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Post by peterdevo on Aug 21, 2010 13:26:11 GMT
Negative equity has to be a bad thing since it effectively prevents sellers from moving. All we can hope for is a period of prolonged low interest rates to prevent a crash. As for pensioners who are worried about low savings rates, whilst I have some sympathy, there are competitive rates out there. Investment trusts are paying reasonably well at the moment with minimal risk
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Post by Yellow River on Aug 22, 2010 8:59:46 GMT
www.dailymail.co.uk/news/article-1304919/Plight-1-1m-stuck-homes-sell.html'Sellers are having a hard time,' said Phil Cliff, director of mortgages at Santander. 'Many buyers are too because they are unable to secure a good mortgage deal, often because they find it difficult to save a sufficient deposit.' When asked why they had not been able to sell their home, the most common reason was a failure to find 'a suitable buyer' or 'an acceptable offer'. The research comes as would be buyers are finding it very difficult-to obtain a decent mortgage deal without a sizable deposit. the average first-time purchaser puts down a 24 per cent deposit, according to the Council of Mortgage Lenders. With an average property price of around £160,000, this is equal to £38,400, a virtually impossible amount for most people to save. The number of 'failed sellers' was nearly double the number who did succeed in getting a buyer As a result, about eight in ten buyers aged under 30 who do manage to buy a home could only do so with help from the so-called 'Bank of Mum and Dad'. Evidence has also emerged recently that the number of owners trying to sell is increasing, giving more choice to buyers
Property prices too high. Very few first time buyers. More sellers than buyers. The bubble has burst.........
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Post by edgecam on Aug 22, 2010 10:34:09 GMT
The daily mail you believe that rag. Come on you must have the ability to have an independent thought. The bubble burst sep 2007. Hardly news now is it.
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Post by Yellow River on Aug 22, 2010 14:19:07 GMT
The daily mail you believe that rag. Come on you must have the ability to have an independent thought. The bubble burst sep 2007. Hardly news now is it.
The Daily Mail & The Daily Express are probably the two most bullish newspapers when it comes to property prices, therefore I thought it was quite unusual to find this article. I agree that the bubble did indeed burst in autumn 2007, however the bubble was re-inflated ( or a new bubble created) with the help of the previous Government/Bank of England. Prices rose from early 2009 to mid 2010. Record mounts of borrowing, quantitative easing, lowering of interest rates to record levels all helped. Now we have to pay the debt back, the quantitative easing has finished & helped to create inflation, interest rates can hardly go any lower, the new Government is cutting housing benefits and mortgage interest support. Stricter lending policy by banks in place (long overdue) Add to that the Public Sector cuts & spending review this autumn, VAT rise in January, potential rise in unemployment, low growth. First time buyers average home price to earnings ratio is currently 4.6, the long term average is 3.5. I appreciate that it's not what some people want to hear, but in my opinion prices are currently too high and will fall for the reasons stated above. By how much and for how long is very difficult to predict (depends on Government policy re interest rates, printing more money and inflation) but I'd say that in 6 to 12 months time it's likely the average property price in the UK will be lower than it is now.
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Post by peterdevo on Aug 22, 2010 17:08:11 GMT
House prices falling are due to a number of reasons, one of which is repossessions caused by unemployment. Wages not keeping up with prices is another reason for lack of affordability. Uncertainty about the economy and the debt situation bequeathed by Labour is the main culprit. All we can hope for is interest rates do not go up and cause prices to plummet
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Post by Yellow River on Aug 24, 2010 8:51:00 GMT
House prices falling are due to a number of reasons, one of which is repossessions caused by unemployment. Wages not keeping up with prices is another reason for lack of affordability. Uncertainty about the economy and the debt situation bequeathed by Labour is the main culprit. All we can hope for is interest rates do not go up and cause prices to plummet
You won't like this article then Peter. www.telegraph.co.uk/finance/personalfinance/7960378/Mortgage-rates-may-hit-14pc-within-two-years.html"Mortgage rates may climb to 14 per cent within two years, financial experts have warned" I'm very surprised to see The Torygraph printing scaremongering stories like this.
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Post by peterdevo on Aug 24, 2010 16:07:41 GMT
I don't like the idea of 14% interest rates, but they would not dare would they? If they did this country and the world are definitely are in for a very rough ride. The talk is of 0.5% interest rates staying for the rest of the year and into next year. I am trying very hard to pay some of the capital of my interest only mortgage off and it is beginning to show some reduction. There will a lot of anguish if interest rates rise quickly. I will dismiss the article in the Telegraph as scaremongering by an economist who should know better than to print it
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Post by Yellow River on Sept 2, 2010 16:32:42 GMT
I don't like the idea of 14% interest rates, but they would not dare would they? If they did this country and the world are definitely are in for a very rough ride. The talk is of 0.5% interest rates staying for the rest of the year and into next year. I am trying very hard to pay some of the capital of my interest only mortgage off and it is beginning to show some reduction. There will a lot of anguish if interest rates rise quickly. I will dismiss the article in the Telegraph as scaremongering by an economist who should know better than to print it
Yes Peter, I'm sure that's the right thing to do, take advantage of the record low interest rates and pay off some of the mortgage debt before interest rates go up again. I see house price levels fell again in August, by just under 1%. I imagine we'll see more falls over the Autumn/Winter.
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Post by peterdevo on Sept 2, 2010 18:51:21 GMT
Taking a realistic stand on this and having studied economics my personal view is that interest rates will reach around 4-5% by the end of next year. By then an election will be looming as the Tories will be able to ruin the liberals chances. Labour will brand them as collaborators and as the Tories seem to get more votes from Liberal defectors will gain more. David Milliband appears to be more like the old Blair every day and a lot of voters may well be turned off by the prospect of more New Labour
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Post by Yellow River on Sept 3, 2010 6:20:27 GMT
Taking a realistic stand on this and having studied economics my personal view is that interest rates will reach around 4-5% by the end of next year.I can't see interest rates being that high by then, low rates for the next couple of years, then when inflation really takes off interest rates will rise. By then an election will be looming as the Tories will be able to ruin the liberals chances. Labour will brand them as collaborators and as the Tories seem to get more votes from Liberal defectors will gain more.It will be interesting to see how long the coalition holds together, they've had it easy up until now. The big test will be over the next two years or so, serious tough times ahead, public sector cuts, rising unemployment, VAT increase in January, high inflation, pay freezes. I'm no Tory, but at the moment we need stability (not another election) however when the time comes I believe it will be Labour who will pick up far more of the disaffected Liberal vote. David Milliband appears to be more like the old Blair every day and a lot of voters may well be turned off by the prospect of more New Labour Milliband, Blair, Cameron, Clegg, all very similar type/style politicians
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Post by Yellow River on Jan 10, 2011 9:13:17 GMT
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Post by peterdevo on Jan 10, 2011 18:25:15 GMT
Equilibrium will be reached. My money would be on F and C Commercial Property Investment Trusts right now
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