House prices correlated to inflation?

geneer

HAMISH_MCTAVISH wrote: »

Wow, the "geneer random sentence generator" is going into overdrive today.

No matter how much you do the squirmy wormy flip-flop dance on this one, the facts remain that for most people, in most places, it would now have been cheaper to buy in 2007 than rent since.

That has been clearly illustrated to you in worked examples. You can't answer, so choose to divert the argument.

It's what you do.... Hence the utter lack of credibility. Whilst showing a stunning lack of self-awareness and accusing others of doing what you're legendary for.

"Geneers folly" is famous for a reason.....

So still not addressing the relevant issues Hamish.
Just going with the loud angry assertion method.

Not sure what you mean by "random sentence generator". I'll I've done is point out, correctly, that you've elected to focus on the most irrelevant, and indeed pointlessly spiteful, element of your discussion. This is clearly the case, so why deny it?

Hey, not to worry. If you just bang on for long enough and loud enough we will all just forget what we were actually talking about.

Or in your case, what you decided you didn't want to talk about.

In any event, I believe most will treat your unsubstantiated assertion that "for most people, in most places, it would now have been cheaper to buy in 2007 than rent since" with the contempt it deserves.

IronWolf

Michelle-Matched-Bettor wrote: »

@ Hamish - thanks. That's basically the information I was looking for. So it's a fact that (long term anyway) house prices have outperformed inflation? i.e. they have risen over and above the average cost of consumer goods services. To illustrate it simply, is it correct to say if I didn't spend all my money in Tesco 50 years ago, an decided instead to buy a house, and I sold that house today and went into Tesco, I would have more money to spend?



@ Rinoa - Am I correct in assuming you are referring to the fact that inflation errodes debt?

Yes but if you'd invested in TESCO shares instead you'd be laughing at those who bought houses.

dtsazza

IronWolf wrote: »

Yes but if you'd invested in TESCO shares instead you'd be laughing at those who bought houses.

And if you'd bought Marconi shares you'd be asking those who bought houses if you could kip on their sofa, "just until you get back on your feet".

Hindsight is a wonderful thing, but more importantly I get the impression that the OP isn't talking about BtL specifically. In that context, a house and some shares are hardly fungible.

Michelle-Matched-Bettor

IronWolf wrote: »

Yes but if you'd invested in TESCO shares instead you'd be laughing at those who bought houses.

Ha ha good point - but let us not forget that property can be a leveraged investment. NOt that I want to open up a debate on Property investment vs Tesco shares though...

Michelle-Matched-Bettor

dtsazza wrote: »

I get the impression that the OP isn't talking about BtL specifically.

Well actually, BTL is the underlying reason for the original post.

Michelle-Matched-Bettor

the_flying_pig wrote: »

I daresay you weren't hoping for the usual gaggle of under-employed estate agents to drivel out the same old reasons as to why there's never been a better time to buy a house.

.

Absolutely correct - I was looking for a unbiassed discussion.

Funny you should say that, my local that is indeed what my local Estate Agents say, aswell as "there isn't really a bad area you can buy in this town........everything rents".

I hate Estate Agents.

dtsazza

Michelle-Matched-Bettor wrote: »

Well actually, BTL is the underlying reason for the original post.

I'll get my coat...

Michelle-Matched-Bettor

dtsazza wrote: »

I'll get my coat...

Can I ask why?

Thrugelmir

Michelle-Matched-Bettor wrote: »

- but let us not forget that property can be a leveraged investment..

Property became a leveraged investment thanks to the growth in the credit markets.

With current scaling back of banking operations globally. The lights appear to have been turned off. With the likes of great Goldmam Sachs suffering from greatly diminished income.

The half year results from RBS and Lloyds later this week aren't going to make pleasant reading for those wanting and expecting a growth in lending anytime soon.

dtsazza

Michelle-Matched-Bettor wrote: »

Can I ask why?

Oh, I see how you misinterpreted that.

It was just a "humourous" comment along the lines of "D'oh! I see my observation contributed nothing to this thread." Not "damn BtL, I'm outta here."

My original point was to draw attention to the differences between a house (which you can live in) and a share certificate (which you can't). If you were thinking about capital gains as an incidental advantage to being a homeowner, that's very different to investing in shares as well.

Though since you're thinking about the BtL perspective, it becomes an investment like any other (though arguably with more emotions attached). And I don't have anything particularly insightful to contribute about future house price movements that won't be done better by the HPI regulars.