loraward Posted April 29, 2015 Share Posted April 29, 2015 Fine, you put 10% down and you've paid off another 10%. You still owe over 75K - you're unmortgagable and cannot buy a cardboard box under a bridge. Do you understand why it's not good for house prices to crash like you would like??? Its not good for the minority that over mortgaged themselves when they bought over priced house, but it good for everyone else. Link to comment Share on other sites More sharing options...
Cyclone Posted April 29, 2015 Share Posted April 29, 2015 They didn't buy 'overpriced' housing, they bought a house at the market value at the time. The massive crash being discussed would be the result of the government effectively stealing houses from BTL landlords and giving them to the tenants. ---------- Post added 29-04-2015 at 15:35 ---------- The drop in price wasn't the cause, the cause was the greedy that wanted more than their house was worth. Are you pretending that human nature has changed and that the same behaviour wouldn't occur again? ---------- Post added 29-04-2015 at 15:37 ---------- If prices halved from the time I bought I would sell it for half what I paid and know that my next purchase would also be cheaper. My House bought for £250,000, if it falls in value to £125,000 then the house that would have cost £500,000 at the time I bought will now only cost £250,000, saving me £125,000, so I would benefit from falling prices as would thousands of other property owners. The problem for some is greed, they are happy to buy at a lower price but unwilling to sell for less than they paid. Lower prices would benefit the majority of people, but it would harm all those who've bought recently (probably between 2004 and now approx). And that harm would make the market slow considerably. ---------- Post added 29-04-2015 at 15:41 ---------- Err i think its a good thing. We have to control the rental market somehow as so many people rent. We don't 'control' most markets, market forces do that. Surely increases by inflation is only sensible. I can understand landlords want to profit as much as possible though or at least not lose money. Its not one size fits all as some ll are clearly struggling. Why should there be any government interference in the free market? Tbh only banks and lenders do alright out of the current scenario. More subsidies for btl will help. There are no subsidies and non proposed. I dont understand this high deposit for btl business ..i mean not only do buyers have to sink capital initially, theres maintenace and all otjer costs to consider. The rental market surely has to be made more fluid so landlords are getting a good deal and tennants are able to rent affordably. Banks don't want a bad risk either, so they ensure that the landlord is taking at least a portion of the risk, even if they take the remaining 75%. Link to comment Share on other sites More sharing options...
loraward Posted April 29, 2015 Share Posted April 29, 2015 They didn't buy 'overpriced' housing, they bought a house at the market value at the time. The massive crash being discussed would be the result of the government effectively stealing houses from BTL landlords and giving them to the tenants. Houses are only worth what some is prepared to pay at any given time. Are you pretending that human nature has changed and that the same behaviour wouldn't occur again? No, I understand that some people are greedy and the greed of some can cause problems for others. Lower prices would benefit the majority of people, but it would harm all those who've bought recently (probably between 2004 and now approx). And that harm would make the market slow considerably. They already have an house so it doesn't matter, what matters is the people that don't have an house, I am quite happy for the price of my house to fall so that others less fortunate than myself can also afford an house. Link to comment Share on other sites More sharing options...
truman Posted April 29, 2015 Share Posted April 29, 2015 Houses are only worth what some is prepared to pay at any given time. No, I understand that some people are greedy and the greed of some can cause problems for others. They already have an house so it doesn't matter, what matters is the people that don't have an house, I am quite happy for the price of my house to fall so that others less fortunate than myself can also afford an house. You can sell your house for whatever price you like..you could offer it at 50% market value if you wanted to..would you do that? Link to comment Share on other sites More sharing options...
ubermaus Posted April 29, 2015 Share Posted April 29, 2015 (edited) They didn't buy 'overpriced' housing, they bought a house at the market value at the time. The massive crash being discussed would be the result of the government effectively stealing houses from BTL landlords and giving them to the tenants. ---------- Post added 29-04-2015 at 15:35 ---------- Are you pretending that human nature has changed and that the same behaviour wouldn't occur again? ---------- Post added 29-04-2015 at 15:37 ---------- Lower prices would benefit the majority of people, but it would harm all those who've bought recently (probably between 2004 and now approx). And that harm would make the market slow considerably. ---------- Post added 29-04-2015 at 15:41 ---------- We don't 'control' most markets, market forces do that. Why should there be any government interference in the free market? There are no subsidies and non proposed. Banks don't want a bad risk either, so they ensure that the landlord is taking at least a portion of the risk, even if they take the remaining 75%. Why shouldnt rent increases be linked to the inflation rate? Why is there govt interference with deposit subsidies? Its clearly not operating under free market principles you believe it is. And rightly so. ---------- Post added 29-04-2015 at 16:04 ---------- There could be regulation of banks, better mortgagedeals, stopping estate agents chrging fees, construction subsidies. Lots will and can happen, but only with state help. Edited April 29, 2015 by ubermaus ..... Link to comment Share on other sites More sharing options...
loraward Posted April 29, 2015 Share Posted April 29, 2015 You can sell your house for whatever price you like..you could offer it at 50% market value if you wanted to..would you do that? No you can only sell it for a price that someone is willing to pay. Link to comment Share on other sites More sharing options...
ubermaus Posted April 29, 2015 Share Posted April 29, 2015 Clearly landlords are going to charge as much as they can, which wouldnt be the market finding a level, it would be one group driving prices up. Link to comment Share on other sites More sharing options...
truman Posted April 29, 2015 Share Posted April 29, 2015 (edited) No you can only sell it for a price that someone is willing to pay. I'm sure someone would pay 50% market price if you offered it for that..would you do it..offer your house at 50% valuation? Edited April 29, 2015 by truman Link to comment Share on other sites More sharing options...
ubermaus Posted April 29, 2015 Share Posted April 29, 2015 One of the steps is to build more houses. Demand and supply. Link to comment Share on other sites More sharing options...
truman Posted April 29, 2015 Share Posted April 29, 2015 I'm not looking at moving but thanks for the offer. Come on...break the habit of a lifetime and answer a question...would you sell your house for 50% of it's market value? It's an easy "Yes" or "No"... Link to comment Share on other sites More sharing options...
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