If anyone ever tells you house prices double every 10 years they are a liar

Pimperne1

Unless they say "Well almost":

House Prices since 1970 (average)

1970 £4378
1980 £22677
1990 £59587
2000 £77698 (disappointing decade)
2010 £162887

Middle Tab, UK house prices since 1952

http://www.nationwid.../historical.htm

Think of it, invest your 10% deposit of £5k in 1970 and today its worth more than £150k (and your mortgage for most of that period has been negligible - although £30 a month seemed a lot in 1970).

Strings

on average they have though - fael

Graham_Devon

Pimperne1 wrote: »

Think of it, invest your 10% deposit of £5k in 1970 and today its worth more than £150k (and your mortgage for most of that period has been negligible - although £30 a month seemed a lot in 1970).

It's just a shame you can't cash it in without:

A) remortgaging
downsizing or moving to another cheaper area
C) releasing some of the equity in a seriously bad deal

So in essense, your 5k now being worth 150k is literally only a figure of speech, and not actually very useful!

Thrugelmir

Pimperne1 wrote: »

Think of it, invest your 10% deposit of £5k in 1970 and today its worth more than £150k (and your mortgage for most of that period has been negligible - although £30 a month seemed a lot in 1970).

Don't discount the investment which has gone into property in that period between 1970 and now.

Extensions, double glazing, quality kitchens and bathrooms, conservatories, central heating, landscaped gardens, paved drives to name a few items.

The overall quality of the average property is far higher now than that of the 70's. So its arguable property should cost more.

phil_b_2

So bets on the average price by 2020?

I'll go for £200k, give or take a pinch. I think between 2000-2010 was a freak.

Thrugelmir

phil_b wrote: »

So bets on the average price by 2020?

I'll go for £200k, give or take a pinch. I think between 2000-2010 was a freak.

Around £185k. If we see compound growth of 1% per annum over the period we'll be lucky.

Pimperne1

Strings wrote: »

on average they have though - fael

I am sure you have hear your teecher saying this often enough "Read the question".

mystic_trev

phil_b wrote: »

So bets on the average price by 2020?

I'll go for £200k, give or take a pinch. I think between 2000-2010 was a freak.

I'd be surprised if prices manage to keep up with inflation for the next 10 years, and that from someone who invested heavily in Property in the mid to late 90's. They're are better opportunities in the Equity markets, after an awful last 11 years, I think that's the way forward and where I'll be sticking my cash. It dosen't mean it's not a good time to buy a home, but (probably) not a good time to buy Property as an investment.

HAMISH_MCTAVISH

1970 £4,378
1980 £22,677
1990 £59,587
2000 £77,698 (disappointing decade)
2010 £162,887
2020 £235,000 (disappointing decade)
2030 £450,000

nearlynew

The economy of the last 60 years has been a blip in history.
Yet all our assumptions about are based on this stastistical anomoly, whilst ignoring the facts.

We are living through a major change in history - on a par with the industrial revolution - where all those assumptions are going to be thrown out of the window.


100% guaranteed

vivatifosi

nearlynew wrote: »

The economy of the last 60 years has been a blip in history.
Yet all our assumptions about are based on this stastistical anomoly, whilst ignoring the facts.

We are living through a major change in history - on a par with the industrial revolution - where all those assumptions are going to be thrown out of the window.


100% guaranteed

Interesting you should say that nearlynew. I picked up a reference book in the library which shows house prices from the 1800s to current day. Essentially there was little or no house price inflation before WW2, equally very few people could buy houses. Rental was very expensive and people often rented rooms rather than whole houses, even for families.

I did make lots of notes so I could quote it knowledgeably on here. Then promptly left it at work .

It is a very short period of time for which the majority have been able to buy their own houses and qualify for reasonable pensions. Still, in the "good old days" before the wars or any benefit system, at least income tax was less than 5%.