First it was dead cat bounce

Graham_Devon

Pobby wrote: »

House prices should have never got to point where they did. Don`t have to look around this site very much to see the kind of situation that some are in due to buying expensive houses.

Thing is, ask people on here whats good about house prices rising like they did, or house prices being too high and not many come forward.

Ask people whats bad about high prices or whats bad about them rising like they did, and you can get pages worth.

DiggerUK

Would it be OK for me to say we don't give a rats @rse what happens to house prices. I think it's something to do with being mortgage free.

Anyway a recent survey showed that 9 out of 10 owners who owned a p()ssy, said they were quite happy to have it bounced.

dfh

I feel sorry for youngsters these days.A small one bedroom flat costs 100000 and they are expected to cough up 25000 as a deposit.Where on earth are they going to come up with that kind of money? House prices either need to fall or stagnate so that wages can catch up.

mizzbiz

dfh wrote: »

I feel sorry for youngsters these days.A small one bedroom flat costs 100000 and they are expected to cough up 25000 as a deposit.Where on earth are they going to come up with that kind of money? House prices either need to fall or stagnate so that wages can catch up.

Especially when you think that a few years back, that deposit would have paid for that flat outright, the deposit would have been £6250 and the entire mortgage 19k.

I long for those days back - I truly cannot understand why people do not think that that is a good thing!

Anyway, was thinking about this. Over on the House buying board you're seeing endless threads from newbie landlords aghast at the way their tenants have treated them and asking advice for simple things like 'my tenant did a runner over night and now I can't afford the mortgage'. I really think that the pressure on the bottom of the market should ease from the fall in BTL and everything else should adjust accordingly.

dfh

mizzbiz wrote: »

Especially when you think that a few years back, that deposit would have paid for that flat outright, the deposit would have been £6250 and the entire mortgage 19k.

I long for those days back - I truly cannot understand why people do not think that that is a good thing!

Anyway, was thinking about this. Over on the House buying board you're seeing endless threads from newbie landlords aghast at the way their tenants have treated them and asking advice for simple things like 'my tenant did a runner over night and now I can't afford the mortgage'. I really think that the pressure on the bottom of the market should ease from the fall in BTL and everything else should adjust accordingly.

I agree.We should go back to the times when a house was a home and a place to live,not an investment you lived off.People lived in their homes and worked hard for their money.Pity we can't have it back.

wolvoman

PasturesNew wrote: »

If we could all spend just 20% of take home pay of one person to put a roof over our heads, just think how much GDP would be produced when we went out and spent our money on going places, buying things etc... instead of sitting in with the lights out.

You utterly miss the point.

If YOU (PasturesNew) decide that you only want to spend 20% of your take home pay on property then that is fine. And you may spend much of the rest on going out - again your choice.

But suppose someone who earns a similar amount decides that having a nice house is more important for them than going out, and they then decide to spend 40% on housing.

Then suppose many people think that way. It creates demand for housing that would push prices up.

The market decides what the prices for houses are. Not some individual's wish to only spend 20% on property. The market decided that prices inh 2007 were too high and so prices have come down. The market decided in Feb 2009 that prices were too low and so have risen again.


Stop trying to tell people how much they should spend.

nearlynew

wolvoman wrote: »

You utterly miss the point.

If YOU (PasturesNew) decide that you only want to spend 20% of your take home pay on property then that is fine. And you may spend much of the rest on going out - again your choice.

But suppose someone who earns a similar amount decides that having a nice house is more important for them than going out, and they then decide to spend 40% on housing.

Then suppose many people think that way. It creates demand for housing that would push prices up.

The market decides what the prices for houses are. Not some individual's wish to only spend 20% on property. The market decided that prices inh 2007 were too high and so prices have come down. The market decided in Feb 2009 that prices were too low and so have risen again.


Stop trying to tell people how much they should spend.

I think you have missed the point.

using your example...........
If someone of similar income to pasturesnew wants to spend a higher proportion of their income on a house then they buy a bigger or "better" one.

That doesn't have to drive up the price of pasture's house.

dfh

There is no way 100,000 for a one bedroom flat can be considered too low.It borders on the ridiculous.

wolvoman

dfh wrote: »

I feel sorry for youngsters these days.A small one bedroom flat costs 100000 and they are expected to cough up 25000 as a deposit.Where on earth are they going to come up with that kind of money? House prices either need to fall or stagnate so that wages can catch up.

I presume you're talking about the south-east for a 1-bed flat to cost £100k?

In which case you'll find that avg twentysomething wages should be enough to save £25k over 2 or 3 years. Quicker if it's a couple.

Of course there's also bank of mum and dad in many cases.

wolvoman

nearlynew wrote: »

I think you have missed the point.

using your example...........
If someone of similar income to pasturesnew wants to spend a higher proportion of their income on a house then they buy a bigger or "better" one.

That doesn't have to drive up the price of pasture's house.

And how do you propose keeping prices low enough to enable that?