Now this is a Property Bears nightmare

gorgeyetsun

Fella wrote: »

Hm you seem determined to view this period as something that can only have been bad for someone saving for a house. I'm pointing out that's not necessarily true.

You pointed out that most people can take 5 years to save up a deposit. I gave an example for someone saving for 7 years, where the bulk of the savings period was in the period where interest rates were at 0.5%.

Obviously there are going to be people who have done well, but this won't be anything like the majority. I've made a killing over the last 5 years with my stockmarket investments because of the availablity of cheap shares. Do I think that everyone is doing as well? Nope.

Fella

moneyinmypocket wrote: »

I have always said the gov will do anything to stop a hpc hence we will never see one

Wow, you have touching faith in the Government. There are many things they can only attempt to control & house prices are just one of them. I agree they'll try very hard to prevent prices crashing but it's a big leap from that to the conclusion they'll always succeed. No Government has ever wanted a house price crash but they have still happened in the past


(To avoid the wearisome response any kind of rational debate about house prices gets I should point out I don't care whether they'll go up or down & my guess is they won't do either of much anytime soon).

Fella

gorgeyetsun wrote: »

You pointed out that most people can take 5 years to save up a deposit. I gave an example for someone saving for 7 years, where the bulk of the savings period was in the period where interest rates were at 0.5%.

Obviously there are going to be people who have done well, but this won't be anything like the majority. I've made a killing over the last 5 years with my stockmarket investments because of the availablity of cheap shares. Do I think that everyone is doing as well? Nope.

Seem to be going round in circles. My point was and is that some people will have made a nice 5% each year for the last few years on their savings & their target property will have stayed the same price. This is a fact.

The fact that there are other facts that aren't this fact doesn't affect this fact in fact. Your investment in the stock market is as irrelevant as my investment in gold.

ukcarper

Fella wrote: »

Seem to be going round in circles. My point was and is that some people will have made a nice 5% each year for the last few years on their savings & their target property will have stayed the same price. This is a fact.

The fact that there are other facts that aren't this fact doesn't affect this fact in fact. Your investment in the stock market is as irrelevant as my investment in gold.

That's fine but what have they paid in rent in that period.

gorgeyetsun

Fella wrote: »

Seem to be going round in circles. My point was and is that some people will have made a nice 5% each year for the last few years on their savings & their target property will have stayed the same price. This is a fact.

The fact that there are other facts that aren't this fact doesn't affect this fact in fact. Your investment in the stock market is as irrelevant as my investment in gold.

I'm afraid that a minority of people bucking the trend doesn't undermine my point. Well done to you for having the fiscal sense to put his money into index linked bonds while these were still available - most people won't have been able to.

If you have been saving up for a house since before 2007 (as you seem to be saying) then before you congratulate yourself for the 4.5% return on your savings I think you need to look at the additional costs of rental accomodation over a mortgaged property to give you the full picture.

I've been in my house for 3 years and in that time my housing costs have gone down (due to mortgage overpayments) - how many renters can say that over the same period?

My monthly utility outgoings have also gone down as I have installed low energy white goods and lighting and masses of (subsidized) insulation reducing my heating costs. How many landlords are prepared to invest in making their properties more energey efficient when they are not paying the bills?

It all adds up I'm afraid.

Fella

ukcarper wrote: »

That's fine but what have they paid in rent in that period.

F*ck knows, go & ask them. It doesn't take a genius to work out the ones living at home probably paid sod all & the others paid a lot.

Fella

gorgeyetsun wrote: »

I'm afraid that a minority of people bucking the trend doesn't undermine my point. Well done to you for having the fiscal sense to put his money into index linked bonds while these were still available - most people won't have been able to.

If you have been saving up for a house since before 2007 (as you seem to be saying) then before you congratulate yourself for the 4.5% return on your savings I think you need to look at the additional costs of rental accomodation over a mortgaged property to give you the full picture.

I'm not saving for a house, I bought in 1997 & paid it off in 2002.

gorgeyetsun

Fella wrote: »

F*ck knows, go & ask them. It doesn't take a genius to work out the ones living at home probably paid sod all & the others paid a lot.

Oh dear, you seem to be getting abusive now that your argument is being undermined.

gorgeyetsun

Fella wrote: »

I'm not saving for a house, I bought in 1997 & paid it off in 2002.

Then what are you on about?

Deary me, talk about going all around the houses.

homelessskilledworker

Fella wrote: »

Wow, you have touching faith in the Government. There are many things they can only attempt to control & house prices are just one of them. I agree they'll try very hard to prevent prices crashing but it's a big leap from that to the conclusion they'll always succeed. No Government has ever wanted a house price crash but they have still happened in the past


(To avoid the wearisome response any kind of rational debate about house prices gets I should point out I don't care whether they'll go up or down & my guess is they won't do either of much anytime soon).

It's hillarious sometimes reading posts by members claiming that an event such as a bubble collapse will be prevented because "The Government will not allow it".

There is lots of things the Government do not want to happen for their own self serving reasons, and the saving of the housing market is right up there.

But events and a living breathing free market do not always listen to what the Government wants, introducing a higher inflation level for example(I am talking approaching double digits) is not just some painless medicine on their fixit shelf.

Has anyone any idea the devastation high inflation causes causes to millions of lives.