House prices

hoggums

Turnbull2000 wrote: »

Thanks to numerous government interventions, we should experience quite a strong uplift in prices in 2014. Price growth in excess of 10% is a real possibility, and be most welcomed by Osborne and the Bank of England.

This year's Spring Bounce should also best performance in years.

btw, multiples of average salary is now an obsolete benchmark for house prices.

And who's going to buy houses at these prices? Are the first time buyers suddenly going to find the 10% deposits they need down the back of the sofa? If prices go up by 10% that means first time borrowers need an average of £1600 extra deposit to buy their house.

This is all government stimulous in the form of ultra low interest rates and stupid schemes that allow people to borrow even more money that they have to pay back in 10 years time.

All they are doing is delaying the problems for when these people need to pay back the money and when the economy finally starts to recover, then inflation kicks in and interest rates need to rise.

Turnbull2000

hoggums wrote: »

And who's going to buy houses at these prices? Are the first time buyers suddenly going to find the 10% deposits they need down the back of the sofa? If prices go up by 10% that means first time borrowers need an average of £1600 extra deposit to buy their house.

This is all government stimulous in the form of ultra low interest rates and stupid schemes that allow people to borrow even more money that they have to pay back in 10 years time.

All they are doing is delaying the problems for when these people need to pay back the money and when the economy finally starts to recover, then inflation kicks in and interest rates need to rise.

First-time buyers soon won't have to find 10% desposits. Help to Buy will ensure 5% is sufficient, with 0% returning in a few years time.

With regards to prices themselves, mortgage terms will simply adjust to match higher values. State support will bring FTB mortgage rates to 2-4% as opposed to the 5-6% typical pre-2007, duel income buying will become an almost universal requirement and borrowing terms extended to 35 years (thanks to a newly assumed retirement age of 67).

I guarantee you the FSA and politicians will turn a blind eye such looser lending criteria.

Thrugelmir

hoggums wrote: »

This is all government stimulous in the form of ultra low interest rates and stupid schemes that allow people to borrow even more money that they have to pay back in 10 years time.

Smoke and mirrors as they say. People won't be borrowing more money. A point in time will be reached when total outstanding mortgage debt lending noticeably contracts. (There's certainly no increase at the moment).

dryhat

Turnbull2000 wrote: »

First-time buyers soon won't have to find 10% desposits. Help to Buy will ensure 5% is sufficient, with 0% returning in a few years time.

With regards to prices themselves, mortgage terms will simply adjust to match higher values. State support will bring FTB mortgage rates to 2-4% as opposed to the 5-6% typical pre-2007, duel income buying will become an almost universal requirement and borrowing terms extended to 35 years (thanks to a newly assumed retirement age of 67).

I guarantee you the FSA and politicians will turn a blind eye such looser lending criteria.

Are you still living in your sister's spare bedroom in hartlepool turnbull?

harpoboy

SG27 wrote: »

I hope your wrong about prices at somepoint ill need a bigger family home and have no idea how I will afford it at today's prices let along 10% more!!

I do hope house prices dont rise too much either, but sadly I think we are on the verge of a few years of very high house price inflation as the economy recovers and the government help to buy schemes take effect.

padington

harpoboy wrote: »

I do hope house prices dont rise too much either, but sadly I think we are on the verge of a few years of very high house price inflation as the economy recovers and the government help to buy schemes take effect.

We're going into an up cycle but its not a usual one, we didn't really have the bust, so I suspect we won't have the boom in the same way. London however is a different story. Property there has become a store of wealth. A gold standard in troubled times. So London, I think, prices are going to rocket, whilst the outer regions have a gentle uplift for a long while.

The danger of course is that the London boom will eventually bust and those that got in late to the party are really going to get burnt if they need to sell soon after but personally think we see London prices something like double over the next five years, before it pops back to 150% from now.

I however do live in London and this may all be wishful thinking.

Conrad

padington wrote: »

London however is a different story. Property there has become a store of wealth. A gold standard in troubled times. So London, I think, prices are going to rocket,

Back of the net.

I'm seeing clients sell up abroad desperate to get into good old London property for good. Already seeing big price increases just since December.

I too think a doubling in 5 years.

Thrugelmir

padington wrote: »

The danger of course is that the London boom will eventually bust and those that got in late to the party are really going to get burnt if they need to sell soon after but personally think we see London prices something like double over the next five years, before it pops back to 150% from now.

I however do live in London and this may all be wishful thinking.

Foreign money...........

grizzly1911

Thrugelmir wrote: »

Foreign money...........

I guess it is the closest thing to exporting property.

Thrugelmir

grizzly1911 wrote: »

I guess it is the closest thing to exporting property.

and importing Russian !!!!!. :eek: