Cameron: House Prices Will "Continue To Rise"

HAMISH_MCTAVISH

92203 wrote: »

And this is something to celebrate?

Of course it is.

Houses are merely an asset class like any other. Sure, they have utility value, like many other assets, but there is nothing special about housing.

I could understand you being happy if prices were to be maintained (thus retaining the value of the assets you have invested in).

To retain their value, houses must increase in line with inflation. So 5% per annum or so for RPI at the moment.

So are you saying that you would be happy to see HPI of 5% per annum?

What you are celebrating and hoping for will result in masses of people never having the opportunity to own their own home, and others having to take more and more risk, and becoming more and more beholden to the banks in the process

You may have been very fortunate in having been old enough to buy a house when they were more sensibly priced, but spare a thought for those who were not blessed with the opportunity of having been born into such an era.

Each gloating post you make about home ownership becoming a more and more exclusive position to be in, is akin to me poking fun at someone who has no arms and telling them that they'll never be able to play a piano concerto!

Good grief, you really have no clue at all, do you?


Rising house prices benefit......

• Millions of people whose next move will be to downsize
• Millions of people with a mortgage who can get a better renewal rate for a lower LTV
• Millions of people who wish to leave something to their children
• The million or so second home and BTL investors
• Millions of people whose pension funds have invested in property related companies or investments
• Millions of bank shareholders and pension funds, whose income is enhanced through a booming property market
• Millions of people who either work in construction, manufacturing and sales of home components, furnishings, renovations, etc

Falling house prices benefit......

• A few hundred thousand potential FTB's, but only until they buy when rising prices then benefit them more.
• A small percentage of upsizers, making a very big leap up the ladder... but most did not benefit from the recent crash as the differential grew due to typical FTB houses falling further than typical 2TB houses.

But at the end of the day, absolutely none of that is remotely important.

Whether rising house prices are good or bad is utterly irrelevant.

House prices will rise dramatically over the long term because there is a massive and growing shortage of housing.

People can either position themselves to take advantage of the inevitable price rises, or fail to do so and get taken advantage of by rising prices and rising rents.

Those are ultimately the only choices anyone has, and all the whining in the world about how unfair it is won't change a damn thing.

abaxas

HAMISH_MCTAVISH wrote: »

Of course it is.

Houses are merely an asset class like any other. Sure, they have utility value, like many other assets, but there is nothing special about housing.




To retain their value, houses must increase in line with inflation. So 5% per annum or so for RPI at the moment.

So are you saying that you would be happy to see HPI of 5% per annum?



Good grief, you really have no clue at all, do you?


Rising house prices benefit......

• Millions of people whose next move will be to downsize
• Millions of people with a mortgage who can get a better renewal rate for a lower LTV
• Millions of people who wish to leave something to their children
• The million or so second home and BTL investors
• Millions of people whose pension funds have invested in property related companies or investments
• Millions of bank shareholders and pension funds, whose income is enhanced through a booming property market
• Millions of people who either work in construction, manufacturing and sales of home components, furnishings, renovations, etc

Falling house prices benefit......

• A few hundred thousand potential FTB's, but only until they buy when rising prices then benefit them more.
• A small percentage of upsizers, making a very big leap up the ladder... but most did not benefit from the recent crash as the differential grew due to typical FTB houses falling further than typical 2TB houses.

But at the end of the day, absolutely none of that is remotely important.

Whether rising house prices are good or bad is utterly irrelevant.

House prices will rise dramatically over the long term because there is a massive and growing shortage of housing.

People can either position themselves to take advantage of the inevitable price rises, or fail to do so and get taken advantage of by rising prices and rising rents.

Those are ultimately the only choices anyone has, and all the whining in the world about how unfair it is won't change a damn thing.

You forgot the most important factor.

Debt enforces labour, without the housing debt people simply wont be bothered to work as hard.

Without that economy is fracked.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Rising house prices benefit......

• Millions of people whose next move will be to downsize
• Millions of people with a mortgage who can get a better renewal rate for a lower LTV
• Millions of people who wish to leave something to their children
• The million or so second home and BTL investors
• Millions of people whose pension funds have invested in property related companies or investments
• Millions of bank shareholders and pension funds, whose income is enhanced through a booming property market
• Millions of people who either work in construction, manufacturing and sales of home components, furnishings, renovations, etc

Yet funnily enough, you state that these people should not suffer falling prices, as it would be do catostrophic damage to the economy, and no one will "let" that happen.

It's strange. You see the benefits, but don't seem to see how every increase makes ALL of us more fragile overall.

Lance

It is good that parents will have something to leave to their children as their children will not be able to afford a house of their own in the South. So kids, when you are in your 60's your parents will drop dead in their 80's and you can divide the house up between you, after paying 40% tax. Unless your parents need a care home in which case you get nothing! Oh joy, the sheeple will dance in the streets as they await their parents death so they can have their own home..... perhaps.

92203

HAMISH_MCTAVISH wrote: »

Of course it is.

<SNIP>

Hamish,

The people who rising house prices would benefit, would still benefit from relatively static prices, as they'd be paying off capital instead of rent each month. Similarly, downsizers would still benefit and have money left over, providing they'd been sensible and been paying off their mortgages/

Obviously, they wouldn't benefit quite as much, but the situation you're describing is very unjust and places new entrants to the housing market at a very strong disadvantge.

I think the issue that I (and other members of this forum have), is that you appear to gain great satisfaction in announcing that the price of housing (whether rented or purchased) is set to increase beyond wage inflation. You seem almost ecstatic when such news emerges.

You also seem quite deluded in believing that people my age should be happy to be given the opportunity to buy a house for 150% more than the previous owners purchased it 10 years ago.

The cruel reality is, is that if your predicitions of a chronic housing shortage come true, and rents and prices rise massively, millions of people are going to be disadvantaged, live in poor conditions, and ultimately have less money to spend into the economy.

The prospect of housing affordability (whether rented or bought) reducing is nothing to celebrate, and represents nothing more than a national socio-economic failure. You consider the prospect of such news and suffering as cause to crack open the beers! How nice of you!

HAMISH_MCTAVISH

92203 wrote: »

The prospect of housing affordability (whether rented or bought) reducing is nothing to celebrate, and represents nothing more than a national socio-economic failure. You consider the prospect of such news and suffering as cause to crack open the beers! How nice of you!

Once again....

Whether rising house prices are good or bad is utterly irrelevant.

House prices will rise dramatically over the long term because there is a massive and growing shortage of housing.

People can either position themselves to take advantage of the inevitable price rises, or fail to do so and get taken advantage of by rising prices and rising rents.

Those are ultimately the only choices anyone has, and all the whining in the world about how unfair it is won't change a damn thing.

morag1202

92203 wrote: »

You may have been very fortunate in having been old enough to buy a house when they were more sensibly priced, but spare a thought for those who were not blessed with the opportunity of having been born into such an era.

We bought in 1979 for £16,250. That house had cost £2,795 in 1968. We took over 2 years to save the deposit and our mortgage rate was a whopping 15% when we moved in.

92203 wrote: »

You also seem quite deluded in believing that people my age should be happy to be given the opportunity to buy a house for 150% more than the previous owners purchased it 10 years ago.

We were in our late 20's and ecstatically happy to own our own place at last. Never crossed our minds that it cost over five times more than it had 10 years ago.

I'm afraid HPI over the long term has been a fact of life. We sold that house for £53k 10 years after we bought it and it sold last year for £155k.

nembot

HAMISH_MCTAVISH wrote: »

Once again....

Whether rising house prices are good or bad is utterly irrelevant.

House prices will rise dramatically over the long term because there is a massive and growing shortage of housing.

People can either position themselves to take advantage of the inevitable price rises, or fail to do so and get taken advantage of by rising prices and rising rents.

Those are ultimately the only choices anyone has, and all the whining in the world about how unfair it is won't change a damn thing.

You could do standup Hamish:rotfl:

Thrugelmir

As the economy recovers and as house prices continue to rise you

I think you are getting ahead of yourself. I've underlined the important part.

This may be next week, in 3 years, in 5 years............

ivavoucher

1984ReturnsForReal wrote: »

Aren't millionaires exempt for the first million?


Where is he going to find the money from?.....

The rich just got richer......

This is just terrible, I thought the conservatives were all about sharing the wealth, even with the working class.

If I had knew this then I would not have voted for them.