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Debate House Prices


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The real question is why house prices aren't falling faster?

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Comments

  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    Property prices will always go down more slowly than they rise. Look at it this way: FALLING market - you hold out and hold out and hold out until you get what you want. Perhaps you can't let the house go for less because you owe too much mortgage or just simple pride - a sense of not wanting to look stupid.

    RISING market - you get three estate agents round to value the house and being a natural human being you go with the one who promises to get you the best price. The house goes on the market at considerable OMV. Your neighbours see how much you are asking for the property and try to get a bit of the same - hence asking prices rise.

    A solid enough assessment.
    It's all BS! I am finding at the moment that there are just no buyers whatsoever. You simply couldn't give half of the properties on the market away. Please note though that this is only a temporary situation. The natural drivers of house price growth in the UK are still present, and will actually be increased due to Housebuilders sacling down operations. Expect to see house prices at a higher level than ever come 2010.
    Nah - theres a price for everything. If you can't sell, you are asking for more than the market will bear. Lower your price to find the market level.

    As for 'prices higher than ever in 2010' well, God loves a trier :D I admire your optimism. :money:
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • alared
    alared Posts: 4,029 Forumite
    One of the main reasons the house price correction took so long to come about was the sheer, obscene greed by everyone involved in the housing market.

    From estate agents to the government and everyone in between, who talked the market up,simply because they ALL had their sticky fingers in the housing pie, and were making vast amounts of money from Joe Public.

    They all had a vested interest and all talked the market up.
    Even now some of them are in denial,saying it`ll soon be over and prices will be quick to rise again.

    I don`t think so!
  • amcluesent
    amcluesent Posts: 9,425 Forumite
    Of course, NuLabour have mullered the economy and are now employing the usual socialist 'solution' of allowing inflation to spiral to devalue the £ by the back door.

    As £ in the bank is net losing purchasing power, this puts a floor under tangible assets like houses.
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    amcluesent wrote: »
    Of course, NuLabour have mullered the economy and are now employing the usual socialist 'solution' of allowing inflation to spiral to devalue the £ by the back door.

    As £ in the bank is net losing purchasing power, this puts a floor under tangible assets like houses. Also the real debt of recent purchases is being inflated away...

    It may not work so well this time - imports are higher than ever before and a huge section of the UK economy is dedicated to selling such imported stuff to other residents of the UK.

    Devaluation should ultimately help build a stronger export base but in the short-near term it will hammer retail and trigger large consumer price rises.

    They could 'get away with it' in the 70s when the export trade was much stronger because of all the industry in a position to take advantage of a cheaper pound - and of course the lack of cheap labour competition in the Far East/China.
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • dopester wrote: »
    You're in for the kind of shock which will melt your closed mind.


    Oh Dope!

    Don't be ridiculous!!

    ALL properties have ceiling and a floor (by that I mean in price) and they can only fall so far!

    The way you're talking you're suggesting properties could drop to zilch!:rotfl:

    You know as well as I do that that can't happen..............the banks for one thing would not allow it. They'd lose too much money................

    But just for a moment let us suppose ALL properties dropped to NIL; you still wouldn't be able to live in one of them! Do you think people are going to GIVE them away?!:rotfl:

    Let me tell you - if I had a mortgage - and I found the repayments beyond my means, and owed thousands to the bank I would make damn sure my family bought it from me! For a tenner!:p

    Keep on dreaming, sunshine!
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    Let me tell you - if I had a mortgage - and I found the repayments beyond my means, and owed thousands to the bank I would make damn sure my family bought it from me! For a tenner!
    So you would still owe thousands to the bank? Hmm, sounds like a plan from one of the finer financial brains on here.
  • mewbie wrote: »
    So you would still owe thousands to the bank? Hmm, sounds like a plan from one of the finer financial brains on here.


    If the property fell to zilch (and the bank effectively owned it) it would be their loss too. I would offer them whatever I could afford to pay off the arrears. If I was penniless and could only afford,say, £2 a month they would have to accept that.

    One learns a lot on this forum don't they?:D
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    So your plan is to sell a mortgaged property to your family for a tenner, and then offer to pay the lender back at two pounds a month? At least if the government then decide to tax brains you'd be in line for a rebate.

    I don't know why I'm bothering to start a fight between a troll and a thanking buddy.
  • pickles110564
    pickles110564 Posts: 2,374 Forumite
    !!!!!!? wrote: »
    Nah - theres a price for everything. If you can't sell, you are asking for more than the market will bear. Lower your price to find the market level.

    !!!!!!, you are agreeing with me again, like I have always said houses are only worth what you can sell them for.
    At all times houses will sell, it is just the stupid dreamers that dont and wont sell.
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    like I have always said houses are only worth what you can sell them for.
    It's the Messiah! Hallelujah!! Follow the Gourd!!!

    Brother Loretta has spoken...
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