Mad Moe
Member
Registered: 14th Jun 01
Location: Northumberland
User status: Offline
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I really dont think there will be a massive crash but house prices have fell in recent months. Many development banks and Surveyors in are area are predicting between 5-10% drops over the next 12 months and as consequence developers are effectively finishing out their current sites shutting up shop to see what happens next.
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Phil321
Member
Registered: 10th Mar 01
Location: Manchester
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quote:
Originally posted by John
Talks of price crashes are generated solely by the media.
You're giving them more credit than they deserve.
The banks have brought about this situation with irresponsible lending over the past 10yrs.
Whilst there might not be a crash on the scale of that witnessed in Japan even a stagnation in house prices over 5 yrs with inflation running @ 3.5% will lead to a real fall of not much short of 20%.
As mentioned though, some areas will be hit harder than others. I'd imagine that once their fixed rate deals from 2/3yrs ago run out there will be any number of buy to let landlords dumping property/having it repossessed when they realise that they can't remortgage or the rate they can now get means that the rent doesn't cover it anymore. These are the situations the wise investor will take advantage of.
"When those around you are being greedy, be fearful. When those around you are being fearful, be greedy."
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GirlRacerRed
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Registered: 21st May 08
User status: Offline
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i studied economics are uni, and i'd be very surprised if we see as bad a crash as we did in the late 80's early 90's. The bank of england now have control of interest rates (rather than the government who controlled rates back in the 80's/90's) so i doubt they would allow interest rates to increase too far as it will put people off from moving.
We reduced the asking price of our house by 4k and still managed to sell it for more than we wanted! And unfortunately for the people who have just been evicted, our new house is a reposession!
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