Why are posters so Obsessed with House Prices?

Really2

nearlynew wrote: »

Whatever figures you come up with at different interest rates, they're always more favourable when the price is lower to start with.

Would that be like the 80's when mortgage payments were 50% of income?

Such a simple statement is not true,
You could draw a debate from lower rates = higher pricing, but it fails to take in so much more.

That is why prices are not likely to move much at all over the next few years even though the base rate is so low.

chucky

neverdespairgirl wrote: »

In the next 20 years? Absolutely unknowable.

you were the only one that said 20 years - no-one else...

how about the next few years?

chucky

nearlynew wrote: »

who needs a time machine?


patience will do

patience for house prices to go up or down
or
patience for rates to go up or down
or
patience for a deposit for a house to have less buying power
or
patience for inflation to reduce peoples disposable income that are saving for a deposit

nearlynew

Really2 wrote: »

Would that be like the 80's when mortgage payments were 50% of income?

Such a simple statement is not true,

Yes it is true.


Whatever interest rates you choose, it works out cheaper when prices are cheaper to start with.

Really2

nearlynew wrote: »

Yes it is true.


Whatever interest rates you choose, it works out cheaper when prices are cheaper to start with.

If you only look at the purchase price I agree.;) but looking past that including interest I will disagree.

marklv

borntobefree wrote: »

I have never understood why the posters on this board and HPC are so obsessed with house prices, since the "actual cost" of a home is only a percentage of the total real cost.

For Example

Cost of house 200,000
int at 5% 25yrs 150,754
Total Cost of home £350,754


Cost of home 200,000
int at 2% 25 yrs 54,313
Total cost of home £254,313


Saving £96,441 from LOW INTEREST RATES!

http://www.guardian.co.uk/money/mortgage-calculator

Interest rates have never been so low! Why are you all so obsessed with house prices?

Traditional British obsession - like the weather, football, making tea, getting !!!!ed, etc.

Really2

marklv wrote: »

getting !!!!ed, etc.

Which ones that I can think of a few things to fill it.

borntobefree

Really2 wrote: »

Would that be like the 80's when mortgage payments were 50% of income?

Such a simple statement is not true,
You could draw a debate from lower rates = higher pricing, but it fails to take in so much more.

That is why prices are not likely to move much at all over the next few years even though the base rate is so low.

In the 80's and through to 1992 interest rates were mostly in double figures - at the highest 15% for a year (from 1989 to 1990.)

The £200,000 house at 15% now costs £568,498! (versus £226,122 at 1%)

or per month - repayments on a £200k loan were £2561 per month compared to £753.54 on a BOE tracker at +0.5% now

Graham_Devon

This thread is likely to go round and round in circles for ages.

chucky

Graham_Devon wrote: »

This thread is likely to go round and round in circles for ages.

Originally Posted by borntobefree
Do you see why the interest rate matters?

Graham_Devon wrote: »

Yup, and never disagreed otherwise.

so what you're saying now is that it's a good time to buy property on a good interest rate.

t'is ok - don't be shy... you can admit that you're wrong...