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Debate House Prices
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Here`s the thing......
Comments
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I bought my house in the middle 80s boom but I don’t want to see it's value crash but I would be quite happy if prices stagnate for a while and prices came down in real terms as I think this would benefit FTB without hurting people who are already buying.
Have you paid off the mortgage?"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
Good for you.
So why would it matter if the price of your house "crashed"?
I have been considering downsizing and the lower prices go the less attractive it becomes. But to be honest now I’ve got to the position where I could I’m not so keen. I also think that big falls will hurt as many people as it would benefit.0 -
They may well have ill feelings for those who wanted a crash,
True.but they are welcoming HPI,
True.
We saw the inevitable coming, we positioned ourselves accordingly.
Nothing good or bad about it either way.something which will cost the next generation very dearly.
Probably false.
The total cost of a house is determined by two factors.
1. The price.
2. The interest rate for the mortgage.
My generation had cheaper house prices, but far more expensive mortgages.
The total cost for the house I bought in 1990 will very probably be far more than the total cost for the house I bought in 2007 in real (inflation adjusted) terms.
Yet the house price in 1990 was less than the house price in 2007.
The course of interest rates for the next 25 years is of course still an unknown, but the chances of seeing rates as high as they averaged during the 3 decades of the highest rates in history (when 3.5 times income was established as a typical house price) are vanishingly small.
So your premise, that HPI will "cost the next generation dear", (in comparison to the last) is at best speculation, but most probably grossly innacurate.The next generation will surely want an affordable place to live, which for many means wanting what many would describe as a crash (thus putting a fair few people into negative equity).
The next generation can want anything they like. It doesn't mean they'll get it.
The cost of housing in the future will, as always, be governed by the balance between supply and demand.I see my friend`s children leaving home at a much later age than I did, and not being able to buy a property like I did. I feel lucky, and I certainly don`t welcome the reason that many of them have to stay with their parents longer, or are forced to rent a place to live.
The percentage of after tax income required to service the average mortgage in 1990 was 68%.
In 2007 it was 45%.
Today it's more like 35%, and below the long term average.
The reason so many are locked out of the housing market is not the prices. It's the exorbitant deposit requirements, and rationing of mortgages.“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 -
So after 20 years of decent earnings and the two biggest housing bubbles in history all you have is a suburban semi in britain and a hovel in thailand?
No wonder you want prices to rise. It's your only hope.
What a loser.
No, I have a nice little semi in Loose Valley just outside of Maidstone. Share another town house with my sister (no mortgage).
Live in a really nice house in Bangkok 3 bedroom detatched. I'm typing this from a 5* hotel in Singapore where I'm working this week. If you consider this slum living I take my hat off to you. You are richer than me.
Now the killer blow for you.
I'm going to buy a house in Thailand next year. Brand new I expect. Probably 3-4 bedroom detatched on a new estate. I bet that will go down well with Gloomy.:rotfl:So that other people might have a slightly easier time than you did ?
Oh no, that`ll never do. You had it tough, so everyone else should.
As it goes you are not the type I really dislike on here. I know where you are coming from.
It's not my fault the UK is a bad place to live though. I don't make the rules.We love Sarah O Grady0 -
goodnight."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0
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