House Price Increases-what for?

Graham_Devon

chucky wrote: »

you certainly are plucky - got to give you that. you trying to prove a fantasy argument that has no bearing at all on today or 20 years ago - you can't compare what you're saying.

btw don't they have inflation or salary increases in your fantasy world?

You tel lme what inflation has to do with the scenario discussed and how it applys to LTVs vs Interest rates. We can go from there.

If we can't compare 20 years ago to now....then why were you comparing it saying it probably harder back then??

You are so fixated on the figures you provided yourself, that you fail to see the point.

Really2

Graham_Devon wrote: »

I showed WHY I stated I would rather have high interest vs low multiple.

Why for your hypothetical £80K wage you are paying £510,000 for that £160K house at 12% after 25 years.

Give me 5% any day.

chucky

Graham_Devon wrote: »

You tel lme what inflation has to do with the scenario discussed and how it applys to LTVs vs Interest rates. We can go from there.

good to see that you've now given up on your silly romantic salary multiple argument and are focusing on inflation...

inflation is determined by a number of factors which include salary increases and obviously HPI...

Graham_Devon

Really2 wrote: »

Why for your hypothetical £80K wage you are paying £510,000 for that £160K house at 12% after 25 years.

Give me 5% any day.

How much you pay overall also has nothing to do with the point raised. The point raised was about how much of your monthly income goes on the mortgage.

Unless you are in control of interest rates, you have little choice over how much you pay over 25 years in interest.

Keep muddying.

chucky

Graham_Devon wrote: »

How much you pay overall also has nothing to do with the point raised. The point raised was about how much of your monthly income goes on the mortgage.

don't worry about the amounts of money you're paying back on your mortgage everyone!!
it deesn't matter apparently!!!

Really2

Graham_Devon wrote: »

How much you pay overall also has nothing to do with the point raised. The point raised was about how much of your monthly income goes on the mortgage.

Unless you are in control of interest rates, you have little choice over how much you pay over 25 years in interest.

Keep muddying.

Graham_Devon wrote: »

Yes, and I would rather have a mortgage 2x my salary at 12%, than I would 5x my salary at 5%.

Graham I have not got a clue what you are on about but the above quote clearly states what you wrote.

A person on 5X salary would pay virtually half for there house overall.

I cant set rates, but you seem to be able to set wages and rates.:rolleyes:

I am going to discuss the point of pumpkins with a swede.

chucky

Really2 wrote: »

Graham I have not got a clue what you are on about but the above quote clearly states what you wrote.

A person on 5X salary would pay virtually half for there house overall.

I cant set rates, but you seem to be able to set wages and rates.:rolleyes:

I am going to discuss the point of pumpkins with a swede.

give up now Really - i'm pretty sure even Reweird is getting embarrased with him not understanding the most basic things

the_ash_and_the_oak

Really2 wrote: »

Why for your hypothetical £80K wage you are paying £510,000 for that £160K house at 12% after 25 years.

Give me 5% any day.

assuming that anyone borrowing at a time when rates are 12% isn't going to be taking on a 25 year fix imo

Really2

Surely the point is as with any industry things get cheaper based on the amount of transactions .

The whole point is credit is one of those things.
With 70% ownership of housing stock (and increasing) the demand for credit will always be there.

Also debt acts as a limiter for inflation in the future, if rates do go up in the future (due to inflation because of oil etc) the knock on effect is deflationary (people spend less because they have less money).

Rates then fall again and off we go again, I think the days of 12% IR are gone for a long time because the need or affordability for it is no longer there.

I find the argument that is better that plasmas, holidays 4X4 and general tat is a better way to spend your money mad considering what the world as been through.

Celebrity magazines have a lot to answer for.

Graham_Devon

Chhhhhrist!

In 1970, for instance. House price vs loan amoutn was roughly 2.5.

In 2007, house price vs loan amount was roughly 5.5x.

Everyone is taking things totally out of context. The 80k stuff was merely demonstrating the scenario in 1970. The wage, vs the house cost. If today was the same my wage would be 80k.

It's as simple as that. It's NOT saying I want a wage of 80k, or making anything up. It's looking at the average salary vs house price back then, compared with now.

It's THAT simple. If we were living under the same circumstances now as we were in 1970, the house price would be 165k, meaning the wage would be circa 80k.

Therefore, I would rather buy a house at 2x my wages than at 5x my wages.

Talk about taking things out of context with the chucky and really show yet again.