Sanity About House Prices

Loughton_Monkey

zagfles wrote: »

.....But I live in a house twice as big as my previous house. You live in a house 1.9 times as big your previous house. We've spent the same but I have a better house than you. I live in a bigger house than you. On the financial side, my net worth has decreased but so has the housing element of my cost of living, so they cancel out exactly. ......

I've had enough of this!

I need a very large gin & tonic. Believe me!

OK. Just to keep you happy. Here's what I will do using my original example figures.

I will do exactly the same but move to a house near you (where prices have been going down - against my better judgement).

So you are buying your second house for £190K with £95K additional mortgage. Moving to your area (well I'm moving anyway) with an additional £95K, I can still buy a house at £200K. It will be better than yours.

Does that make you any happier?

I just can't believe how long things can take to explain......

princessdon

Or there is the group like myself whose mortgage is paid for (or could be tomorrow if wished) and is waiting for a crash to use savings to buy as an investment for their children.

My home going up or down doesn't really matter, it will never crash to what I paid in reality.

I am only interested in buying at a low price with no mortgage. I have a few endownments due soon and would like to pick up some bargains with that money (gained from low interest rates and the ability to pay capital off for the same monthly payment), for when they rise.

If they don't then given the savings rates I won't really lose too much as long on rents are high.

ukcarper

Loughton_Monkey wrote: »

I've had enough of this!

I need a very large gin & tonic. Believe me!

OK. Just to keep you happy. Here's what I will do using my original example figures.

I will do exactly the same but move to a house near you (where prices have been going down - against my better judgement).

So you are buying your second house for £190K with £95K additional mortgage. Moving to your area (well I'm moving anyway) with an additional £95K, I can still buy a house at £200K. It will be better than yours.

Does that make you any happier?

I just can't believe how long things can take to explain......

That's a step to far moving to some undesirable area just to save £10k are you sure you haven't had a couple G&Ts already.

zagfles

Loughton_Monkey wrote: »

I've had enough of this!

I need a very large gin & tonic. Believe me!

OK. Just to keep you happy. Here's what I will do using my original example figures.

I will do exactly the same but move to a house near you (where prices have been going down - against my better judgement).

So you are buying your second house for £190K with £95K additional mortgage. Moving to your area (well I'm moving anyway) with an additional £95K, I can still buy a house at £200K. It will be better than yours.

Does that make you any happier?

I just can't believe how long things can take to explain......

Ooh, moving goalposts. OK, I'll bite.

Obviously if you move to a cheaper part of the country your cost of living will decrease, and you'll benefit from that. Similarly if your original house, for whatever reason, has increased in value more than house prices in general, or more than prices in the area you want to move to.

But if your house has gone up in value by the same percentage as everyone else's house in the area you want to live in, then you lose (assuming you're moving upmarket).

Graham_Devon

Loughton_Monkey wrote: »

I've had enough of this!

I need a very large gin & tonic. Believe me!

OK. Just to keep you happy. Here's what I will do using my original example figures.

I will do exactly the same but move to a house near you (where prices have been going down - against my better judgement).

So you are buying your second house for £190K with £95K additional mortgage. Moving to your area (well I'm moving anyway) with an additional £95K, I can still buy a house at £200K. It will be better than yours.

Does that make you any happier?

I just can't believe how long things can take to explain......

Forget moving house to an equivalent value after ignoring price rises or falls.

Just do the normal thing. Apply a 10% fall to your house, and then apply a 10% fall to the next, more expensive house.

Your cost of change reduces. It's as simple as that. You wouldn't have to keep explaining yourself over and over if you just looked at it like a normal person would.

You are right in what you are saying, but you are not applying what you are saying to what others are talking about.

Kennyboy66

Loughton_Monkey wrote: »

As I said, my view of the world includes "mathematics". It's not too difficult. I don't need to sell anything to myself, because I learnt it many years ago at school.

Presumably you disagree with the maths? Please give everyone a laugh and explain what part of it you disagree with. And explain where you think 'each' house fell by £5K. Especially the one that dropped from £200K to £190K.

And who said exams these days are dumbed down.

Your logic is flawed
Your math is wrong


Take more tonic with the Gin & remember you are not drinking lager.

Loughton_Monkey

Graham_Devon wrote: »

...You are right in what you are saying, but you are not applying what you are saying to what others are talking about.

If you remember what "others are talking about"... the post I responded to... it is the misconception that a price fall is better for someone moving from first to second house than a price rise.

I have proved it isn't. Once you own a house, first or otherwise, you are financially better off with price rises rather than price falls.

Graham_Devon

Loughton_Monkey wrote: »

I have proved it isn't.

Oh I'm feeling charitable....course you have love, course you have. :grouphug:

wotsthat

Plans change but at the moment I plan to live in the Midlands until retirement and move to the South-West.

In the meantime it would be lovely if prices in the midlands doubled and prices in the South-West halved. Some might say this attention to housing equity was irrational but I can't help thinking I'd have a much nicer house in retirement for the same outlay.

zagfles

Loughton_Monkey wrote: »

If you remember what "others are talking about"... the post I responded to... it is the misconception that a price fall is better for someone moving from first to second house than a price rise.

I have proved it isn't. Once you own a house, first or otherwise, you are financially better off with price rises rather than price falls.

:rotfl:So why was your reply to my post basically "if I move to an area where prices have gone down I'm better off"!!

Well, duh! The only point you're proving is the opposite of the one you're trying to prove!