ryandj2222

Active member
105 3
How can there be any crash when the demand is outstripping supply and by a large amount ? Most of London is being bought up by foreign cash and this has the effect of moving the prices rises up out of London as well. It is easily possible now to commute to London in under 90 minutes and live over 150 miles away and people are doing it.

I live about 40 mins out of kings x by train and all the houses round here are getting snapped up pretty quickly, mostly by landlords wishing to rent them out (not a bad thing in my view, dont' see why everyone needs to own a house).
 

NVP

Legendary member
37,760 2,100
If I were younger I would borrow every penny I could get my hands on and buy property in London ...........you have a government intent on propping the market up no matter what.......(forget Carneys employment comment .........hes here to keep property markets high)

Property is the barometer for the British people and everyone watches it like a hawk.........."my home is my castle" is definitely the feeling as much today as it has ever been and its the feelgood factor that every politician knows he must not tamper with .........or he will not be in government for long (Cameron knows the score)

I lost a lot of money on a newbuild during the last price fall but that was my stupid fault buying at the high and needing to sell it ...............most people are not out of pocket now vs 2007 prices which is astonishing verses the US performance and other countries demises .........

so its full steam aheads and fill you boots ...........still buying sensibly of course !

N
 

NVP

Legendary member
37,760 2,100
How can there be any crash when the demand is outstripping supply and by a large amount ? Most of London is being bought up by foreign cash and this has the effect of moving the prices rises up out of London as well. It is easily possible now to commute to London in under 90 minutes and live over 150 miles away and people are doing it.

I agree that FTB cannot get on the ladder but that doesn't mean that those with equity in their property will suddenly decide to lower prices. In my view the only thing that will possibly cause a crash is an increase in interest rates. That is because so many people are on a knife edge with monthly costs and there has been no increase in salaries over the last few years that any increase in mortgage payments will send them over the edge.

It is also interesting to see that a significant number of people taking out payday loans are professionals such as doctors, lawyers, dentists, teachers etc and that in itself shows how fragile finances are for a very large section of the population.

I also doubt the Tories will win the next election as their vote will be split between UKIP and Tory which will kill all their marginal seats. Labour will win easily by default as a result of just that alone in my view unless something quite dramatic changes things.

100% agree ..............but look at the governments interventions from 2008-2011 when they told banks not to REPO...........or else

also the banks know they will then generate a Real collapse if this happens so will probably accept defaults vs putting unrealised losses on their balance sheets....for a few years anyway ....

N
 

scose-no-doubt

Veteren member
4,630 954
Ftb interest rates are artificially lowered from market rate as >25% is interest free for 3-5 years. When that piper has to be paid, if the economy and real wages haven't picked up I'm expecting to see more from the supply side.

think this talk if a crash is a nonsense though atm.
 

forex999

Active member
161 8
I live about 40 mins out of kings x by train and all the houses round here are getting snapped up pretty quickly, mostly by landlords wishing to rent them out (not a bad thing in my view, dont' see why everyone needs to own a house).

In the Times Today:

> Help to Buy isn’t building bubbles, says Bellway: The Boss of one of Britain’s biggest housebuilders has denied that the Help To Buy scheme is stoking up a house price bubble.

> Housing recovery gains momentum as buy-to-let lending rises to £5 billion: Buy-to-let lending topped £5 billion in the second quarter of the year, the highest since the financial crisis struck almost five years ago.
 
 
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