Bishop Bashes Boomers

ukcarper

JencParker wrote: »

Except in London and the SE!

Rents higher in London and south east but so are earnings.

IveSeenTheLight

Percy1983 wrote: »

Falling prices wouldn't bother me all that much to be honest, I bought a house to live in not an investment.

Let's consider then your property goes into Negative Equity, not a problem provided you retain your job and have the ability to service the debt, however what about should you need to move to another location or lose your job and are finding it difficult to clear your debts.

In that situation, being in negative equity reduces the opportunity to clear your debts and start afresh.

In 2004 I bought what we considered to be our family home for life, in that it was large enough for our family.
Within the last 8 years, I've moved abroad with work, returned to the UK, sold that house and am now building a new one.

Plans may be best made, however often when it comes to home ownership, the family home does not remain so for life and if your in NE, without an income to support the debt, it severely limits your options to adjust.

JencParker

ukcarper wrote: »

Rents higher in London and south east but so are earnings.

Earnings are not that much higher!

JencParker

IveSeenTheLight wrote: »

Let's consider then your property goes into Negative Equity, not a problem provided you retain your job and have the ability to service the debt, however what about should you need to move to another location or lose your job and are finding it difficult to clear your debts.

In that situation, being in negative equity reduces the opportunity to clear your debts and start afresh.

In 2004 I bought what we considered to be our family home for life, in that it was large enough for our family.
Within the last 8 years, I've moved abroad with work, returned to the UK, sold that house and am now building a new one.

Plans may be best made, however often when it comes to home ownership, the family home does not remain so for life and if your in NE, without an income to support the debt, it severely limits your options to adjust.

Having bought my house in 1989 I was in negative equity for some years afterwards. You ride it out. If plans change, then you need to do the best you can in the circumstances.

IveSeenTheLight

JencParker wrote: »

Having bought my house in 1989 I was in negative equity for some years afterwards. You ride it out. If plans change, then you need to do the best you can in the circumstances.

Totally agree.
If you can ride it out, then it is something you inevitably MUST do.

The question is, what are your options if there was to be a sustainable reduction in house prices and ones circumstances changed?

I'm not ramping HPI, but certainly inflation linked HPI is the best solution or at worst case stagnation of prices.

This then at least give homeowners more flexibility should they need / desire to adjust their accommodation.

ukcarper

JencParker wrote: »

Earnings are not that much higher!

I think you will be surprised how much higher they are.

JencParker

ukcarper wrote: »

I think you will be surprised how much higher they are.

No surprise - I live in the real world!

ukcarper

JencParker wrote: »

No surprise - I live in the real world!

Funny that so do I and I'm quite often surprised at how much some people earn.

JencParker

IveSeenTheLight wrote: »

Totally agree.
If you can ride it out, then it is something you inevitably MUST do.

The question is, what are your options if there was to be a sustainable reduction in house prices and ones circumstances changed?

I'm not ramping HPI, but certainly inflation linked HPI is the best solution or at worst case stagnation of prices.

This then at least give homeowners more flexibility should they need / desire to adjust their accommodation.

I understand what you are saying, but it was no different during previous periods of negative equity. Keeping property prices artificially high in order to help those who may be in negative equity is of no benefit to anyone but those in negative equity (apart from banks and estate agents, of course), especially the young for whom the idea of home ownership is an unrealistic, distant dream - at least it is here in London /SE.

JencParker

ukcarper wrote: »

Funny that so do I and I'm quite often surprised at how much some people earn.

Depends on the industry so is irrelevant. My daughter's London weighting is approx. £1,100 pa. A drop in the ocean compared to the much higher rent she is paying - and forget any hope of ever buying property.