House prices 'to fall for the next five years' in longest property slump for a lifeti

Graham_Devon

ukcarper wrote: »

That is probably the case but I’m not sure that is what Hamish is saying, all he is saying is that your debt in relation to your wages has decreased. By the way the extra take home on the £25k does not include the increase in the tax-free allowance and they would actually be £47 a month better off.

Ok.

Shall we split hairs for fun?

ukcarper

Graham_Devon wrote: »

Ok.

Shall we split hairs for fun?

Can’t see what you are getting at I agree that lots of people will be worst of but I’ve re read Hamish’s post and I can’t see that he said they wouldn’t.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Hamish was trying to state that people would be better off. .

No, I was stating that wage increases will adjust the house price/mortgage debt to income ratio, regardless of what wider inflation does.

Whether they'll be better off or not depends entirely on their personal inflation rate.

Graham_Devon

HAMISH_MCTAVISH wrote: »

No, I was stating that wage increases will adjust the house price/mortgage debt to income ratio, regardless of what wider inflation does.

Whether they'll be better off or not depends entirely on their personal inflation rate.

You were saying it, and implying therefore, that it will be easier to service the mortgage.

Thrugel pointed out that was not neccesarily (and is not currently) the case.

Poshbird

HAMISH_MCTAVISH wrote: »

No, I was stating that wage increases will adjust the house price/mortgage debt to income ratio, regardless of what wider inflation does.

Whether they'll be better off or not depends entirely on their personal inflation rate.

Either wages have to go up an awful lot (unlikely given the debt crisis) or house prices have to come down. Its hat simple.

Poshbird

According to some on here even though wages are going down and house prices are way over the 3x income long term norm, some think house prices will go up even more.


The fact is property goes from under to over valued. Always has always will. For someone to suggest that property will never be undervalued ever again is stupid.

We are just waiting for high interest rates again then property will be heading for undervalued.


http://www.moneyweek.com/news-and-charts/economics/uk/interest-rates-will-rise-faster-and-higher-than-anyone-expects-12201

Interest rates will rise faster and higher than anyone expects

Batchy

doesnt really matter... in 24 years, no mortgage, and still a lovely house to live in.

there are probably over 25m people who would like to live in a house like mine, they can only go down so much... I have no idea why your all getting your knickers in a twist.

PS...

:-P

wotsthat

Bohdy wrote: »

Yes it doesnt really matter if you bought when houses were overvalued, it will be a bit annoying in a few years time when they are undervalued again, but as long as you can keep up with the increasing mortgage payments when interest rates go North of 7%....................

We'll have all paid off our mortgages by the time rates of 7% are seen.

tara747

Batchy wrote: »

doesnt really matter... in 24 years, no mortgage, and still a lovely house to live in.

there are probably over 25m people who would like to live in a house like mine, they can only go down so much... I have no idea why your all getting your knickers in a twist.

PS...

:-P

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.

Poshbird

Batchy wrote: »

doesnt really matter... in 24 years, no mortgage, and still a lovely house to live in.

there are probably over 25m people who would like to live in a house like mine, they can only go down so much... I have no idea why your all getting your knickers in a twist.

PS...

:-P

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.