Hooray! Housing Market Rockets!!!!!

mr_fishbulb

HAMISH_MCTAVISH wrote: »

Wait a minute. I've just noticed there's some writing on the left-hand side of that page.

ninky_2

yes but will they rise faster than inflation?

my supermarket shop also costs more these days so a 5 percent rise in house prices is unlikely to be a rise in real terms.

chucky

ninky wrote: »

yes but will they rise faster than inflation?

my supermarket shop also costs more these days so a 5 percent rise in house prices is unlikely to be a rise in real terms.

and this is what most people tend to forget.

the 'real' purchasing power of your savings or house deposit will be less than it was this time last year but it is currently more than it will be this time next year...

PasturesNew

ninky wrote: »

yes but will they rise faster than inflation?

The only inflation worth comparing them with is wage inflation ... which is what they call negative growth.

It doesn't matter how much your spuds cost, when it comes to houses what matters is how much you're earning and how much that's going up (or not) compared to the houses.

ninky_2

PasturesNew wrote: »

The only inflation worth comparing them with is wage inflation ... which is what they call negative growth.

It doesn't matter how much your spuds cost, when it comes to houses what matters is how much you're earning and how much that's going up (or not) compared to the houses.

not really. if you are considering house equity as income then when and if you realise that growth it's only worth the spending power it allows you (and that will include buying things that have gone up in value).

baby_boomer

So what happens when increased CGT hits Buy-to-let, the next generation of graduates is £40-£50K in debt on leaving uni and interest rates start to rise to combat inflation while wages are frozen and household income suffers from VAT increases and other undisclosed tax rises?

How happy will the housing market be then?

Let's not imagine that 0.5% interest rates are the long term trend.

DaddyBear

baby_boomer wrote: »

So what happens when increased CGT hits Buy-to-let, the next generation of graduates is £40-£50K in debt on leaving uni and interest rates start to rise to combat inflation?

How happy will the housing market be then?

Isn't it obvious...... house prices will go up. It all about supply & demand innit.

brit1234

DaddyBear wrote: »

Isn't it obvious...... house prices will go up. It all about supply & demand innit.

Don't forget the future interest rate rises, increased unemployment, wage freezes, tax hikes, reduced mortgage lending funds.

It all means house prices are to rocket in the sky. :rotfl:

http://www.youtube.com/watch?v=NS2xpf5O8nQ

Exocet

Am I right in thinking that there is a lack of interest in house price threads at present? Some people think they'll go up and wont be told otherwise, some people think they'll plummet and that might be the case - but in the end we all know exactly where we stand and therefore mostly dismiss instantly any argument from the 'other side'. So.. er.. it's all a bit pointless maybe?

Personally, I think they might go down a bit, but I have no idea anymore whether that is true or not, or how large a bit that might be. And Hamish, or anyone, can post a thousand articles a day, and it doesn't make diddly squat to my views on the subject.

Perhaps sadly, it doesn't even annoy me anymore. Whatever you say... next topic please.

rumbaba

I know it upsets some people but it was expected.:money: