There is a programme on BBC2 at the moment called The Truth About Property. They are being very brave and even covering one of those sorts that offers to buy your home at a discount then rent it back to you. Very interesting.

Finally, a property programme that is really looking at the property market and the different situations that people get into with them.

Is anyone else watching, and what do you think?

Ary.

It has ended really well with an upbeat message that you will only be in trouble in certain circumstances and that most of us will be able to ride this out ok.

Nice to have a realistic but positive property programme to watch

Ary.

I turned off after the first couple of minutes when the dork said "we are renting this house at the moment and if prices continue to fall we might be able to buy it". I would suggest not a good way to get people worried about falling property prices to watch.

Wonder what they are going to cover in part two tomorrow?

Didn't catch it all, but was amazed at the situation in Florida. How much did they say those big houses were? Good for my folks who are looking to get something there, although at the rate of falls over the last 18 months it might be worth waiting a little longer because it is likely to overshoot. Also I am sure the situation in America is not much different than that in the UK (big debts, inflation starting etc.), they just seem to be a year ahead. Will be worth keeping an eye on the market especially with mortgage approval figures low, to plan for the next few years (looking up the ladder in my case)

The capital value of the house is often not the main problem although, last time, the negative equity lasted almost a decade for the people in the worst position.

The real risk is being unable to make the repayments of course. It's not just interest rates going up but, say, income is reduced or lost.

And that may be a bigger problem in the past because there's a whole category of mortgage holders now that did not exist in the last recession (early 90s) - the ones who keep remortgaging and so have no equity to show for years, even decades, on the housing ladder, just a massive debt that gives little room for manoevre.

quote:

Originally posted by vbland:
And that may be a bigger problem in the past because there's a whole category of mortgage holders now that did not exist in the last recession (early 90s) - the ones who keep remortgaging and so have no equity to show for years, even decades, on the housing ladder, just a massive debt that gives little room for manoevre.

Like the young guy from Colchester? Seemed to be using his house as an ATM. When the house stopped making money he seemed to be in trouble (selling his Audi TT). Hang on a minute though, he's just got a new job as a mortgage adviser and therefore everything is alright again, and he is now planning an expensive holiday abroad. Some people never learn, but this is a new breed, dear oh dear.

quote:

Originally posted by Druzil:

Like the young guy from Colchester? Seemed to be using his house as an ATM. When the house stopped making money he seemed to be in trouble (selling his Audi TT). Hang on a minute though, he's just got a new job as a mortgage adviser and therefore everything is alright again, and he is now planning an expensive holiday abroad. Some people never learn, but this is a new breed, dear oh dear.

Took the words out of.....

In one sense you can hardly blame them - a generation who have never known anything but continual increase and without the brains to realise it can't last forever.

Unfortunately it seems they don't learn by experience. It will end up as a car crash which impacts upon the rest of us. And I wouldn't call "trainee mortgage adviser" the most stable of employment.

I would have had a better impression of the progs had they not have used such condesceding language. It was like they were addressing a class of 9 year olds. Having said that, many so-called adults have acted like 9 year olds in their property behaviour in recent times. I guess not every one can be as perceptive as I

Dare I ask? Was anyone else taking pretend aim at that smug developer?

I was... and at Mr Generation Numpty

Was the 2nd part of this shown last night? I missed it.

Having seen Monday's programme, I think the young guy from Colchester appears to have some deeper seated esteem issues the way he kept spashing his cash. I can see straight throught the hot tub and fancy bling. I doubt any of his friends and family would think any less of him if he owned a Skoda than an Audi. Both cars share many components.

As for the Raj guy, I don't really envy him much. Seems like a lot of his property portfolio is mortgaged and one of his rental in Putney (?) is now achieving a lower rental than the mortgage on the property.

Part one was more interesting. The guy with the Bentley, Ferrari and massive property portfolio - he had to pull out of a deal because the bank had pulled the mortgage offer, so I guess he wasn't as rich as he appeared. I bet he has massive mortgage committments, and he admitted that one of his mortgages had just come off a fixed rate deal and now the mortage was, I think, £600 a month not £400 and the rental income didn't cover it. I assume he has enough equity in his older properties, otherwise he could be in doo-doo.

The numpty with the Audi TT could have been on Spendaholics. Would you really want him to advise you on financial matters?

The second program was a mish-mash of stuff - I didn't really see what point it was making.

There was a very sad story of a couple at Skipsea whose house had fallen into the sea, and whose insurance wouldn't pay up. I found the street survey bit a little depressing - lots of people said they saw their house just as an investment, not as a home.

The overall gist seemsed to be that prices are on the way down, but if you bought a while ago and don't have other loans etc. you'll be alright.