Get ready for the storm

System

OP is 2 years late.

vivatifosi

StevieJ wrote: »

[FONT=Arial, Helvetica, sans-serif]Gold is currently viewed as the best game in town [/FONT]

For me that'll be the cup final. Good luck Pompey, go live the dream! Enjoy everyone.

PasturesNew

Once they do come down a bit, just a little bit more, then I can buy a house and finally start my own "proper business". Not having a fixed address and space really stops all that entrepreneurial spirit from going on ....

If everybody had a home, a fixed space, with some spare space, a LOT more people would be in a position to start their own business and generate some GDP. While we're in cramped conditions, paying over the odds into rents/mortgages, there's neither the space nor money to set up exciting new ventures.

92203

Echoing the sentiments of the original poster, I too am of the opinion that house prices are over priced, and that in recent years they have been artificially inflated to serve the interest of those who have vested interests within both the financial and housing sectors.

While I can appreciate that the home owning majority on this board are averse to the concept of falling prices, the massive house price inflation we've seen over the past 10 years has resulted in increased social division and massive intergenerational inequality for those stuck at the bottom of the housing ladder and those not yet in home ownership.

According to the latest Nationwide press release relating to house price inflation, the long term average wage to house price ratio is 4:1. The current ratio is actually 5.5:1 which is a massive increase. It is also worth taking note that many people earn significantly below the national average wage, which is skewed by high earners who seem to have prospered under the labour government.

While it must be lovely to have purchased a house for a bargain basement price back in the 90s/early 00s, and to have seen the value of the said house multiply, even the bulls on this forum must be able to see the damage that this is doing to the younger generation.

Despite having worked hard and earning significantly above the national average wage for my area, my dreams of raising a family in a house I own in a pleasant neighbourhood have been shattered.

Had I been born 10 years earlier, I would probably be typing this message in the conservatory my 3 bed semi, which I purchased before the boom, for the modest sum of £48k. Instead, I am typing it from a rented flat, which I will continue living in (and saving for a deposit) until house prices come down or I win the lottery!

The-mouth-of-the-south

I have been telling friends and family for many years that houses are in a bubble. You will find many people on here, at work and in life who will try and kid you and show you this graph, or this plan, or this theory HOWEVER it comes back to my original point - there out of line with wages and soon there will be a big crash and this country will see hurt unseen since WW2.

These are dark days approaching.

RDB

StevieJ wrote: »

From a well respected website

Friday 14th May 2010 [FONT=Arial, Helvetica, sans-serif] Gold is currently viewed as the best game in town - Enjoy it while it lasts but remember, when markets move from back page coverage to front page headlines because of their strength, they are also travelling towards peaks of at least medium-term significance. (See yesterday's extensive technical review of gold bullion.) [/FONT]

SteveJ I would love to see where this came from. Can you post the link.

I agree with it, at the moment gold and silver prices rising so much isnt big news yet. When its on the front page thats near the end of the bull run and the time when the biggest gains happen when everyone tries to buy it at any price.

This is when I will sell.

So thanks SteveJ cant wait to see the link.

StevieJ

RDB wrote: »

What well respected website is that?

Any links?

Is that like quoting the Sun and saying a well respecting newspaper.

Oh it must be true then. Better sell my gold and silver now:rotfl:

http://www.fullermoney.com/x/default.html

RobertoMoir

Cleaver wrote: »

Because real life doesn't really follow what people have worked out should happen in theory?

Yep. That's my point :-)

A complex economic system is far too complex to reduce to a couple of theories. That's a lesson I've learned from trying to guess what's gonna happen next.

The-mouth-of-the-south

RobertoMoir wrote: »

Lot's of people say that. I am/was inclined to agree. In theory.

So in practice, why isn't it already happening?

House prices would have fallen back in line with affordability of which wage is the key marker.

The gov stepped in and gave one last breath into the bubble. There is nothing left now to prop up it all up.

chucky

The-mouth-of-the-south wrote: »

House prices are so out of wack and will have to come down in line with wages. People who say otherwise are kidding themselves and more than likely have a vested interest.

looks like you're a couple of years two late with this post sunshine

here's 2007 where you may have had a point


and here's 2009 where it came back to the norm