Moneyweek - UK house prices will plummet: look at this scary chart

pandamonia

fact is that this country is worse off now than in the year 2000 and prices of houses should reflect that. our GDP is shrinking and the FTSE is reflecting a current market of real values of company shares. peoples earnings are going backward and unemployment wont recover for years. you need to work out the average price without this super bubble since the millenium, this insane gains have to be reversed before we get back to normality. and we are no way close to normality yet

StevieJ

I thought the Halifax had income multiples at 4.4, long term average 4.0, also interest rates are low, doesn't look much that a spot of normal lending wouldn't put right

tomterm8

Zagu wrote: »

That graph is becoming a parody of its self.

I like that graph, because I know any article with that graph in is not worth reading.

StevieJ

nickmason wrote: »

These graphs are rubbish. "Virtual Mirror" my backside. It suggests that the bubble cycle is from 1973-c2015; 40 years?! If you wanted to map it from about 1993, then it would actually corrolate a little better; you see a first sell-off around 2003/4. But it is still a vastly oversimplified view - this is really tabloid stuff.

Which is confirmed by his intriguing house price/ftse graph. I quite like it, it tells a story, but also he claims it illustrates a long term mean of 10. Not to my eyes.

It's all bunkum. Well, hyperbole, anyhow.

Nick, I have to say that your posts are quite even handed for a Tory, unlike many on here :T

penguine

pdel61 wrote: »

It's only a mistake if you regard buying a house as a way of making money instead of a place to make a home and to enjoy with your family.

It's possible to regard a house as a home, while simultaneously not wanting to pay too much for it.

But I was pointing out what I thought the author of the Moneyweek article was implying (not presenting it as my own opinion).

Really2

MMMM

Should I sell my house. Rent the equiverelent house for over 7X more than what the intrest only part of my mortgage is.

Then invest the cash from the sale in shares?

Easy answer... No chance At least I know my house will still be standing at the end of the crash, a few wrong decisions on shares means I could lose a hell of a lot in a very short time.

Yes if you hold the shares long term perhaps you will be better off but how much money will I have lost on rent?

nickmason

StevieJ wrote: »

Nick, I have to say that your posts are quite even handed for a Tory, unlike many on here :T

Thank you.

I have a dream. That one day, people will look to us Tories again as the sane, not just the rabidly furious; that they will see Labour as no longer of the common person, but as the con trick that I believe they are. It has always driven me mad that bad "right-inclined" people are perceived as evil, whereas bad "left-inclined" are perceived as well meaning but wrong. It is a patronising and deeply dangerous approach.

For that to happen, being even handed is the least of our required disciplines! I'm probably also constrained to some extent by the fact that I am an elected councillor and am not anonymous on here, so everything I say will no doubt be recorded and used against me. Not something I like, but it probably does moderate me a bit.

StevieJ

Not so much evil as greedy and self centred Are you looking to be an MP?

ukcarper

since when has new labour been left inclined ok may a degree or so

nickmason

StevieJ wrote: »

Not so much evil as greedy and self centred Are you looking to be an MP?

Not currently, but maybe one day, should the will of the people..etc...etc...

To be honest (ah, a refreshing change ) , I don't know. I opened the Pandora's box of politics, and can't easily extract myself from it. On the other hand, I don't actually want to be universally loved, I don't have the ego, nor the charm... and actually I love days when my phone isn't red hot. I think successful politicos have a need to be needed, which drives them. It's a bit more visceral than the "do some good" public service calling.

Hey - I'll regret posting this, I'm sure.