Do You Expect House Prices To Increase In Over The Course Of The Next 12 Months?

Rave

Well said Kenny, I quite agree, although I reckon a fall of 30+% in real terms is more likely:) (not all in one year though).

kinster_2

Kenny4315 wrote:

... problems on the horizon for those who have too much debt in relation to their assets and in particular to their liquid assets (ie cash or near cash equivalents).

Not their asset. If they borrow for an asset, it's the bank's asset as it is in their asset column, but in the borrowers liability column.

Ian_W

Kenny4315 wrote:
1. Prices have reached to high a level.
2. Buy-to-let no longer attractive considering potential capital loss/minimal gain.
3. Stamp duty (loads of loot to pay for nothing £300k = £9k, £500k = £20k)
4. Earnings to borrowing near all time high.
5. Inheritance Tax
6. No more pension shield.
7. Gap between purchases massive even with loads of equity
8. Pressure on UK interest rates
9. Pressure on employment
10. Pressure on Inflation

1. What's too high a level? Peeps still buying and selling, low levels of repo's in historical terms.
2. Peeps still buying 'em. Though I wouldn't, but I may go for a furnished holiday let this year.
3. Stupidly disfunctional & disorganised tax but if you can't afford £20k, you can't possibly afford buying for £500k!
4. And interest rates still very low.
5. What's that got to do with the price of fish? You only pay it when you're dead [as a couple when you're both dead], not too many dead people buy houses IMO, the beneficiaries only pay it on £250k plus and that's increasing by + inflation.
6. If you mean SIPPS, there never was. It wouldn't have started until April 06 and was never, ever going to have an affect on mainstream market.
7. Not sure why that would cause a decline, might mean more moves to get to the ulitimate.
8. Seems to be downward ATM with many forecasting 2x 0.25% drops through next year.
9. OECD [who say UK house prices are overvalued] forecasting increased growth in 06 & 07.
10. Again seems downward following oil prices rises working through.

My forecast, rise by inflation to 5%. No crash in 2006 unless unforseen events cause a recession which will cause a crash.
Anyway, :xmassign: ... I'm off to get blathered!! :santa2: :snow_laug :xmassmile :snow_grin

nmiah786

Thank you all for voting so far and also the comments.

I appreciate that everyone has their views on the subject and would like to add their comments but can we keep to the voting and less on the commenting.

Lets see if we can get roughly 100 people voting. PLEASE KEEP VOTING

:xmassign:

manhattan

i voted no!

prices cannot go much(if any)further at the minute.

im a first time buyer,with a very big deposit on a good wage,but i am not interested in buying at the moment.(too much risk in my eyes)

especially a small house in a rough area which is all we can afford.
there is no way EVER i would buy or live in that sort of area.
i will carry on saving and watching,whilst i pay a very cheap rent in a decent area in my city, until the right time arrives to buy.

if that time never arrives,i will live it up on my savings! lol

devils_advocate

Not their asset. If they borrow for an asset, it's the bank's asset as it is in their asset column, but in the borrowers liability column.

Not quite. If a person borrows to buy a house, the house is an asset and the borrowing is a liability. Because the theory of double entry bookeeping means that for every asset there is a liability, assets and liabilities must always match. If the asset increases in price, the difference on the liabilities side is profit. However, if the asset goes down in price, the difference is a loss.

On the banks books, their asset is the borrower's liability, whilst the bank's liability is to whoever provided the funds which they could lend to the borrower.

superscotsman

manhattan wrote:

especially a small house in a rough area which is all we can afford.
there is no way EVER i would buy or live in that sort of area.

Yeah? You think you're better than folk like us?

monkeydust_2

voted yes - although predict low single figures growth - barring any *disasters* it looks like we will have a few years of stability - there needs to be some large internal or external shock to the current system for a large crash or another boom.

nmiah786

The comments are appreciated but the VOTING is what is more important for this thread,so please keep voting.

Thank you to all who have voted so far, 62 people so far.

The result so far is definately very interesting!!!!

deemy2004

For house prices to rise durign 2005 and I'm talking more than a pcent or two, the economy needs to grow strongly i.e. at 3% or more, the signs are that it will likely grow below 2%... although this will reduce the chances of falling house prices, it won't help them to rise.

Offcourse the GDP forecasts are out on either the upside or downside which may happen then yuo could get a rise or fall in house prices.

Key here is crude oil prices, which will likely fall during the first half of 2006 and then rise during the second - So suggests during the first half house prices will hold up and during the 2nd half fall a little.