House prices....

saverbuyer

A.L.D.A wrote: »

It was back in the mid 70's. It was hard going at times; interest rates were nothing like now, but on the up side inflation eroded the value of the initial loan as wages were rising with inflation and not as now.

I would not like to see anyone have it any harder than I had, and do not believe that any average person benefits from expensive housing. Expensive housing is a burden on the economy. However if someone cannot buy a piece of land and build a few houses and make a reasonable profit then in the long run we have problems as the population is increasing. Also every year some of the housing stock needs to be replaced as it is beyond its useful life.

I know the asking price, is not necessarily the agreed price. Never was!


Saverbuyer

I think there is a housing shortage, and most of those in the social housing sector believe there is a housing shortage, you don't. I have yet to read an article that proclaims the housing surplus in NI. There are enough reports saying the opposite.

Why should someone make a profit from housing? Why should someone profit from what is at the end of the day shelter? A basic human right. That's part of the problem now. People think that because it cost X to build a house, they should make a profit if/when they sell it.

I agree opening up land to development is a way to ensure more housing stock. Another idea is to ban mortgages beyond the average income multiples.

Oh the point of housing associations saying we need to build more... Does this really surprise you? Its self serving. More money for the associations. They are on the whole worse than useless. I can show many news paper examples that backs this up. I can also provide example of the 5K ghost estates, the 60K vacant properties and the 17K getting mortgage support. Can you provide me examples of the homeless shanties popping up all over NI?
Estate agent, housing associations and developers are out to protect their interests not ours.

I'm glad we agree that expensive housing is a drain on society and benefits no one. We have no really economy here. We tried selling houses to each other for 10 years. Look where that has gotten us? Has our economy grown? Have we created more private sector jobs?

wanchai_2

A.L.D.A wrote: »

It was back in the mid 70's. It was hard going at times; interest rates were nothing like now, but on the up side inflation eroded the value of the initial loan as wages were rising with inflation and not as now.

I would not like to see anyone have it any harder than I had, and do not believe that any average person benefits from expensive housing. Expensive housing is a burden on the economy. However if someone cannot buy a piece of land and build a few houses and make a reasonable profit then in the long run we have problems as the population is increasing. Also every year some of the housing stock needs to be replaced as it is beyond its useful life.

I know the asking price, is not necessarily the agreed price. Never was!

So your house, adjusted for inflation, cost the equivalent of £150,000 in the 70s? Can someone do the maths on this? It sounds doubtful to me.

Also, how do you see house prices rising here in the near future if wages are not???

trebor21

saverbuyer wrote: »

Why should someone make a profit from housing? Why should someone profit from what is at the end of the day shelter? A basic human right. That's part of the problem now. People think that because it cost X to build a house, they should make a profit if/when they sell it.

I think russia had a system like this a few decades ago

motorguy

saverbuyer wrote: »

The market has fallen massively in the past 4 years. It fell a further 17% in the last 6 months. I’m sorry for all those who bought or built in the last 7 -10 years and have to service massive loans on deprecating assets. I’m sorry for people who continue to pay interest on massive loans and will do for the length of the mortgage. If only they could have been objective and see that the housing bubble was unsustainable and prices will drop to affordable levels.

I agree entirely. There are many people who were caught out in the housing boom / bust, however there were some who did rather well out of it.

Fortunately our mortgage is merely a fraction of even the banks valuation of our house, and we have no plans to sell, therefore we will just keep chipping away at the remaining mortgage.

Better than wasting it on rent, eh?

motorguy

saverbuyer wrote: »

Why should someone make a profit from housing? Why should someone profit from what is at the end of the day shelter? A basic human right. That's part of the problem now. People think that because it cost X to build a house, they should make a profit if/when they sell it.

Why should someone not make a profit from housing? Otherwise why would builders bother? If someone wants to build their own bespoke house why shouldnt they?

I think the real question is, why should people feel they have the right to own their own homes? I think there are a lot of disgruntled people who are now being forced to rent and have no forseeable hope of owning a home, who believe it is their right to own a home?

I dont think it is.

saverbuyer wrote: »

I agree opening up land to development is a way to ensure more housing stock.

Why? There are lots of houses for sale. People just cant buy them or dont have the confidence to. Is building cheap housing just so that people can own their own homes the way forward? There are lots of rental properties on the market so its not as if there is a shortage of homes for people.

saverbuyer wrote: »

Another idea is to ban mortgages beyond the average income multiples.

Banks have effectively done that anyway by a combination of tighter rules and lower valuations (see my earlier posts)

A.L.D.A

wanchai wrote: »

So your house, adjusted for inflation, cost the equivalent of £150,000 in the 70s? Can someone do the maths on this? It sounds doubtful to me.

Also, how do you see house prices rising here in the near future if wages are not???

I already have. Wages were a matter of a few thousand back then. What I see is a future where less people will own and a higher percentage will rent unless the current pattern changes. Home ownership will be the reserve of the top 60% of earners. You can take what you want from that with regards house prices.

wanchai_2

A.L.D.A wrote: »

I already have. Wages were a matter of a few thousand back then. What I see is a future where less people will own and a higher percentage will rent unless the current pattern changes. Home ownership will be the reserve of the top 60% of earners. You can take what you want from that with regards house prices.

That depends on there being a big enough appetite for BTL... very unlikely in the next decade or two at least, as so many have been burned by this crash. ROI investors are not going to take up the slack either - they're in an even worse state.

Can you tell us how much you actually paid for your house in the 70s so that we can do the maths ourselves iro inflation?

A.L.D.A

wanchai wrote: »

That depends on there being a big enough appetite for BTL... very unlikely in the next decade or two at least, as so many have been burned by this crash. ROI investors are not going to take up the slack either - they're in an even worse state.

Can you tell us how much you actually paid for your house in the 70s so that we can do the maths ourselves iro inflation?

Here is a useful site http://www.measuringworth.com/ppoweruk/ It was a fair sized house in poor condition with reasonable garden. I have just measured one for a lady that would be in similar condition but a bit larger and better structurally. I think it was bought for around £170,000, but needs work done to it.

For everyone who was burnt someone gained! All I can say is I have clients who are currently buying up cheap sites and cheap houses to rent. I have also clients who are now grounding their business proposals on rental income rather than sale. It may be they are deluded, unrepresentative and mistaken, I neither know nor care. That is what some are doing. May be they will lose money, who knows.

We are not the ROI and our build totals were never that great. We peaked in 2006 and declined from there. When I last looked we were completing around 6000 units a year. That is disastrous.

wanchai_2

Well, good luck to everyone, whatever their situation.

We are so very glad that we didn't buy and end up in negative equity, and we are now sitting on decent savings with a view to buying in the next few years.

x12yhp

pgilc1 wrote: »

Why should someone not make a profit from housing? Otherwise why would builders bother? If someone wants to build their own bespoke house why shouldnt they?

Ok.... but most people are not rich rich. Most actually dislike the fact that rich people just seem to get richer simply because they are rich. However that is just what you are supporting. If the simple matter of owning a property is expected to gain the owner a profit then the more properties you own, the richer you get. Of course the more money you have, the more properties you can own. Thus the more money you have, the more money you can get.

I don't disagree with your sentiment but it has the reality outlined. I don't know that your average joe actually puts two and two together on this matter...