'House prices could rise 16% by 2014'

Aberdeenangarse

Sibley wrote: »

It wouldn't surprise me if this turned out to be spot on.

They're not spots Sibbers, they're Genitial warts :rotfl:

DaddyBear

Sibley wrote: »

It wouldn't surprise me if this turned out to be spot on.

Of course home owners would love it. I'm just looking forward to the time when the bears admit defeat. There sure as hell ain't gonna be a house price crash.

Why would they love it?? With the bank of England finally admitting today that they are going to allow high levels of inflation, 14% over 4 years will be struggling to match inflation. Bonds and the stock market are likely to provide a better return and have no Maintenance costs.
You need to accept that we wont get another property boom for a very long time.

IveSeenTheLight

DaddyBear wrote: »

Why would they love it?? With the bank of England finally admitting today that they are going to allow high levels of inflation, 14% over 4 years will be struggling to match inflation. Bonds and the stock market are likely to provide a better return and have no Maintenance costs.
You need to accept that we wont get another property boom for a very long time.

I think you are missing the point.
Nominally prices will be higher and the question is whether that will be matched with wages inflation?

If not it will become harder to become an owner (presuming the same credit rules apply)

As for an investment, the HPI increase is a bonus and not a factor in the rents recieved when compared against the debt secured.
If it is to become harder to become an owner and population continues to increase faster the property builds / rennovations, then the rental market is going to become even stronger.