House Prices Surge 68%

quickbeam

Hello


I'm new here but am or hope to soon be a first time buyer (not to make money just somewhere to live). I agree with what most people say here about houses being too expensive and if markets were allowed to act freely house prices probably would fall. Unfortunately I personally can’t see that happening as every time something goes wrong with our current financial system the powers that be print more money which just devalues savings. I'm slowly coming to the conclusion that the people that make the rules look out for themselves and as the governments/banks are the biggest debtors of all the system will save debtors at the expense of savers. It seems that someone’s got to pay and as the savers are the only ones with money it will be them. I don’t think savers will ever lose their money they will still get it but it just won’t buy them as much. That’s why I’m starting to think getting a house now is probably prudent as it would be hard for that to be inflated away (as long as you take a long term fixed rate).


Just my thoughts. I’d be interested to see what anyone else thinks.


Regards

Thrugelmir

quickbeam wrote: »

Unfortunately I personally can’t see that happening as every time something goes wrong with our current financial system the powers that be print more money which just devalues savings.

Yet is having minimal impact on asset values as quickly as its pumped into the system. The banks are writing it off.

You are a witnessing a major financial engineering process. What will be left at the end who knows.

Total outstanding UK mortgage debt has to be reduced as part of the process. So interesting times ahead.

IveSeenTheLight

nollag2006 wrote: »

Fully agree.

She sold at more or less the top of the market (late 2007) and bought back in at more or less the bottom (mid 2010).

Got to pick you up slightly on this one.
Property wasn't at the bottom for the Edinburgh market in mid 2010.

It looks like she could have bought immediately in 2007 and paid around the same price as mid 2010.

Looks like she STR'd and after realising the market was not going to fall as she thought, eventually bought back in after paying three years rent.



I don;t know where she sold, but looking at these couple of London Boroughs, you do wonder if she saw the market and thought "fcuk, London's recovering, It'll now cost me the same as it did when I sold three years previously. I've wasted three years of rent. I know, I'll buy into a cheaper area such as Edinburgh"

**NOTE** The above is tongue in cheek as I'm sure she had many reasons why she choose to buy.
It certainly can't have been because of her belief and commitment to what she believe will be the financially best option

crash123

IveSeenTheLight wrote: »

Got to pick you up slightly on this one.
Property wasn't at the bottom for the Edinburgh market in mid 2010.

It looks like she could have bought immediately in 2007 and paid around the same price as mid 2010.

Looks like she STR'd and after realising the market was not going to fall as she thought, eventually bought back in after paying three years rent.



I don;t know where she sold, but looking at these couple of London Boroughs, you do wonder if she saw the market and thought "fcuk, London's recovering, It'll now cost me the same as it did when I sold three years previously. I've wasted three years of rent. I know, I'll buy into a cheaper area such as Edinburgh"

**NOTE** The above is tongue in cheek as I'm sure she had many reasons why she choose to buy.
It certainly can't have been because of her belief and commitment to what she believe will be the financially best option

I saw her on the telly and she said she bought because she was having a family and this was the reason but she still believed that house prices would fall.

Pimperne1

crash123 wrote: »

I saw her on the telly and she said she bought because she was having a family and this was the reason but she still believed that house prices would fall.

Firstly, she would say that (but secondly, she already had a family because she made some statement a while back about moving because her daughter didn't like her room).

Edit to add section from FT on 1 Sep 08

"Merryn Somerset Webb, 38, is the editor of MoneyWeek, the UK's best-selling financial magazine. She has taken the magazine's circulation from 8,000 in 2003 to 35,000 today, and can regularly be seen and heard on BBC current affairs shows discussing the credit crunch, housing crash and rising food prices – topics she was headlining in MoneyWeek before they became a staple of the mainstream press. She lives in Paddington, central London, and is married, with a two-year-old daughter and another on the way".

IveSeenTheLight

crash123 wrote: »

I saw her on the telly and she said she bought because she was having a family and this was the reason but she still believed that house prices would fall.

Ok, but how is that different to most people buying a typical average family home?

You do wonder a little if she says what she really means.

As some other poster adequately pronounced it's: -
"Don't do as I do, but do as I say"

If your not willing to act with your convictions, how much weight should be taken to your words

IveSeenTheLight

Pimperne1 wrote: »

Firstly, she would say that (but secondly, she already had a family because she made some statement a while back about moving because her daughter didn't like her room).

Edit to add section from FT on 1 Sep 08

"Merryn Somerset Webb, 38, is the editor of MoneyWeek, the UK's best-selling financial magazine. She has taken the magazine's circulation from 8,000 in 2003 to 35,000 today, and can regularly be seen and heard on BBC current affairs shows discussing the credit crunch, housing crash and rising food prices – topics she was headlining in MoneyWeek before they became a staple of the mainstream press. She lives in Paddington, central London, and is married, with a two-year-old daughter and another on the way".

Synopsis is: -
I'm not willing to wait any longer for house prices to reduce when they clearly have recovered or indeed increased in my VI area.

geneer

Goodness. The property bull obsessions are getting a bit scary.
They really really don't like anyone who did a better job at market predictions than them.

Give it a day, pimp will be posting pictures of merynns knickers, and fubra will be selling locks of JDs hair.

Pimperne1

geneer wrote: »

Goodness. The property bull obsessions are getting a bit scary.
They really really don't like anyone who did a better job at market predictions than them.

Give it a day, pimp will be posting pictures of merynns knickers, and fubra will be selling locks of JDs hair.

I might be a bit jealous of someone who predicted it better than me (for a minute there I thought you were going to mention someone who had though).

geneer

Pimperne1 wrote: »

I might be a bit jealous of someone who predicted it better than me (for a minute there I thought you were going to mention someone who had though).

What ever you say pimp. :rotfl: