"Why I hate high house prices"

Lotus-eater

HAMISH_MCTAVISH wrote: »

1.) Bad for businesses

Untrue... Good for businesses. Up to 8% of consumer spending was from MEW, and a booming housing market creates tremendous need for all sorts of household furnishings, appliances, consumables, etc.

Yes excellent, begot a complete new wave of businesses that couldn't/can't survive when or if the supply of borrowed money is cut off.

Yakubu22

Can i just follow up here H-man?

HAMISH_MCTAVISH wrote: »

2.) Bad for first-time buyers

Untrue.... The biggest barrier to entry into the housing market is not the house price, it is the deposit size. Far more potential FTB's could have bought a house in 2007 than can today, due to the excessive size of deposit that the crash has caused.

eh? How can high house prices ever be a good thing for FTBs???

HAMISH_MCTAVISH wrote: »

3.) Bad for labour mobility

True.

So you agree then?

HAMISH_MCTAVISH wrote: »

4.) Bad for rural, coastal and tourist areas

True.

So you agree with this too?

HAMISH_MCTAVISH wrote: »

5.) Bad for saving (but good for borrowing)

True, but thats swings and roundabouts,

And you also agree with this? ("swings and roudabouts") :T

HAMISH_MCTAVISH wrote: »

6.) Bad for a large slice of society

True, but good for a larger slice of society. HPI benefits more people than it hurts.

i.e. it benefits people who have a home they can afford to keep. But you agree though?

HAMISH_MCTAVISH wrote: »

7.) Inflation is always bad for your wealth

Untrue. Inflation is only bad for your wealth if you haven't invested in an inflation proof asset, like housing.

This logic sounds like "guns are good for you, providing you don't point them at your own head"

Pobby

Tbh, I am in the position that I don`t pay a mortgage or rent hence this gives us a number of choices.Clearly we don`t need to earn as much as when paying a mortgage but we do carry on as though we have one thus saving money each month.

We are not great spenders and although we are paying out a fair amount at the moment it`s being spent on home and garden improvements which, in part, might be recouped when we move.

Business is quiet, well it is for most people I know and although it was nice to draw £40k a year in wages there is no way I can do that now, will be fortunate to get half of that this year. I have friends who have to make a fair bit of money each month just to cover their costs.

When things first dropped off I was miffed and it took a long time to realise that I didn`t need to earn big bucks.

lethal0r

uneducated and greedy homeowners think high house prices are a good thing.

how on earth can anyone think high house prices are not bad for first-time buyers oh my :huh:

purch

2.) Bad for first-time buyers

Untrue.... The biggest barrier to entry into the housing market is not the house price, it is the deposit size. Far more potential FTB's could have bought a house in 2007 than can today, due to the excessive size of deposit that the crash has caused.

Much as I find discussing House Prices as boring as discussing knitting patterns.........

I have to take issue with this response.

How can high prices not be a barrier to first time buyers ??

Are you saying that if an average 2 bed terrace was £500,000, that the only thing stopping a young first time buyer purchasing it would be the fact that he/she might need a £100,000 deposit ??

The £400,000 Mortgage would be a 'doddle' to arrange and finance ??

Generali

purch wrote: »

High in comparison to what ??

Other countries?

Tell foreigners that a poky 2 bed terrace in a halfway decent London suburb can easily cost £350k or even more and they look at you like you're mad.

inspector_monkfish

Generali wrote: »

Other countries?

Tell foreigners that a poky 2 bed terrace in a halfway decent London suburb can easily cost £350k or even more and they look at you like you're mad.

what would an equivelent poky 2 bed terrace cost in a halfway decent Paris/New York/Madrid suburb or any major european city cost?

purch

Other countries?

I was just asking, to try and put some perspective on the thread.

One persons high price might not be another persons.

...........another reason I don't bother entering these 'back n forths' as everyone has a different perspective, yet no one appears able to realise it !!!!

lemonjelly

I think the relationship should be in comparison to wages. If high house prices are compared to low wages, surely the general consensus would be that it is unsustainable.

Seems I've tried to answer purch's point, though hadn't seen his post at time of posting...

inspector_monkfish

2 bed appartmant in paris....

eur 1.176 million... (just over a million quid)
http://www.rightmove.co.uk/overseas-property/property-22575277.html?locationIdentifier=WORLD_REGION%5E164107&sortByPriceDescending=true&minBedrooms=2&maxBedrooms=2&pageNumber=1&fromSummary=true&backToListURL=%2Foverseas-property%2Ffind%2FFrance%2FParis.html%3FlocationIdentifier%3DWORLD_REGION%255E164107%26sortByPriceDescending%3Dtrue%26minBedrooms%3D2%26maxBedrooms%3D2