House prices have fallen 20% in 5 years

HAMISH_MCTAVISH

antrobus wrote: »

Now of course, you might not like the Halifax index. You might well even think that it's wrong, and that the numbers don't accurately reflect the UK housing market, but that doesn't change the fact that their numbers are what they are.

Indeed.

The numbers are what they are.

And fortunately, we have a number of different sources to compare data against when it seems as wrong as the Halifax data does.

And when multiple independent sources all show much smaller falls from peak, and the Halifax is the sole outlier that shows such large falls, then it is indeed highly likely that the Halifax is wrong.

HAMISH_MCTAVISH

homelessskilledworker wrote: »

If anyone purchased property at any cost in order to just get on the ladder between 2005 and today(more so 2005 to 2007) it must be quite an unpleasant time for them now.
I have yet to hear and argument yet where buying property since 2005 in general has been a good investment(homemaking is another story before some kick off)

Here's one for you then.

Registers of Scotland Aberdeen Average full year house price figures: (strips out seasonality)

2011/12 = £185,797

2007/08 = £177,297

http://ros-properties.clients.civiccomputing.com/Home

Those are the full year averages, if we compare latest available data....

June 2012 = £188,391

June 2007 = £177,124

http://www.ros.gov.uk/professional/e...lpd_stats.html

Both sets of Register of Scotland data show prices in Aberdeen have increased since 2007 by around 6%.

Now take into account the fact that typical rental yields in Aberdeen are around 7%, and add in a half decent tracker/SVR from Lloyds or Nationwide, and you're around 50K better off buying instead of renting.

In my case, I've averaged around £4200 per year in interest over the last 5 years, and to rent the same house would have cost me around £14,000 per year. That's nearly £50,000 better off before we even look at capital appreciation.

Prices actually rose 6% in that period, but they'd have needed to fall 25% for me to be better off renting rather than buying.

RenovationMan

homelessskilledworker wrote: »

If anyone purchased property at any cost in order to just get on the ladder between 2005 and today(more so 2005 to 2007) it must be quite an unpleasant time for them now.
I have yet to hear and argument yet where buying property since 2005 in general has been a good investment(homemaking is another story before some kick off)

If someone bought in 2005 on a standard 25 year repayment mortgage, they would have be 28 percent of the way through their mortgage.

Financially they could be a lot further through their mortgages because they will have a low mortgage rate and so could be making overpayments with the excess.

DervProf

RenovationMan wrote: »

If someone bought in 2005 on a standard 25 year repayment mortgage, they would have be 28 percent of the way through their mortgage.

Financially they could be a lot further through their mortgages because they will have a low mortgage rate and so could be making overpayments with the excess.

Ah, that's better. :T

RenovationMan

homelessskilledworker wrote: »

Mmmmm ok

You have a point, I am in a perfect postion right now to sit it out for two years in that I am financially and emotionally in a very good place.

Who are you trying to convince, us or yourself? It seems to me that everytime a house price index shows a surprise gain, you have some sort of nervous breakdown and flood the board with your outpourings. For your own emotional health, perhaps it's time you bought ahouse and then you wouldn't be worrying about house prices anymore?

Well, you being you, would end up a nervous wreck about interest rates.

Treadstone2.0

DervProf wrote: »

No, house prices aren't falling :rotfl:.

Perhaps you shouldn't take so much notice of what Hamish says, and think for yourself.

What are you talking about, not listening to Hamish and the other permapropbulls hopelessly ramping house prices as they continue to fall.

moneyinmypocket

The renters are still paying rent

Mr._Pricklepants

Treadstone2.0 wrote: »

and the other permapropbulls hopelessly ramping house prices...

Please stop this multiple accounts charade.

The-Joker wrote: »

a lot of people getting fed up at the perma propbulls ramping property.

RickRule wrote: »

...then the perma propbulls would be out enmass ramping property.

whatismoney wrote: »

this is why the perma propbulls who have been ramping property ...

homelessskilledworker

RenovationMan wrote: »

Who are you trying to convince, us or yourself? It seems to me that everytime a house price index shows a surprise gain, you have some sort of nervous breakdown and flood the board with your outpourings. For your own emotional health, perhaps it's time you bought ahouse and then you wouldn't be worrying about house prices anymore?

Well, you being you, would end up a nervous wreck about interest rates.

Paste one example!!


I think you will also find that I have downplayed many of the drops(some big) in the last year.

RenovationMan

homelessskilledworker wrote: »

I think you will also find that I have downplayed many of the drops(some big) in the last year.

LOL, you can't even downplay the '(big)' drops in that one sentence! :rotfl: