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MSE News: Nationwide says house prices at 2008 levels
Comments
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That was the insinuation BY the OP.
Food is more, gas is less.
Inflation of commodities very dependant on the price not just the exchange rate for inflation/deflation.
So the op was talking about commodities then?
I thought the £ was being keep low to boost international trade and to keep some inflation.
Inflation is still dropping as everyone forgot that?
But we don't import houses so the cost as living would have gone up for everyone not just home owners? So i am failing to see yours or the OP's point.
Eh? The OP? I was commenting on your response to Mr Mumble.
Mr Mumble commented thus....By chucking money out of the proverbial helicopter (QE and negative real interest rates) the BoE have managed to increase nominal prices. Anyone who thinks the value of their property is back to September 2008 levels has been duped.
You responded by decrying this as we only deal in £'s.
He is clearly getting at the fact that your £ buys less than it used. Whilst our houses have recovered to 2008 levels in nominal terms that would buy far less of "an average item" than it would have in 2008.
Now obviously you can point and say but the gas has gone down 10% since then but elsewhere it has gone down by 30%. We can all find items it doesn't apply to or applies to to a lesser degree but the average still holds true. We are "poorer" for our £ being worth less, it just doesn't feel too much like it as it affects everyone in the country.
The fact remains, we are worse off in total relative terms because the pound is worth less.
I agree it is difficult to measure this, or to even feel its effects, seeing as most of us really only deal in £'s but its true.0 -
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JonnyBravo wrote: »Indeed, but all the more reason to distance yourself from those you thought rude rather than become one of them.
It's payback time.0 -
JonnyBravo wrote: »Eh? The OP? I was commenting on your response to Mr Mumble.
Mr Mumble commented thus....
You responded by decrying this as we only deal in £'s.
He is clearly getting at the fact that your £ buys less than it used. Whilst our houses have recovered to 2008 levels in nominal terms that would buy far less of "an average item" than it would have in 2008.
Now obviously you can point and say but the gas has gone down 10% since then but elsewhere it has gone down by 30%. We can all find items it doesn't apply to or applies to to a lesser gegree but the average still holds true. We are "poorer" for our £ being worth less, it just doesn't feel too much like it as it affexts everyone in the country.
The fact remains, we are worse off in total relative terms because the pound is worth less.
I agree it is difficult to measure this, or to even feel its effects, seeing as most of us really only deal in £'s but its true.
he did make a point but didn't really present it very well. if he hadn't of mentioned house prices - he would have been fine.
you could compare then price of petrol in 1980 to what it is now.
do the same with housing and it makes houses look cheap (which they're not) as the percentage increase is less.
you're point and Mr Matey's about £££ purchasing power is spot on but not the rest of his post.0 -
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
he did make a point but didn't really present it very well. if he hadn't of mentioned house prices - he would have been fine.
you could compare then price of petrol in 1980 to what it is now.
do the same with housing and it makes houses look cheap (which they're not) as the percentage increase is less.
you're point and mr Matey's about £££ purchasing power is spot on but not the rest of his post.
Hmm.... maybe it wasn't presented as well as it needed to be to be clear for all but it is valid to state your house isn't worth what it was in 2008, even though the £ value is exactly the same. (And that is even discounting inflation).
He could have picked any object but seeing as we talk about house prices more than anything else I thought it worked ok.
Unless you've invested in something that has appreciated at a rate faster than sterling has lost value (circa 20-30% depending on comparison) you can argue you are worse off than in 2008.
As I said before though..... it's all slightly intangible and doesn't feel like it as we mostly deal with others in exactly the same position and deal in £'s.0 -
I've got a nice property available, exactly the same as yours, you'll still have that smallest bedroom and a place for the dog to stay, its located in the Tora Bora but that doesn't seem to be a problem for you.chucknorris wrote: »Yes this is a good point, sorry guys but you are no longer allowed to use the smallest bedroom in your property (if owned), it's not my fault, but as stated your property is not worth what it was so obviously you can't enjoy your home as you did pre-crash.
Does anyone mind if my dog continues to sleep on the lounge floor, he much prefers it to his box in the kitchen.
If you're buying residential property in the UK then that is an investment in the UK and the specific locale. You're paying for land, strict planning regulations, infrastructure, freedom of movement, law & order, higher wages, flexible labour et al. The last thing you're paying for is bricks and mortar.
I refer the honorable gentleman to Hamish's posts!celebrating would imply that there is a party, a celebration or even people rejoicing.
the only place this may be happening is in your mind :rolleyes:"The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.0 -
celebrating would imply that there is a party, a celebration or even people rejoicing.
the only place this may be happening is in your mind :rolleyes:
More relief that it wasn't too bad speaking for myself (although perhaps slightly tinged with a smidgen of quiet inner celebration)Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
I refer the honorable gentleman to Hamish's posts!
http://www.youtube.com/watch?v=YwEMxYggoKQ
:beer:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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