Ok, do you want house prices to go up or down ?

skap7309

I would like them to go down

angrypirate wrote: »

So over populated there are 1.6 million priced out 20-39yo FTBs and 2 million second homes. Huge housing shortage.

The problem is people are greedy.

Give me a sec while i dig out the link for these figures

Excellent post and fully supported on this one, i put it down to figures like this.

Realy - Despite having an excellent job and wage (over double average) house prices are still silly and one should not have to work 7 days a week for sub-standard housing as it is overpriced....:rolleyes:
It has a long way to fall and mark my words it will - ALL the right (or wrong) factors suggest this. I bet my house on it

Realy

I would like them to go down

skap7309 wrote: »

Excellent post and fully supported on this one, i put it down to figures like this.

Realy - Despite having an excellent job and wage (over double average) house prices are still silly and one should not have to work 7 days a week for sub-standard housing as it is overpriced....:rolleyes: It has a long way to fall and mark my words it will - ALL the right (or wrong) factors suggest this. I bet my house on it

As I said in my last post again "prices need to fall" but not everyone will be able to buy!
If they were £75K there would be even less on the market as every BTLer would have snaped them up.
I now it is nice to dream, but what is the point of dreaming when you could be doing somthing?

lostinrates

Realy wrote: »

Oh please do.:rolleyes: .

Unfortunatly it is reallity! Everyone being on the same wage and houses the same price for everyone isn't.

I am 32 and purchased my first house at 25! .
Houses prices need to come down but you average shelf stacker or burger flipper will never get the average house.
Some people need to look at their lives some times to fullfill their dreams.
If home ownership is one they may need to retrain as it is not a god given right to have a 4 bed detached as a FTB home.

If you think it is good luck but you are just going to get HPI again.
We are a capitalist country and people pay for what they want if they can't afford it they can lose it all.

I call it the real world.

Rant over.:D

Realy, I'm agreeing with you today . It is not a right to BUY a home, it is likely people on low paid jobs will never afford to buy a 'four bedroom detached'.;) i also agree that the real world is ..well real, but i think we see it always, as though in a hall of mirrors.

But what about the average barrister (like NDG), the average corporate solicitor, like my DH? These people earn above average and struggle still to afford to buy suitable average housing, yet are traditionally the people buying the above average, albeit not top of the pile housing.

Cat695

I would like them to go down

angrypirate wrote: »

So over populated there are 1.6 million priced out 20-39yo FTBs and 2 million second homes. Huge housing shortage.

The problem is people are greedy.

Give me a sec while i dig out the link for these figures

Oh and don't forget there are 1 million empty houses that are worthless

http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article2686130.ece


so do we really need to flood the country with another 3 million by 2020???

GracieP

I would like them to go down

Realy wrote: »

Houses prices need to come down but you average shelf stacker or burger flipper will never get the average house.
Some people need to look at their lives some times to fullfill their dreams.
If home ownership is one they may need to retrain as it is not a god given right to have a 4 bed detached as a FTB home.

Your argument only works if all areas are equal. But they aren't. There are different types of areas, often within similar geographical areas that are traditionally home to different classes of earners. Taking the Merton borough of London for example. The highest earners live in Wimbledon, with the richest in the village and the less rich in the town. Middle earners in Raynes Park and the lower earners in Malden, Merton and Morden. While the lowest earners will buy in Colliers Wood. (I've not lived here very long, but that's the impression I get.)

But instead we have a situation where for the last few years people on very good incomes have barely been able to afford Colliers Wood.

adr0ck

Cat695 wrote: »

so do we really need to flood the country with another 3 million by 2020???

no more flooding the country with new homes

we'll probably build 80,000 homes this year followed by around 60,000 next year (maybe less)

on todays figures we'll probably build 800,000 new homes by 2020

hethmar

I would like them to go up

Theres a large 4 bed 1930s detached house just down the road from us - on a half acre plot. Its been empty for 10 years - apart from the squatters who went in for a couple of months. At the peak it would have been worth 500k - the chap who owns it is now in a nursing home (but it was a second home for him). He has refused to sell it. Surely at some point councils should compulsory purchase empty houses?

angrypirate

I would like them to go down

Realy wrote: »

Oh please do.:rolleyes: .

Unfortunatly it is reallity! Everyone being on the same wage and houses the same price for everyone isn't.

I am 32 and purchased my first house at 25! .
Houses prices need to come down but you average shelf stacker or burger flipper will never get the average house.
Some people need to look at their lives some times to fullfill their dreams.
If home ownership is one they may need to retrain as it is not a god given right to have a 4 bed detached as a FTB home.

If you think it is good luck, but you are just going to get HPI again.
We are a capitalist country and people pay for what they want if they can't afford it they can lose it all.

I call it the real world.

Rant over.:D

I dont disagree with you - its not a god given right to own a 4 bed house (some people will live their lives in council housing) and people should only get what they pay for, but on the other hand right now FTBs are completely priced out of the market which is what has led to this inevitable crash.

So, you bought 7 years ago, just as the boom was starting. You've probably made over 100% profit on your property if you were to sell now (well, maybe 12 months ago), and im sure if prices were as they are now when you were 25 you wouldnt have bought the place you are in now.

All im saying is, why is HPI viewed as good and CPI / RPI viewed as bad. If property costed a lot less we wouldnt be so hung up on it as a country and could probably lead a more relaxed lifestyle like they do on the continent.

Right now there is a long way to go to the trough - we are only just past the peak. There is no doubt in my mind that prices will fall 30% from peak by the end of 2009 and could easily continue falling in 2010 but i dont view this as a bad thing.

Links
1.6millions priced out FTBs
http://www.timesonline.co.uk/tol/money/consumer_affairs/article4957256.ece
Cant find the second home link right now. But did find on the BBC
http://news.bbc.co.uk/1/hi/business/6592663.stm
1million BTL landlords which will mean more than that in terms of property (most BTL landlords i have met own more than 1 property) not to mention all the second homes which arent rented out.

Realy

I would like them to go down

lostinrates wrote: »

Realy, I'm agreeing with you today . It is not a right to BUY a home, it is likely people on low paid jobs will never afford to buy a 'four bedroom detached'.;) i also agree that the real world is ..well real, but i think we see it always, as though in a hall of mirrors.

But what about the average barrister (like NDG), the average corporate solicitor, like my DH? These people earn above average and struggle still to afford to buy suitable average housing, yet are traditionally the people buying the above average, albeit not top of the pile housing.

I agree but that is where population competition comes in. Even though I presume they earn well over the average wage the people they are competing with for their desired area (which I presume is also above average;) ) may earn more than them .

I know that sounds harsh but unfortunatly places like Notting Hill etc are the domain of multi millionairs and not high paid workers any more.
Over population as caused problems like the reason you give.
I live in a beautifull part of the midlands where house prices are pushed by people from london etc selling up and retiring.
It forces out the people who can't financially compete and this is sad for the young:(. But it is reality but I cant be bitter about it I either chose to compete or move.
But most of this is down to over population in a capitalist economy.

angrypirate

I would like them to go down

Realy wrote: »

As I said in my last post again "prices need to fall" but not everyone will be able to buy!
If they were £75K there would be even less on the market as every BTLer would have snaped them up.
I now it is nice to dream, but what is the point of dreaming when you could be doing somthing?

Thats a very good point. Lets go back and ask, why would every BTLer have snapped them up?

Well, lets go back to 99-00 to when the boom began. What happened then that pushed so many investors towards BTL. Could it be that Brown raided the pensions pot and screwed everyone over? People lost hundreds of thousands, decided that pensions were no longer the way forward to future funds and looked towards tangible assessts? Herein lies the root of the problem. BTLers. Maybe if there had been regulation to prevent mass BTL buying, tax breaks favouring the FTBs over the BTLs we wouldnt be in the positon. Maybe Brown should have just left that damn pension pot alone. There is no doubt in my mind it is the BTL brigade who are responsible for the over inflated bubble. But now the bubble has been pricked and its rapidly deflating.