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Debate House Prices


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where do you think house prices will be in 10 years?

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Comments

  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ad9898 wrote: »

    I know it's against what we have been brainwashed to think in the last 10 years, but nothing really has changed, debt is not wealth.

    Neither is rent :D unless you are receiving it.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    hundredk wrote: »
    Thats because salaries increased as fast if not faster than house prices so salary:house price ratio did not increase.

    Income 1974 = £2916, Income 1979 = £6000, = x2.06 increase
    Income 2002 = £26644, Income 2007 = £35549 = x1.33 increase

    House prices increased by approx by x1.75 for both periods, so ppl taking higher % of income to buy their house or get better property quicker.

    http://www.mortgageguideuk.co.uk/first_time_buyers/mortgage-income-ratios.html

    Can't see income increasing at 70's rates either.

    I can only speak from experience but in 1972 houses in the road I bought went from £5350 to£10,000 and wages certainly didn’t follow suite. I am not saying high multiple value mortgages don’t effect house prices I think they do but just that with strict borrow rules in place houses can rocket. I notice the figure you use are late 70s
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ad9898 wrote: »
    Disagree with this, ironically it doesn't matter where you step on the ladder, but what is pretty much a certainty is that when you move 'up the ladder' you are taking on more and more debt. So even though you may feel richer, unless you have won the lotto or been given some inheritance the chances are you will be poorer.

    It's a bit like 'rich Bev & Kev' and 'poor Bev & Kev' in that crappy daytime advert, when they pulled up by the side of each other at the traffic lights, the advert portrayed 'rich Bev & Kev' were better off because they had a newer car, that facts were they were poorer, because their newer car was funded by more debt.

    I know it's against what we have been brainwashed to think in the last 10 years, but nothing really has changed, debt is not wealth.

    in real terms your dept will be the same ie if your wages only increase with inflation and the same rules are applied when you get your mortgage the mortgage only increas by the same percentage
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