2006-10-07 03:33:09 · 10 answers · asked by Ju 1 in Business & Finance ➔ Renting & Real Estate
in 1991 interest rates were at 15% (Typically a £60,000 mortgage had a repayment of £800 per month. Think what would happen on a typical mortgage of £180,000 today???). compared to today's 4.75%. up from 4.25% at the beginning of the year The bank of England is expecting a rise to 5% shortly. If that trend follows many people will loose their homes and the price of property would be slashed. As the housing market is all ready out of control, would it be too cynical to suggest that this rise in inflation would actually control the housing market, all be it by destroying thousands of people?
2006-10-07 03:48:33 · answer #1 · answered by playfire5 1 · 0⤊ 0⤋
No, why should it, interest rates are still very low, demand is high and not enough houses are being built not to mention the fact that property is still being bought to let out, think of all the immigrant workers that need housing.
The papers have been saying for the last 5 years that a crash is iminient well where is it, the closest that the property market came to crashing was 9/11 when we all thought that london and the rest of the country was going to be hit by airplanes. I remember having 3 purchasers ring up and reduce their offers by £20k over night, It lasted a week then the market rallied.
Property should be seen as a long term investment!!!!
2006-10-09 13:03:49 · answer #2 · answered by Fox Hunter 4 · 0⤊ 0⤋
Several things drive the real estate market, interest rates, bond rates, inflation, supply and demand, ET. We have had a bull-run during the past 6 years that has for the most part was driven by inflated prices, becuase by part by lenders who lend money to homeowners were were not actually qualified to purchase. An example of this are people who purchased homes in the Million Dollar plus range, many of these buyers purchased on adjustible rates, which offered attractive payments. Additionally most of these buyers were not qualified by actual income, if they were they would need to make more than $250,000. annual income which 90% did not. Ultimately what has happend is that folks have bought homes that they were not actually qualified for, think of it like this - I make $1000.00 per month income and I am told I can rent a rolls royce for $500.00 a month and at anytime those payments will go up to $2000.00 a month, what will happen when the payments exceed my income, I will loose it. The exact same thing is about to happen in the real estate market, my brother in Law is a CFO at a Major bank and he has told me that the banking industry is getting ready for Billions of foreclosures.
2006-10-07 14:26:30 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Yea why? hear is why the market was built of bad information and a big scam hear is how they ripped you and many others off. the crash is starting and will be loud and soon.
http://www.breakingbubble.com/index.htm
2006-10-07 11:39:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Which country do you mean?
I am from Afghanistan and property here does not go down,it blows up, especially when there are infidels in it.
2006-10-07 14:15:03 · answer #5 · answered by Anonymous · 0⤊ 1⤋
I've heard that in Las Vegas and Florida they are starting to fall.
2006-10-07 10:43:14 · answer #6 · answered by howard 3 · 0⤊ 0⤋
No, house prices will continue to rise slowly for two years and then stabilize.
2006-10-07 10:34:56 · answer #7 · answered by applecheeks 4 · 0⤊ 0⤋
Depends where you live matey!
2006-10-10 14:18:04 · answer #8 · answered by Kirk_84 4 · 0⤊ 0⤋
it depends on where you live.
2006-10-07 10:34:11 · answer #9 · answered by Wite Out 4 · 0⤊ 0⤋
It already is.
2006-10-07 10:34:46 · answer #10 · answered by just browsin 6 · 0⤊ 0⤋