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Debate House Prices
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House prices - Statistics
Batchy
Posts: 1,632 Forumite
Hi Guys, and Girls.
Just putting a little reality into the old house prices argument.
Estate agents dont track statistics ie Nationwide stats rightmove stats etc. FACT
If someone wants to sell their unique house for x amount, then estate agent z may market it for them if they choose. If they cannot achieve the price they wanted or find a house to buy that they wanted then they may choose not to sell. So all in all, if prices are inceasing it will cost vendor v more to move to a bigger house ( as is normally the case, you move up the ladder, until you get older and at the end, and then you move onto the otherside and get a bungalow or flat, or warden controlled etc.)
People percieve house prices rising as a good thing, its good for ONLY those that are Selling UP completely moving into rented etc... ie, divorcee's, emigraters, those in financial armageddon (consolidation of debts) or those looking to set up business (entrepreniuers) as it can release equity they might not have had.
When your in employment your not bothered either way as you can afford your mortgage (potentially), however, if you get made redundant, get layed off, or lose contracts, then you MIGHT have to sell in the medium term, in the short term, you will get a little help.
The only people who want a crash is FTB's so they can bag a bargain. At the moment I dont think prices will go much lower, as it now costs as much to rent, as it does to buy as current rates, so why bother selling? Its a high risk strategy to sell to rent at the moment. unless you have a huge property or london one, its not worth the effort.
Its no conspiracy that governments want rising prices, as it increases equity consumption, confidence etc. but in reality it makes no odds as you gain on one hand but lose in the other when you trade up.
What I personally dont want is RAMPANT interest rates. Even when I was looking to buy, I didnt want rampant interest rates. The volatility is what would have stopped me entering.
Its the stability now, that has give me confidence to enter.
I have noticed a recent splurge in activity recently and the market is very topsy turvey... I think this in the long term is stagnation, movements up and movements down basically not going anywhere.
What people who want prices to fall ie STR's and FTB's need to do is buy a house that everyone else wants, then, if ever you need to sell. Let the bidding commence. People will still want your house regardless of the market. be picky and choosy... its the right thing to do!
Just putting a little reality into the old house prices argument.
Estate agents dont track statistics ie Nationwide stats rightmove stats etc. FACT
If someone wants to sell their unique house for x amount, then estate agent z may market it for them if they choose. If they cannot achieve the price they wanted or find a house to buy that they wanted then they may choose not to sell. So all in all, if prices are inceasing it will cost vendor v more to move to a bigger house ( as is normally the case, you move up the ladder, until you get older and at the end, and then you move onto the otherside and get a bungalow or flat, or warden controlled etc.)
People percieve house prices rising as a good thing, its good for ONLY those that are Selling UP completely moving into rented etc... ie, divorcee's, emigraters, those in financial armageddon (consolidation of debts) or those looking to set up business (entrepreniuers) as it can release equity they might not have had.
When your in employment your not bothered either way as you can afford your mortgage (potentially), however, if you get made redundant, get layed off, or lose contracts, then you MIGHT have to sell in the medium term, in the short term, you will get a little help.
The only people who want a crash is FTB's so they can bag a bargain. At the moment I dont think prices will go much lower, as it now costs as much to rent, as it does to buy as current rates, so why bother selling? Its a high risk strategy to sell to rent at the moment. unless you have a huge property or london one, its not worth the effort.
Its no conspiracy that governments want rising prices, as it increases equity consumption, confidence etc. but in reality it makes no odds as you gain on one hand but lose in the other when you trade up.
What I personally dont want is RAMPANT interest rates. Even when I was looking to buy, I didnt want rampant interest rates. The volatility is what would have stopped me entering.
Its the stability now, that has give me confidence to enter.
I have noticed a recent splurge in activity recently and the market is very topsy turvey... I think this in the long term is stagnation, movements up and movements down basically not going anywhere.
What people who want prices to fall ie STR's and FTB's need to do is buy a house that everyone else wants, then, if ever you need to sell. Let the bidding commence. People will still want your house regardless of the market. be picky and choosy... its the right thing to do!
Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)
0
Comments
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I think you outline it perfectly.
FTB's want prices to drop
Upsizers want prices to drop, but at the same time don't want THEIR OWN property to drop
Landlords want prices to rise, because that means rents will also rise AND their asset grows in value
Top rungers want prices to go up up up
So, all in all FTB's just need to keep holding out as a collective to get what the want. Without FTB's collectively agreeing to increase prices, the rest can't increase theirs.
HOWEVER - FTB's are not collective, and people will do what the want to do anyway, so none of what I have just said even matters
0 -
I own 2 houses but I think prices are too high and want them to fall
(which they are doing)"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
I think you outline it perfectly.
FTB's want prices to drop
Upsizers want prices to drop, but at the same time don't want THEIR OWN property to drop
Landlords want prices to rise, because that means rents will also rise AND their asset grows in value
Top rungers want prices to go up up up
So, all in all FTB's just need to keep holding out as a collective to get what the want. Without FTB's collectively agreeing to increase prices, the rest can't increase theirs.
HOWEVER - FTB's are not collective, and people will do what the want to do anyway, so none of what I have just said even matters
FTBs will be bidding against other FTBs on the future... they will collectively be holding out, then collectively outbidding one another. Its all much of a much ness. Unless we have deflation, i dont see all that much happening to house prices.
If we have super huge interest rates of 6% plus ie BOE rates. Then I think this will have a huge knock on effect.
However, my personal opinion is rates will be low for the next 4-5 years, ie while the Con-dems are in!... stability is what its all about.Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
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I am quite happy for my home price to drop if the home style/size/area drops too.
Unfortunatly I can't see how a 5%-10% across the board price drop will help things in my area.
My home is on the market, plenty of interest but the deposits required of FTB's mean that despite price being 'affordable' it is still as out of reach now with 15% minimum deposit as it was in 2007 with 100% and 95% ltv mortgage products availible. Without FTB's we are stuck here as are many others in similar positions so market in my area is pretty much stagnant. Lots looking very little moving.MF aim 10th December 2020 :j:eek:MFW 2012 no86 OP 0/2000
0 -
.
The only people who want a crash is FTB's so they can bag a bargain. At the moment I dont think prices will go much lower, as it now costs as much to rent, as it does to buy as current rates, so why bother selling? Its a high risk strategy to sell to rent at the moment. unless you have a huge property or london one, its not worth the effort.
Not entirely true, we're going to sell up and rent because we want a bigger house and don't want to wait four years to do it. We're saving for the next year to clear the negative equity, and then we're going to rent. Our house is a tiny one bed starter home in Kent, certainly not a huge or london one.saving up another deposit as we've lost all our equity.
We're 29% of the way there...0 -
Probably for the good of humanity.
Doubt it, he inherited a property and contributed to HPI by selling at HPI fuelled prices.
If he wanted them to drop he should have sold a lower prices.
Properties bought and sold at lower prices help to lower the next set of prices, selling at HPI inflated prices as nearlynew did will not help:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »Doubt it, he inherited a property and contributed to HPI by selling at HPI fuelled prices.
If he wanted them to drop he should have sold a lower prices.
Properties bought and sold at lower prices help to lower the next set of prices, selling at HPI inflated prices as nearlynew did will not help
Yer, cus selling one house cheaper is going to send the housing market into a downward spiral.
Utter nonsense ISTL, and you know it.
You've said before that landlords provide a service, and help out those who can't afford to buy a property. If this is really so, why don't you help them out more, and stop charging them rent to live in your place?
Not so good when the boots on your foot, is it?0
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