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Debate House Prices
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house prices continue to drop ....
Comments
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des_cartes wrote: »Ask yourself one question. If house prices were half what they are today would it be less expensive to trade up? The clue is in the forum name.
Well, firstly I'd have to save £50k in cash to get myself out of negative equity, and then I'd need to save another 10k or so to pay for a deposit, so it'd probably never happen.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
des_cartes wrote: »Ask yourself one question. If house prices were half what they are today would it be less expensive to trade up? The clue is in the forum name.
Half price pizza's,money off vouchers,but i'd hardly use this place if contemplating buying property.Official MR B fan club,dont go............................0 -
des_cartes wrote: »Ask yourself one question. If house prices were half what they are today would it be less expensive to trade up? The clue is in the forum name.
Surely it's even better "money saving" not to trade up.
Unfortunately many see this as a requirement and thus factor in the increased costs in relation to the benefits they will receive from a lorger property.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Just checked rightmove (with property bee of course) for "last 7 days"
They're still dropping."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
IveSeenTheLight wrote: »Additionaly, falling prices eat into the equity / deposit requirement for a larger place.
Let's say you bought a place for £100k (10% deposit) and it increased to £150k.
You have £50k equity + capital paid down (lets say £15k including previous deposit) as a deposit towards a property that was £200k but now £300k.
You have a £65k deposit towards the £300k property or a 21.66% deposit.
If prices had stagnated, you would only have £15k towards the £200k property meaning a less than 10% deposit and thus you may not be able to upsize regardless of the lower purchase price.
So you would rather have a 235k mortgage than a 185k mortgage on the same property. Are you for real?0 -
No, he isn't.
He wants to persuade us all to buy over-priced property, to reduce his risk of negative equity.
He is definitely a do-as-I-say, not a do-as-I do sort of guy.0 -
des_cartes wrote: »So you would rather have a 235k mortgage than a 185k mortgage on the same property. Are you for real?
that's debt junkies for you.
debt is wealth and all that ..."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
IveSeenTheLight wrote: »
My friend has just moved last Friday from a 1 bed flat to a four bed detached. He also didn't need to sell so will rent out the 1 bed flat.
Not all areas of the UK are unnafordable
What's he bought? A large Tent?0 -
des_cartes wrote: »How do higher houseprices benefit houseowners?
HPI is good for the vast majority of people.
HPI benefits.....
1) The millions of people who are approaching retirement and may wish to, or need to, downsize and release equity to support themselves.
2) The millions of people who have mortgages and who are reliant on achieving a certain LTV to get the best rates.
3) The owners of the two million or so investment properties in the UK.
4) The millions of people who have purchased in the last few years, and who would be in, or close to, negative equity if prices fall, costing them far more at mortgage renewal time.
So the vast majority of people.....
HPC on the other hand, only benefits.....
1) A few hundred thousand potential FTB's, and as soon as they buy they will benefit more from HPI for all the reasons above.
2) Another few hundred thousand potential upsizers.... in theory.... But the reality is that most upsizers in this crash have hardly benefitted at all, because the prices of FTB properties have fallen further than the prices of more expensive properties. So they have seen their flat fall in price by 15% or 20%, but the house they want to buy has only fallen by 10%, as an example. So instead of the rungs narrowing, they have actually become wider apart.
3) A few hundred STR's who may have got it right on the timing. Most will not though.
So HPI benefits many millions of people..... HPC benefits a few hundred thousand people.
No contest really as to which is better for the vast majority of people in society.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Hamish, stop thanking yourself. It looks weird.0
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