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Comments

  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    Open office - that'll do,

    The data only goes back as far as 1975, but it does indicate that prices are higher than ever.

    I'm sure I've seen data back to the 50s against wages in the past - just can't think where.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Link

    You tell me if you think there's a link between HPI and wages.

    Both are in nominal terms (i.e. not adjusted for inflation).

    Unit labour costs (proxy for wages) are as per HM Govt.

    HPI/D as per Nationwide BS.
  • prudryden
    prudryden Posts: 2,075 Forumite
    Is it safe to compare today with the 19th century when men were men and they built their own houses? Mind you, they did have help with their men friends such as the Masons and the Fraternal Order of Odd Fellows. The women would boil and skin the pigs for a huge feast after work.
    FREEDOM IS NOT FREE
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    prudryden wrote: »
    Is it safe to compare today with the 19th century when men were men and they built their own houses? Mind you, they did have help with their men friends such as the Masons and the Fraternal Order of Odd Fellows. The women would boil and skin the pigs for a huge feast after work.


    If you want PP to build a house in the South East it's still handy to have friends such as the Masons I understand.
  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    looks like HPI leads to wage inflation.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Guy_Montag wrote: »
    looks like HPI leads to wage inflation.

    It would make sense on more than one level.

    E.g. HPI increases >> demand for builders, estate agents etc rises >> higher wages.

    or

    Money supply rises >> higher nominal asset prices >> higher general inflation reflected in higher wages.

    If I could be bothered I'd do it in real terms. Mrs Generali's just taken one of the kids to hospital so it's all a bit much for my little brain to cope with.
  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    Oh I hope it's nothing serious.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    He tried to eat some pseudo ephedrine (sp?).

    No professional sports for him for another couple of years as he'll test positive for doping now!

    Should be ok inshallah.
  • brasso
    brasso Posts: 799 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    nelly wrote: »
    Excellent Im sick of all these nobs saying houses have allways been expensive even though they secretly know the truth.

    Is that aimed at me?

    I was talking about London in the mid-1980s. Check the data.
    nelly wrote: »
    and what point they are trying to make is completly beyond me???

    The point was pretty simple. Reread what I wrote.
    nelly wrote: »
    Unless they a harbouring delusions that they were 'clever' when they bought rather than lucky

    I bought a house to live in and to give me a greater sense of security than renting had. Nothing to do with being clever or stupid. I bought in 2001 when the first STR articles were appearing in the papers. I presumed I was buying at the top of the market, and was disppointed, but the time was right for me to buy, and I could afford it, so we went ahead.

    I don't know why you're so hung about this. If there's going to be an almighty crash, as you say there will be, you can pick something up very cheaply, surely?

    I've no idea what's going to happen but my instinct says that the rate of HPI has to slow down, and probably go negative. Who knows how long for, or how deeply? Not me. Not you.
    "I don't mind if a chap talks rot. But I really must draw the line at utter rot." - PG Wodehouse
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    brasso wrote: »
    I bought a house to live in and to give me a greater sense of security than renting had. Nothing to do with being clever or stupid. I bought in 2001 when the first STR articles were appearing in the papers. I presumed I was buying at the top of the market, and was disppointed, but the time was right for me to buy, and I could afford it, so we went ahead.

    I think this is a point many people miss. It doesn't matter what your house is worth as long as your not selling or refinancing.

    If you can afford it and like living in it, it's really not worth worry about.
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