House prices down 0.9% Nationwide report out

Strings

michaels wrote: »

Of course during the previous downturn the Govt produced a deus ex machina with massive QE and a huge fiscal deficit and maybe they have something else up their sleeves - may be negative interest rates?

Agree with your comments, but how did QE effect house prices, or was there no link at all?

Chris2685

DervProf wrote: »

I`m not saying it`s gospel, but the BBC seem to think it`s blasphemous, so they won`t mention it.

What I will say is that I bet that at least one of those houses they lent money on was a nice house, in a nice area, and has dropped in price.

It was mentioned on Radio 1 news (for about 3 seconds) earlier.

Really2

Chris2685 wrote: »

It was mentioned on Radio 1 news (for about 3 seconds) earlier.

It is on the front page of the BBC website also. Perhaps they do not see it as quiet as important as Obama calling for middle east peace?

doire_2

Really2 wrote: »

It is on the front page of the BBC website also. Perhaps they do not see it as quiet as important as Obama calling for middle east peace?

Its also on the BBC ceefax. I actually spit out my tea this morning as the report on ceefax said "fall". I thought i'd never see the day when the BBC used the word "fall" when reporting on house prices.
I do wish though they would use it on tv news reports. Their new favourite word in that situation is "stagnation".

luvpump

HAMISH_MCTAVISH wrote: »

Given that I predicted several months of falls this year on the 2010 predictions thread, I'm actually right.

................... :rotfl:

IveSeenTheLight

Generali wrote: »

It sounds unlikely. Yield = current rent / current price.

I believe this calculation is only worth utilising when making an assessment ion whether a property is a worthwhile investment.

One you become the owner, it's better to evaluate against the investment or equity.

ILW

IveSeenTheLight wrote: »

I believe this calculation is only worth utilising when making an assessment ion whether a property is a worthwhile investment.

One you become the owner, it's better to evaluate against the investment or equity.

The only useful calculation on an investment is return on current valuation. It may show that you are better off getting rid of that asset.

IveSeenTheLight

ILW wrote: »

The only useful calculation on an investment is return on current valuation. It may show that you are better off getting rid of that asset.

That however does not give a true reflection.
Example:

Current valuation = £150,000
Equity in property = £30,000
Monthly Rental = £800

RY = £800 * 12 / £150,000 = 6.4%

If you sold, you would only have £30,000 minus any fee's / capital gains etc.

I'm not going to get into it all again, but I have shown that Property investment provides a better return than simply placing the money in a savings account, even without HPI or rent increases.

When assessing property investment, it's better to consider the long term implications rather than the short term.

Emy1501

Really2 wrote: »

What happened to your favourite word "context" graham? how are you judging people are now in fear from the comments on here and the graph.

Desperate to start an argument by making out people are now in fear.

Why do you need to do it on every release of data?

I avoided this today as you say I start the arguments, the above seems to disagree.:)

Fear round my way. After the rightmove figures National EA selling my house advised they had buyers phoning up dropping agreed sale prices and pulling out. The EA I spoke to said that head office was starting to worry that they were heading for 2008 all over again. My seller still seems keen but nervous as hell. They want reports on all kinds of things. I don't think these figures will help too much.

Graham_Devon

Interesting, no idea if it's anything to do with today's figures, but a girl is in tears at work here, as her buyers have just pulled out unless she can take 7k less.

One of those situations you walk into an office and find a women in tears...time to run back out.

I do feel for her, as shes now saying she will have to pull out of the place she has found. However, she could easily reduce by 7k, as the house was given to her by an uncle. However, seems from what I have heard, she won't.

Makes you wonder if this kind of news does actually effect things to this extent, as that's at least 2 sales now not going ahead because the buyer wants 7k off.

Case of again, buyers able to bargain, sellers wanting to absolute max they can get, and no one moving.