Nationwide UP 0.6% MoM & UP 0.9% YoY

DervProf

RenovationMan wrote: »

I told everyone on this board that low interest rates were here for years and that I had planned my finances around them. I said that we had a once in a lifetime opportunity for ordinary people to really get on in life. I was mocked and rounded upon, but in the end I was correct.

You can lead a horse to water, but if it's too timid to drink....

I think you actually stated that you "gambled" on rates being low for a while, then recently said something like "it turned out to be not so much of a gamble".

And it isn't a "once in a lifetime opportunity" at all. That sounds like salesman's talk. I suspect most people will get more than one opportunity to "get on in life". In fact, without sounding too "happy clappy", every day is an opportunity to get on.

StevieJ

Graham_Devon wrote: »

It's quite simple, and I'm surprised I have to explain this to you.

Wages have not kept up with inflation for the last 3-4 years. It remains to be seen whether they will for the next couple of years.

Either way, even if they do keep up with inflation, the house is still not cheaper in any way.

Let me get this straight, if house prices are flat and wages are rising by inflation then house prices are still not relatively cheaper Mmmm not sure about that

Graham_Devon

StevieJ wrote: »

Let me get this straight, if house prices are flat and wages are rising by inflation then house prices are still not relatively cheaper Mmmm not sure about that

I said it makes little difference to affordability. You'd do well to stop twisting what I said to make some sort of silly little forum politics point.

You've argued this very point yourself in the past. If prices of food, clothes, transport etc are going up at the same pace as wages, the house is no more affordable, as living costs eat up the increase in wages.

Do you disagree with that?

MrRee_2

Graham_Devon wrote: »

I said it makes little difference to affordability. You'd do well to stop twisting what I said to make some sort of silly little forum politics point.

You've argued this very point yourself in the past. If prices of food, clothes, transport etc are going up at the same pace as wages, the house is no more affordable, as living costs eat up the increase in wages.

Do you disagree with that?

You argue as if everyone spends every penny they receive .... that's the only, single, way your opinion holds water.

Fact is that most people are very comfortable - so if their pay goes up, their disposable funds go up ......

It's not rocket science to understand that, yes, a tin of peas may have increased 5% from 50p to 52.5p.

BUT, if your £50,000 Salary increases by 5% then you have an extra £2,500 ...... by far and away enough to fund that tin of peas AND a bigger Mortgage (ie. the property is more affordable).

I do struggle with your twisted logic sometimes Graham - it's staggeringly off kilter.

Graham_Devon

MrRee wrote: »

BUT, if your £50,000 Salary increases by 5% then you have an extra £2,500 ...... by far and away enough to fund that tin of peas AND a bigger Mortgage (ie. the property is more affordable).

I do struggle with your twisted logic sometimes Graham - it's staggeringly off kilter.

Says the man who assumes a wage rise is tax free.

Do try harder.

MrRee_2

Graham_Devon wrote: »

Says the man who assumes a wage rise is tax free.

Do try harder.

You really are an idiot from the Premier Division aren't you?

You know exactly the point I was making - but, because it doesn't fit in with your demented view on real life, you attempt to fault it.

You're badly wrong in your logic - I think your brain cell can understand that.

ruggedtoast

MrRee wrote: »

You really are an idiot from the Premier Division aren't you?

You know exactly the point I was making - but, because it doesn't fit in with your demented view on real life, you attempt to fault it.

You're badly wrong in your logic - I think your brain cell can understand that.

Calm down, I know trying to manage your multiple personalities must be tiresome but there is no reason for beastliness.

Sibley

It's a great week and finally puts the house price crash arguement to bed.
House prices are going upwards.

Really this proves beyond all doubt that the arguement is finally over.
HPC silence only goes to prove it. They are washed up.

Like I said 5 years ago.

House prices will never be allowed to fall. Do you believe me now?

DervProf

noodle_doodle wrote: »

It's a house price stagnation, but that doesn't make for a snappy web site title

inflation will chomp away at the real prices of houses, and quickly too - anyone who believes inflation is just 4% when you look at how petrol prices, food prices, childcare etc are soaring is on crack. I was in the supermarket the other day, over £2 for a single packet of mcvities chocolate digestives! I ask you!

The only problem is our wages aren't shrieking up with inflation either

Of course, the headline inflation figures don't tell the true story for a majority of people, but that's part of "the plan". Even those who think they are benefiting from low interest rates are slowly losing out. The cost of most essential things seem to be rising, yet their mortgages are not getting cheaper in a majority of cases. For many people, the few hundred pounds they may be saving each month in mortgage interest is being eaten away by inflation. Meanwhile Merv will keep telling us that the BoE have inflation under control, until he retires with ink stained fingers.

So much for being prudent, and saving for my retirement. I still think that I`ve been doing "the right thing", but the government/BoE's actions do make me question my decision.

RenovationMan

DervProf wrote: »

Even those who think they are benefiting from low interest rates are slowly losing out. The cost of most essential things seem to be rising, yet their mortgages are not getting cheaper in a majority of cases. For many people, the few hundred pounds they may be saving each month in mortgage interest is being eaten away by inflation.

Clearly you have never heard of economies of scale. A 1% increase in BoE rates would mean a £2500 increase in my mortgage, an additional £208 per month. A 1% increase in our food shop would add an additional £6 per month.

I know which I would rather have. :rotfl: