensive, local pet shop just closed due to high rent.
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29-11-2018, 03:29 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

Originally Posted by Puddle Duck ->
Let them drop. The best thing that could happen in this country. House price drop, equals rent drop, equals more money in a persons pocket equals more money to spend on the high street, equals more levelling out .

The 43 million homes in London, should be only allowed to achieve a certain price too, as most are sitting there as investment properties by foreign owners who don't even live in them.

Housing market was fixed to make room for private rentals to take off the pressure of councils building more houses, and to open the door to private investors from all over Europe to plough money into the financial sectors and make the rental system into big business which it never was until 1980's.But it back fired IMO , leaving many unable to afford to buy ,the interest rates can't really get any lower, and they can't afford the private rentals . Meaning the councils have had to home thousands anyway ,under different schemes. Costing the council tax payer even more !
You have the same system as we have, then? I bought my house for 300K. and took out a mortgage for that amount. If house prices drop and my house value is down to 200K my mortgage is also dropped to that amount.

Or is it in the UK when I buy a house for 300K, take a mortgage for that amount. My employer moves to another city, I follow. Due to dropping house prices I have to sell my house for 250K. I loose 50K that for the rest of my life rests on my salary?

So dropping house prices are not a good omen for the future economics.
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29-11-2018, 04:17 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

Originally Posted by Solasch ->
You have the same system as we have, then? I bought my house for 300K. and took out a mortgage for that amount. If house prices drop and my house value is down to 200K my mortgage is also dropped to that amount.

Or is it in the UK when I buy a house for 300K, take a mortgage for that amount. My employer moves to another city, I follow. Due to dropping house prices I have to sell my house for 250K. I loose 50K that for the rest of my life rests on my salary?

So dropping house prices are not a good omen for the future economics.
The latter scenario is reality for many families with a mortgage. That is why it is doom and gloom. Negative equity is not good news for young people who have recently invested. For pensioners it's pretty much an "I'm alright jack" scenario. Some people my age invested in a buy to let as a nest egg instead of a pension. I had a colleague who used a flat as security for a new house then renting the flat out. She will end up with a shortfall.
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29-11-2018, 04:20 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

Originally Posted by Julie1962 ->
I can't say I see it as bad news, ok my share in our property will drop but the mortgage is paid and it won't hurt us all the while we live here. Might give next generation a chance at renting a property privately too. So seems ok to me.

Same with commercial properties if they come down in price they might actually sell round here we have so many empty commercial properties because they are so expensive, local pet shop just closed due to high rent.
It affects those who have not paid off the mortgage particularly those who went for interest only. They could end up bankrupt as it is hinged on a market where property appreciates.
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29-11-2018, 04:36 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

Originally Posted by AnnieS ->
It affects those who have not paid off the mortgage particularly those who went for interest only. They could end up bankrupt as it is hinged on a market where property appreciates.
We had an endowment mortgage just as we were coming to the end of it the endowment market died so had to pick ourselves up and remortgage with a repayment and have worked to pay that one off. Double the amount over the years. Sorry little sympathy from me and you cannot assume properties will always rise that foolhardy in the extreme.
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29-11-2018, 05:02 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

Originally Posted by Julie1962 ->
We had an endowment mortgage just as we were coming to the end of it the endowment market died so had to pick ourselves up and remortgage with a repayment and have worked to pay that one off. Double the amount over the years. Sorry little sympathy from me and you cannot assume properties will always rise that foolhardy in the extreme.
People were sold buy to let interest only mortgages just as they were sold endowments. (just as they were sold brexit! 😀 ) lots of things seem like a great idea at the time.

But it doesn't matter whether you sympathise. We will all be affected if the market contracts and people lose their properties. Personal tragedies aside it will reduce spending and growth just when we need it most. This leads to people losing jobs and ending up bankrupt if they end up with a debt and nothing to show for it.

You may see that as someone elses problem but we are all connected via the economy.

But this problem is only partially down to brexit.
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29-11-2018, 05:16 PM
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Re: Today's Doom & Gloom - House Prices Dropping.

Well we had to weather the interest rates in the 80s ended up homeless, we struggled through and not that I want to see anyone suffer I didn't see many stepping up to help anyone back then. What needs to happen is a complete reset of the system so people can afford to get a house. If that hurts then it does I'm afraid.
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