JFKvsNixon Posted May 14, 2016 Share Posted May 14, 2016 But a lower price would mean a lower deposit so whilst they might pay the same over the life of the mortgage they will find it easier to save the deposit. Not necessarily so, an unstable housing market with people struggling to pay their mortgages may lead to the banks hedging their risks by asking for a bigger deposit. Link to comment Share on other sites More sharing options...
sutty27 Posted May 14, 2016 Share Posted May 14, 2016 Not necessarily so, an unstable housing market with people struggling to pay their mortgages may lead to the banks hedging their risks by asking for a bigger deposit. In the short term that might happen but not in the long term and falling prices will see fewer greedy property inverters, leaving more of the cheaper stock available for first time buyers. Link to comment Share on other sites More sharing options...
I1L2T3 Posted May 14, 2016 Share Posted May 14, 2016 The 'threat' of lower house prices is clearly an incentive for many of millions of people to vote to leave. There a lot of people out there with one of their key goals in life being to buy a property and get out of rented housing. Could Brexit help them? Yes if they listen to Osborne. Link to comment Share on other sites More sharing options...
JFKvsNixon Posted May 14, 2016 Share Posted May 14, 2016 The 'threat' of lower house prices is clearly an incentive for many of millions of people to vote to leave. There a lot of people out there with one of their key goals in life being to buy a property and get out of rented housing. Could Brexit help them? Yes if they listen to Osborne. You also have to consider the situation where the banks would be lending money against an asset that's decreasing in value. Would this really help many first time buyers? Link to comment Share on other sites More sharing options...
I1L2T3 Posted May 14, 2016 Share Posted May 14, 2016 You also have to consider the situation where the banks would be lending money against an asset that's decreasing in value. Would this really help many first time buyers? I don't think people care. There are loads of people out there slavishly saving deposits, and with their major focus in life being to get a property. In a property-obsessed country don't underestimate the power of that regardless of all the other disadvantages of leaving. I'm quite annoyed actually. I want the cost of housing to fall but in a controlled way, not off the back of post-Brexit economic crisis Link to comment Share on other sites More sharing options...
JFKvsNixon Posted May 14, 2016 Share Posted May 14, 2016 I don't think people care. There are loads of people out there slavishly saving deposits, and with their major focus in life being to get a property. In a property-obsessed country don't underestimate the power of that regardless of all the other disadvantages of leaving. I'm quite annoyed actually. I want the cost of housing to fall but in a controlled way, not off the back of post-Brexit economic crisis What I mean is that the banks would probably want a much bigger deposit to offer a mortgage against a house that's falling in value, to mitigate the risk to them. So first time buyers may not be better off. Link to comment Share on other sites More sharing options...
I1L2T3 Posted May 14, 2016 Share Posted May 14, 2016 What I mean is that the banks would probably want a much bigger deposit to offer a mortgage against a house that's falling in value, to mitigate the risk to them. So first time buyers may not be better off. Maybe, but the thing is people are going to be attracted by the promise of falling prices. Osborne of course is hoping that homeowners and investors are going to be galvanised into voting. He wouldn't have said it if he didn't think the haves could out-vote the have-nots Divisive Link to comment Share on other sites More sharing options...
panzer1 Posted May 14, 2016 Share Posted May 14, 2016 But has the dire IMF warnings caused anybody on this thread to change their mind. Link to comment Share on other sites More sharing options...
I1L2T3 Posted May 14, 2016 Share Posted May 14, 2016 But has the dire IMF warnings caused anybody on this thread to change their mind. No. Still 50:50. We are being subjected to some of the bullying tactics they (and others) use against the likes of Greece. It's a shot across the bows really because if we were to vote leave they would not stop. It would intensify. We would be bullied and they would try and cajole us into another referendum. Part of me is thinking let's go for it. Two fingers up. As I've said before the thing most likely to tip me towards a leave vote is Troika, IMF etc... bullying of smaller countries but now I'm including us. Link to comment Share on other sites More sharing options...
sutty27 Posted May 14, 2016 Share Posted May 14, 2016 Maybe, but the thing is people are going to be attracted by the promise of falling prices. Osborne of course is hoping that homeowners and investors are going to be galvanised into voting. He wouldn't have said it if he didn't think the haves could out-vote the have-nots Divisive The problem being that the people that own their own home also have kids or grand kids that aspire to own their own home, I don't care if the price of my house falls in value because it will make it easier to sell in the long term to someone that will find it easier to buy, assuming at some piont in the future I want to buy another house that will also be cheaper. Only a greedy property inverter or banker would see falling prices as a bad thing probably why Osborne thinks its a bad thing. Link to comment Share on other sites More sharing options...
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