Average home £1million by 2024

ashm1

Hi,

How do you think the housing market will respond to 5% interest rates ? (do you think it will need a few more interest rate slaps)

I wonder what the minimum wage and unemployment rate would be if the average house price was £1 million.....


Kind regards,

Ashley.

Alan_M_2

real1314 wrote:

That's a very busy plumber! 1750 days a year!!!

Yeah He's on Jupiter, they have a 35 day week there

A_Fool_&_His_Borrowed_Mon

ashm1 wrote:

Hi,

How do you think the housing market will respond to 5% interest rates ? (do you think it will need a few more interest rate slaps)

A Common excuse i hear is "It wont happen, as Interest rates were 15% last time round, they wont ever get that high again, so it cant crash, etc"

What they fail to realise is, indeed it is different this time, as people buying today need Giganticus - sized Super-Mortgages to get a 1 bed flat. As the size of the loan this time round is so much more, it is more very sensitive to minute changes in I.R's instead of the big changes it took last time round. anything beyond 5% would cause a topple in today's market, Topples like it has done over the last few decades in the graph i posted.

Reminds me of a saying "Those who ignore the past are destined to repeat it"

Hope this helps.

Tassotti

Getting lost here...am I on MSE or HPC?

To MM...yes..change your career...I used to work in an industry (television) where the pay was outstanding 10 years ago, but hasn't increased since.

What did I do...invested in property and a couple of other sidelines.

The desperation of people willing a crash now is incredible.

Tass

(Bring on the flaming)

tomstickland

IN 2024 we'll be hopping onto our space transporter pods and buying up 1 bed exec flats on the nether end of uranus. Don't worry, the average wage in the sanitation industry will be £200K PA by then and everyone will have trebled their wealth by renting property.

F_T_Buyer

You home owners will like the Land Registry data for quarter 3.. It shows very big rises. There is an early leak of the information on house price crash. https://www.housepricecrash.co.uk/forum

A_Fool_&_His_Borrowed_Mon

Tassotti wrote:

The desperation of people willing a crash now is incredible.

Please, Do tell me the good thing about permanently high house prices.(I'd love to hear your opinion why its good)

The only ones making the "REAL" money in this are the banks, who are laughing all the way to the bank! (& the ones saying a crash won't happen. No !!!!!! SHerlock, a crash would halve their profit margins)

tomstickland

The only ones making the "REAL" money in this are the banks, who are laughing all the way to the bank!

They can't laught their way to the bank, er, because they're already there. Maybe they're just laughing?

Dead_Eye_Jones

People were saying there would be a crash years ago, here we are, almost 2007, and the prices are still booming. The quoted data, reports, and stats back then were supposedly undeniable too, but here we are, prices still going up. A smaller run down house on my road just sold for 10k more than mine was bought for 6months ago - crazy!

Perhaps people underestimate the affects of single occupancy, increasing population and the increasing divide between rich and poor - house purchase is still clearly very affordable to many. Other Euro countries exist in a situation where the majority of people rent for life as house purchase is out of reach, its not an impossible vision and I think we need to start facing the reality that, for better or worse, this is what future generations might have to live with.

Personally I want to see things cool for sure, I still want to upgrade my semi to a detached and I want that jump to be easier! But I think we also have to accept reality. Past cycles mean nothing, past performance is no indicator of future performance, we live in a very different world now.

I just really wanted a stable home (I found renting stressful - lost my home after the LL wanted it for his son - pah!) for my family and so used my best MSE skills to get there. Other people just seem to want to sit around and blame the government or BTLs (because they are the sole cause of this lol :rolleyes:) - fine, but the reality is you may never own a home.

I just feel sorry for the people back in 2000 who decided to wait for a crash, i'd like to dig up some old posts but I think it would be too cruel. The housepricecrash website is very pitiful in that respect, you have all these people waiting around feeling bitter because their opportunity of home ownership is going further and further away.

I think it's very telling that talk of mortgage multiples never mention deposits - typical of todays 'want it now' society. Actually you dont need a big multiple if you save for a big deposit. If people on this site can pay off debts of 40k then there is no reason that the rest of us cant build up that size deposit and beyond. I did it and im pretty average (sadly lol). imo there are actually many many people like me and houses will continue to sell, and those that are sitting around waiting for the government to act will continue to find themselves further and further from their goal. Kinda sad really. Heading for a big divide in the country I reckon.

tomstickland wrote:

They can't laught their way to the bank, er, because they're already there. Maybe they're just laughing?

Best comment in the thread, n1!

meanmachine_2

The psychology of some home owners on here is laughable.

This seems to be their argument.

I bought a home when they were cheaper.
But it's always been difficult (although not for me).
Owning a home isn't a right, it's a privilege.
It's a privilege that I deserve but you don't.
I want houses to go down in price, but people who think houses should fall in value are pitiful.
I don't care about the value of my house, it's not an investment.
By the way, the house down the road went for X amount more which means I'm rich and brilliant too!
Oh but houses are still affordable, so shut up anyway and give me my equity which i've worked DAMN HARD FOR.


etc etc blah blah.

SO many contradictions, it's hilarious.