What happens to property bears when they buy?

ILW

DaisyWheel wrote: »

Hi ILW

What is the evidence for this? I've seen statistics from the EU that Britain's home ownership rates are around 70%, which I think might be a bit high. I would be interested to know where your 50% figure comes from

That 70% figure refers to the amount of people living in owner occupied houses.

For example: a home which consists of 2 parents and 2 twenty somethings living at home would list them all as homeowners. I would consider that very misleading.

A truer figure would be arrived at if say anyone over twenty was dropped from the figure as they would generally be prospective buyers rather than owners.

DervProf

RenovationMan wrote: »

As I said earlier, there are bearish property owners who are happy for house prices to tumble, but these (correct me if I am wrong) seem to be home owners who have bought a long time ago and have had the advantage of HPI. No wonder with all that free money, that they show such largess in their posting?

I see no free money, but maybe I'm looking in the wrong place.

ess0two

LTV is the biggest issue with falling prices.

tartanterra

DaisyWheel wrote: »

Hi ILW

What is the evidence for this?

From the English Housing Survey.

Estimates published November 2011:

"At March 2011 there were 18.8 million private dwellings (owner occupied plus private rented tenures) and 4.0 million social rented (housing associations plus local authority tenures)."

As you can see, they do not discern between owner occupiers and private rentals. So further to that, they further estimate:

"Private rented housing is a vital and growing part of the housing market comprising almost 14 per cent of all households, or nearly three million homes in England"

Further reading at:

http://www.communities.gov.uk/housing/housingresearch/

ILW

That would point to around 15 million owner occupied homes out of a population of around 70 million. Not quite 70%.

RenovationMan

DervProf wrote: »

I see no free money, but maybe I'm looking in the wrong place.

You must have bought a real lemon if you haven't seen any HPI gains since 1995! :eek:

Generali

ILW wrote: »

That would point to around 15 million owner occupied homes out of a population of around 70 million. Not quite 70%.

You're comparing apples and Oranjeboom though.

Either you compare the number who live in OO homes with those who live in homes owned by someone else or you compare OO households with non-OO households.

Other metrics are available.

Just to make the point, pretty much 100% of homes are owned.

DervProf

RenovationMan wrote: »

You must have bought a real lemon if you haven't seen any HPI gains since 1995! :eek:

Well, it's has probably trebled plus a bit, according to recent asking/selling prices nearby, but I don't see this as "free money". It's very much "tied up money".

RenovationMan

DervProf wrote: »

Well, it's has probably trebled plus a bit, according to recent asking/selling prices nearby, but I don't see this as "free money". It's very much "tied up money".

So you must feel that earned this HPI ('treble purchase price plus a bit') money, regardless of whether it is 'tied up'?

DervProf

RenovationMan wrote: »

So you must feel that earned this HPI ('treble purchase price plus a bit') money, regardless of whether it is 'tied up'?

I don't understand the question.

If you meant "So you must feel that you earned this HPI....", then no, I don't think I had to work for it. I suppose that means that the HPI was "free", but if I'm supposed to be excited about that (as some folk on this forum appear to be), then I can't say that I am. I would be quite happy if someone just gifted me a few £k though. I would certainly benefit from that.