Outstanding!!!!!!! Latest Scottish house prices...

DaveyDave_3

HAMISH_MCTAVISH wrote: »

:rotfl:

There are only two options here......

1. There really is a shortage, prices will rise, and those who positioned themselves to benefit will do so.

2. Prices will fall again, before rising again. Those who positioned themselves to benefit will still do so, but it'll take a little longer. And a few more people may benefit, if bank margins come down and stop wiping out gains from lower prices as they are currently.

Homeowners win either way.....

Quoting supply and demand arguments is all very well, but ultimately it's the availability of credit that determines house prices. Money cannot be simply generated out of nothing (unless you are the BoE of course!!). Unless wage inflation matches HPI the house market state is unsustainable and must revert to another more sustainable state, at lower prices at sensble salary multiples. The alternative is an unstable continual 'boom and bust' situation which, is frankly, no good for anyone.

Also, your statement that 'home owners win' as a consequence of increasing house prices is largely incorrect. The expectation of the majority of home owners is that they will need to trade up to a more expensive property in time. The typical difference in value between a 2 bed and a 3 bed property will increase with an overall increase in property values, making the natural progression more finanically difficult. Therefore, if you assume that the majority of home owners want to own a house and use it as a 'home', then they will actually benefit from lower prices as this reduces the cost of trading up. The only people who really benefit from house price inflation are those who buy property as an investment (ie. not a home) or those who are trading down.

treliac

Care.Bear wrote: »

Bear Baiting Rating: 3/10

Comments: Displays much enthusiasm but struggles to deliver results.

Are you a teacher?

DaddyBear

HAMISH_MCTAVISH wrote: »

Yes, it clearly said so in the thread title.

So either you do give a !!!!!!, and are having a tantrum, or you entered the thread specifically to troll me.

As there was really no need to enter the thread otherwise if you genuinely don't care......

You really love the word troll don't you. I produce a constructive response to your post and you simply ignore it and hand out your standard reply to any posts that disagree with you.

stueyhants

I think it's quite sad really that someone has to feel the need to constantly check his material worth and brag about it in open forums. If I had bought a house back in 2007 I'd be living there and enjoying it with the people I love. The value of the property would be meaningless.

SPAMISH_MCTAVISH

This guy got all his arguments and theories wrong during the crash. He vigorously argued that house price will never crash with the similar sort of arguments he is making now. Time proved he was wrong and probabaly lost his sleep b'cos he bought properties at the the peak.

That's is the past. We are all humans and prone to make mistakes. But the difference between an idiot and an intelligent man is that the later will accept his mistakes.

But what we see here is he is making the same arguments over and over again pretending that he was right all the time. He is convenienlt forgetting that he got it completely wrong on the HPC forums and got kicked out of there.

The guy got a sig saying house proce went up by 5 something. for me that is a loss. Most of them pay around 3.00% interest and expenses for maintenance of the property. So making a loss on your investment. OK you got the argument of rental income. But in most cases it will cover only the interest and expenses.

stueyhants

The sad thing is and I do hate to say it, but long term unless we build more houses the prices will go up.

What I dislike so much is the smug satisfaction that this brings to certain people. Life is more than bricks and mortar and people need to place more value on less tangible assets such as relationships and family.

Seems like certain people on here know the cost of everything but the value of nothing.

System

SPAMISH_MCTAVISH wrote: »

This guy got all his arguments and theories wrong during the crash. He vigorously argued that house price will never crash with the similar sort of arguments he is making now. Time proved he was wrong and probabaly lost his sleep b'cos he bought properties at the the peak.

That's is the past. We are all humans and prone to make mistakes. But the difference between an idiot and an intelligent man is that the later will accept his mistakes.

But what we see here is he is making the same arguments over and over again pretending that he was right all the time. He is convenienlt forgetting that he got it completely wrong on the HPC forums and got kicked out of there.

The guy got a sig saying house proce went up by 5 something. for me that is a loss. Most of them pay around 3.00% interest and expenses for maintenance of the property. So making a loss on your investment. OK you got the argument of rental income. But in most cases it will cover only the interest and expenses.

Jesus christ no one cares! What kind of sad pathetic existence must you lead if you find time to create a forum persona purely to slate someone you don't agree with? Go out, find some friends, maybe even a partner.

Reported for your own benefit.

SPAMISH_MCTAVISH

Joeskeppi wrote: »

Jesus christ no one cares! What kind of sad pathetic existence must you lead if you find time to create a forum persona purely to slate someone you don't agree with? Go out, find some friends, maybe even a partner.

Reported for your own benefit.

Jesus Christ! Thanks for taking time from your lively existence to post a reply . Go and get couple of more partners

[Deleted User]

DaveyDave wrote:

Quoting supply and demand arguments is all very well, but ultimately it's the availability of credit that determines house prices. Money cannot be simply generated out of nothing (unless you are the BoE of course!!). Unless wage inflation matches HPI the house market state is unsustainable and must revert to another more sustainable state, at lower prices at sensble salary multiples. The alternative is an unstable continual 'boom and bust' situation which, is frankly, no good for anyone.

That sounds very sensible to me and it would be my assumption too.

However, if you look back over the years the actual facts prove this wrong. I don't remember the actual figures but for years now the price of property has increased at well above the rate of inflation. Now yes, we've had a couple of house price crashes but for most people it was a non-event - things soon picked up to where they were before the crash and prices continued to escalate. Even people that bought at the pre-crash peak (last time around) are now quids in if they just sat tight. I'm sure the same will hold true this time.

And the thing that astonishes me is that if you look back 40, 50 or 60 years you see that despite house prices being much, much lower then (even when you take inflation into account), people then had far less money to spend on luxuries and far fewer people were lucky enough to own property.

When I bought my last house 10 years ago everyone was saying that prices couldn't continue to increase. I expected the value to just go up with inflation. But now it's worth twice as much.

Also, your statement that 'home owners win' as a consequence of increasing house prices is largely incorrect. The expectation of the majority of home owners is that they will need to trade up to a more expensive property in time. The typical difference in value between a 2 bed and a 3 bed property will increase with an overall increase in property values, making the natural progression more finanically difficult. Therefore, if you assume that the majority of home owners want to own a house and use it as a 'home', then they will actually benefit from lower prices as this reduces the cost of trading up. The only people who really benefit from house price inflation are those who buy property as an investment (ie. not a home) or those who are trading down.

Again this SEEMS to make sense. But it's not how it worked for my parents, me, my brother, all my friends, my neices, cousins. Everyone I know has benefited from house price increases and has found it easier and easier as they moved up to more expensive property. That's the reality for people I know. I'll have a think about why this is the case. But off the top of my head I guess it's partly because salaries increased as we got older. Also, because of inflation what seems like a huge amount to pay in mortgage payments soon becomes trivial. So perhaps a couple of years of tightening your belt when you 'upgrade' and then it gets easier as each year passes. My mum and dad really stretched themselves financially to buy their final house in 1969. It cost 11k. Yet in the final years of his morgage dad was paying something like the equivelent of 10p per month in today's prices!

The way it 'seems' to me is that plenty of people still have enough money to keep things trundling along for some years to come. A worldwide recession has only caused a minor blip on the radar. Something does need to be done to help those that can't afford to get onto the property ladder - and I expect it will be done. And that will help to keep prices driving upwards.

bernard_shaw

Deleted_User wrote: »

That sounds very sensible to me and it would be my assumption too.

However, if you look back over the years the actual facts prove this wrong. I don't remember the actual figures but for years now the price of property has increased at well above the rate of inflation. Now yes, we've had a couple of house price crashes but for most people it was a non-event - things soon picked up to where they were before the crash and prices continued to escalate. Even people that bought at the pre-crash peak (last time around) are now quids in if they just sat tight. I'm sure the same will hold true this time.

And the thing that astonishes me is that if you look back 40, 50 or 60 years you see that despite house prices being much, much lower then (even when you take inflation into account), people then had far less money to spend on luxuries and far fewer people were lucky enough to own property.

When I bought my last house 10 years ago everyone was saying that prices couldn't continue to increase. I expected the value to just go up with inflation. But now it's worth twice as much.

Do you think that levels of liquidity have had anything to do with these effects you describe?