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Debate House Prices
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Why exactly are houses so expensive?
Comments
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Well, it's official (not!). I have just spent time in 3 of my sisters' houses over here in Canada. Every single one of them is much bigger than my UK home, which isn't exactly small by UK standards.
Let's face it. Not only do we pay through the nose for property, we also don't get a lot for our money. Pokey show houses with 3/4 size furniture try to conceal the truth.
If people are unable to climb housing ladders in the future, then property needs the capacity to extend/expand. This will help multi-generational living in the same homes, something which will help ease the care costs for our elderly.
Maybe a 25 year mortgage is too short. What about 50 year+ for larger more flexible homes?
in many parts of the SE and in other desirable areas, if larger houses were more affordable through longer term mortgages then the price would go up so that demand and supply were in balance again.
build morer properties is the only solution0 -
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Eellogofusciouhipoppokunu wrote: »What makes house prices go down?
Higher interest rates combined with controlled lending, certainly not the loose lending of the previous decade.0 -
shortchanged wrote: »Higher interest rates combined with controlled lending, certainly not the loose lending of the previous decade.
That would prevent a boom, I'm not sure how it would cause a crash.0 -
Eellogofusciouhipoppokunu wrote: »That would prevent a boom, I'm not sure how it would cause a crash.
Who said anything about a crash?
You originally asked what makes house prices go down.
A return to pre boom lending and market circumstances would certainly help bring prices down.0 -
shortchanged wrote: »A return to pre boom lending and market circumstances would certainly help bring prices down.
A return to pre-boom lending standards and criteria from here would represent a significant increase in lending.
Which combined with the housing shortage and high levels of housing need and widespread ability to afford mortgage payments, would certainly result in significant and rapid price rises.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »A return to pre-boom lending standards and criteria from here would represent a significant increase in lending.
Which combined with the housing shortage and high levels of housing need and widespread ability to afford mortgage payments, would certainly result in significant and rapid price rises.
So the more historical norms of 2.75 joint and 3.5 times single income mortgages and 10%+ deposits would see prices rise from this point Hamish?
And don't give me the good old story that the 'norm' was when your parents borrowed 10 times their income and the bank gave them a 10% deposit as a welcome gift to buy a house story many years ago.0 -
shortchanged wrote: »So the more historical norms of 2.75 joint and 3.5 times single income mortgages and 10%+ deposits would see prices rise from this point Hamish?
.
Yes, absolutely.
If mortgage rationing ended tomorrow, and an unlimited quantity of mortgages became available at 10% deposit and 2.75 times joint income, prices would rapidly exceed the previous peak.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »A return to pre-boom lending standards and criteria from here would represent a significant increase in lending.
Which combined with the housing shortage and high levels of housing need and widespread ability to afford mortgage payments, would certainly result in significant and rapid price rises.
This is worthy of applause...maybe an award Hamish!
The amount of times you try to deny that loose credit caused a boom in prices....and then you come up with that....suggesting that increased lending will result in increased prices.
Bravo son. I salute you sir. Your hypocrisy knows no bounds!0 -
HAMISH_MCTAVISH wrote: »Yes, absolutely.
If mortgage rationing ended tomorrow, and an unlimited quantity of mortgages became available at 10% deposit and 2.75 times joint income, prices would rapidly exceed the previous peak.
OK then.
Is that with a BoE base rate of a more normal level of 4-5%?0
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