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

GracieP

I would like them to go down

hethmar wrote: »

Surely at some point councils should compulsory purchase empty houses?

I'd like to see a fairly punitive property tax on permanently empty homes. With the tax used to finance local housing associations. That way the owners would have a higher incentive to sell them, making a home for someone. Or if they insist on leaving them empty at least the empty house is part financing other homes.

Realy

I would like them to go down

angrypirate wrote: »

I
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.

I don't think balloning HPI is seen as good, neither is a bust. But it happened.

A lot of people will buy at the bottom on here and HPI will start again.
Will they sell at their house at purchase price + CPI to a FTB when they want to move if that works out 30% below market value? I doubt it.
Not having a go at any one but A lot of people need house prices to drop to be able to buy (and they will)
But in 10 years time it will all happen again and the people moaning about falling house prices and NE will be some of you.;)

andys15

I would like them to go down

lostinrates wrote: »

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 dont believe they struggle to buy suitable average houses, . I am in a professional job earning £82000, and I live in the same street as my cleaner, but she has a 4 bedroomed, where we have 3 bedroooms. Her husband works in a factory earning £25000. Is this right, I dont care it is what it is. They were lucky and were in a position to buy when the house was £90000, we bought when it was £250000. Saying that though, I am really starting to overpay my mortgage, as bigger and better houses are falling into our price range. I am planning that my house in 3 years we will have lost around £50000, we will have a mortgage then of around £180000, maybe close to NE, but bigger houses will have dropped more.

IveSeenTheLight

lostinrates wrote: »

I just can't help it...:o

I want a more stable market more than I want anything. But I don't think that's possible.

Best post in this thread so far.
If you look at a UK average, there is only about another 10-15% drop needed to meet the long term average and meet affordable levels, however...... when you look specifically at some areas, they are already affordable and other that have a lot further to drop

angrypirate

I would like them to go down

Realy wrote: »

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.

That is where i think you are wrong and is going to become BTLs downfall. It has been ramped up over the past few years saying "overpopulated country" and "not enough properties" and "mass immigration".

We are now going to see that there were enough properties, just too many wannabe landlords pricing out the fair and honest wannabe FTBs. We'll see the immigrants leave the country, a lower demand for rented property, rents falling, BTLers not meeting their mortgages, then being repossessed, property prices falling and then the return of sensible lending, 3,5x salary with 10% deposit, just as it always used to be. Im sure there'll be HPI again in another 15 - 20 years, but the trick is to buy in the trough, not in the peak

lostinrates

Realy wrote: »

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.

Again, I agree with a lot of what you said. In our instance we plan to buy OUTSIDE London, but would if finances allow, buy a pied a terre in London- if it works out cheaper than renting, other wise DH will just stay lodging,. It adds (currntly) £400 a month to our budget, not an impossible amount in the greater scheme of things. I think you also have to accept we are not talking about the finer London properties being out of reach for all but multi millionaires but rather all but Billionaires. I Don't get me wrong, I have a sense of scale and I know I won't be playing an acordian on the tube train but nither do I expect to ever be not scared about finances. But by accepting that a few million isn't too much today in london we might then appreciate the scale more clearly.

IveSeenTheLight

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.

The problem is house prices in your area.
If you were in a different area, you would very possibly find that it is possible.

ad9898_3

I would like them to go down

Well their are 4 of you at the minute, shame on you, you need to be put in the stocks and flogged:D, I won't count DD, as he was takin the mick I think, .

IveSeenTheLight

GracieP wrote: »

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.

Out of interest, who's living in the better areas, someone must be.

Realy

I would like them to go down

lostinrates wrote: »

Again, I agree with a lot of what you said. In our instance we plan to buy OUTSIDE London, but would if finances allow, buy a pied a terre in London- if it works out cheaper than renting, .

But there you go that is what happens the expanding out process, I think that shows signs of over population.
Whether you like it or not you will cause HPI for someone else by your actions and it is unavoiadable (I am not having a go as it is the times we live in) they then go and do the same as you and so on and so on.
As you say the trick is to buy at the bottom, but most will do that and take advantage of HPI in the future.