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Debate House Prices
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Housing Affordability has peaked, now decreasing
Comments
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ThrowingStonesAtYou wrote: »Ignoring the fact that you're clearly only here to wind people up, I can't get my head round this 'housing ladder'.
Firstly you said FTBs buy 1 bed flats and later sell for a profit, but this implies that the next 'rung' has moved even further away, so they are even worse off as a result, despite the apparent profit.
Also, my daughter will be 18 when I am 42, so I expect she'll be leaving home just after I've made it into my 40s. Why am I going to want a 4 bed detached once my kids have left home? Seems to me people have most need for 3 bed semis when they are in their mid-late 20s and in their 30s, after that you're probably better off downsizing as you don't need the space..
I agree, more and more people are now downsizing to release equity due partly to the pension deficit.
It makes good sense to me given the HPI over the last 10 yrs or so .I'm not sure it will continue to be the best way given the recession and national debt.0 -
UOTE=ThrowingStonesAtYou;28207137]Ignoring the fact that you're clearly only here to wind people up, I can't get my head round this 'housing ladder'.
Firstly you said FTBs buy 1 bed flats and later sell for a profit, but this implies that the next 'rung' has moved even further away, so they are even worse off as a result, despite the apparent profit.
Also, my daughter will be 18 when I am 42, so I expect she'll be leaving home just after I've made it into my 40s. Why am I going to want a 4 bed detached once my kids have left home? Seems to me people have most need for 3 bed semis when they are in their mid-late 20s and in their 30s, after that you're probably better off downsizing as you don't need the space..[/QUOTE]
I've been a member on here for a long time and I'm not here to wind people up!
Your thinking about FTBs being worse off when they've sold for a hefty profit is nonsense. How do you think people have climbed the property ladder? How do you think people manage to upsize or upgrade? By starting off small and working their way up! That's how! They buy bigger and better, and then sell, which equals - more EQUITY. I know someone who had more or less the same amount of mortgage on their 5 bed detached house as they did on their 2 bed flat - all gotten through upgrading and putting the equity into somewhere better.
As for you personally not wanting a 4 bed detached at the age of 42, many people do! Lots of career men and women start their families much later these days, sometimes they don't have their first child until their 30s or even 40s. And many people get used to space and what comes with it. Not everyone in their 40's is ready for the old folks home! Even if your children are in their teens by the time you're in your 40s, you'll still want the extra bedrooms for visits from them or your future grandchildren. Or maybe you'll turn a bedroom or 2 into a library, office, gym......it's very hard to downsize when a person is used to space. A 4 bed house usually has a lot of space so you're not cooped up.
I know of very few people in their mid 20s who have 3 bed semis. People in that age group are either travelling the world, partying, or making a career for themselves while living in some trendy pad somewhere!0 -
UOTE=ThrowingStonesAtYou;28207137]Ignoring the fact that you're clearly only here to wind people up, I can't get my head round this 'housing ladder'.
I've been a member on here for a long time and I'm not here to wind people up!
How do you think people have climbed the property ladder?
How do you think people manage to upsize or upgrade? By starting off small and working their way up! That's how! They buy bigger and better, and then sell, which equals - more EQUITY. I know someone who had more or less the same amount of mortgage on their 5 bed detached house as they did on their 2 bed flat - all gotten through upgrading and putting the equity into somewhere better.
They managed it through HPI which was encouraged more and more over the last 12 yrs. This can't go on rising as incomes drop.Its not by paying down the original debt.
Be interesting to have this debate in 12 months time0 -
leveller2911 wrote: »UOTE=ThrowingStonesAtYou;28207137]Ignoring the fact that you're clearly only here to wind people up, I can't get my head round this 'housing ladder'.
I've been a member on here for a long time and I'm not here to wind people up!
How do you think people have climbed the property ladder?
How do you think people manage to upsize or upgrade? By starting off small and working their way up! That's how! They buy bigger and better, and then sell, which equals - more EQUITY. I know someone who had more or less the same amount of mortgage on their 5 bed detached house as they did on their 2 bed flat - all gotten through upgrading and putting the equity into somewhere better.
They managed it through HPI which was encouraged more and more over the last 12 yrs. This can't go on rising as incomes drop.
OK, who encouraged HPI, then? How did it happen? I'm curious to know.
I do believe there is a huge difference between properties up north and properties down south, though, so how does that explain people not being able to buy up north?
The one thing I TOTALLY agree with is that many people are forced to work for peanuts. And since this inept government has been in they've made the rich richer and the poor poorer.0 -
leveller2911 wrote: »
OK, who encouraged HPI, then? How did it happen? I'm curious to know.
I do believe there is a huge difference between properties up north and properties down south, though, so how does that explain people not being able to buy up north?
The one thing I TOTALLY agree with is that many people are forced to work for peanuts. And since this inept government has been in they've made the rich richer and the poor poorer.
HPI was encouraged by buyers wanting to make high profits on their sales (basically greed), by house buyers "wanting it now" (again greed)and being blinkered to the bigger picture and finally by successive governments who have raked in £billions from all the assosiated taxes.
Its the fault of Human nature wanting more.
Not bad for an un-educated egg faced thicky eh Rum?;):D
NB: I live down in the SE over the last 10 yrs or so house prices rose 300% in my locality, where as wages have risen no more than 30%.To me that tells it all.0 -
leveller2911 wrote: »
HPI was encouraged by buyers wanting to make high profits on their sales (basically greed), by house buyers "wanting it now" (again greed)and being blinkered to the bigger picture and finally by successive governments who have raked in £billions from all the assosiated taxes.
Its the fault of Human nature wanting more.
Not bad for an un-educated egg faced thicky eh Rum?;):D
NB: I live down in the SE over the last 10 yrs or so house prices rose 300% in my locality, where as wages have risen no more than 30%.To me that tells it all.
Your talking rubbish as most people sell to buy a bigger house why would they want to encourage HPI it only increases the amount extra they need to buy the bigger house. It's a misunderstanding that HPI makes it easier to move up the property ladder it’s general inflation and people getting promoted etc that does that.
ps I live in south east prices have doubled in my area0 -
Who's got their hand stuck up your arris? Is it pickled pink? :rotfl:You're just embarrassed because you've proven how uneducated you are! You thought Christmas only lasted ONE day!!!!:rotfl: D;oh!!!
I thought EVERYONE knew Christmas lasted 12 days! The reason I gave you some in-depth info on Christmas was that I couldn't be bothered to go into detail for you.........much better to copy and paste so you'll grasp it better. I hope!:D
As for monkeys not having manners - you wouldn't know what manners was!!! You're rude, uneducated, ignorant and very very blinkered too!0 -
leveller2911 wrote: »
Your talking rubbish as most people sell to buy a bigger house why would they want to encourage HPI it only increases the amount extra they need to buy the bigger house. It's a misunderstanding that HPI makes it easier to move up the property ladder it’s general inflation and people getting promoted etc that does that.
ps I live in south east prices have doubled in my area
My point is no one buying a house wants HPI but they love it when selling.People want it all their own way which of coarse is impossible.
The outcome is the nation as a whole ends up drowning in Debt.Greed is a human trait you can't stop. We all want at least a £ more than we need.I actually meant buyers rely on HPI to climb the housing ladder ,how else can they make the vast profits many make with doing little or no actual work for it.You only have to look at "Homes under the hammer" etc. Someone buys a house for £150K gives it a splash of paint and sells it for £200k........The mind boggles
Sorry to disagree carper.0 -
leveller2911 wrote: »
My point is no one buying a house wants HPI but they love it when selling.People want it all their own way which of coarse is impossible.
The outcome is the nation as a whole ends up drowning in Debt.Greed is a human trait you can't stop. We all want at least a £ more than we need.
Sorry to disagree carper.
I'm afraid you’re wrong most people only worry about how much extra they need to borrow and would be happy if their house was worth 25k less if it meant they would have to get a smaller mortgage to buy their new house. HPI happens but it hasn’t got anything to do with the majority of people selling their houses.0 -
2010 prices will go down and repossessions up, the banks will stop holding back after the general election.0
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