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Debate House Prices
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House price falls would be excellent for the economy
The_Fox_3
Posts: 299 Forumite
House sales are bumping along the bottom, retail figures stink at the moment, along with many of the trades struggling to find work who buy their goods of retailers obviously etc etc etc
I agree with many property bulls in that there is probably a huge pent up demand out there, the same type of pent up demand that would like a holiday home in the south of France or a spanking new Ferrari, the big difference is that house prices could be allowed to fall to levels where buyers come back in force if prices were right.
If we can trebble the house sales or better imagine the amount of work that would generate, the economy would rocket, and hopefully this time we could set measures to make sure that we don't just depend on a housing market for our economy and that prices never again bubble like they are now.
Housepricefalls of 30/35% would bring this economy back into life, then let prices slowly creep back up to counter that 30% fall so we keep pain to a mimimum, say over 5 years. At the end of the day there is only a few people that purchased at peak(2005 to 2007), more people would benefit than lose out, so lets stop propping up those that borrowed way too much and lets think of the economy as a whole.:)
Fox
I agree with many property bulls in that there is probably a huge pent up demand out there, the same type of pent up demand that would like a holiday home in the south of France or a spanking new Ferrari, the big difference is that house prices could be allowed to fall to levels where buyers come back in force if prices were right.
If we can trebble the house sales or better imagine the amount of work that would generate, the economy would rocket, and hopefully this time we could set measures to make sure that we don't just depend on a housing market for our economy and that prices never again bubble like they are now.
Housepricefalls of 30/35% would bring this economy back into life, then let prices slowly creep back up to counter that 30% fall so we keep pain to a mimimum, say over 5 years. At the end of the day there is only a few people that purchased at peak(2005 to 2007), more people would benefit than lose out, so lets stop propping up those that borrowed way too much and lets think of the economy as a whole.:)
Fox
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Comments
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Housepricefalls of 30/35% would bring this economy back into life, then let prices slowly creep back up to counter that 30% fall so we keep pain to a mimimum, say over 5 years.
Foxy, YOU want house prices to fall so YOU can buy and then YOU'D be quite happy to see them rise after that.
Talk about transparent.0 -
Housepricefalls of 30/35% would bring this economy back into life, then let prices slowly creep back up to counter that 30% fall so we keep pain to a mimimum, say over 5 years.
Fox
So basically you want to buy a property as cheaply as possible and then make a 30% profit when you come to sell in 5 years.
Am I warm?0 -
The few replies so far show lack of imagination.
The OP makes a sensible counter argument to why house prices should be where they are now, or even higher.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Here lies an interesting point.
When does property value actually mean it will be unsaleable?
I mean if HPI continues over wage inflation for the next 20 years or so. Will it actually be possible to sell easily? Or will the asset have a huge valuation, but is very hard to actually convert to money.
The interesting thing is that we actually exceeded this in 2007 as the ability of people to purchase property was only based on mortgage lending that was unsustainable.
Will be interesting to see what actually happens.0 -
The OP makes a sensible counter argument to why house prices should be where they are now, or even higher.
That's one opinion.
On the other hand you could say that the OP has taken what he would like to happen (i.e. he'd like to buy a house at 30% below today's market value to increase by 30% over 5 years) and then extrapolated some arguments to, clumsily, hide his clear vested interest. Not that credible.0 -
So basically you want to buy a property as cheaply as possible and then make a 30% profit when you come to sell in 5 years.
Am I warm?
I would be more than happy to leave prices at there new low levels, I am looking at buying(along with many others) a home and not an investment.
Some VI bulls ridicule my stance on this subject, but we are now in a position where FTB's are at records lows for the longest period of time, we have had the largest immigration influx in British history, and FTB's need massive deposits
I TELL YOU WHAT....
Let's not stop there, let's make it even more difficult for working aspiring young adults that want a home..let's put a machine gun nest on every For Sale property to mow the !!!!!!s down should that even think about buying, let's blow up 5 million home tonight and make the market even tougher, and then let's let in another 3 million North Africans
Some of you VI bulls just can't see past your greed, and your madness. I have even had one idiot on here suggest " well its only because you want a house for yourself"
Well Duhhh, YES
-0 -
Let's not stop there, let's make it even more difficult for working aspiring young adults that want a home..let's put a machine gun nest on every For Sale property to mow the !!!!!!s down should that even think about buying, let's blow up 5 million home tonight and make the market even tougher, and then let's let in another 3 million North Africans
Dervprof - do you still think Foxy has some sensible counter arguments?0 -
Wow, from 30% off to machine guns in 11 posts.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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