Steve2009

I'm not familiar with UK markets but this says further falls expected...
http://www.independent.ie/business/e...t-2540268.html

Robbie37Michelle32

The Market is very slow over here we were lucky to sell our house with profit which was very lucky for us and we had someone who had to relocate to our area.

But the problem with the market is the Banks will not lend any money unless you have a massive deposit to putdown so they our holding the market up and with the low bank rate its not good for investors.

Things will pick up again

Steve2009

Isn't that what banks are supposed to do though? i.e. cover their arses.

Robbie37Michelle32

You are forgetting that when they do wipe there ass its with £50 pound notes old chap

Steve2009

They lost their way over the last couple of years, it may have seemed like they were in the business of losing money rather than renting it.

These banks only have to lose a small portion of their loans to be wiped out. Think of it as being analogous to a leveraged property investor, if you only have 10% equity and the market falls 10% then you have lost everything. Of course for the property investor they may get away with it for a while but I'm not so sure for the bank.

Rambi

Sorry for asking. Just joining in the fun. Didn't realise I was touching a nerve.

Steve2009

Sorry, I thought it was a rhetorical question.

Rambi

I couldn't resist joining in the (assumed) satire.

iamthecreaturefromuranus

God no... please don't tell me that yet another bloody property thread is beginning to take hold.

Rambi

House prices. The favourite topic of a large proportion of Brits the world over.

Steve2009

The housing thread bubble continues apace. No shortage of greater fools waiting to jump into the market.

Vash the Stampede

You've got to love these thinly veiled "I-can't-afford-a-house-and-I'm-massively-envious-of-everyone-who's-got-one-so-I'll-pretend-I-don't-want-one-and-hope-everyone-else-loses-theirs-in-a-property-crash" threads.

I'd rather line a banker's pocket than a landlord's. 25-year mortgage gets you a house. 25 years of renting gets you... nothing.

Steve2009

25 years of interest payments get you nothing. Who are you referring to that can't afford a house btw?

Why so benevolent to bankers versus landlords btw? A particular love for bankers or a hate for landlords?

Vash the Stampede

Well, obviously. But how often does that happen? I don't know anyone with a 25-year interest-only mortgage. Is that even possible? Most banks will only allow you to run an IO mortgage for a set term.

I do know plenty of people who started with a 25-year mortgage and paid their house off much sooner. Sure beats paying 25 years of rent!

The usual suspects. Some have openly stated that they can't afford a house; others simply pour vitriol on anyone who dares to admit that they've got one, without revealing their own situation. But it's not difficult to join the dots.

It has nothing to do with benevolence and everything to do with pragmatic self-interest. I get a house at the end of my mortgage (which will be less than 25 years). I get nothing at the end of a 25-year lease. It's a no-brainer.

I have no particular love for bankers, and I have no hate for landlords; I've rented in the past, and I'm a landlord myself. I don't know why you persist with these extreme polarisations and false dichotomies. It adds nothing to the discussion.

Steve2009

Interest only is not the only circumstance under which you pay interest.
They're completely different situations. That is more akin to saving and is certainly preferable to carrying massive debt. Whether it beats renting is subjective.
Who pours vitriol on who? Who has not revealed their own situation? I think you may be missing a few dots. These straw men arguments based on false assumptions are poor debate.