house price reductions

D

dewdrop

Registered User
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has anyone shed a tear for these unfortunate people who bought houses recently and now find that the selling price is gone down by 20% plus and also there is no outrage at the profit the builders must have been making over the years. we are a subdued lot
 
also there is no outrage at the profit the builders must have been making over the years.
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Why should I feel outrage at that? It's open to everyone.
I would feel outrage if there was some government imposed restriction on it.
 
I feel a little outraged when I hear builders complaining about work being a bit slower nowadays or foreigners taking their jobs. boo hoo.
 
also there is no outrage at the profit the builders must have been making over the years. we are a subdued lot
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builders are in business to make profit as are all business people so why the outrage?

I feel a little outraged when I hear builders complaining about work being a bit slower nowadays or foreigners taking their jobs. boo hoo.
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Outrage is a bit strong, would you be less outraged if instead of builders it was nurses complaining? We only seem to have liked builders when they were out of work and being paid a pittance.
 
No, no, I don't feel outraged at all at getting a house reduced from €310,000 to €267,000. In fact I feel... --->
 
I am one of those poor unfortunates who has bought a place recently - a 2 bed apartment on a 97% mortgage. Yeah my apartment is probably worth less now than it was when I signed contracts for it a year ago.....but I plan to live there for the next 3-5 years so no it doesnt worry me that its worth less on paper, I love the apartment and once I can afford to pay my mortgage every month, thats my main concern, not how much I have theoretically lost.

While I dont have any sympathy for the big developers I do feel sorry for the ordinary construction workers who are finding it difficult, if not impossible to get work. I have a lot of friends and family who have been affected by this downturn and are now having to consider moving abroad to find work.
 
Sylvester3 said:
No, no, I don't feel outraged at all at getting a house reduced from €310,000 to €267,000. In fact I feel... --->
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Isn't it wonderful the way that the fall in prices in being portrayed as a bad thing i.e. good news for those that want a home is secondary to a fall in capital appreciation for speculators and developers
 
dewdrop said:
has anyone shed a tear for these unfortunate people who bought houses recently and now find that the selling price is gone down by 20% plus
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their own fault. They should have been reading the Current Sentiment thread on AAM.
 
While you can always fall back on the old adage of 'buyer beware' etc. I have to say that I do feel sorry for the people that have bought in the last 18 months mainly because they would tend to be young people who have got the raw deal. The ones who haven't bought are equally pressed as they are paying huge rents back to the generation above them. It seems very unfair.
 
madisona said:
their own fault. They should have been reading the Current Sentiment thread on AAM.
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Hope you dont fall off that pedestal of yours anytime soon. There are many people struggling to repay mortgages and regardless of the forecasted property opinions on AAM, it is a very difficult time for them. But hey dont you give them a seconds thought...
 
Newbie! said:
There are many people struggling to repay mortgages and regardless of the forecasted property opinions on AAM, it is a very difficult time for them.
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I was not aware that we were specifically discussing mortgage interest rates which may go down shortly.

In relation to the issue under discussion, if someone bought a house as a home to live in, short term reductions in property values should be largely irrelevant ( a point that Brendan has also made ). It will only mainly affect those that were hoping to make a profit by speculating in property. If your concern is for those who want to sell their home to buy a bigger one , surely the fall in value of the house that they are selling will be offset by the fall in value of the bigger house that they want to move to.

Maybe you should spare a second thought for that poor people hoping to buy their first home instead.
 
It will only mainly affect those that were hoping to make a profit by speculating in property
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Or those who have to sell given unforeseen circumstances like say a builder laying off his staff.
 
MrMan said:
Or those who have to sell given unforeseen circumstances like say a builder laying off his staff.
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Indeed. suppose people had started buying and hoarding jellybeans in the hope that they could sell them on later at a profit as the price of jellybeans was going up. If a fall in the price of jellybeans caused people to stop buying more jellybeans than they needed and this subsequently caused a jellybean maker to lose his job would you be so concerned.

The fall in the price of jellybeans would be good news for those that weren't hoarding and could look forward to cheaper jellybeans in the future
 
madisona said:
Isn't it wonderful the way that the fall in prices in being portrayed as a bad thing i.e. good news for those that want a home is secondary to a fall in capital appreciation for speculators and developers
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Indeed. Its great news for people who were priced out of the market over the last year. Swings and roundabouts.
 
The fall in the price of jellybeans would be good news for those that weren't hoarding and could look forward to cheaper jellybeans in the future
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for builder you could insert any number of jobs, my point was that it would affect anyone that had to sell because it was enforced upon them. But I do admire the way that you tried to cheapen my point by using a jellybean analogy, class.
 
MrMan said:
, my point was that it would affect anyone that had to sell because it was enforced upon them. .
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that makes little sense. your concern is for those who would lose out on capital appreciation If they have to sell their house and go back to rented accomadation ( and there is no evidence that this is happening on a large scale basis) Surely this would be because they borrowed too much and having rising house prices would mean it would happen to a lot more future first time house buyers.
 

You've hit the nail on the head there (sorry, no pun intended!).
 
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