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Debate House Prices
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House Prices Going Crazy Again
Comments
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Another babyboomer fault post show me all the babyboomere hoovering up the capital all the ones I know including me are just living in their houses doing nothing.
Don't let the troll get to you
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
michael1983l wrote: »Its good for me, but bad for any FTB
Does not compute. Does not compute.michael1983l wrote: »I will gain nothing unless I downgrade to a cheaper house.
How is it good news for you then? As you say the only way you benefit is by downsizing. If you trade up or just move to a different house of the same value, you will now pay more in any percentage fees selling your place (Estate Agents, mortgage costs, etc).0 -
I really do have to laugh about the baby boomer thing. I`m one and feel very left out. I have never been invited to join the Baby Boomer Club. I guess they have meetings to decide exactly how they will set home prices so that they can get the maximum out of them
Funnily enough, most baby boomers I know ( apart from the thick ones ) are alarmed at what house prices have become. Why even some of us have kids and grand kids who are suffering greatly from this bubble.0 -
Yet British house prices by the only measure that matters, the amount of money a buyer must pay to persuade a seller to sell, are rising. If we take the rather unreliable forward indicator that is the Rightmove Index, prices appear to be in Gold Rush territory.
The ability of the UK housing market to defy gravity is amazing. Can it continue? No idea. Time will tell as always. What's going on right now is pretty incredible though.
The whole thing is completely perplexing when viewed objectively. The current blip in prices is definitely down to a lack of supply.
My take on it is:-
1. Most people are emotional about house price purchases
2. They are still scared that they won't get on the bandwagon and will get left behind
3. There is a long memory of HPI and that just gets projected into the future without much thought - in the stock market that would be equivalent to 'momentum investing', which is just soooo 1999 darling.
4. People taking out 25 year mortgages are just looking at current (very low) interest rates and not allowing for the much higher long-term average in their calculations of affordability.
5. People with money on deposit at the banks are earning virtually nothing, so they put their money into other assets such as houses. There's also a fear of inflation.
So, there's still plenty of demand. On the supply side, there simply aren't that many sellers. Some people are locked in by negative equity. The numbers of repossessions are up, but these are still a small part of the market. Lots of new developments were put on hold.
At some stage, the trade imbalances and government deficits have got to be tackled. So, that's going to reduce growth / increase unemployment. Inflation is going up, albeit prices a year ago were depressed. The economy is in a complete mess.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Unemployment is 2,500,000 and set to rise
GDP appears to have bottomed out
Credit refuses to grow
What I see at the coal face is a huge amount of wealth, and I'm talking a lot of ordinary folk here.
Just take a completely normal couple I saw yesterday. Both work for Cokeacola. He's on £48k, she's on £35k, not graduates, just ordinary joe blows.
Thier C&G tracker costs them 9 pence per month - honestly.
They are to let the existing home, making them a cool and easy £800 per month profit. They arebuying a new one.
The gloom in the news just does'nt tally with the reality I see every day. There is a huge disconnect somehow.0 -
Same here. Over christmas and January I did here of a few people being made redundant (from different companies). Yet all have already got new jobs (good jobs)...including one guy aged 62.
And even the poorest families seem to have things that only the well off had 20 or so years ago. It would seem that the recession is all 'on paper' but in actual fact there are still enough necesities and luxuries to go around. More so than in the past. The poor aren't as poor as they used to be....at least, that's how it seems to me. Although maybe they FEEL worse off because their neighbours are becoming much more wealthy than they'd have been 20 years ago?0 -
The average person around here could be typified by a builder mate of mine.
He's 44, £500k house, no mortgage. Savings. Let that home and moved into a similarly priced one with a £300k mortgage on that. He's doing this new one up and will mkake it worth about £750k.
His parents and inlaws will leave fairly chunky inheritances.
Again just an ordinary Jo, that will be worth something like £2m by age 65. This is absolutley normal.0 -
The average person around here could be typified by a builder mate of mine.
He's 44, £500k house, no mortgage. Savings. Let that home and moved into a similarly priced one with a £300k mortgage on that. He's doing this new one up and will mkake it worth about £750k.
His parents and inlaws will leave fairly chunky inheritances.
Again just an ordinary Jo, that will be worth something like £2m by age 65. This is absolutley normal.
Now compare that to an average 20 or 30 year old in your area...0 -
The average person around here could be typified by a builder mate of mine.
He's 44, £500k house, no mortgage. Savings. Let that home and moved into a similarly priced one with a £300k mortgage on that. He's doing this new one up and will mkake it worth about £750k.
His parents and inlaws will leave fairly chunky inheritances.
Again just an ordinary Jo, that will be worth something like £2m by age 65. This is absolutley normal.
Where roughly is "around here"?0
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