Outside prime London, house prices are falling back to earth

The-Joker

ukcarper wrote: »

The point is you said over the past decade housing has been a poor investment but how does that compare to renting over the same period.

If you don't pay rent out of your own pocket then your argument is redundant that's the point. Yes if you have high earnings then you have to pay rent out of your own pocket then you will be annoyed that housing benefit has pushed up rents so much. But it's coming to an end soon then rents will fall.

Loughton_Monkey

Fella wrote: »

.....Average house prices are back in real terms to levels last seen in the first quarter of 2003."

Let me just see if I can re-word that....

"Despite the recession and banking crisis, houses have proven their ability to keep up with inflation over the last 9 years. This is despite the huge 80% increase in value over the first 3 years of this century. It begs the question that if we are coming out of recession, will houses start to re-gain their longer term trend of delivering 2% above inflation......"

IveSeenTheLight

The-Joker wrote: »

If you don't pay rent out of your own pocket then your argument is redundant that's the point.

Currently I am renting.
I'm also receiving rent on three properties.
None of these four properties are receiving housing benefit.
It seems the argument is not redundant.

I do take your point about those receining housing benefit have not been affected by rents, yet they also have not benefitted / lost against property investment, so those receiving housing benefit are moot in terms of housing investments

The-Joker wrote: »

Yes if you have high earnings then you have to pay rent out of your own pocket then you will be annoyed that housing benefit has pushed up rents so much.

Not at all.
I understand market forces.
I could have rented cheaper, but I chose a level my family and I are comfortable with.
I'm also benefitting as the profit from the rents I receive counter balance the rent I pay out.

It's short term though and once my house is built, I will be able to re-capitalise on the properties I lease

The-Joker wrote: »

But it's coming to an end soon then rents will fall.

We'll see.

robmatic

The-Joker wrote: »

If you don't pay rent out of your own pocket then your argument is redundant that's the point. Yes if you have high earnings then you have to pay rent out of your own pocket then you will be annoyed that housing benefit has pushed up rents so much. But it's coming to an end soon then rents will fall.

If you don't pay rent out of your own pocket then you will not be buying a house anyway.

Although I guess you might be able to afford insignificant amounts of silver, which is all that matters.

Loughton_Monkey

The-Choker wrote: »

If you don't pay rent out of your own pocket then your argument is redundant that's the point. Yes if you have high earnings then you have to pay rent out of your own pocket then you will be annoyed that housing benefit has pushed up rents so much. But it's coming to an end soon then rents will fall.

If I had high earnings, I would be buying a house and pouring scorn on renters. If I had high earnings and was renting, I would probably not have the intelligence to care whether high rents came to an end or not.

nollag2006

The-Joker wrote: »

If you don't pay rent out of your own pocket then your argument is redundant that's the point. Yes if you have high earnings then you have to pay rent out of your own pocket then you will be annoyed that housing benefit has pushed up rents so much. But it's coming to an end soon then rents will fall.

I have three BTL properties - none in Prime London: one in Clapham Junction and two in Ealing.

I've seen the rents I charge to my tenants rise by 5-10% each year over the past three years, and the capital value rise by a similar amount Year on Year.

One day, I should sit down and figure out how much shiny metal I could buy with that.

olly300

nollag2006 wrote: »

I have three BTL properties - none in Prime London: one in Clapham Junction and two in Ealing.

Isn't Clapham Junction just the train station and the propery in Battersea or Wandsworth?

chewmylegoff

olly300 wrote: »

Isn't Clapham Junction just the train station and the propery in Battersea or Wandsworth?

the area around clapham junction is often referred to as clapham junction.

but it's somewhat irrelevant as the property is just made up anyway.

zagubov

chewmylegoff wrote: »

the area around clapham junction is often referred to as clapham junction.

but it's somewhat irrelevant as the property is just made up anyway.

Well to be fair, money's just something we made up too, to make the supplying of food and shelter work better.

Loughton_Monkey

zagubov wrote: »

Well to be fair, money's just something we made up too, to make the supplying of food and shelter work better.

I'm pretty sure that the £5,640 I put into last year's cash ISA is 'real'. I just got on line and checked it's there. It's real. It's not made up.

But the £230 million I have invested into shares of every Blue Chip company in Europe is "made up". I just made it up.

There's a difference....