Gavros
12:43 Thu Jul 30
Re: House price crash
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They'll never do that would damage reputation. London needs foreign money, for houses, retail, financial sector etc
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BRANDED
12:41 Thu Jul 30
Re: House price crash
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unless they decide at a later date just to tax the fuckers once there's enough here?
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Gavros
12:39 Thu Jul 30
Re: House price crash
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UK government encourages it partly through free market naïveté and partly because it helps address the balance of payments problem. They even until recently paid no capital gains tax, so foreigners were treated better than British citizens. There should be a withholding tax on foreign property investment like they have in the US
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Monk~koknee
12:32 Thu Jul 30
Re: House price crash
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To be honest I have never understood why it is so easy for foreigners to buy property in the UK.
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Gavros
12:30 Thu Jul 30
Re: House price crash
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I'd say low interest rates are far more important, as is a massive supply and demand imbalance (in London), as is London as a safe investment for foreigners, as is favourable tax treatment.
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BRANDED
12:30 Thu Jul 30
Re: House price crash
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But. If Brits weren't able to borrow that all our property would be sold to foreigners. As most of it currently is.
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Monk~koknee
12:29 Thu Jul 30
Re: House price crash
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When I first bought a house with a mortgage from the Leeds Permanent Building Society I had to have saved with them for two years before submitting an application. It then took another 3 or 4 months to get the loan approved. I think you were allowed to borrow 90% of the asking price and about two and half times salary.
The ready access to ever bigger loan amounts has been the most significant factor driving up house prices.
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BRANDED
12:18 Thu Jul 30
Re: House price crash
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A house price crash would be superb. A great opportunity to buy.
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Darby_
12:12 Thu Jul 30
Re: House price crash
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A big difference between now and the early 90s is immigration. Back in '92 more people left the UK than entered it, so there were less people competing with each other for property.
Nowadays people are knocking down the door to get in to the UK. And a lot of them have money to spend.
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Tony_Gale
12:09 Thu Jul 30
Re: House price crash
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Fresh 12:03 Thu Jul 30
Because while your house goes up from £150k to £300k, that house you have your eye on has gone up from £200k to £400k.
No way should the average price of a 2 bedroom flat be worth £240k in Romford ffs. Or people paying rents of £1,500 a month for a one bedroom flat in Dalston...
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ted fenton
11:50 Thu Jul 30
Re: House price crash
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I'm in the same boat 64 but at least after all the hard work we now own our homes so let them continue to rise in value.
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1964
11:45 Thu Jul 30
Re: House price crash
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ted fenton 11:34 Thu Jul 30
When I was paying a mortgage they were 10-15%
Now I haven't got a mortgage and I am a saver they are 0.5%
You've got to laugh
Ha Ha Ha Ha - as I kick the cat.
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Darby_
11:43 Thu Jul 30
Re: House price crash
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dealcanvey 11:00 Thu Jul 30
Re: House price crash
If you are already a home owner a house price crash or rise is irrelevant. The house you are moving into will have increased or devalued in price just the same.
--
That's true if you're buying a house in the same place as you're selling it. I suspect that if you're thinking of retiring, now's a good time to sell your London house and buy one in Cornwall/Spain/Greece.
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Gavros
11:36 Thu Jul 30
Re: House price crash
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so how is inflation going to rise to get interest rates up to that level?
The rate rises in the early 90s were because we were transitioning from a high inflation environment and then the ERM crisis happened.
Neither are things to worry about now, clearly.
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ted fenton
11:34 Thu Jul 30
Re: House price crash
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Still can't believe we came through that period 64 now we need decent Interest rates they've never been so low.
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1964
11:30 Thu Jul 30
Re: House price crash
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Ted
Yes I paid something like 15-16% in the 80s.
People are worrying about 2 or 3% and it will make massive headlines when it happens.
They have no comprehension that rates were, (and possibly could be again in the future), 15%
Mass suicides?
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penners28
11:27 Thu Jul 30
Re: House price crash
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did you used to own a shop ted?
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ted fenton
11:24 Thu Jul 30
Re: House price crash
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I knew a few people in the late 80's with negative equity and many were throwing their keys in !
We moved to a larger house and bought a shop at that time and allowed for a possible conservative interest rate rise of up to 2% but FMOB it went from around 6% to 17% how we paid the monthly DD I'll never know......
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1964
11:23 Thu Jul 30
Re: House price crash
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Yes - ups and downs but over time they always recover. Negative equity is always temporary.
The word crash sort of implies an irretrevable wreck.
I'm not sure the word is even appropriate.
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Monk~koknee
11:19 Thu Jul 30
Re: House price crash
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There was a bit of a slump in the late 80's/ early 90's. Prices may have dropped up to 20% at one point and knew quite a few folks with negative equity for a while.
Not sure it constituted a crash.
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1964
11:14 Thu Jul 30
Re: House price crash
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Has there ever actually been a crash? There's been several levelling outs and in some places a modest devalue - but a crash?
OK they took a tumble during the credit cruch but they're back above those values now and was due to other causes and not that they were too high.
Supply and demand will always rule and I can't see the demand evaporating - we've got 10,000 Calais imigrants to house just this year
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