Brexit slowly becoming a Farce.

[Granny Danger]

4 minutes ago, DiegoDiego said:

1 hour ago, Granny Danger said:

Collapsing house prices would hurt as many folk as it helped.  Lots of folk hit huge issues with negative equity in times gone by and I’m not talking about rich folk.
 

I don't wish anyone (even rich folk) to get into financial difficulty, but if you're making a leveraged investment in an illiquid asset then you should be aware of the risks.

If people stopped taking mortgages because of the perceived risks the housing crisis in this country would be at a whole new level.  Of course people won’t do this.

[Detournement]

I don't think there is any chance of a house price collapse. Rising houses are largely about supply versus demand and particularly supply in desirable areas. What we are already seeing is new builds being bought by hedge funds and other institutions for private rent which will reduce the supply of homes for sale further and keep sale prices high. 

People will give up fancy motors, holidays, expensive food etc before they sell at a loss. The only thing that could force it is the BoE jacking up interest rates which the government won't allow them to do. 

 

[DiegoDiego]

If people stopped taking mortgages because of the perceived risks the housing crisis in this country would be at a whole new level.  Of course people won’t do this.

I'm not saying "don't take out a mortgage", just that if you're getting into debt to buy something which could go down in value, prepare yourself accordingly.

[Granny Danger]

Just now, DiegoDiego said:

16 minutes ago, Granny Danger said:

If people stopped taking mortgages because of the perceived risks the housing crisis in this country would be at a whole new level.  Of course people won’t do this.

I'm not saying "don't take out a mortgage", just that if you're getting into debt to buy something which could go down in value, prepare yourself accordingly.

I think you’re being contrary.  How would you suggest people prepare themselves?

[Gaz]

33% of folk think the last Labour government are to blame for this.

[DiegoDiego]

I think you’re being contrary.  How would you suggest people prepare themselves?

Well, being conscious of the possibility would probably be a good start for most people.

[Detournement]

22 minutes ago, Gaz said:

33% of folk think the last Labour government are to blame for this.

Tbf They did decide it would be a good idea to have an economy based on a never ending supply of cheap labour from abroad.

[Dunfermline Don]

Pretty much sums brexit up!

[Melanius Mullarkey]

50 minutes ago, Detournement said:

Tbf They did decide it would be a good idea to have an economy based on a never ending supply of cheap labour from abroad.

Whilst the current government decided it wasn't a good idea, and cut off the labour supply  without actually making any contingency plans.

[Jacksgranda]

1 hour ago, Detournement said:

Tbf They did decide it would be a good idea to have an economy based on a never ending supply of cheap labour from abroad.

 

55 minutes ago, Melanius Mullarkey said:

Whilst the current government decided it wasn't a good idea, and cut off the labour supply  without actually making any contingency plans.

One step at a time.

[Detournement]

57 minutes ago, Melanius Mullarkey said:

Whilst the current government decided it wasn't a good idea, and cut off the labour supply  without actually making any contingency plans.

As I've said already on the thread companies and farmers have more to lose from not being able to access than they do from temporary crisises like this. 

They haven't made contingency plans because they don't want to change their business models. There isn't really anything the government can do about this. 

[Detournement]

10 minutes of pleading for foreign workers on STV News and not a mention of the W word. 

On the radio earlier Johnnie Beattie was interviewing a lorry driver who said that wages for drivers have went down from 35-40k to 26-30k in a decade. He obviously wasn't asked about wages but mentioned it as part of a longer answer. No follow up comment from Beattie. 

[sparky88]

4 hours ago, DiegoDiego said:

4 hours ago, Granny Danger said:

Collapsing house prices would hurt as many folk as it helped.  Lots of folk hit huge issues with negative equity in times gone by and I’m not talking about rich folk.
 

I don't wish anyone (even rich folk) to get into financial difficulty, but if you're making a leveraged investment in an illiquid asset then you should be aware of the risks.

Too many people don't understand that buying a home is  or can be a risky investment. There are numerous index funds that are considerably less risky than buying a home (and probably offer better returns too)

[Granny Danger]

3 minutes ago, sparky88 said:

Too many people don't understand that buying a home is  or can be a risky investment. There are numerous index funds that are considerably less risky than buying a home (and probably offer better returns too)

I’m assuming you’re serious.

Whilst most folk would want their property to appreciate I doubt that’s the primary motivator for getting a mortgage.

Maybe they should put their money into index funds each month and live in a tent.

[jakedee]

Too many people don't understand that buying a home is  or can be a risky investment. There are numerous index funds that are considerably less risky than buying a home (and probably offer better returns too)

You can't live in an index fund, and with rental properties being extortionate due to a lack of low rent properties available, it is a risk most would accept.

[DiegoDiego]

I’m assuming you’re serious.
Whilst most folk would want their property to appreciate I doubt that’s the primary motivator for getting a mortgage.
Maybe they should put their money into index funds each month and live in a tent.

Once again you're dealing in black and white.

How many people buy the most expensive house/car they can afford? How many choose something less desirable so they can have savings? You see it all the time on property shows: their budget is £250,000 but they end up spending £300,000.

I realise there are many folk living in dire situations who can't downsize, but most could have gone with a cheaper house or car.

[Detournement]

17 minutes ago, jakedee said:

23 minutes ago, sparky88 said:

Too many people don't understand that buying a home is  or can be a risky investment. There are numerous index funds that are considerably less risky than buying a home (and probably offer better returns too)

You can't live in an index fund, and with rental properties being extortionate due to a lack of low rent properties available, it is a risk most would accept.

Exactly. 

The risk attached to owning a home is far less drastic than the consequences of being a long term renter. I'd be paying double monthly to rent the property I own. 

[Detournement]

New Melt party just dropped.

[welshbairn]

37 minutes ago, DiegoDiego said:

Once again you're dealing in black and white.

How many people buy the most expensive house/car they can afford? How many choose something less desirable so they can have savings? You see it all the time on property shows: their budget is £250,000 but they end up spending £300,000.

I realise there are many folk living in dire situations who can't downsize, but most could have gone with a cheaper house or car.

It's all cool, interest rates will remain at the historically lowest rates they've ever been forever.

[NotThePars]

4 hours ago, Detournement said:

I don't think there is any chance of a house price collapse. Rising houses are largely about supply versus demand and particularly supply in desirable areas. What we are already seeing is new builds being bought by hedge funds and other institutions for private rent which will reduce the supply of homes for sale further and keep sale prices high. 

People will give up fancy motors, holidays, expensive food etc before they sell at a loss. The only thing that could force it is the BoE jacking up interest rates which the government won't allow them to do. 

 

It'll get even better when the banks start buying up a substantial portion of the housing stack.

Anyway, its not a surprise to see the "socialist" small business owner come to the defence of the house owners.