Steady increase in June house prices

mbga9pgf

Mid 2010-2011 TBH is when I am expecting the carnage too chucky. Post election, not going to be pleasant.

chucky

StevieJ wrote: »

If any sane person had come out with some of the crap he has today I think they would have kept their head below the parapet for a couple of days. To be fair to Dev he is still there slugging away - respect :T

he's not covered himself in glory today - hopefully he'll have had a lay down, a good sleep and will realise the error of his ways today.

carolt

ess0two wrote: »

Bit like the neighbours jack russell,how ever many times you kick it off,it still attempts to mount yer leg again.

What a typically erudite post.

Do you post anything that isn't a childish playground slur?

biglugs

Doing a quick calculation based on a couple both earning 20k, with a 10% deposit and and a interest rate of 6 %, I make that 26% of net salary not exactly onerous.

The missing factor I see is AVAILABILITY. Even if there were two people, with no kids, both in secure jobs on £20k each, and they had a 10% deposit, NO company is going to lend them anything like 4 or 5 times their annual incomes. Those mortgages are just not available, so probably 3 times is best they can expect - £120k, so max house price they could afford would be around £135k.

Here in Oxfordshire that wouldn't get you a caravan, let alone a house of any description, for that kind of cash and no-one in their right mind would buy a 1 bed flat at the minute (and definitely not any "starter homes").

Those arguing the supply vs demand = permanent price increases should realise that the supply side is constrained by access to credit, and the demand side is really DESIRE and there are substitutes available (shared houses, renting, living at home etc.) which they do in replacement of the desire to own a house.

House prices for many FTBs are still well out of reach, and we haven't even got to the nasty bit yet - when the next government massively cuts public sector spending (i.e. huge job losses) and massively increases taxes and cuts benefits.

2010/11 is going to be very unpleasant, so difficult to see any return to soaring house prices.

IMO I would be happy to see house prices halve - it is better for everyone if you pay less for your home, and you have the spare cash to invest or spend on other things. Your home is NOT an asset - you can't realise it, and it isn't your pension, so stop thinking of it as having value. It is just a different way of living to renting.

ess0two

carolt wrote: »

What a typically erudite post.

Do you post anything that isn't a childish playground slur?

????? i could start digging up some of your classics if you wish?

lostinrates

chucky wrote: »

but the lower earners within these groups will be impacted more and more painfully.

More painfully I'd agree with, but statistically some of the richests have ''lost more''. Of course its possible to lose 50%, 70% or whatever, of a massive wealth and not feel any pain at all.

biglugs

Of course its possible to lose 50%, 70% or whatever, of a massive wealth and not feel any pain at all.

As a society we REALLY need to get away from this assumption that your home is an investment and therefore any increase in its "value" represents "wealth".
It is not an asset in the way that cash or shares etc. are. It is not liquid, and you cannot simply move that investment from one asset class to another.
We have been brainwashed by the BBC and Channel 4 into thinking that rising house prices is good for everyone, when the exact opposite is actually true. It is far better to pay less for where you live than it is to pay more. The money saved can be spent on actual productive things, or invested in liquid assets that you can move around if the investment climate changes.

wheresmydoshat

^^ so true, most homeowners i know my age struggle to afford a decent night out, yet not so long ago if they did manage it you'd sure hear about how they'd "made £20k in the last year" on their house.

mines a pint please. oh, your off so soon ?

1echidna

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1echidna

Sorry folks, just testing, never succeeded in posting a pic before.