ITN News At Ten, right now, house price rises immensely exciting

Loughton_Monkey

Graham_Devon wrote: »

.....However, it's brilliant news that it now costs around £800 more as each month passes to buy a house.

........

House prices increase 800 quid a month is just fantastic,....

3.1% a year. That's 0.2547% cumulatively per month. On a house costing £314,000 that's ... er... £800 a month. So it's much nearer £400 a month for an average priced house, and possibly less for a starter home.....

Never mind, for once I agree with you. It's good news. In fact so good that there will now be a big rush of FTBs to 'fill their boots' and enjoy watching their wealth grow at £300/£400 a month too.

That's solved the house price problem. As for the petrol prices, the sooner we get fracking the better.....

ManAtHome

Loughton_Monkey wrote: »

the sooner we get fracking the better.....

As long as it's not too close to the houses...

Thrugelmir

Graham_Devon wrote: »

The train fare one is awful news. It's now going to cost someone paying £150 a month £6 more a month.

Good news. As it reduces further the subsidy from the Government to the railway operators.

When petrol rises in cost, all drivers have to grin and bear it.

Loughton_Monkey

Thrugelmir wrote: »

Good news. As it reduces further the subsidy from the Government to the railway operators.....

Not too sure about that.....

It's what they say, but I've heard governments aren't always entirely truthful.

What irritates me about this type of rise (and including Thames Water's latest huge hike) is the way they position it as needing the money for "investment". This, I believe, is exactly what it isn't. Investment is where you put in money and effort upfront, and get a good payback later on. Things get better....

In rail terms, the word "investment" usually means 'repairing all these old and outdated signals that keep breaking every 5 minutes....' Or for Thames Water "investment" means continuing to try (and probably fail) to stop pumping billions of tons of raw sewage into the Thames, something they do despite assuring us that they had already stopped doing it except for the 'exceptional' odd day.

This sort of nonsense we hear from pseudo-private companies is strictly for the birds. All I can say to them is "get the flock out of here..."

dktreesea

I am not surprised house prices are going up, when the population grows by 400,000+ per annum and the number of new houses being built is only around 150,000, against an estimated demand (who knows how this is calculated) of 240,000 new homes per annum. That forces up private rents, which gives those renting but having to pay their rent in full (as opposed to getting a subsidy via the housing benefit) a bit of a push to buy a house. The help to buy scheme is also doing its bit in that regard.

The down side though is that rising house prices could also push up rents. In theory, with a static population, people move out of rental properties into bought ones, forcing the rental prices down. But with a rising population, it's possible both demand for bought properties and rental properties will rise. That could force up the number of housing benefit recipients. People who didn't previously qualify, because they had sufficient income to meet their housing costs, may find the increase in their rent outstripping their pay increase.

I see that the yields on gilts are now pushing 2.6%. Usually that would suggest an increase in the base rate. I can't see that as happening right this minute, due to the economy still being in the doldrums. But if it does happen further down the track, i.e. the base rate rising to , say, 3%, and mortgage interest rates going up to 6-7%, that could have huge implications for people buying now. A 25 year £150k mortgage at 4% with a £995 arrangement fee (just going of moneysavingexpert's calculator :-) works out at a quite reasonable £792 a month. Push the interest up to 7% and that goes up to £1,060 a month. That would be a lot of extra money to find if you didn't have a salary increase to go with it.

Sibley

Bottom line.

Homeowners want their houses to rise.

It's great news for us. We don't really care about anyone else.
It's all about the money.


When prices shot up over the last 10 years and everyone was doing equity release.

It was a fantastic time.
Normal people I knew who never had any dough were re mortgaging, getting new cars, going on holiday and having a spend up on designer clothes.

Say they took 50K out. 6 months later their home had risen by that so who cares?

2nd homes were bought, more BTL properties.

For the first time the working man won.

It was terrible when prices stagnated. Now HPI is back.

I always said the government and homeowners would never allow prices to drop.

Next mortgage rationing will be thing of the past.
People like making money and spending it.

The crashers were always on the losing side.

Now the good times are back. Bring it on.

Crashers can look forward to more house parties with the host telling them how much they made on their house.

At least we now know how twisted up they will be when they go home.

JencParker

Sibley wrote: »

Bottom line.

Homeowners want their houses to rise.

It's great news for us. We don't really care about anyone else.
It's all about the money.


.

Speak for yourself, Sibley.

This homeowner certainly does care about others and sees her house as a home not a cash crop. It may surprise you to know that not everyone considers money the most important thing in life, even if the greedy do.

Sibley

JencParker wrote: »

Speak for yourself, Sibley.

This homeowner certainly does care about others and sees her house as a home not a cash crop. It may surprise you to know that not everyone considers money the most important thing in life, even if the greedy do.

Get real.
Everybody with an asset wants it to rise.

If you had a problem you could sell and downsize.
Your kids will be happier when you leave them a nice lump sum if you prefer to hang onto it.

Rent it out, live in a warm country on the takings.
So many choices if prices rise.

I expect you are one of these types who donate 2 quid a month to Africa.

Fella

Sibley wrote: »

Get real.
Everybody with an asset wants it to rise.

Nonsense, everyone who intends their next move to be a trade up wants & needs prices to fall. Unless they can't do basic maths.

Only people intending to downsize & retire/emigrate want house prices to rise. For everyone else it's bad news. I suspect some newbie BTL landlords think it's good news but the wise/professional ones work on yield & want low house prices too.

chucknorris

Fella wrote: »

Nonsense, everyone who intends their next move to be a trade up wants & needs prices to fall. Unless they can't do basic maths.

Only people intending to downsize & retire/emigrate want house prices to rise. For everyone else it's bad news. I suspect some newbie BTL landlords think it's good news but the wise/professional ones work on yield & want low house prices too.

Everyone? Certainly not us! We are very happy with prices rising. I'm not a newbie landlord, I have owned investment property for over 22 years and I would also consider myself being a wise/professional (as you put it) landlord.