House prices falling how can this be bad?

[boogieboogie]

News items report as it's going to get worse. But surely house price falling means it's getting better.

Shouldn't houses be afordable to those who work? Therefore I see it getting better and not worse. I also think anyone who's purchased a propery at the ridiculous inflated prices of the last few years have been in cookoo land. Brick and morter were never worth that much. The value of my propery went up to 5 times the purchase price in just 5 yrs, had someone paid that price for my house I would have thought them rather silly.

Now the greedy people who bought the buy to let are in negative equity and moaning. Well dear me, how many houses does a person need? These pushed up prices and only have themselve to blame.

Surely it's better not worse when the average person can buy a home on an average income?

[New Judge]

Sorry Geezer, I was writing at the same time as you. It's pleasing to note that at least two of us think alike on this one!

[JonnyBoy12]

Well, I think it is good news if it means that first time buyers can now afford a home, but realise it is not quite as simple as that. There is a website you can look at for this sort of thing, and you can register, and leave your email address, and then can notify you of any changes.

www.propertysnake.co.uk

Do any ABers know of any other other similar sites, or where we can look to find "cheap" houses?

[jake-the-peg]

Could someone explain to me why it was irresponsible for banks to lend people over 100% of value of their houses on a mortgage.

Do they think that any unsecured loan is irresponsible?

What is the difference between a 110% mortgage and a 100% mortgage and 10% unsecured loan??

What was irresponsible was not the loans of mortgages on values above the house values but large amounts of sub-prime lending.

Lending of large amounts of money to high risk buyers without a realistic prospect of repayment.

This wasn't so much financial planning as gambling - but as long as the quarterly figures were met nobody gave a damn. It's a consequence of the attrocious short termism that is rife in American business and gaining ground here