What it matter about house prices?

Engeroosi

You can get a loan to buy a car, a couch, a boiler, a bike, your weekly shop even and they all either depreciate rapidly or become worthless the minute you buy.

So surely if your buying your house to be your home why are people so worried about the price of it!!!

Everyone agrees that it will be worth a fair bit more in 20-35 years when you have paid the mortgage!!!

DervProf

Engeroosi wrote: »

You can get a loan to buy a car, a couch, a boiler, a bike, your weekly shop even and they all either depreciate rapidly or become worthless the minute you buy.

So surely if your buying your house to be your home why are people so worried about the price of it!!!

Everyone agrees that it will be worth a fair bit more in 20-35 years when you have paid the mortgage!!!

Maybe I`m a bit unusual (plenty will agree), but the value of my house is of no concern to me. It will be a bigger concern to someone who may want to buy my home, or a similar place. What is of more importance to me is my bank balance.

quantic

Anything that takes a considerable portion of your income and takes 20-30 years to pay off is going to be of interest to the person paying for it. In the short term, your gonna be unable to move if you don't have enough equity in the house for a deposit on the next one. The trouble being that people see too much value in short term gains/losses. Its more practical to look at prices over a period of say 5 years rather then being concerned with month on month.

Engeroosi

Unless your moving every couple of years then the equity isn't too significant. I am glad not everyone is obsessed about their house price being higher or lower from day to day!

Thrugelmir

Engeroosi wrote: »

Everyone agrees that it will be worth a fair bit more in 20-35 years when you have paid the mortgage!!!

Maybe or maybe not. Past performance is no guide to future performance.

abaxas

Thrugelmir wrote: »

Maybe or maybe not. Past performance is no guide to future performance.

Also it depends on what you compare it to.

Your house can go from 4k to 400k but that doesnt mean you made anything other than money. You could have lost value.

With everything, it's all relative.

Thrugelmir

abaxas wrote: »

Also it depends on what you compare it to.

My reference was to events of the recent past .

abaxas

Thrugelmir wrote: »

My reference was to events of the recent past .

I agree, but added the concept of value.

Orpheo

Engeroosi wrote: »

You can get a loan to buy a car, a couch, a boiler, a bike, your weekly shop even and they all either depreciate rapidly or become worthless the minute you buy.

So surely if your buying your house to be your home why are people so worried about the price of it!!!

Everyone agrees that it will be worth a fair bit more in 20-35 years when you have paid the mortgage!!!

I concern myself with the price of everything that I buy.

DervProf

Orpheo wrote: »

I concern myself with the price of everything that I buy.

Me too. It doesn't bother me if I can't borrow the money to buy the stuff I want, or if the cost of borrowing is high. If I haven't got the money, I don't bother buying it.*

* Except for the purchase of a house or maybe a car.

Conrad

DervProf wrote: »

Maybe I`m a bit unusual (plenty will agree), but the value of my house is of no concern to me. It will be a bigger concern to someone who may want to buy my home, or a similar place. What is of more importance to me is my bank balance.

Derv, you can honestly look in the mirror and say your home value is of little importance? If this is true you will be selling it one day for a nice low sum afterall it's all meaningless?

You don't feel self satisfied even deep down about property value.

I can tell you are the type to extract every last cent when you come to sell, and to pin the EA and Sols fees as low as possible.

In other words the value will one day be extracted and is therefore always imortant, albiet currently confined to your subconscious.