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Debate House Prices
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The property boom is well underway now.
Comments
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HAMISH_MCTAVISH wrote: »So true.
People always think "this is it, house prices can never go higher".
In fact, many people were saying that in 2007, and already we have some areas where prices have crossed their previous peak.
In just 20 years time, 2007 prices will look ridiculously cheap, and a new generation of bears will be complaining and moaning about how easy the youth of today had it.
I'm increasingly worried for your sanity, as you seem to have brainwashed yourself into believing your own propaganda.
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Harry_Powell wrote:Whether the bears like it or not, over the 40 years of home ownership property will increase.
How? By huge immigration, by not building new houses? By lending to people that can't afford to buy property?
Subprime has been done before and it ended pretty badly!0 -
Thrugelmir wrote: »I'm increasingly worried for your sanity, as you seem to have brainwashed yourself into believing your own propaganda.
Interesting.
Are you actually delusional enough to believe prices won't be higher in 20 years?
Or that prices have not crossed previous peak in some areas?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
How? By huge immigration,
Happening now. Population grew by 408,000 people last year alone, but only part of it was through immigration.
250,000 new households formed, 80,000 houses built.by not building new houses?
Happening now. Less than half the amount we need.
And it's a long term trend. Building always lags population and household formation growth.By lending to people that can't afford to buy property?
Most can afford it just fine. Those that can't can rent, and enrich others who can buy property.Subprime has been done before and it ended pretty badly!
Not so much in the UK.
Besides, with population growing as fast as it is, theres no need for subprime.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Happening now. Population grew by 408,000 people last year alone, but only part of it was through immigration.
It depends if the Eastern European migrants intend to settle in the UK permanently and buy property - I doubt many of them will do that, given their families at home.
The main obstacle to house prices rising further is the huge funding gap that will open up when the government's special schemes expire - and not even the CML have an answer to how that will be solved.0 -
it sounds like you're one of these people that has been priced out of buying a home. chin up with that one. don't be bitter.How? By huge immigration, by not building new houses? By lending to people that can't afford to buy property?
Subprime has been done before and it ended pretty badly!0 -
Thrugelmir wrote: »Mine isn't and I didn't get the option of interest only back in 2007. A repayment vehicle was a necessity.
I'll take your word for it, but still maintain that the vast majority of offset mortgages are IO by definition.
Certainly the big players like first direct, natwest/RBS, virgin one, YBS, Coventry all do interest only offsets and rely on the borrower to set up a repayment vehicle.
Generally offsets are attractive to those who have savings, so there is hope that the borrower will understand the need for a repayment plan, but there will be some for whom the penny suddenly drops.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
it all depends on your LTV - most can be converted to I/O. you obviously have a high LTV. obviously shows why you're so panicked about the property market especially after you bought in 2007 right at the peak of the market :eek:Thrugelmir wrote: »Mine isn't and I didn't get the option of interest only back in 2007. A repayment vehicle was a necessity.
Majority of higher risk interest only lending was through the lenders who are no more (or at least had their wings severely clipped since).
Interest only mortgages will be a millstone for many. As they find expected increases in disposable income fails to materialise.0 -
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hahaha you're a studentLOL. No not really, I'm perfectly happy renting with my mates at the moment actually.
oh i know - i was happy before i owned property. now i have property it gives me a better life, thanks for the concern though.Do you know that you don't have to own property in order to be happy?0
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