House prives to rise by 10% each year: Nationwide report out today!

nickj_2

Graham_Devon wrote: »

So what do we do if the rises do continue at 10% a year?
Maybe we could have something like 110% mortgages. Then move up to 125% and maybe even 140% mortgages.
On top of that, the extra could be in the form of personal loans, on interest only mortgages. QUOTE]

that's a great idea - i'm surprised the banks haven't thought of that already , how about the mortgage credit card just so people can top up on what they can't afford to pay already -

Cleaver

doire wrote: »

Look at the headline

House prices could rise by 10% a year

:rotfl::rotfl::rotfl::rotfl:

More ramping by the usual suspects:rotfl::rotfl::rotfl:

And whats going sustain this 10% year after year rise?

I'm not going to pretend to be clever or confident enough to give an answer, 'cos I don't have a clue. But what sustained the massive rises for the past decade? Or in the eighties? I don't see any logical reason why the same stuff that caused massive rises in the noughties, and in the late eightes etc. etc. wouldn't just cause rises and falls forever more. Was ever thus and ever will be I reckon.

abaxas

Quick fag packet calc.

If houses increase by 10% pa and wages byt 4% pa. In 15 years time, there will be no housing market as no-one will be able to afford to buy anything :P

I smell some bull about!

System

They aren't going to rise by 10% each year, christ I thought it was "bulls" that were supposed to be susceptible to "ramping"?

The daily mail have caught some whoppers with this headline.

Cleaver

HammerSmashedFace wrote: »

Every issue that you can talk of has a limit, the limit for house prices was breached in 2007, since then we have had a huge fall in prices, down 22.5% at one point. The gains since that 'low' are on the back of QE, low IR's, devaluation of the pound and low transactions.

I wouldn't disagree with the fact that QE, low interest rates etc. have 'helped' (is that the right word?) the housing market, amongst other things.

What frustrates me a little bit is how only the financial aspects seem to be considered on this forum. Do you not think that there are other more human factors that have also contributed to this rise? Twenty and Thirty-Somethings seeing prices fall for the first time in their adult life and now taking advantage? The fact that our culture, despite the falls, still very much seems in love with the idea of buying property for a variety of reasons? The idea that most people still hold that there is a lot of 'value' and long term benefits of buying a house?

If you step outside this forum and economic papers, the general public still seem to want to own houses and, in my experience, are of the opinion that there isn't a glut of quality houses that appeals to them.

I've said it on here a million times: when I hear conversations in my office and out in the real world generally about how houses are stupidly overpriced and there's no money or joy left in owning property I will start to consider that they will fall considerably in price. Until this cultural tipping point is reached I think houses will pretty much keep their value give or take 15% each way.

westv

sjaypink wrote: »

Renting is far more secure these days as the Government pays the rent if they lose their jobs.

HAMISH_MCTAVISH wrote: »

In fairness, the government will pay the mortgage if they lose their jobs too.

Only if they have limited savings though.

lemonjelly

sjaypink wrote: »

From the comments section:

I've advised my kids to rent instead of buying. Renting is far more secure these days as the Government pays the rent if they lose their jobs. And as I own the houses they're renting it's a win-win!

I wouldn't like to stereotype your average mail reader, but, if I had to......

Misses out the fact that housing benefit regulations mean you won't be entitled if you are related to your landlord...

In addition, advising your kids to rent, & then renting them your BTL? Now that is VI!!!:D

westv

I've read the article and, in the detail, it's not as bullish as the headline might indicate.

drc

So a bedsit in Deptford will cost £500k in ten years time. I am sure buyers will be trampling over each other for the chance to own such property (with a 400 year mortgage to boot) :rotfl:.

HammerSmashedFace

Cleaver wrote: »

What frustrates me a little bit is how only the financial aspects seem to be considered on this forum. Do you not think that there are other more human factors that have also contributed to this rise?

I do agree with this Cleaver, hell, my own personal circumstances changed so that I could buy outright, with the money involved being pretty irrelevant, security being the main priority, however.....

Most people would not have the fortune that I have had, therefore the highest priority to them should be the serviceability of any debt taken on and the terms and conditions of that debt, especially considering for most people the timespan is likely to be 25 years.

Unsustainable policies are currently keeping borrowing costs low, these costs are almost certain to rise in the future, this, coupled with stagnant or falling wages along with inflation in energy costs is going to squeeze many a household income like a vice around their necks. There is a long way to go with this issue at this time and ironically the 'rises' being ramped over the last 12 months will exacerbate the situation when it comes to a head.