Rightmove.. Asking prices fell 1.7%, down £4,138,

RenovationMan

homelessskilledworker wrote: »

And here is evidence of why the UK is in the mess it is, buying goods on the never never without any concern of the capital payment.

What do you advise people should do about the purchase price of a house they may have bought 2 years ago (for example)?

wotsthat

RenovationMan wrote: »

What do you advise people should do about the purchase price of a house they may have bought 2 years ago (for example)?

I've not long bought a place. I now go to a special self-help group for frightened indebted homeowners. Obviously I was in a bit of a two and eight when I saw asking prices were down on Rightmove but luckily we can get immediate counselling through a dedicated 'phone number.

IveSeenTheLight

RenovationMan wrote: »

Whether home owners should care so much about house prices is another matter, unless of course thay are moving up the ladder and so falling house prices will help them get up a rung or two.

Actually, I found the opposite.
I was able to jump a rung or two from a 2 bed flat to a 4 bed house because of HPI.
Had HPI not occured or prices had fallen I would not have had the equity to move up the ladder.

This is of course dependant on credit availability and mortgage affordability, but without HPI, many people will find changing rungs much longer to achieve.

RenovationMan

wotsthat wrote: »

I've not long bought a place. I now go to a special self-help group for frightened indebted homeowners. Obviously I was in a bit of a two and eight when I saw asking prices were down on Rightmove but luckily we can get immediate counselling through a dedicated 'phone number.

Support groups aside, HSW hasn't come back with any suggestions on what people should do about the purchase price of a house they may have bought 2 years ago (2 years and 2 months ago in my case).

Perhaps he didn't think through his comment and is a bit stuck for a reply, having discounted the use of geneer's house buying time machine?

Percy1983

IveSeenTheLight wrote: »

Actually, I found the opposite.
I was able to jump a rung or two from a 2 bed flat to a 4 bed house because of HPI.
Had HPI not occured or prices had fallen I would not have had the equity to move up the ladder.

This is of course dependant on credit availability and mortgage affordability, but without HPI, many people will find changing rungs much longer to achieve.

This is true, to be honest if I wanted a bigger hosue now I would have to save for it (and/or work harder), whats the problem with that? I don't expect some magical gifted HPI to do it for me.

RenovationMan

Percy1983 wrote: »

This is true, to be honest if I wanted a bigger hosue now I would have to save for it (and/or work harder), whats the problem with that? I don't expect some magical gifted HPI to do it for me.

I'm not sure of the logic behind HPI helping people up the housing ladder. When I bought my first 2 bed home for £40k, a 4 bedder was available for £65k. When I sold mine for £140k, the 4 bedder was over £200k.

All HPI has done for me is to increase the gap between 'rungs' and put progressively larger mortgages around my neck.

IveSeenTheLight

Percy1983 wrote: »

This is true, to be honest if I wanted a bigger hosue now I would have to save for it (and/or work harder), whats the problem with that? I don't expect some magical gifted HPI to do it for me.

There's nothing wrong with it, as long as reality sets in that it will take them longer to achieve what they want and potentially not at all.

IveSeenTheLight

RenovationMan wrote: »

I'm not sure of the logic behind HPI helping people up the housing ladder. When I bought my first 2 bed home for £40k, a 4 bedder was available for £65k. When I sold mine for £140k, the 4 bedder was over £200k.

All HPI has done for me is to increase the gap between 'rungs' and put progressively larger mortgages around my neck.

Of course HPI increases the rungs, but here a brief scenario.

I bought a two bed flat for £48k on a 100% mortgage. I had a deposit, but the 100% was available so I used the deposit for the fees and some upgrading.

4 years later I sold it for £78k.
Now normally, the equity paid off on the property in that 4 years almost £4k in capital.

The property I moved to was initially valued at circa £100k and I ended up paying £146k for it.

Had there been no HPI, I would have only had £4k (plus and savings. This represents only 2.7% of the property I bought or would have been 4% of the property had it stayed at £100k.

However with HPI, my equity was worth £33.5k (plus savings) therefore it represented 22.9% of the new property.

I was able to get far better deals with the 22.9% deposit than I would have been able to without HPI.

Even moreso, if 100% mortgages wasn't available, I would have paid down the 10% and I would have had £8,500 equity (assuming no HPI), this would have been insufficient to put down as a deposit for the next rung up at £100k, even with the minimum 10% requirements.

So HPI helped me get up the ladder quicker than I would havebeen able to without it.

It may sound strange and indeed, my mortgage was for circa £120k instead of £92k, but the better deals for the greater equity partly offset that and I achieved my goals quiker.

Also at the time HPI was really increasing and it was a case of getting up as quickly as possible before I would have ended up paying even more.

homelessskilledworker

RenovationMan wrote: »

Support groups aside, HSW hasn't come back with any suggestions on what people should do about the purchase price of a house they may have bought 2 years ago (2 years and 2 months ago in my case).

Perhaps he didn't think through his comment and is a bit stuck for a reply, having discounted the use of geneer's house buying time machine?

Does it even occur to you that some of us work(most of us) during the day