Your house may never be worth as much again

macaque_2

If you are buying a house, please read this before you sign on the dotted line:

Millions of homeowners have stretched themselves to the limit by taking out a supersize mortgage, but fear their property may never be worth as much money again.

Read more: http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=508825#ixzz0tXunIRB8

It has been as plain as daylight that house prices have been wildly overpriced for years and efforts by the financial services industry to keep the bubble inflated falls little short of criminal.

Many home owners have paid £10s or £100s of thousands too much for their homes. At least they can console themselves that they still have a nice place live. For property investors who entered the market in recent years there can be no consolation. I'm afraid they are going to pay a heavy price for their greed and foolishness.

Homes are for living in, not for speculation.

chucky

macaque wrote: »

It has been as plain as daylight that house prices have been wildly overpriced for years by those that can't afford to buy

i've had to add a bit to your post sir - i hope that you don't mind old chap

HAMISH_MCTAVISH

His analysis is based on 'real' house prices, that is the value of your home compared to chocolate bars and bananas. The amount of money you pay will continue to rise, as most likely will the multiple to wages.

.............

carolt

Worth bumping.

PasturesNew

All that matters to me is the price on the price ticket. All this inflation stuff's far too wide-ranging. If a house is £100k and somebody decides that a certain basket of goods costs 3% more this year and the house goes up to £103k, in my eyes the house has increased, not stayed the same as it's in line with inflation, because you can't compare a house with a bunch of stuff at Asda.

Blacklight

macaque wrote: »

Your house may never be worth as much again

13th July 2010.

I bet that's what they said in 1970.

And 1978

And 1982

And 1996

Look at the pictures.

They'll be 25% HPI in 2016 and you'll no doubt still be here spouting the same old rubbish in 2020 when they come down to 2014 levels.

Graham_Devon

Blacklight wrote: »

13th July 2010.

I bet that's what they said in 1970.

And 1978

And 1982

And 1996

Look at the pictures.

They'll be 25% HPI in 2016 and you'll no doubt still be here spouting the same old rubbish in 2020 when they come down to 2014 levels.

I'm sure many were sold in to the dotcom scene using the same sort of argument. Couldn't fail.

StevieJ

Not the PWC story again

JonnyBravo

macaque wrote: »

Homes are for living in, not for speculation.

Absolutely.
That's why I put tenants in my spare house. That way I have someone elses money paying for my speculation, champagne and strawberries.
:beer:

Good job too, seeing as prices are now falling again. I reckon 20-30% down again.
Perhaps they'll fall enough to allow me to get another spare house which a tenant can speculate on for me.

wymondham

Excellent, bring them down I say (and I'm a home owner!!). I would not buy my house now for the current market 'value' - not worth it. Don't get me wrong, I love the house etc, but the amounts in the £100,000's is just silly money.

JonnyBravo

I would still buy mine for the money. The enjoyment is worth so much to me.

Interestingly I wouldn't buy my spare property for the money it's worth now. I suppose that should tell me to sell it or something? (I won't be)