Fool: Who Can You Trust On House Prices?

WTF?_2

smartn wrote: »

To me debt (even if it is cheap debt), is still debt. I hope that however horrible things get (another 2000 unfortunate people working for XL losing there jobs today) that the country as a whole can come out of this stronger and learn from the mistakes that have been made.

I hope my children can benefit from cheaper house prices, because to me the only people getting rich out of the house prices increases were estate agents, lawyers and banks. If people have more money left over at the end of the month through lower house prices and hence lower mortgages then this has got to be a good thing for the majority in the long term.

This doesn't mean I don't feel sorry for all those who have bought in the last couple of years, I really do, but what has been going on is clearly unsustainable and needs to be corrected.

Anyway, I've waffled on quite a bit and expect to be shot down by a few of the forum regulars now but thats life.....

I'd love to see exactly what proportion of population are in debt.

We hear loads of figures about the total debt, which is staggering, but how many people are actually carrying debt over a period longer than it takes to pay off their monthly credit card bill?

And how many are only in overall positive territory (after taking into account their assets) because of unsustainable HPI over the last few years.

smartn

!!!!!!? wrote: »

I'd love to see exactly what proportion of population are in debt.

We hear loads of figures about the total debt, which is staggering, but how many people are actually carrying debt over a period longer than it takes to pay off their monthly credit card bill?

And how many are only in overall positive territory (after taking into account their assets) because of unsustainable HPI over the last few years.

Credit card debt paid off monthly is one thing I am guilty of and at times can owe up to a couple of thousand, but I think this and stoozing etc can only account for a very small percentage of the overall debt.

WTF?_2

smartn wrote: »

Credit card debt paid off monthly is one thing I am guilty of and at times can owe up to a couple of thousand, but I think this and stoozing etc can only account for a very small percentage of the overall debt.

I don't think that a 'paid on time' monthly credit card bill really counts as debt.

The shocking thing is the amount of people actually using their credit cards for, er, well, credit..... Short of going to a loan shark they are just about the worst way of raising credit.

Used 'properly', they are fantastically useful. But I have seen reports in the media that people are increasingly chucking 'essentials' onto them and even (mis)using them to service mortgage payments. Scary.

payless

Just looked at some graphs based on actual sold prices off LR data ( 18 months to end July 08)

OK volumes down - but actual sold prices seem fairly stable ( checked my town and the 2 nearby cities )

Birmingham being the biggest / most data

Extract

Feb 07 £151K
July 07 £160K
Feb 08 £155K
July 08 £150K

turbobob

There is an interesting comment by "Indianapolis" underneath that article regarding the methodology the Land Registry use.

Given that some areas I've looked at on LR (specific post codes) have had a reasonable amount of transactions up until 2007, but few if any in 2008, it might explain why their data appears to be out of step with the others.

fc123

Hardly any of my London friends MEWed...or seemed to MEW. Lifestyle pretty much reflectedn their salary levels.
Those I have got to know in Brighton....well I guess at around 50%...and a lot of these are parents from my daughters school..a touch 'posh + pony'.

Heard today that one paticular parent (male) who I also know from my local trading area (mini, local bigwig) had a heart attack and stroke 3 wks back at aged 48. Told to alter his lifestyle and reduce stress.

He has the Aston, property 'empire' (but no idea on size ), shops (that are struggling and are up for re-assignment...but no takers), supa-house plus ponies for the girls etc.

I know one can't blame the crunch...he may have had the HA anyway due to genetics and lifestyle plus 'Living Large' is a personal choice (sometimes masking feelings of inadequacy) but the credit boom enabled the behaviour.

globalds

This is the kind of person you are describing
http://www.ely-standard.co.uk/content/ely/news/story.aspx?brand=ELYOnline&category=News&tBrand=HertsCambsOnline&tCategory=newslatestELY&itemid=WEED03%20Sep%202008%2010:59:45:827

GDB2222

fc123 wrote: »

plus 'Living Large' is a personal choice (sometimes masking feelings of inadequacy)

We have 5 kids, and at one time we had a Peugeot 505 Family Estate (one of those ones with 3 rows of seats). So, going up the motorway fully laden with the family, the luggage and the buckets and spades, we'd be passed by all the Astons, etc. I'd be thinking 'well, I don't need to prove my virility', although my common sense in having 5 children may be in doubt.

gallygirl

GDB2222 wrote: »

We have 5 kids, and at one time we had a Peugeot 505 Family Estate (one of those ones with 3 rows of seats). So, going up the motorway fully laden with the family, the luggage and the buckets and spades, we'd be passed by all the Astons, etc. I'd be thinking 'well, I don't need to prove my virility', although my common sense in having 5 children may be in doubt.[/quote]
:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

payless

Just looked obtained my Halifax price index ( on mortgage account) its actually gone up 1% in last 6 months , following a 3% drop in previous 6m.