Why prices must not fall, but have to fall

HAMISH_MCTAVISH

debtistheft wrote: »

Why not save all that cost and raise the kids in rented accomodation and buy a house in retirement?

Because rents rise with inflation, house prices rise faster than inflation, and buying is far cheaper than renting in any given 25 year period, let alone over a lifetime.

DervProf

HAMISH_MCTAVISH wrote: »

!!!!!! were these people thinking???

Without hindsight ?

debtistheft

HAMISH_MCTAVISH wrote: »

Because rents rise with inflation, house prices rise faster than inflation, and buying is far cheaper than renting in any given 25 year period, let alone over a lifetime.

House prices don't seem to be rising much at the moment. You are basing all your arguments over a period where a labour government conned people into thinking that rising house prices were making them richer, when actually the opposite was true. Wake up and smell the coffee.

ukcarper

debtistheft wrote: »

House prices don't seem to be rising much at the moment. You are basing all your arguments over a period where a labour government conned people into thinking that rising house prices were making them richer, when actually the opposite was true. Wake up and smell the coffee.

So that is the only time house prices have risen. Can you show me a 20 year period where a house at the beginning was less than at the end.

shortchanged_2

HAMISH_MCTAVISH wrote: »

!!!!!! were these people thinking???

I suppose no one could forecast that house prices were going to go silly like they did, except you I suppose Hamish.

Graham_Devon

HAMISH_MCTAVISH wrote: »

!!!!!! were these people thinking???

Thanks for letting them know after the event.

Just one slight niggle. You ask "!!!!!! were they thinking". You went through all of that too. You took help from your parents to buy your first property.

Hypocrisy 101.

wherediditallgothen

HAMISH_MCTAVISH wrote: »

The average age of a first time buyer is 32. Exactly the same age it was two decades ago.

The average age of an unassisted first time buyer is 37.

The average age of an assisted first time buyer is late 20's.

But getting back to that whole 37 year old FTB thing.....

A 37 year old looking to be an FTB now has gone through the late 90's, when houses were at their cheapest relative to income in history, they've gone through the early 2000's when prices were still cheap and interest rates were low, and they've gone through the mid 2000's when 100% mortgages on unbelievably cheap lifetime rates were given to anyone with a heartbeat and a job.

Yet somehow they managed to miss not one, not two, but three of the best opportunities in a generation to buy a house.

!!!!!! were these people thinking???

They may well have been thinking of going travelling, or may not have decided upon a career, or may have wanted to p1ss most of their disposable income up the wall.

They might not have felt settled and secure enough to buy a house, or they may just not have wanted one then. Hindsight's a wonedrful thing ain't it?

debtistheft

ukcarper wrote: »

So that is the only time house prices have risen. Can you show me a 20 year period where a house at the beginning was less than at the end.

Conned again in thinking that inflation makes you richer. You bulls are poor saps.

ukcarper

debtistheft wrote: »

Conned again in thinking that inflation makes you richer. You bulls are poor saps.

Show me a 20-year period where they haven’t increased in real terms.

geneer

macaque wrote: »

The stalemate between bulls and bears has continued for a couple of years now and neither side has won the case convincingly (despite the daily declarations of victory by some contributors on this formum).

Depends on what case your refering to of course.

If you mean the "will house prices crash" case, thats done and dusted.

If you mean the dozens of deliberately constrained fabricated fall back positions, yep, you're right.