Low interest rates will support house prices until 2014

chucky

the_ash_and_the_oak wrote: »

If I owned an asset I would want it to increase imo - don't see a problem with that

to be more specific i don't care if my home increases in value. it doesn't matter, it won't change anything for me.

as for investment property - i know it will increase in value over time.

Really2

the_ash_and_the_oak wrote: »

If I owned an asset I would want it to increase imo - don't see a problem with that

At least keep up with inflation, if it does not keep up with inflation it is deflating in real terms.

But personally my main reason for purchase was to nest and have a rent free retirement. HPI is fairly irrelevent unless I sold up and lived on the cash.

abaxas

chucky wrote: »

as for investment property - i know it will increase in PRICE over time.

Dont confuse value/price, they are not the same thing.

the_ash_and_the_oak

chucky wrote: »

to be more specific i don't care if my home increases in value. it doesn't matter, it won't change anything for me.

as for investment property - i know it will increase in value over time.

Well even if it was my own home (I might need to move and I'd prob want to have made some money on it for whatever I might do next - plus to at least pay for the costs of owning it)

I guess after having owned something 6-7+ years (and certainly 10) I prob would be less interested in it rising

Graham_Devon

StevieJ wrote: »

I would be more concerned with the lack of company pension provison, house prices sort themselves out as they always do (market forces and all that).

A very valid point.

chucknorris wrote: »

I'll answer your question which was:

To all those in favour of higher prices, do you not worry about your kids and how they will get on in life, and what prospects may him them in the face when they mature to adulthood?

I don't have any children, however if I did I would make it my business to ensure they were ok. I would probably pay their deposit and set them up in a house so they could rent a room or two out. I think it would be a good learning curve for them and teach them good financial discipline while they were quite young.

Thanks.

Do you have any idea how you would pay their deposit? Would it be downsizing your place, or making money out of another place?

I am grateful for and respect your opinion. However, the underlying trend I am seeing, or maybe a better way to describe it is "feeling" is basically those who tend to favour higher house prices, or see houses as investments rather than homes, rely on those priced out for their investment to go well.

Therefore, I kind of get the feeling society is relying on other people who cannot afford to buy a home, to bolster up their investment, so that they can provide for their own.

I'm not sure if this is right, it's just the feeling I get from seeing other people discuss how they will look after their kids and buy them a house if prices continue to be out of reach.

Danger of a two tier society? Rely on the poor to service the rich?

I AM talking about prices staying at todays level vs wages, and going up with, or just above inflation. I know personally if I was just starting out again there is absolutely no way I could possibly think about getting my own home without outside windfall help.

the_ash_and_the_oak

IF i had been an owner I would have been v pleased with the rises of the 2000s. tbh would prob have STR in 2005. And would be v happy with that decision

IveSeenTheLight

Graham_Devon wrote: »

This isn't a jab, but can I just ask....

To all thoe in favour of higher prices, do you not worry about your kids and how they will get on in life, and what prospects may him them in the face when they mature to adulthood?

It looks like an emotive question, I stress it's not. It's a realistic question.

Absolutely not.

I will install into my children an understanding that things change as you go through life and there is a need to adapt to the situation in order to progress.
I certainly don't see any benefit in bleating about how times were better in the past (when in my opinion they were not) and a return to similar times.

Theres a saying in that "to stand still is to go backwards".
I firmly believe you need to keep moving forwards to stay in touch or ahead of the game

Graham_Devon

IveSeenTheLight wrote: »

Absolutely not.

I will install into my children an understanding that things change as you go through life and there is a need to adapt to the situation in order to progress.
I certainly don't see any benefit in bleating about how times were better in the past (when in my opinion they were not) and a return to similar times.

Theres a saying in that "to stand still is to go backwards".
I firmly believe you need to keep moving forwards to stay in touch or ahead of the game

I agree.

However, to my mind, this is the thing.

Put yourself in a 20 year olds shoes with no deposit help. You just left education.

Could YOU afford to buy a house at that point? Bear in mind, you will be paying rent to provide yourself with a roof, therefore, your living costs woould not be nothing.

So just put yourself in that 20 year olds shoes for two seconds. You have been taught everything you have said you will teach your kids.

Thats great and it's good they have that parental education. BUT, how does it actually help when you have just started out, and need all the stuff we all needed, as well, as the need to live?

Could you honestly say you could start again and afford the same lifestyle as you have enjoyed starting today rather than whenever you did? Honestly? If the answer is honestly yes, then obviously we will have to leave that there

chucknorris

Graham_Devon wrote: »

Do you have any idea how you would pay their deposit? Would it be downsizing your place, or making money out of another place?

From cash

I am grateful for and respect your opinion. However, the underlying trend I am seeing, or maybe a better way to describe it is "feeling" is basically those who tend to favour higher house prices, or see houses as investments rather than homes, rely on those priced out for their investment to go well.

I make no appologies for looking out for myself, I do not delibrately set out to disadvantage others. I do not consider myself selfish, I do give both money and time doing voluntary work for dog rescue centres.

Therefore, I kind of get the feeling society is relying on other people who cannot afford to buy a home, to bolster up their investment, so that they can provide for their own.

I'm not sure if this is right, it's just the feeling I get from seeing other people discuss how they will look after their kids and buy them a house if prices continue to be out of reach.

Danger of a two tier society? Rely on the poor to service the rich?

I think you are right we are very near a two tier society right now.

Really2

Graham_Devon wrote: »

Therefore, I kind of get the feeling society is relying on other people who cannot afford to buy a home, to bolster up their investment, so that they can provide for their own.
.

How can people not being able to afford increase the price of anything.
Unless you think there is enough demand from people who can afford.