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Debate House Prices


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Age of home ownership coming to an end...

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Comments

  • Exocet
    Exocet Posts: 744 Forumite
    HAMISH_MCTAVISH wrote: »
    The problem is, some posters assume EVERY large price spike MUST be a bubble without foundation. Which is nonsense.
    Hmmm. Well we'll have to agree to disagree of course. Very interesting the 88 times China house price though. Another reason to worry about share prices.
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    carolt wrote: »
    Sorry, not read all the thread - but top post, Cleaver.
    On why Hamish and those like him are immoral or at best amoral in cheering on a process of depriving others of essential necessities.

    Thanks for the kind comments. But...

    ...then I'm going to disagree with you by saying that I don't think owning a house is an 'essential necessity'.
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    Likewise today, in parts of China where house prices are 88 times average income, it's pretty clear.

    I've heard that the high property prices in these areas of China isn't the actual problem though. It's the mortgate rationing and high deposit requirements that are stopping young Chinese people buying.
  • ILW
    ILW Posts: 18,333 Forumite
    HAMISH_MCTAVISH wrote: »
    Oh it is very much the case that bubbles are extremely difficult to differentiate from supply/demand imbalances. And a genuine supply/demand driven price spike can then grow legs of it's own and turn into a bubble where the fundamentals no longer support the gains.

    But in the case of Japan, where the Chairman of Sony could not afford to buy a house, it became clear.

    Likewise today, in parts of China where house prices are 88 times average income, it's pretty clear.

    But in the UK we're just not there yet. We have growing population, a shortage of housing, very limited supply, and average property prices of just 0.75 times income more than the long term average. (Halifax historical series, male, mean, 4,75 today vs 4.0 long term average)

    The problem is, some posters assume EVERY large price spike MUST be a bubble without any foundation in market fundamentals.

    Which is obviously nonsense. As most of those who STR-ed in the last decade found out to their cost.

    You do seem to like going on about people who STRd, I believe the numbers were very small compared with the whole market.
  • Davesnave
    Davesnave Posts: 34,741 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ILW wrote: »
    You do seem to like going on about people who STRd, I believe the numbers were very small compared with the whole market.

    ....And not all of them did badly out of it! ;):beer:
  • carolt
    carolt Posts: 8,531 Forumite
    Cleaver wrote: »
    Thanks for the kind comments. But...

    ...then I'm going to disagree with you by saying that I don't think owning a house is an 'essential necessity'.

    I don't think that either.

    I think having a (preferably secure) roof over your head is a necessity, though.

    But it needn't be owned.
  • poppycod
    poppycod Posts: 1,400 Forumite
    Cleaver wrote: »
    I've heard that the high property prices in these areas of China isn't the actual problem though. It's the mortgate rationing and high deposit requirements that are stopping young Chinese people buying.

    Why does CHina have such high property prices?
  • sjaypink
    sjaypink Posts: 6,740 Forumite
    poppycod wrote: »
    Why does CHina have such high property prices?
    Welcome to the forum. What a lovely avatar :)
    We cannot change anything unless we accept it. Condemnation does not liberate, it oppresses. Carl Jung

  • poppycod
    poppycod Posts: 1,400 Forumite
    sjaypink wrote: »
    Welcome to the forum. What a lovely avatar :)

    Thanks for the welcome.

    Glad to see there are other fans around! :)
  • treliac
    treliac Posts: 4,524 Forumite
    edited 23 August 2010 at 12:32AM
    sjaypink wrote: »
    Welcome to the forum. What a lovely avatar :)


    You mean you fancy him (or at least the 'him' in the avatar) sj! :D


    .....
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