with the help from government, would house price go up soon?

wsharp

As we noticed there will be more new policies from the government since next month to help FTBs, we are a bit worried that house price might go up again...

Cleaver

wsharp wrote: »

As we noticed there will be more new policies from the government since next month to help FTBs, we are a bit worried that house price might go up again...

I think you could send £5k in a cheque to every first time buyer in the country and the market would still find it's natural level, which is certainly still below what it is now. The government don't seem to recognise that.

Having said that, house prices will go up again. And then down. Followed by another up. Then down again. Then they will...

dopester

You've got incredible levels of government debt, incredible levels of personal debt, an economy which boomed on the back of that, together with MEW.

It is all unwinding, with the banks bleeding, companies going under, rising unemployment and pay-cuts.

Home-owners who think current price-levels can be supported anywhere in the current fantasy realm remind me of the end Bruce Willis scene in The Sixth Sense when he came to the full shocking realisation he was actually dead.

Sometime soon home-owners they will come to the terrible realisation their homes are worth only a few percent of current prices, because the underlying economy can no way support old-world house prices.

PasturesNew

You're for awhile, at least 2011... then they won't shoot up.

There's a lot of debt in the system that will take years for people to recover from.

the_ash_and_the_oak

Needs a payrise for anything like this to happen imo

mewbie_2

Do you seriously think government help will achieve anything? Take a look around, I think about 500 billion spent so far, may be wrong but it's a helluva lot more than we actually have. See anything achieved? Anything. Anything at all?

We might be doing a lot better if the government didn't 'help'.

Generali

Cleaver wrote: »

I think you could send £5k in a cheque to every first time buyer in the country and the market would still find it's natural level, which is certainly still below what it is now. The government don't seem to recognise that.

Having said that, house prices will go up again. And then down. Followed by another up. Then down again. Then they will...

In Aus as a FTB you get $24,000 cash back from the Govt as an FTB (in NSW) if you buy a new place and $14,000 if you buy second hand (usually FTBs get $7,000). They have also suspended stamp duty.

This has caused a big boom in sales to FTBs, especially with falling interest rates. It is now far cheaper to buy than to rent, especially as there seems to be a genuine shortage of rental places in most areas.

That led to this article in The Telegraph (the Daily Mail of Australia IMO):

http://www.news.com.au/dailytelegraph/story/0,22049,25222434-5001021,00.html

dopester

Generali wrote: »

In Aus as a FTB you get $24,000 cash back from the Govt as an FTB (in NSW) if you buy a new place and $14,000 if you buy second hand (usually FTBs get $7,000). They have also suspended stamp duty.

This has caused a big boom in sales to FTBs, especially with falling interest rates. It is now far cheaper to buy than to rent, especially as there seems to be a genuine shortage of rental places in most areas.

That led to this article in The Telegraph (the Daily Mail of Australia IMO):

http://www.news.com.au/dailytelegraph/story/0,22049,25222434-5001021,00.html

I still wouldn't buy. Cheaper to buy than to rent - for the moment.

Government dishing out big bribes to artificially try and support the housing market.

Looks like deep trouble to me.

chewmylegoff

to make house prices start to rise (in real inflation adjusted terms), the banks will need to suddenly become willing to lend 5x / 6x income to people with small deposits. unless that happens, house prices will continue to fall.

if people are given the ability to borrow they will continue to buy overpriced houses, such is the british fascination with buying over renting.

Wookster

dopester wrote: »

Government dishing out big bribes to artificially try and support the housing market.

Looks like deep trouble to me.

Agree to that - house prices in Australia (what I saw anyways) were hugely expensive.

chewmylegoff

dopester wrote: »

I still wouldn't buy. Cheaper to buy than to rent - for the moment.

a lot of other people would though, and the only reason they aren't is that they can't.