Once a bear, now firmly a bull? Or once a bull now...

Graham_Devon

So your answer to "where is the money coming from" is the same as mine.

You simply don't know.

That's also my answer!

But when talking about and pushing the idea of HPI, this question is one which I think is prominant. People, as we can see, just don't like it. It's as simple as that. it's why all this starts when you ask it and it causes such a fuss.

Really2

Graham_Devon wrote: »

So your answer to "where is the money coming from" is the same as mine.

You simply don't know.

That's also my answer!

But when talking about and pushing the idea of HPI, this question is one which I think is prominant. People, as we can see, just don't like it. It's as simple as that. it's why all this starts when you ask it and it causes such a fuss.

Well who does for sure either way?

But I would say that in the past houses and economy's generally inflate and would be fairly confident over the next 5-10 years the same will happen again.
But how could I possibly identify where the money would come from? It will be from a number of sources and events that have not happend.

So be decent now tell me why you think the money will not be there and why houses and economy's will not inflate like the past?

As for the last bit grow up. It kicks off because you want someone to tell you the future like a medium?
But you can not explain why they will not go up either, you can not even point out why house prices will turn against there historical progression of inflation.
Or even why they have risen this year.

So if you want a prediction for the next 25 years, your best bet is looking at the last 25 years. But you will not like the answer.:rolleyes:

Or perhaps you could point out to me where the money to inflate gold (other than security and to hedge inflation, something a bit more in-depth) has come from and where it will come from in the future, or silver or coffee. I for one never know when a Saudi Prince is going to shift half his wealth in to gold but if you have got the info it could be useful.

Stay_tonight_in_a_lie

tommy75 wrote: »

Who has changed their opinion of the property market over then last couple of years? Anybody jumped in recently thinking that the bottom has actually been and gone and we are now going to positive house price rises yoy? Or have you just sold thinking we can only be heading for a 2nd leg down?

I normally go with what will get me the most thanks.Can I also say that I think we should put Pasturesnew forward for some sort of award. Most likeable Mse character in my opinion.

Graham_Devon

Really2 wrote: »

Well who does for sure either way?

But I would say that in the past houses and economy's generally inflate and would be fairly confident over the next 5-10 years the same will happen again.
But how could I possibly identify where the money would come from? It will be from a number of sources and events that have not happend.

So be decent now tell me why you think the money will not be there and why houses and economy's will not inflate like the past?

As for the last bit grow up. It kicks off because you want someone to tell you the future like a medium?
But you can not explain why they will not go up either, you can not even point out why house prices will turn against there historical progression of inflation.
Or even why they have risen this year.

So if you want a prediction for the next 25 years, your best bet is looking at the last 25 years. But you will not like the answer.:rolleyes:

Or perhaps you could point out to me where the money to inflate gold (other than security and to hedge inflation, something a bit more in-depth) has come from and where it will come from in the future, or silver or coffee. I for one never know when a Saudi Prince is going to shift half his wealth in to gold but if you have got the info it could be useful.

What extreme lengths are you taking this to now really!?

It's a simple question. Where is the money going to come from to support houses over the next couple of years if we are talking reaching peak again.

You have taken this and gone totally off topic and started talking about mediums etc, telling me to grow up and going totally off topic with another bizzare scenario.

The money at the moment seems to be coming from mum and dad (deposits) and an rise in the amount of lending taking place.

It's as simple as that, AT the moment. But over the course of the next couple of years, with looming tax rises, a new government, and looming higher interest rates, where is the money going to come from to hold up prices if we are talking about not falling below feb 2008 prices.

I don't know why you have to add so much fluff and bluster to the question.

Really2

Graham_Devon wrote: »

What extreme lengths are you taking this to now really!?

It's a simple question. Where is the money going to come from to support houses over the next couple of years if we are talking reaching peak again.

You have taken this and gone totally off topic and started talking about mediums etc, telling me to grow up and going totally off topic with another bizzare scenario.

The money at the moment seems to be coming from mum and dad (deposits) and an rise in the amount of lending taking place.

It's as simple as that, AT the moment. But over the course of the next couple of years, with looming tax rises, a new government, and looming higher interest rates, where is the money going to come from to hold up prices if we are talking about not falling below feb 2008 prices.

I don't know why you have to add so much fluff and bluster to the question.

Really2 wrote: »

But I would say that in the past houses and economy's generally inflate and would be fairly confident over the next 5-10 years the same will happen again.

So if you want a prediction for the next 25 years, your best bet is looking at the last 25 years. But you will not like the answer.:rolleyes:

what else can i do?

You just added the next couple of years comment, but I have already said stagnation not HPI.

Can you explain what a new government will cause and these Looming IR rises (what is looming rises is base going back to 5% soon?)
Also what about inflation, deflation surely that is the biggest factor in all of this?

Nice to know how you see these as a couple of lines is not really explaining it to me.
As I said I can't be sure on future events but you seem pretty determind what you see is right.

IveSeenTheLight

Graham_Devon wrote: »

So your answer to "where is the money coming from" is the same as mine.

You simply don't know.

That's also my answer!

But when talking about and pushing the idea of HPI, this question is one which I think is prominant. People, as we can see, just don't like it. It's as simple as that. it's why all this starts when you ask it and it causes such a fuss.

Just as a quick thought.
Aren't credit card interest rates rising?
There must be a profit generated by the banks from the debt that has been accrued on the cards.
Joe public in general is generating money for the banks.

Also, there must be a significant amount of profit generated from current and savings accounts at historical lows, while the lend out on mortgages at highers rates than they are paying out.

They must be making profits on business loans, car loans any other type of loan etc that they have loaned out (already in existance)

the banks are obviously making money due to their reported profits.
You or I may not know specifically how they do it, but it is clear they can.

some other answers for you: -

http://www.startrungrow.com/information/business/1,7174,how-do-banks-make-money.htm

http://money.howstuffworks.com/personal-finance/banking/bank4.htm

http://www.chicagofed.org/publications/economicperspectives/ep_4qtr2004_part3_DeYoung_Rice.pdf

http://www.ehow.com/how-does_4564407_banks-make-money.html

http://www.extension.org/faq/38218

http://www.consumeractiongroup.co.uk/forum/campaign/47583-how-banks-make-their.html

http://news.bbc.co.uk/2/hi/uk_news/magazine/4781924.stm

It's amazing what you can find with a google search

IveSeenTheLight

Graham_Devon wrote: »

The money at the moment seems to be coming from mum and dad (deposits) and an rise in the amount of lending taking place.

It's as simple as that, AT the moment. But over the course of the next couple of years, with looming tax rises, a new government, and looming higher interest rates, where is the money going to come from to hold up prices if we are talking about not falling below feb 2008 prices.

in terms of house price lending, they only need enough to cover the difference in their lending.

What I mean by this is that they will be issuing new loans and completing old ones.
So say one loan they previously issued is paid off (the lendee remortgaged elsewhere) for say £100k.
they then issue a new loan for £125k.
Although they have loaned £125k, they are only seeing a difference on their books of £25k.

I'm sure you could run a search and see the profits the banks have posted and the new amount of money being set aside for mortgage lending.

Your asking "Where is the money coming from?" In part, they already have it. Especially for the lower level of transactions we have seen

cootambear

Pobby wrote: »

Still very much a bear. Still my question has not been answered. Why from trough to peak did my house go up 350% in price. Makes no sense to me.

Lack of supply to meet demand. You can blame Thatcher for selling off council stock. In fact if theres any problem, blame her and you`ll get in right about 95% of the time.

the_ash_and_the_oak

cootambear wrote: »

Lack of supply to meet demand. You can blame Thatcher for selling off council stock. In fact if theres any problem, blame her and you`ll get in right about 95% of the time.

Don't really understand this. When it was council stock none of it was for sale. Now those houses are available to buy and sell. Surely this has added houses to the buy/sell pool rather than taken them away?

hearts

Stagnation, I can smell it. Sort of Minotaur me ;-)