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Debate House Prices
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How many would buy more than one house if prices fell 60%?
Comments
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Sorry is this a typo, surely you mean prices are falling to normal levels? As prices fell last month and predicted to be down on the year.
However if you are being serious can you define what normal levels are and why they are normal? For historical average is a lot lower lower say 40-50% and that is classed normal.
Prices at the peak in 2007 were vastly abnormal, greatly distorted by mass fraud, too low rates levels, easy credit and no controls. That led to the credit crunch, hardly normal going and classed as the worst economic downturn in 70 years.
Normal prices are a lot lower than this and that is why they are falling and will fall a lot more now the stimulas is almost gone.
As for the question I would manage to buy 1 property at 3-4 times my average salary and my hard saved 25% deposit.
You lose your argument when you say property is twice the average price now0 -
Graham_Devon wrote: »Glad I didn't say that then!
Sorry about that it was brit1234 I’ve amended my post0 -
People can only afford what they can afford in terms of rent.
Relatively speaking, rent will go up if you make buying a house to rent out more expensive. That's just simple economics isn't it?It will also make house prices cheaper so that more can afford to buy rather than rent.
True. But it would make house prices chepaer if the only thing making houses expensive was the fact that it's cheap and easy for people to buy houses as an investment now. But there are lots of other factors - perceived shortage of housing (doesn't really matter if there really is or not, as the general public seems to think there is), cultural obsession with houses etc.0 -
Relatively speaking, rent will go up if you make buying a house to rent out more expensive.
Nope, rent is dictated largely by the ability of the renter to pay for it. A landlord can increase the rental cost all he likes, if the renter cannot afford to pay for it then he can't afford to pay for it.0 -
That one has got the bubble distortion which on a 30 year greatly throws it out. You need to go back further in time to get more acurate data. If you used the last ten years the average would be far higher, if you used the last 100 it would be a lot lower.
Not quite, it's an average that takes into account all the peaks AND the troughs of house prices in the last 30 years.
It's not thrown out by the last peak, because it was averaged out by the trough of the 90's:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Ahh, the bulls favourite line..... the long term trend line. Its a pity because it is otherwise a great graph, shows 2002 to 2007 for what it is.... insane bubble.
Ahh, it's a great graph for showing the bubble between 2002 to 2007 where the price is above the trend line, but you obviously want to gloss over the trough where it was below the long term trend.
This is why the trend line is good, it averages out the peaks and the troughs over a 30 year period.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Nope, rent is dictated largely by the ability of the renter to pay for it. A landlord can increase the rental cost all he likes, if the renter cannot afford to pay for it then he can't afford to pay for it.
And in a society which is already short a million houses, with that shortfall increasing by over 150,000 houses a year, the only solution to housing everyone is to have more people living in each house.
Which means more earners per house. Which increases the amount each household can afford to pay in rent.
The story of the next 5 to 10 years is not going to be record HPI. Slow and steady increases in line with long term trend is a far more likely scenario. But rents are significantly undervalued at the moment, and I expect we will see big rental increases as the shortage of housing worsens.“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 -
Nope, rent is dictated largely by the ability of the renter to pay for it. A landlord can increase the rental cost all he likes, if the renter cannot afford to pay for it then he can't afford to pay for it.
The issue is that if the property is in a rentable market area where the rent is higher than the tenant can afford then likely the tenant will have to move to a more affordable property while the Landlord rents out the property to a tenant that can afford to live there:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I want to buy another house so that I can move in my own time, a bit at a time. I hate the stress of co-ordinating buying/selling and moving0
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