Off Topic EU deabte. Which way are you voting ?

Stamp duty and overpricing is the major part of it but there's no denying that Brexit is having an impact. Investors/buyers don't like uncertainty so they are waiting to see what happens with the referendum which means the market is very quiet at the minute. Leaving the EU will mean more uncertainty which will continue to spook investors and buyers. A quiet market means that if you want to sell then you have to give the buyer a deal. That sets a precedent for the other properties on your street. It's no different to a busy market. If your neighbour gets a stonking price for his property then your property goes up in price.

London is currently quite ****ed and is being hit hardest, which is a good thing as it got out of control. I know of a scheme that was taken overseas for exhibition. They thought they'd sell about half of the 200 units over the course of a weekend. They sold 5! In places like Nine Elms in Vauxhall buyers are dropping their 10% deposits that they put down 2 years ago rather than completing on their purchases as they recognise that they will be in significant negative equity if they complete.

I do concede though that Brexit isn't a major influencer on property prices. Where it will have some impact is in London, the South East and burgeoning property markets like Manchester where properties got more expensive very quickly. If you bought in those areas within the last 6 months then you're probably in for a bit of pain in the short term.

 

Custard's viewpoints are very similar to my dad's! We had a family lunch last week which turned very uncomfortable for everyone else round the table. In hindsight I probably shouldn't have called him a Nazi in front of everyone.

 

One fact, quoted by a Brexit supporter, is that we're the 5th largest world economy. And, I believe, the fastest growing economy in Europe. All this despite the dastardly EU that these people seem so keen to get out of!...

 

Fair enough mate, I'll bow to your better knowledge. I know what you mean about the bit in bold though as a general principle. But that often snowballs and leads to recession. The knock on effect of that is that people either choose not to (or are forced financially not to) sell.

 

Hahaha, I know that feeling, my old man is a raging Tory. I told him to shut the **** up at a dinner party a while back when he started sharing his views on immigration.

 

The most disappointing thing is that my old man is an immigrant...

 

If interest rates rise by 2 or 3 % combined with an already slowing market, we're back in the realms of negative equity. Only this time round people have taken on mortgages based on record low interest rates, and the outcome could be catastrophic

 

Which is why I said a few posts back, that those Brexiters who actually want house prices to drop really haven't thought things through!

 

We are all immigrants, immigrants will happen whether we are in the EU or not personally that's not my argument. I want change and want it now we don't know if it will be better or not but I'm sick of how they way the EU are trying to turn us into the US of Europe.

 

I'm not sure of the total percentage, but a large proportion of home owning under 45's, will have moved home in the last 7 years - and taken on borrowings that are way beyond what they would have been able to afford pre- the interest rates hitting record lows. If the recession that WILL follow a Brexit leads to interest rate hikes, then we're going to see repossessions at a level that was previously unimaginable

 

No doubt that that's what the federalists want. It's what they've always wanted. However, they will have to sell it to the people of Europe. The UK won't buy it, and I don't think they'll be the only ones...

 

I will feel sorry for those who live in the houses. I will not feel sorry for those who overreached, bought a load of houses in view to profit on them like all your buy to let property magnates. Hopefully prices return to a more reasonable rate

 

The buy to let market will just increase their rents mate. The maximum LTV is 75% so it's not like last time round when people were buying incremental properties with virtually **** all capital.

It's the general homeowner who stands to be caught minus their trunks if the tide goes out.

 

This is right. It will be ordinary homeowners who stand to lose the most if interest rates go up. My mortgage has been low for nearly the last ten years. That enables me to spend more in general terms, which in turn raises taxes via VAT and indirectly through income tax from the businesses I'm buying from. If my mortgage goes up, then I don't spend this money and tax revenue falls.

 

Is right.

Disposable income is what the economy is built on, if it falls then the economy shrinks and unemployment rises.

0.4% of GDP is what being part of the EU ultimately costs the Uk, and the economy will shrink by way beyond that amount should we choose to leave it. It's not a complicated scenario and I struggle to comprehend why people think that's a scenario we should we voting for.

 

Because they want "freedom", to "control their own country", "put the Great back into Great Britain" insert your own soundbite here ---> __________

 

Exactly. This whole concept of 'freedom to control our own affairs' is a misnomer anyway as we are entirely dependent on the economic relationships we have with other countries. Every major trading country in the world wants to do business with the EU, if we go it alone, there's no way we will get as favourable trading deals.

 

Yes we will