House Prices continue trend of stability.

meanmachine_2

Bestthingsinlifearefree wrote:

I know it seems harsh that you have to pay 2005 prices without the prospect of 10% plus year on year gains enjoyed by people who bought earlier......unfortunately that is the price you pay for missing the boat / being a nervous FTB.
.

You're on thin ice there matey. You don't know my circumstances, so I'd appreciate it if you cut the EA bull.

A year ago you'd have been telling me that if I didn't buy now I'd "forever miss the boat". Now you're telling me I've missed the boat when it comes to massive house price inflation.

What will you be saying in a year? That I've missed the boat regarding losing 10% of my property value? That's one boat I'd love to miss, thanks very much.

Bestthingsinlifearefree

ouch Meanmachine ....you nervous FTB are quite sensitive........

must be the pressure of waiting for the house price crash that never arrived or the stress of handing other a big chunk of hard earned cash to the land lord every month.

Sput2001

What will you be saying in a year? That I've missed the boat regarding losing 10% of my property value? That's one boat I'd love to miss, thanks very much.

You'd be a year closer to having your mortgage paid off, and provided you'd bought sensibly, you'd have a year's worth of equity in your property, plus whatever you've put in as a deposit.

What happens to house prices in a year is largely irrelevant unless you're planning to sell then, in which case it wouldn't worth buying anyway, whatever the state of the housing market.

wibble68_2

Bestthingsinlifearefree wrote:

It looks like in 2005 / 2006 the dream "soft landing" in house prices actually happened / is happening.

One year of stagnating prices doesn't constitute a "soft landing".

In 1990 prices also had a 12 month stagnation.

Halifax data

1988 +23.3%
1989 +20.8%
1990 0.0%
1991 -1.2%
1992 -5.6%

I can accept that economic and social changes have happened since then, but to say a "soft landing" has happened is a bit premature.

NEWBIE_SHOPPAHOLIC

Quite rightly said Nick, I amuses me that these people seem to think that they will lose out IF there is a fall in property prices,when they weren't planning to sell anyway! YOU WILL ONLY SUFFER IN STRUGGLING/CRASHING HOUSING MARKETS IF YOU SELL IN THEM!!!!!!!!!!!

Anyway these things are all cyclical and as long as we continue to be an island, some people should recognise that demand for land will always outstrip supply, because they dont make land anymore!!

meanmachine_2

NEWBIE_SHOPPAHOLIC wrote:

Anyway these things are all cyclical and as long as we continue to be an island, some people should recognise that demand for land will always outstrip supply, because they dont make land anymore!!

If I hear that one more time I think I'll SCREEEEEEEEEEEEEEEEAM!

Go tell that to the Japanese and they'll laugh in your face.

Also tell it to developers who have currently only built on 8% of the UK's land.

I'd actually look at the facts before trotting out the same old cliches. Then you might not be so suprised if the unthinkable happens and house prices do start falling (which they have been recently in the South East).

NEWBIE_SHOPPAHOLIC

Oh Mean machine really has had a bad day!

Factually(l believe this is how you wanted me to quote), as I am sure you will know, the demographics of the uk show, that with more single individuals and older people living longer there will be a higher demand for property with single occupation, thus putting a strain upon the resources of the uk and thus requiring more land to build on.


Yes, we have a lot of unused land, but this will remain so as pressure is also put upon the government to preserve our green belt land and help the environment, whilst at the same time it will need to help the above situation but planners will not allow alot of this green land to be used. Yes there are some objections to the rule, but this is why only 8% quote/unquote of land is used.

I CERTAINLY DID NOT SAYTHAT HOUSE PRICES WERE NOT GOING TO FALL(Please feel free to read my comments) I ACTUALLY SAID THAT IF YOU DO NOT SELL YOUR PROPERTY IN A CRASHING MARKET THEN YOU WILL NOT LOOSE OUT. Obviously if you stay in a property throughout the traditional boom bust type model then you will see that the market, together with the financial market in its different way, give or take one or two years, generally follows in a cycle.

But hey MEAN MACHINE what do I know, I've only been an investment analyst for 10 years.

meanmachine_2

No, I've had a good day. Please don't assume that because I disagree with you that I must be in a bad mood. I just disagree.

But I do agree that property has been a good purchase over the years. Not as good as stocks, but still good.

Do I think the next ten years are going to see the same sorts of rises? I doubt it.

I also wouldn't take it as a given that population is a one way bet. As far as I know the younger generation aren't producing enough kids to maintain the pop, and immigration is being relied on to make up the shortfall.

That's why no government is seriously suggesting strict controls - no matte what the Tories might claim.

FaTB

Bestthingsinlifearefree wrote:

Home owners build up equity by paying of their mortgage ie in 25 years on a repayment mortgage they are guaranteed 100% equity.

What about the thousands in recent years with I.O. mortgages ?

25 yrs time they still owe the same amount !!

and in a low inflation environment thats gonna hurt.

FaTB

meanmachine wrote:

You're on thin ice there matey. You don't know my circumstances, so I'd appreciate it if you cut the EA bull.

A year ago you'd have been telling me that if I didn't buy now I'd "forever miss the boat". Now you're telling me I've missed the boat when it comes to massive house price inflation.

What will you be saying in a year? That I've missed the boat regarding losing 10% of my property value? That's one boat I'd love to miss, thanks very much.

This boat people keep going on about is called the "Titanic" but the bow (London) is sinking before the stern (The North) but its all going to the bottom eventually.