UK house prices face prolonged bear market

JonnyBravo

Harry_Powell wrote: »

If you earned £1k per month, or £12k per year you would be eligible for a mortgage of £48k (at 4x salary multiple). Assuming a 25 year repayment mortgage, in order to be paying £500 per month, you'd have to be on a mortgage rate of 11.7%. Surely no one is on such a punative mortgage rate at the moment, especially given that BoE rates are at 0.5%?

I'm lovin' it.

Top bombing. I'm disappointed Graham only gave you a 7.... all that work and only a 7?

ukcarper

JonnyBravo wrote: »

Quite.

What's your point?
As it's the most appropriate currency that it absolutely hasn't lost value?

My point is that for the vast majority of people, who are likely to buy it, it is still the same price.

Graham_Devon

JonnyBravo wrote: »

I'm lovin' it.

Top bombing. I'm disappointed Graham only gave you a 7.... all that work and only a 7?

If he'd have factored in a deposit, which the person on 1k wouldn't be able to save up, and told us all that, and therefore the person wouldnt be able to afford a place in the first place, and therefore my example was completely insane, he'd hve got an 8.

Doctor_Gloom

ukcarper wrote: »

All of what you say is true to but to qoute Doctor Gloom’s original post “ The government has certainly fooled quite a few gullible people into believing their property hasn't fallen in value when in reality it most certainly has ” is that true.

It's common sense really.
Your house may still be valued at x pounds, the same as it was 2 years ago.
However, the pound has been devalued by 30%.
Therefore everything you have in the UK - your house, your pension, your wages, etc are worth 30% less than previously.

The government have done this devaluation deliberately by printing monopoly money, wrecking the UK economy and reducing interest rates to near zero. And remarkably in the process they have managed to fool the majority of the Great British public into thinking they are no worse off. Credit where it's due though, Brown and Darling have managed to pull off this ruse without hardly anyone seemingly noticing.

Harry_Powell

Graham_Devon wrote: »

If he'd have factored in a deposit, which the person on 1k wouldn't be able to save up, and told us all that, and therefore the person wouldnt be able to afford a place in the first place, and therefore my example was completely insane, he'd hve got an 8.

The person's mum and dad gave him the deposit.

Harry_Powell

JonnyBravo wrote: »

I'm lovin' it.

Top bombing. I'm disappointed Graham only gave you a 7.... all that work and only a 7?

I was quite impressed that Graham took it so graciously. He's really endeared himself to me. I'm not joking, he really has. I'm a right softy though, so it's not difficult to do.

JonnyBravo

Graham_Devon wrote: »

If he'd have factored in a deposit, which the person on 1k wouldn't be able to save up, and told us all that, and therefore the person wouldnt be able to afford a place in the first place, and therefore my example was completely insane, he'd hve got an 8.

:T


You're really gonna have to up the standard of your example it seems Graham. Harry sees all!
It's just like the ol' days with this badinage today. Great stuff!

StevieJ

JonnyBravo wrote: »

Care to value it in another currency though? Not so clear then is it?

Why does it matter what the value is in another currency apart from stimulating foreign buyers or the effect a weakening currency has on RPI/CPI?

ukcarper

Doctor_Gloom wrote: »

It's common sense really.
Your house may still be valued at x pounds, the same as it was 2 years ago.
However, the pound has been devalued by 30%.
Therefore everything you have in the UK - your house, your pension, your wages, etc are worth 30% less than previously.

The government have done this devaluation deliberately by printing monopoly money, wrecking the UK economy and reducing interest rates to near zero. And remarkably in the process they have managed to fool the majority of the Great British public into thinking they are no worse off. Credit where it's due though, Brown and Darling have managed to pull off this ruse without hardly anyone seemingly noticing.

But most of us spend most of our money in the UK the only thing it effects is imports which is reflected in inflation so in theory we may be 30% worse but in effect we are only worse of by inflation.

Also what currency you use and when you compare to it makes a big difference

Graham_Devon

Harry_Powell wrote: »

I was quite impressed that Graham took it so graciously. He's really endeared himself to me. I'm not joking, he really has. I'm a right softy though, so it's not difficult to do.

I'm a charitable bloke, and could see you were in the need of some.