House prices

[timwilky]

My lad bought a 24 year old 2 bed semi last year for £124,000 in a very good area. He was only 20. Earns about £24,000 per year and has lazy girlfriend and a 2 year old baby.

He is finding it tough. His mortgage offer was withdrawn after he had exchanged contracts which left him with penalties whilst he fought to get the offer re-instated. The mortgage company had withdrawn the product they had offered him and were using dirty tricks to get out of their commitment.

He now works like an idiot. Grabs all the overtime going and asks little of others. I am proud that he decided at such a young age that if he did not get his foot on the ladder, he never would.

[Biker Biggles]

Whats happening now is different though.Previously interest hikes have been caused by inflation pressures or unwanted dips in the value of the currency and "readjustments" in house prices have followed the normal economic rules.This crisis(as it will become)is caused by fundamental economic instability and a huge rise in oil prices.There has not been a substantial rise in oil price in recent history that has not resulted in worldwide economic slides.

I am not that bother really. Unless you are planning to sell your house now there is no need to. In 20 years or so when the mortgage is paid off the house prices will be a lot more than today. There is no doubt there are some hard time ahead of us but I don't see it that black. We need just need to get this goverment to do something. Get the bloody army back home and stop wasting zillions on wars for a start!

It seems that me and Mrs Dan got in just in time. Our place cost £167k an we only had 5% to put down. Literally days later they changed the mortgages to at least 10%. Phew. Our property is not worth what we paid for it now bt then that makes no odds as we're looking long term so it should (eventually) rise again. At some point.

[Biker Biggles]

Always interesting to revisit this thread every so often.
Todays catastrophic news of a huge American finance house going belly up really does herald something not seen since at least 1929 and should be considered by everyone thinking of their financial future.I think we are on the verge of the biggest financial collapse in history and we could be witnessing the end game of western society.Im sure not everyone will see it that way though?

Originally Posted by Biker Biggles

Always interesting to revisit this thread every so often.
Todays catastrophic news of a huge American finance house going belly up really does herald something not seen since at least 1929 and should be considered by everyone thinking of their financial future.I think we are on the verge of the biggest financial collapse in history and we could be witnessing the end game of western society.Im sure not everyone will see it that way though?

Well its not worth buying until the prices drop, which they should do now....they should have a long way to fall!

To be honest I don't really care long as I have the bike and what I have going now. Who cares if the rich become poor, its their dam fault in the first place.

Being a bit more sesnisale its gonna be a bitch to get mortage, so I'm gonna ride the storm out in a cheap rent situation depending on what report you read and belive this gonna last another 18 months with 25% of the value being knocked off property which can only be a good thing.

I think financial woes will soon the least of humanities worries in a couple of decades time. Right now we are experiencing the last of cheap oil, from now on oil will become more expensive as easily accessible reserves' become depleted. It will become necessary for countries such as America to fight for these energy supplies to uphold their way of life (Iraq for instance, WMD my ****).
Since all financial markets are based on commodities such as raw materials like oil, gas etc life isn't going to get much easier. Greed and human nature will over ride common sense. On the up side there will be plenty of burn out shells that will be perfect for people wanting to get onto the property ladder. A new wave of crappy reality shows will appear, like celebrity fixer upper of shelled housing.

[Biker Biggles]

As long as it turns out to be the usual "re-adjustment" in the property market thats fine,but I think something much more fundamental is going on.
Weve spent twenty years borrowing money against notional property values,then spending it on having a good time or buying goods made on the other side of the world.Now the Man wants paying,and we find we dont have the money,because the money was all pretend wedge from that property which aint worth half as much any more.We cant even make our own goods any more because we "modernised"and shut down all the industry.Now whose idea was that?

The conservative scum. They sold the family silver, smashed the trade unions and expected the free market to keep every thing stable. Economists believe in exponential growth in a finite world, complete madness.

Originally Posted by Biker Biggles

Todays catastrophic news of a huge American finance house going belly up really does herald something not seen since at least 1929 and should be considered by everyone thinking of their financial future.I think we are on the verge of the biggest financial collapse in history and we could be witnessing the end game of western society.Im sure not everyone will see it that way though?

Yep, it's going to be a big one! As much as I have no sympathy for any banker who has been milking the public dry for years, the amount of supporting employees that are going to lose their jobs is truly terrifying.

I hope that the oil crisis combined with the financial meltdown will make the public reconsider their priorities. We're all working too many hours attending the most unproductive force in the world. Meetings.

Originally Posted by carnivore

The conservative scum. They sold the family silver, smashed the trade unions and expected the free market to keep every thing stable. Economists believe in exponential growth in a finite world, complete madness.

Whilst Gordon sold off the rest of our gold at rock bottom prices. Politicians are all as bad as each other tbh.