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

Kenny4315

kinster wrote:

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.

In strict terms you have the asset but the loan is secured against it.

Asset House £100k

Liability Mortgage Debt £90k

Net Assets £10k

Obviously if you don't pay they will repossess your house.

Kenny4315

Ian_W wrote:

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.

Some of your points seem interesting but show a decided lack of knowledge about economic and fiscal tax matters. For example, point 5, inheritance tax does have a major implication to ordinary people financial matters, particular those who can't shield the inheritance. A house that is currently worth £500k would have been worth around the £250k mark 5 years ago the impact is that those inheriting now have to stump up approx 40% on £245k that's close to £100k that seriously effects the buying power of the person inheriting, while previously it would have been free from tax. Result less buying power.

Although I can afford a £500k house I find it absolutely the most disgrceful circumstance when I have to stump out £20k plus of already taxed income for this privedge, end result I'll offer less. High value houses are suffering significantly at present because of this and the inheritance tax issue, (often the higher priced houses are bought using inheritance as a top up).

If you can't see that current house prices are too high then I am afraid that you need to look at the wage to house prices ratios a little more closely. Average house price approx £170k ish average wage £25k ish, look at the numbers they make no sense whatsoever, it has been speculation, cause by the shift from shares to housing, from the FTSE crash 6950ish to 4300 ish, the move of the smart money is going the other way now and has been for the past year or so. Although investments in houses are assisted by leverage in a rising market the opposite is true in a falling market, which is now the case, I know this to be true from the valuations of my own property which have started to go downwards, around 10% from it peak value.

Can you give me a good reason other than specualtion as to why the market has doubled in five years, there is none. Everyone talks about supply and demand but I do not see that there has been a massive population shift in such a short space of time, and lets face it there are loads more properties now than there where 5 years ago.

Interest rates are low but capital is huge, they need to be low for a very long time indeed to pay off a 25 year mortgage. Also interest rates can not be controlled to any serious extent by the individual.

manhattan

superscotsman wrote:

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

no.

what I meant was a safer area for my wife and kids.

I'm not talking about a mansion or anything ,which there is no way ever we could afford.we would be happy in an average house in an average area.

superscotsman

Only kidding, Manhatten.
On a serious note, even the most exclusive areas can be right next to seedy areas. For example, St Johns Wood in London is right next door to places like the Lisson Green Estate, and the council estate areas of Maida Vale.

manhattan

thats ok,im not rich or anything,by a mile.

just worked my !!!!!! off for the last few years to save and try and get on the ladder!

but only time will tell if that happens?

buss

I'm no expert (Accountant ), but IMHO I believe prices will drop by at least 10% in the first half of 2006.

I have been waiting to buy a second property now for 12 months, but to be honest the current values cannot be maintained and therefore I would be stupid to invest prior to a big drop(IMHO). In lieu of that my best option has been to throw over payments at my existing mortgage.

I know that no FTB can now get on the property ladder and I am hearing more and more about people being made redundant due to consumer spending slowing.

This consumer spending is being halted by the fact that SO MANY people have now become victims of the 0% CC era and are now facing the harsh reality of paying off the debts they have amassed along with the re-mortgage they have taken out on their over-inflated properties. VICIOUS CIRCLE=RECESSION.............It's reality!

It's in lay-men's folks but I believe it's right :eek:

nmiah786

PLEASE CAN WE KEEP THIS A VOTING ONLY THREAD FROM NOW ON. I APPRECIATE THE COMMENTS BUT FOR THIS PARTICULAR THREAD CAN WE LET THE VOTING SPEAK FOR ITSELF!!!!!!!!!!!!!

SORRY IF THIS IS HARSH

I have no admin power so I can't really stop you from commenting but I would appreciate if you do as asked!!!!

monkeydust_2

nmiah786 wrote:

PLEASE CAN WE KEEP THIS A VOTING ONLY THREAD FROM NOW ON. I APPRECIATE THE COMMENTS BUT FOR THIS PARTICULAR THREAD CAN WE LET THE VOTING SPEAK FOR ITSELF!!!!!!!!!!!!!

SORRY IF THIS IS HARSH

I have no admin power so I can't really stop you from commenting but I would appreciate if you do as asked!!!!

whats your problem with comments? its a forum after all.

manhattan

to right monkeydust,its a forum!

Swipe

nmiah786 wrote:

PLEASE CAN WE KEEP THIS A VOTING ONLY THREAD FROM NOW ON.

What an absurd request! What difference does it make to your poll whether there are comments or not?