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Debate House Prices
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Is It A Good Time To Buy?
Comments
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What? Why would I be being sarcastic? House prices have ALWAYS risen over the long term. If anyone has EVER bought a house and lived in it for 20 years, they have ALWAYS sold it for more than they bought it for! (Give or take a few really run down areas I suppose!). Look at the graph below, the red line is the mean price rise. So even though prices go up and down in cycles, the mean always rises. I can't see house prices dropping much below 4x average salary for a given local area to be honest, because people will always want to buy and that is roughly the amount banks will lend at for the foreseeable future. The only reason prices are coming down is because people can't borrow what they used to, so house prices are correcting themselves. Sure, there will be an undershoot when the crash goes into full swing, but it will bounce back up again soon enough.
Yes house prices always rise over the long term inline with wages. But that's not what you said. You said that, according to your research on the history of the housing market, it was a dead cert that prices would "shoot back up" as soon as the mortgage supply returns to normal. Are you saying that when/if the mortgage market returns to normal (what 3.5x salary?) then prices will instantly spring back to where they were? I thought this was what you were saying hence the comment about being sarcastic.
Where on the graph have prices ever dropped 10% or more and then "shot back up"?0 -
We all know they're going to go back up again - and we all know it would be IMPOSSIBLE for them to drop down to the levels some of you losers are hoping for!
JEALOUSY is very destructive - and it won't buy you a HOME!
If you want a home of YOUR OWN - get off your lazy a*ses and go to work.
It's funny how the majority of these doom-mongers seem to come across as the under-class.:o You can just envisage them sitting in their sink estates trying to start a riot!!0 -
I'd wager that picklepink lives in a council house with his Mum . Not that there's anything wrong with that mind you.0
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Jumping_Bean wrote: »Yes house prices always rise over the long term inline with wages. But that's not what you said. You said that, according to your research on the history of the housing market, it was a dead cert that prices would "shoot back up" as soon as the mortgage supply returns to normal. Are you saying that when/if the mortgage market returns to normal (what 3.5x salary?) then prices will instantly spring back to where they were? I thought this was what you were saying hence the comment about being sarcastic.
Where on the graph have prices ever dropped 10% or more and then "shot back up"?
See those two blips recently...Well, look on0 -
Look, if there is just ONE property that you simply have to buy, then that's it - you simply have to buy it.
However, once you move on to ANY exceptional property, then you are talking about several, quite a few, maybe even lots. I always think that a property is exceptional because of a combination of things that make it desirable PLUS price. So, a nice house at say £300k may be exceptional, whilst at £400k it is not exceptional. For one thing, the extra £100k could be ploughed into the property to make it nicer.
If the market is set for a 30% fall, still, then the house which is exceptional now at £300k will look distinctly unexceptional once prices have fallen. You may even be able to find another exceptional house after prices have fallen that falls into your category of 'exceptional' but at £200k, or an even better house for the original £300k.
'What the market is doing wont feature in the thought process.' I'm sorry but that's simply wrong.
That statement only bears true if the most important factor is MONEY.
Imagine, if you will, that that ugly word MONEY doesn't matter and that the ideal PROPERTY is where you wish to spend all of your days. If you can afford it, what does it matter if it becomes worth two pence or two million? It IS exceptional as a property but may not be exceptional 'Value for money' which is NOT what I was referring to when I spoke of 'Exceptional'
No matter how much MONEY you plough into a house, if it is not in the right location or position then nothing can change that."Unhappiness is not knowing what we want, and killing ourselves to get it."Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))Women and cats will do as they please, and men and dogs should relax and get used to the idea.0 -
However, it is a BLIP. Once the bank situation sorts itself out , it will be back to normal.
Blip is such a nice word, much less scary than crash. So a 10% drop is a blip. When will it cease being a blip and be a crash? Are we going to be seeing a 30% house price blip?See those two blips recently...Well, look on
Where exactly are the 10% blips?
Also, I notice the graph isn't exactly current. How much are we missing, about a year? ie All of the recent falls.It is not your RIGHT to be able to buy a property...Work for it!!!!pickledpink wrote: »If you want a home of YOUR OWN - get off your lazy a*ses and go to work.
Sounds very much to me like you two don't actually work for a living. Anyone who did, wouldn't be so keen on throwing massive sums of their hard earned cash away on hugely overpriced houses.0 -
That statement only bears true if the most important factor is MONEY.
Imagine, if you will, that that ugly word MONEY doesn't matter and that the ideal PROPERTY is where you wish to spend all of your days. If you can afford it, what does it matter if it becomes worth two pence or two million? It IS exceptional as a property but may not be exceptional 'Value for money' which is NOT what I was referring to when I spoke of 'Exceptional'
No matter how much MONEY you plough into a house, if it is not in the right location or position then nothing can change that.
Who actually buys a house thinking money doesn't matter? This just doesn't happen.0 -
Jumping_Bean wrote: »Who actually buys a house thinking money doesn't matter? This just doesn't happen.
Well I suppose for a lot of people the question they ask themselves is "Can I afford it now?" not "How much will it have lost or gained in 5 years?"0 -
Well I suppose for a lot of people the question they ask themselves is "Can I afford it now?" not "How much will it have lost or gained in 5 years?"
That's a good point. It seems to me that the situation boils down to 2 groups of people:
1) Those who must have the house they want right now at whatever cost. Most of these (First time buyers anyway) can't actually afford to buy. Hence the need for stupid salary multiple mortgages. IMO these are the people who are usually in lot's of other debt for the other things they couldn't wait for, but this is just my opinion.
2) Those who are prepared to wait a while for prices to become more reasonable.
Just depends on how impatient you are.0 -
Imagine, if you will, that that ugly word MONEY doesn't matter
Sorry, I tried, but I couldn't manage it.
and that the ideal PROPERTY is where you wish to spend all of your days. If you can afford it, what does it matter if it becomes worth two pence or two million? It IS exceptional as a property but may not be exceptional 'Value for money' which is NOT what I was referring to when I spoke of 'Exceptional'
You're just back to the hypothetical 'this is the only house that could ever be perfect for me' argument. As I said, if that is really true, then there can be no doubt that you should buy it, and hang the consequences.No matter how much MONEY you plough into a house, if it is not in the right location or position then nothing can change that.
I agree entirely with that proposition.No reliance should be placed on the above! Absolutely none, do you hear?0
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