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Debate House Prices


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Typical wage £20K. Typical house £150K

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Comments

  • Pobby
    Pobby Posts: 5,438 Forumite
    Oh come on. I have a lot of very bright posters on this thread. So answer me this, why has my home increased, 1998 to 2007 by 350%. I dunno and so far no one here knows.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Pobby wrote: »
    Oh come on. I have a lot of very bright posters on this thread. So answer me this, why has my home increased, 1998 to 2007 by 350%. I dunno and so far no one here knows.

    because people have wanted and have been willing to pay more for a house :confused:
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Pobby wrote: »
    Oh come on. I have a lot of very bright posters on this thread. So answer me this, why has my home increased, 1998 to 2007 by 350%. I dunno and so far no one here knows.
    Because you're a genius property investor, of course!
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    edited 16 November 2009 at 12:35AM
    chucky wrote: »
    because people have wanted and have been willing to pay more for a house :confused:


    just to add .......
    people have been wanted and have been willing and have had the financial means to pay more for a house.

    those financial means may be be very high borrowing, dual salaries and help from mum and dad
    but it was ever thus

    basically we need more housing to meet the aspirations of the population
  • Pobby
    Pobby Posts: 5,438 Forumite
    edited 16 November 2009 at 12:35AM
    chucky wrote: »
    because people have wanted and have been willing to pay more for a house :confused:

    Like 350% more? Yea right. Fuel going through the roof, utilities way up as is food. Even my local pub struggles to stay open. The stock market being very hit and miss. Sorry chucky, not convinced.

    Or maybe liar loans, teaser deals, 125% ltv, oh I could go on. Maybe the BOE base rate tells a tale?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Pobby wrote: »
    Like 350% more? Yea right. Fuel going through the roof, utilities way up as is food. Even my local pub struggles to stay open. The stock market being very hit and miss. Sorry chucky, not convinced.

    you don't need to be convinced because it's happened. however many people don't agree with it - it doesn't matter, it's happened. the market price is what is payed for property.

    property will go up again and people will not understand why - it needed to go up by 8% a year to get to 350% in your time period.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Stay_tonight_in_a_lie wrote: »
    I'd heard it got the magnolia look around 2004 maybe this had something to do with it ?

    don't forget laminate flooring and a Honda or a Nissan in the drive - that's what gave property it's value...
  • Pobby
    Pobby Posts: 5,438 Forumite
    chucky wrote: »
    you don't need to be convinced because it's happened. however many people don't agree with it - it doesn't matter, it's happened. the market price is what is payed for property.

    property will go up again and people will not understand why - it needed to go up by 8% a year to get to 350% in your time period.

    Working out that calculation as 8% compound interest I have arrived at a figure of less than !00% increase in price. A bit different to 350%.
  • Pobby
    Pobby Posts: 5,438 Forumite
    chucky wrote: »
    don't forget laminate flooring and a Honda or a Nissan in the drive - that's what gave property it's value...

    Ahhhhh I see. Didn`t factor that into the deal.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Pobby wrote: »
    Working out that calculation as 8% compound interest I have arrived at a figure of less than !00% increase in price. A bit different to 350%.

    i did 16 years - i thought that you meant from the last HPC.
    350% sounds a lot but broken down by compounding by year it's not.
    it's more than most wage rises though - i understand that's where you were going...
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