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Debate House Prices
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House prices 'to fall for the next five years' in longest property slump for a lifeti
Comments
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Thrugelmir wrote: »What's the connection between house prices and inflation?
Wouldn't the average wage index be a better basis.
As house prices have risen above the rate of inflation over an extended period then logic dictates that a price correction will take place. Even if it takes another 10 years.
I agree to an extent.
the connection between house prices and inflation in this thread and the original post link, is that it is discussing "real term" values.
Of course, the better assessment is between wage inflation and house prices, but of course, you do have to consider the purchasing power change as well i.e. joint application instead of single:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Let's see a pic of your house then. :cool:
p.s. 25 year mortgages are sooo over. I hope to have a mortgage of 5-10 years, max. It's all about the deposit - oh, and buying low.
Strange thing to ask, but I can see why you mention it, other than to stalk me.
Ill pass on that thou!;)Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
There could be 25 Billion people who would love to live in a house like yours but if none of them can come up with the funds then prices have to come down.
The price might come down, but if I sell and I can't raise funds to buy a replacement, then where am I going to live... So you rough it out, as long as your can.
its a bit of a catch 22, and your argument although it generally makes sense in a free market, doesn't... if you understand.
People only HAVE to sell, when it becomes unaffordable, unsuitable(bigger needed). unnecessary, or because you die.
Some people CANT AFFORD TO SELL. its so cheap for many peoples mortgages, and the fact prices HAVE fell, they cant afford a personal loan to pay off the negative equity and then pay for suitable housing! Serious trap.
If this was the case, then there wont be a market, as no one will be able to afford to sell! Where will you buy all these cheap houses from?Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
Its not just wage to house price ratio, its wise to look at many other measurements. How many barrels of oil has it taken to buy an average house or shares of the DOW, or indeed how many ounces of gold and silver over the long term.
In 1980 it took less than 1000 ounces of silver to buy an average house in the UK, some are expecting it to be as low as 500 ounces this time the cycle repeats.
One word INFLATION... no one buys houses in silver gold or barrels of oil.
Precious metals and oils are very different in their dynamics to currencies and fiscal policy. the balance of power has shifted to oil rich countries.Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
Strange thing to ask, but I can see why you mention it, other than to stalk me.
Ill pass on that thou!;)
So, your house is not that desirable then... :rotfl:Get to 119lbs! 1/2/09: 135.6lbs 1/5/11: 145.8lbs 30/3/13 150lbs 22/2/14 137lbs 2/6/14 128lbs 29/8/14 124lbs 2/6/17 126lbs
Save £180,000 by 31 Dec 2020! 2011: £54,342 * 2012: £62,200 * 2013: £74,127 * 2014: £84,839 * 2015: £95,207 * 2016: £109,122 * 2017: £121,733 * 2018: £136,565 * 2019: £161,957 * 2020: £197,685
eBay sales - £4,559.89 Cashback - £2,309.730 -
One word INFLATION... no one buys houses in silver gold or barrels of oil.
Precious metals and oils are very different in their dynamics to currencies and fiscal policy. the balance of power has shifted to oil rich countries.
The trend is your friend as long as you are on the right side of it.
The good news is things always revert back to the long term norm, or maybe in your case the bad news is that things always revert back to their long term norm.0 -
On other news, I had a look over on the other side and notice that Realistbear has bought a house!
:-O
He got a whole five thousand pounds off the asking price apparently, although he claims this was £80,000 below peak.
Realistbear lives in Brighton where property is now almost as expensive as London so I suspect his figures are a bit iffy.0 -
ruggedtoast wrote: »On other news, I had a look over on the other side and notice that Realistbear has bought a house!
:-O
He got a whole five thousand pounds off the asking price apparently, although he claims this was £80,000 below peak.
Realistbear lives in Brighton where property is now almost as expensive as London so I suspect his figures are a bit iffy.
:rotfl::rotfl::rotfl:Get to 119lbs! 1/2/09: 135.6lbs 1/5/11: 145.8lbs 30/3/13 150lbs 22/2/14 137lbs 2/6/14 128lbs 29/8/14 124lbs 2/6/17 126lbs
Save £180,000 by 31 Dec 2020! 2011: £54,342 * 2012: £62,200 * 2013: £74,127 * 2014: £84,839 * 2015: £95,207 * 2016: £109,122 * 2017: £121,733 * 2018: £136,565 * 2019: £161,957 * 2020: £197,685
eBay sales - £4,559.89 Cashback - £2,309.730 -
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