MSE News: House prices fell in July

DRP

spunko2010 wrote: »

Not sure it's the best strategy but it seems to be the one the government wants....

it seems best in terms of least harm to least people?

jimpix12

DRP wrote: »

it seems best in terms of least harm to least people?

Some would say the quicker house prices depreciate, the sooner the economy will get back on track. There's a happy medium - like with pretty much everything - it's good in moderation. Usually that is determined and revealed by market forces, which would probably be the cost of build and materials + any excess people might pay for a bigger garden etc. Without the previously avabilel limitless credit bidding up prices, that would likely be circa £80k for a typical house.

Pincher

You can "not care" about the loss of equity, but you cannot "not care" about NEGATIVE equity, which means you cannot sell and move house.

DRP

spunko2010 wrote: »

Some would say the quicker house prices depreciate, the sooner the economy will get back on track. There's a happy medium - like with pretty much everything - it's good in moderation. Usually that is determined and revealed by market forces, which would probably be the cost of build and materials + any excess people might pay for a bigger garden etc. Without the previously avabilel limitless credit bidding up prices, that would likely be circa £80k for a typical house.

I agree with that in large part, but a draconian policy to reign back house prices would have the economic (and political!) cost of putting hundreds of thousands of people in negative equity. It is probably too much of a price to pay for any administration

RenovationMan

spunko2010 wrote: »

Makes no odds if my house price goes up or down, all other houses move by the same % anyway. It'll be better for the economy and everyone (maybe except nollag?) if house prices go down anyway, I'll gladly take a "hit" if it means others on lower incomes can buy a place to call their own.

I always struggle to believe that people are this altruistic. I can understand people holding this viewpoint if they have a lot of HPI fueled equity because they can afford a certain amount of largess - provided house prices don't crash to the point where they are personally impacted.

People who buy after saving up a large deposit, possibly over many years and probably with a large element of sacrifice wanting that deposit to vanish so that other people (mostly strangers) can have it easier than they did? :think:

Hmnnn, sorry but I'm not convinced.

sinbad182

RenovationMan wrote: »

I always struggle to believe that people are this altruistic. I can understand people holding this viewpoint if they lot of HPI fueled equity because they can afford a certain amount of largess - provided they don't crash to the point where they are impacted.

People who buy after saving up a large deposit, possibly over many years and probably with a large element of sacrifice wanting that deposit to vanish so that other people (mostly strangers) can have it easier than they did? :think:

Hmnnn, sorry but I'm not convinced.

I agree, no one wants to see the biggest investment of their lives devalued to the extent they'd lose some or all of what they put into it. Comments like that are nothing but well meaning posturing.

jimpix12

You cannot comprehend it because presumably you are from a generation where everyone bought a house on the cheap. I don't expect to make a 'profit' , and I am reminded daily of the struggles of younger people (of which I am) who cannot even afford to rent let alone buy - friends, relatives etc expecting to live with mum and dad until they're 45+ through no fault of their own. It is revolting and I am glad I have not been a part of it. Shame on the older generations is what I say.

Call it posturing if it makes you feel better!

sinbad182

I'm 29 and saved like crazy to buy a place in west London two years ago.

I don't want to make a profit, I just dont want to lose out on my investment in the name of other young FTBs who can do exactly what I did if home ownership is deemed that important to them.

Feel free to paint me as some middle aged property magnate if it helps you back up your bizarre viewpoint though.

DRP

sinbad182 wrote: »

I'm 29 and saved like crazy to buy a place in west London two years ago.

I don't want to make a profit, I just dont want to lose out on my investment in the name of other young FTBs who can do exactly what I did if home ownership is deemed that important to them.

Feel free to paint me as some middle aged property magnate if it helps you back up your bizarre viewpoint though.

100% agree

I am of similar age and circumstances.

i think it is harder these days to come up with the deposit and wage to buy a first house, but it shouldn't be implied that it was a simple thing to do even 5 or 10 years ago (or ever , in fact)

RenovationMan

spunko2010 wrote: »

I don't expect to make a 'profit' , and I am reminded daily of the struggles of younger people (of which I am) who cannot even afford to rent let alone buy - friends, relatives etc expecting to live with mum and dad until they're 45+ through no fault of their own.

No one said anything about you making a 'profit'. I simply stated that I find it hard to believe that you were happy to make a 'loss', possibly to the extent that you lose your heard earned deposit and more, so that other people could have it easier than you.

I'm afraid I'm still not convinced.