The Unique Property
The House Price Crash Has Started
I tend to get my stats from the US before they come out in the
UK, but if they are slightly different, the direction and
general conclusions are the same in both countries. In short,
the cost of houses is going up courtesy of interest rates, and
their price is therefore going to come down to balance the
As I said way back; sell before the disaster strikes, then rent,
and buy when when the carnage is over. Certainly dont buy now.
So, today when the mortgage rate is over 7%, basically if you
are a new buyer and you want to put 20% down and you want to buy
a house, it's basically going to cost you almost twice as much
on a monthly basis as it would have been a year ago. Thatís
quite some hike.
But what that means is that for houses to remain affordable with
a mortgage, prices are going to have to come down quite
considerably. And we are only at the beginning of this change in
direction. Obviously rather a lot of people have already sussed
this as I notice there are rather a lot of properties suddenly
coming on the market. Folks want to lock in a sale before the
carnage really starts.
Supposing someone wants to move into a similar house to the one
they are selling. Here are some figures of how things are going
to turn out in the States. The figures will be different in the
UK, but the end result will be the same, your new home is going
to cost a lot more unless the purchase price drops considerably.
In the USA, for swapping an existing home for a similar new home
the American mover is going to have to find an extra $15,000 a
year. Thatís going to impact house prices across the pond quite
Something similar is going to happen in the UK with the way
interest rates are rising, and they are likely to rise more than
in the rates in the USA. Add in inflation which is now in double
figures and still rising, and you can take it that house prices
are on the way down, and that trend looks set to continue. If
you need to sell, sell sooner rather than later.
As for government expenses just think what interest rate rises
do for that debt. I dont know what the national debt is now, but
it is several trillions. What does a 1% rate rise do to the cost
of that? A 2% rise? 3%? Life in the UK is not looking good as
you guys creep into winter.
Your previous wonderful prime minister actually went out of his
way to visit Kiev and hassle the government there to quit the
peace talks. Look at the casualties stacking up, and look at the
world you have inherited as a consequence of that, plus those
lunatic green freaks who think you can stay warm on solar and
I think you guys are mad to put up with the morons in
Westminster, and your pain is only just beginning.
The USA is rapidly becoming the most unpopular country on the
planet, and Britain still hangs on to their coat tails. That
isn't going to do the country much good.
And Europe is quite deliberately being destroyed. The standard
of living in the old continent is dropping slowly at the moment,
but next year the drop is going to go exponential. Those
lunatics in Brussels thought it was a great idea to interfere in
Russian politics. Now instead of buying agricultural products
and energy from Russia, Europe is having to buy it from India
and China who dont have the energy in the first place. They buy
it from Russia cheaply, double the price and now sell it to
Europe. Your energy still comes from Russia but at twice the
price. Clever stuff, isn't it.