Halifax HPI +0.5% MoM, +0.8% QoQ, -0.1% YoY

DpchMd

The_J wrote: »

You came up with the ground breaking discovery that: Rich people will own more stuff and poor people will own less stuff.

It's not me that needs to be told that, it's all of the people who believe that a house price crash will magically lead to them being able to afford the property of their dreams. The fact is that there will always be a rich vs poor divide when it comes to home ownership.

I'm not pretending that I've discovered anything ground-breaking here.

Anyway, shouldn't you be out on your pretend yacht spending your pretend money, rather than pretending to be a financial advisor on the internet? It's just sad.

chucknorris

ess0two wrote: »

We've had 5 yrs of these rates,and probably upto another 10yrs at least to go.

Where you getting 5 years from? The base rate was reduced to 0.5% in March 2009.

Batchy

People who cut back and saved before they had a family, while they lived at home, and never had an Iphone, Ipad, Apple Mac, Plasma TV. Latest gadgets and new cars and designer clothes, will still buy as planned.

Then they can buy all of the above and enjoy life "if they want to"

Those who were destined to rent for life, will still be destined to rent for life. 100% mortgages were a short term fix for some. Most of whom have give up the ghost and give the houses back as they were scared about being in negative equity, and broken down relationships (probably caused by stressful money situations), this practice will never be repeated again. Move along, not saving a 10% deposit will most likely mean you will never be able to buy.

If you can't save then how do you expect to be able to keep up a mortgage for 25 years?

Rant over.

The market is in stagnation, prices going up this year, doubtful... going down this year... doubtful. Unless there is a killer shock... 5% increases in base rate would do it, but why would it happen, falling inflation... its more likely to go lower than 0.5%... defo more QE. Meaning higher than normal inflation... solving low housing inflation market. when inflation in the housing market picks up, it will pick up the whole economy. The economy needs a pick me up!... :-)

The_J

DpchMd wrote: »

It's not me that needs to be told that, it's all of the people who believe that a house price crash will magically lead to them being able to afford the property of their dreams. The fact is that there will always be a rich vs poor divide when it comes to home ownership.

If everyone was poor, house prices would crash. If everyone was rich (by todays standard), house prices would soar. Of course, they would then settle at the balance in between so the least rich people would become the paupers. Standard capitalism.

You are stating the bleeding obvious and trying to wrap it up as intelligence. It's funny.

I'm posting this from my yacht in the med right now. Ahoy!

(not really, I hate sailing)

ess0two

chucknorris wrote: »

Where you getting 5 years from? The base rate was reduced to 0.5% in March 2009.

Maybe i was'nt clear,i'm talking mortgage rates to some extent,i'm paying 1% less than i was in 2007.

Currently 3.5% from 4.5%,the BOE makes no diffference either way at the mo.

chewmylegoff

wotsthat wrote: »

That also assumes that you are correct in saying 'normal' working people simply could not save more than £50/ month. Even you can't really believe this - or does normal only include those on close to minimum wage?

given that average full time wage is £26,000, and average rent is what, £750/month (that's per property, not per person), I find it hard to believe that most "normal working people" attempting to save for a house deposit can only afford to save £50-100 a month.

http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/9223646/Disposable-income-falls-to-three-year-low.html

this suggests that the "average family" has £144 of weekly disposable income per week, which means they could presumably save £624 a month if they really wanted to... there's no transparency in the figures though so it's impossible to say what this really means.

chucknorris

ess0two wrote: »

Maybe i was'nt clear,i'm talking mortgage rates to some extent,i'm paying 1% less than i was in 2007.

Currently 3.5% from 4.5%,the BOE makes no diffference either way at the mo.

Ahh I see, as I'm on trackers my mortgage rates mirror movements in the actual base rate and I therefore tend to be guilty of thinking of them being the same thing.

Generali

DpchMd wrote: »

It's not me that needs to be told that, it's all of the people who believe that a house price crash will magically lead to them being able to afford the property of their dreams. The fact is that there will always be a rich vs poor divide when it comes to home ownership.

It's a very good point that you make: no matter how much house prices fall, in general rich people will have first pick of the houses and so get the nicest ones. The reason? They can simply outbid the rest of us if they want something.

Real (inflation adjusted) house prices continue to fall and must be approaching being down 30% on average in the UK at a guess, obviously less in nominal terms.

However it's still Goldman Sachs bond traders buying in Holland Park and teachers buying in Tooting Bec and so it will remain until teachers earn more than bond traders.

DpchMd

The_J wrote: »

You are stating the bleeding obvious and trying to wrap it up as intelligence. It's funny.

No, I'm just stating the bleeding obvious. You'd be surprised how many people don't get it. They believe they have a "right" to home ownership, but the "high prices" are obstructing that right.

Like you said, nothing intelligent about that, just me stating the obvious.

I'm not even sure why we're arguing about this. Is it because you're still upset that everyone was laughing at you because you don't understand credit cards?

ess0two

chucknorris wrote: »

Ahh I see, as I'm on trackers my mortgage rates mirror movements in the actual base rate and I therefore tend to be guilty of thinking of them being the same thing.

I'm in the process of loking for a new deal and will in all honesty be looking for a tracker.