Own a house - you're working for nothing.

BritRael

des_cartes wrote: »

http://www.telegraph.co.uk/finance/personalfinance/8092471/House-prices-drop-in-value-by-more-than-average-salary.html

It's the bricks and mortar cash machine in reverse. If you own a house in 2010, it is losing value faster than you can earn money.

If it were true, (which I do not believe it is), what would be the problem? Like me, the majority of people live in a home not a 'cash machine' and therefore it is irrelevant to most of us whether it has increased or decreased in theoretical value. Like any asset, property values have always fluctuated (and will continue to do so) so there will always be winners and losers.

HAMISH_MCTAVISH

googler wrote: »

Surely you'd agree, though, that we would all be better informed if these average percentages had some indication of their distribution around the average, perhaps by breakdown into price bands of number of sales, averages within price band etc. ?

They do.

The quarterly RoS report breaks down into property type by area.

It shows similar gains.

ruggedtoast

Oh great its one of these discussions again.

HAMISH_MCTAVISH

DervProf wrote: »

If Graham is "Mr Muddle", what does that make Hamish ?

No reply from Aberdeen, after I pointed out his contadiction.

Hamish does post one or two things that are hard to argue with, then leaves himself wide open when he posts rubbish like that. I wonder if he does it on purpose, or is he really not as bright as he makes out ?
.

Good grief, you really don't do yourself any favours.

There is no contradiction.

FTB's as a percentage of buyers has increased slightly since the trough in late 08/early 09.

This has happened as credit has eased slightly from it's low point.

The total numbers of FTB's are still massively less than they were in 2005/6/7 before mortgage rationing started.

The number of FTB's as a percentage of all buyers is also still lower than it was pre-crash.

I'm beginning to wonder if you're actually a Graham sock puppet.... Mini-Muddle.

gingerdad

to be honest most people i know there house is there home, if it goes up or down it really doesnt matter, if they want to sell the others will have gone up or down also. it only really effects people moving into or out of an area where prices are different. so if mine drops by 50% i really couldn't give a toss

Graham_Devon

HAMISH_MCTAVISH wrote: »

Good grief, you really don't do yourself any favours.

There is no contradiction.

FTB's as a percentage of buyers has increased slightly since the trough in late 08/early 09.

This has happened as credit has eased slightly from it's low point.

The total numbers of FTB's are still massively less than they were in 2005/6/7 before mortgage rationing started.

The number of FTB's as a percentage of all buyers is also still lower than it was pre-crash.

I'm beginning to wonder if you're actually a Graham sock puppet.... Mini-Muddle.

You are getting yourself into a muddle Hamish.

You don't seem to understand the irony.

You are all over the place at the moment, the first time buyer champion, working hard on their behalf to spread the word that they require more debt.

Yet here you are, claiming FTB's are rising. Ok, the terms have changed. You were using these FTB's to describe something as "significant". Now you are using "slightly".

Let's face it, you just want FTB's to have more debt, allows your ship to sail away on a less bumpy ride with a few more lifeboats as security as you;ve nicked the lifeboats from the ship following yours. That's all there really is to it.

PasturesNew

I'm banking all this marvellous cash then. If house prices dropped £2k last month - and I don't have one, I must have a spare £2k sitting around ... surely that's logical

So I made £2k last month by not owning a house.

Equity .... great, but you can't eat it.

HAMISH_MCTAVISH

Graham_Devon wrote: »

You are getting yourself into a muddle Hamish.

You don't seem to understand the irony.

You are all over the place at the moment, the first time buyer champion, working hard on their behalf to spread the word that they require more debt.

Yet here you are, claiming FTB's are rising. Ok, the terms have changed. You were using these FTB's to describe something as "significant". Now you are using "slightly".

Graham, do at least make the effort to present yourself as slightly more intelligent than a blithering idiot.

If total house buyers in 2007 = 3000, and 35% are FTB's, then the number of FTB's is 1050.

If total house buyers in 2009/9 = 1000, and 25% are FTB's, then the number of FTB's is 250.

If total house buyers in 2010 = 1500, and 30% are FTB's, then the number of FTB's is 450.

So in this example, can more FTB's buy in 2007 or 2010?

Is the percentage of FTB's in 2010 higher or lower than the percentage in 2007?

Bank lending has loosened slightly since the worst days of 2008/9. We all know this. It's why sales and mortgage approvals increased, and are now some way above what they were at the trough.

Needing a 25% deposit to get a good rate is better than needing a 40% deposit to get a good rate, but it's still f ecking ridiculous to expect an FTB to save that money up.

Graham_Devon

I may be a blithering idiot, but why do you insist on comparing everything to peak?

I can't say it anymore. Peak was the top of a dangerous bubble which DID pop. It's not the bar to aim to, neither is it the holy grail.

baby_boomer

Own a house - you're working for nothing.

Not true.


Even if property prices fall, you've earned the right not to be kicked out by your landlord with one month's notice with all the attached removal and relocation expenses .

And the peace of mind that comes with it . Like knowing where your kids are going to school next year.