Comments on: Would a Collapse in House Prices Be a Good Thing http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing A Site About Everything and Nothing Wed, 23 May 2012 01:21:27 +0000 http://wordpress.org/?v=1.5.2 Comment on Would a Collapse in House Prices Be a Good Thing by: Rod http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6405 Sun, 30 Mar 2008 17:41:15 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6405 Hi Kitana you make some great points, I especially agree with lender responsibility. Had people not been sop keen to lend too much money then prices could never have risen the way they did. I remember having a mortgage interest rate of about 14% - what would happen to those on 5x annual if that situation arose again ? Scotland certainly sounds the place to be :) Regards Rod Hi Kitana
you make some great points, I especially agree with lender responsibility.
Had people not been sop keen to lend too much money then prices could never have risen the way they did.

I remember having a mortgage interest rate of about 14% - what would happen to those on 5x annual if that situation arose again ?

Scotland certainly sounds the place to be :)
Regards
Rod

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: Kitana http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6404 Sun, 30 Mar 2008 10:46:46 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6404 I feel the prices have to change eventually.....what i have noticed in the UK, is how the younger generation (i.e. under 21) are a little naive, thinking if they dont get a mortgage now, they will never afford property because the rates and prices are as they are.......i saw a documentary which showed to 19 years old girls buying a £250,000 flat in London.....if their circumstances alter in the wrong way even slightly, they are going to be in real trouble! the fact is, its lack of education, i believe, what goes up must come down, house prices always change, its goes from sellers to buyers market and back again.....right now people are so desperate for 'the perfect home' that they are buying well over asking price, which in turn puts the base prices up across the board......i think patience is the key......they will fall again, and i think it will be drastic, putting a lot of people who are already stretched, into difficulty.......that £250,000 flat may be worth a lot less soon, but once you've bought it, price decreases dont help you!!! I feel lenders and giving far too much in the first place, i remember when they advised a ,ortgage of 2-3 times your annual income, that is now 5 times!! I wouldnt buy right now, i would rather wait for a repossession, because sadly, i think thats where we are headed!! I am glad to be paying a lowly rent......i am very lucky, in scotland, i am paying just over £100 a fortnight for my 3 bedroom flat......i am happy, and have no financial strain due to that!! I hope my prediction doesnt happen though, i would hate to see a lot of people homeless once more, after apparently landing their dream home!! I feel the prices have to change eventually…..what i have noticed in the UK, is how the younger generation (i.e. under 21) are a little naive, thinking if they dont get a mortgage now, they will never afford property because the rates and prices are as they are…….i saw a documentary which showed to 19 years old girls buying a £250,000 flat in London…..if their circumstances alter in the wrong way even slightly, they are going to be in real trouble! the fact is, its lack of education, i believe, what goes up must come down, house prices always change, its goes from sellers to buyers market and back again…..right now people are so desperate for ‘the perfect home’ that they are buying well over asking price, which in turn puts the base prices up across the board……i think patience is the key……they will fall again, and i think it will be drastic, putting a lot of people who are already stretched, into difficulty…….that £250,000 flat may be worth a lot less soon, but once you’ve bought it, price decreases dont help you!!! I feel lenders and giving far too much in the first place, i remember when they advised a ,ortgage of 2-3 times your annual income, that is now 5 times!! I wouldnt buy right now, i would rather wait for a repossession, because sadly, i think thats where we are headed!! I am glad to be paying a lowly rent……i am very lucky, in scotland, i am paying just over £100 a fortnight for my 3 bedroom flat……i am happy, and have no financial strain due to that!! I hope my prediction doesnt happen though, i would hate to see a lot of people homeless once more, after apparently landing their dream home!!

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: Rod http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6401 Sat, 29 Mar 2008 08:21:14 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6401 LB Spot On ! Your example shows exactly what I'm talking about. The governments answer at the moment sems to be to help those with children, ignore everybody else and most importantly ignore the real issue. Their assistance for some in the form of benefits is nothing more than a sticking plaster with the real problem left untreated. Regards Rod LB
Spot On !
Your example shows exactly what I’m talking about.
The governments answer at the moment sems to be to help those with children, ignore everybody else and most importantly ignore the real issue.

Their assistance for some in the form of benefits is nothing more than a sticking plaster with the real problem left untreated.
Regards
Rod

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: Rod http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6400 Sat, 29 Mar 2008 08:17:17 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6400 Dino that's a good point and something which also puts pressure on the market, second house, add to that the number of people living on their homes. The record number of separated families who now occupy 2 houses instead of one ... Best Rod Dino
that’s a good point and something which also puts pressure on the market, second house, add to that the number of people living on their homes.
The record number of separated families who now occupy 2 houses instead of one …
Best
Rod

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: Little Brother http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6399 Fri, 28 Mar 2008 22:29:05 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6399 Rod, This reverts back to your earlier posts on relationships and the fact that many couples stay together purely for economic reasons. A member of my staff is currently facing the exact same dilema, I shall spare the details but if you knew them and the wage earnt coupled with the taxes paid for many years to be unable to afford the rent on a terrace council house in a less than attractive part of Lincoln is simply not acceptable in this country. It's about time the government 'wised up' to the problem, we are too busy helping everyone else when we can't look after our own. The minimum wage goes up periodically but what about those just above it? What chance has anyone got of saving for a deposit let alone meeting the mortgage payments. The whole thing stinks. LB Rod,
This reverts back to your earlier posts on relationships and the fact that many couples stay together purely for economic reasons. A member of my staff is currently facing the exact same dilema, I shall spare the details but if you knew them and the wage earnt coupled with the taxes paid for many years to be unable to afford the rent on a terrace council house in a less than attractive part of Lincoln is simply not acceptable in this country. It’s about time the government ‘wised up’ to the problem, we are too busy helping everyone else when we can’t look after our own. The minimum wage goes up periodically but what about those just above it? What chance has anyone got of saving for a deposit let alone meeting the mortgage payments. The whole thing stinks.
LB

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: the dinosaur http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6398 Fri, 28 Mar 2008 20:18:00 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6398 Rod, I've never studied economics, the stock market or international finance so I can only comment from a simple and common sense point of view. Whether it's advantageous for property prices to fall or not really depends on which side of the fence you are, existing home owner or would be home owner! I could get very political and ramble on about the growing social divide, inequality of investment in different parts of Britain etc. etc. but to keep to the subject of how to make houses affordable for everyone who works for a living and deserves a home of their own, it makes sense to discourage the buying of so called second homes as pure investments which has been booming. Why when everything else is being taxed so enthusiastically, can't multiple property owners be kept in check by making them pay much higher council tax, I suspect the answer is something to do with politicians being the worst culprits at buying up housing for their personal profit. Rod, I’ve never studied economics, the stock market or international finance so I can only comment from a simple and common sense point of view. Whether it’s advantageous for property prices to fall or not really depends on which side of the fence you are, existing home owner or would be home owner! I could get very political and ramble on about the growing social divide, inequality of investment in different parts of Britain etc. etc. but to keep to the subject of how to make houses affordable for everyone who works for a living and deserves a home of their own, it makes sense to discourage the buying of so called second homes as pure investments which has been booming. Why when everything else is being taxed so enthusiastically, can’t multiple property owners be kept in check by making them pay much higher council tax, I suspect the answer is something to do with politicians being the worst culprits at buying up housing for their personal profit.

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: Rod http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6397 Fri, 28 Mar 2008 18:51:41 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6397 WoE it's a very real problem and one that has yet to fully show itself. As you mention, £20k is a good wage in Lincolnshire, but with responsible lending rates that equates to a mortage of £70k ... Useless round here never mind elsewhere. You also make a very good point about the beautician. I am sick of hearing people citing teachers and nurses etc and the problems they face with their pay ... what about people working in shops etc - all on minimum wage we never hear about them on the news. There are a lot of people currently managing thanks to the help they receive from the government because they have children - what happens when the children come of age and those benefits stop ? I wouldn't want to be 20 again ! Regards Rod WoE
it’s a very real problem and one that has yet to fully show itself.
As you mention, £20k is a good wage in Lincolnshire, but with responsible lending rates that equates to a mortage of £70k … Useless round here never mind elsewhere.

You also make a very good point about the beautician. I am sick of hearing people citing teachers and nurses etc and the problems they face with their pay … what about people working in shops etc - all on minimum wage we never hear about them on the news.

There are a lot of people currently managing thanks to the help they receive from the government because they have children - what happens when the children come of age and those benefits stop ?

I wouldn’t want to be 20 again !
Regards
Rod

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: Witches of Eastwick http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6396 Fri, 28 Mar 2008 18:34:25 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6396 Rod, Now sit down.... we agree with you! The Witches like to think they recognize the problems here, having acquaintances in all kinds of financial situations. For instance someone we know is paying £800 in rent because they can't get a mortgage and may we add that the person in question is well past 40. At this rate what hope have they got of paying one off before they hit 120 if in fact they ever manage to buy? As a matter of interest we overheard a conversation at a recent gathering... one woman said that her daughter wanted to work as a beautician when she leaves school.... great we said, what a nice career but will she be able to support herself on this type of wage? A general discussion followed with everyone chipping in their opinion but we were surprised at how many people were not considering the fact that low paid jobs are unlikely to meet the bills these days for essentials let alone extras. Admin work in general 20 years ago was not paid well but then the houses were cheap and many a worker bought a little terrace house in Lincoln... wages have gone up a bit but house prices have soared, in some cases to more than 20 times their original price.... what chance do all these people stand in the future? What percentage of the population are earning less than £20,000? The majority we suspect and even if two people get together, in some counties it's still not enough. If things don't change everyone will be moving to Latvia to take up plumbing or building etc., or living with their parents forever. WoE Rod,

Now sit down…. we agree with you! The Witches like to think they recognize the problems here, having acquaintances in all kinds of financial situations. For instance someone we know is paying £800 in rent because they can’t get a mortgage and may we add that the person in question is well past 40. At this rate what hope have they got of paying one off before they hit 120 if in fact they ever manage to buy?

As a matter of interest we overheard a conversation at a recent gathering… one woman said that her daughter wanted to work as a beautician when she leaves school…. great we said, what a nice career but will she be able to support herself on this type of wage? A general discussion followed with everyone chipping in their opinion but we were surprised at how many people were not considering the fact that low paid jobs are unlikely to meet the bills these days for essentials let alone extras. Admin work in general 20 years ago was not paid well but then the houses were cheap and many a worker bought a little terrace house in Lincoln… wages have gone up a bit but house prices have soared, in some cases to more than 20 times their original price…. what chance do all these people stand in the future?

What percentage of the population are earning less than £20,000? The majority we suspect and even if two people get together, in some counties it’s still not enough. If things don’t change everyone will be moving to Latvia to take up plumbing or building etc., or living with their parents forever.

WoE

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: Rod http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6394 Fri, 28 Mar 2008 12:44:14 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6394 Jordan straight to the point as always :) Enjoy the weekend RC Jordan
straight to the point as always :)
Enjoy the weekend
RC

]]> Comment on Would a Collapse in House Prices Be a Good Thing by: Jordan http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6393 Fri, 28 Mar 2008 12:17:06 +0000 http://www.rodcollins.com/wordpress/would-a-collapse-in-house-prices-be-a-good-thing#comment-6393 Always No :B Jordan Always
No

:B

Jordan

]]>