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

ukcarper

Sibley wrote: »

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.

Well I'm another home owner who would be quite happy if prices stayed where they are for a few years.

black_taxi_2

how do you down-size from a 1 bedroom flat?

Typhoon2000

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.

That would only be true if everyone was buying with cash rather that leavering with a small deposit and the rest on a mortgage. For many prices rises on their smaller cheaper home is the only way they will obtain a large enough deposit to put down on a larger property.
Same with landlords, rising prices is how they obtain deposits to grow their portfolio. Good landlords/ bussiness people will have an exit strategy - and if your a landlord you want prices to rise.

Loughton_Monkey

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.

Methinks you have been too exposed to the 'Devon School of Economics'.

Presumably, by the same thinking, if you wanted to buy second hand cars, you would always buy the sort that depreciate the quickest on the basis that a 2 year old car of the size you want will be 'cheaper' to buy than one that holds its value better.

For most people, their house is ultimately their biggest asset. There comes a time when you are in your 'last house' and the mortgage is paid off. Even if you plan to die in it and pass it onto children (as opposed to equity release or downsizing) I cannot believe why you would want its value to be impaired.

In practice, as we know, house prices can go down (as well as belly up!) but they are a long term asset and should be treated as such.

Perhaps you are confused by the strategy - that rabid house price rampers would endorse - that when you can afford to trade up, then waiting for the next 'downturn' is not a bad idea.

ruggedtoast

Thrugelmir wrote: »

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.

When house prices rise all first time buyers have to grin and bear it. They are the ones who are paying for the rises after all.

Out of their pockets and into yours.

Typhoon2000

Everyone starts out as a first time buyer, it's the hardest step. What come around goes around - those first time buyer will be second and third time buyers in the future.

Dan:_4

black_taxi wrote: »

how do you down-size from a 1 bedroom flat?

A Studio flat.

Fella

Loughton_Monkey wrote: »

Presumably, by the same thinking, if you wanted to buy second hand cars, you would always buy the sort that depreciate the quickest on the basis that a 2 year old car of the size you want will be 'cheaper' to buy than one that holds its value better.

No, that analogy makes no sense. The correct analogy would be that if you wanted to buy second hand cars you would want all second hand cars to be cheap

Loughton_Monkey wrote: »

For most people, their house is ultimately their biggest asset. There comes a time when you are in your 'last house' and the mortgage is paid off. Even if you plan to die in it and pass it onto children (as opposed to equity release or downsizing) I cannot believe why you would want its value to be impaired.

As I already said anyone intending to downsize etc will welcome high house prices.

Anyone intending to bequeath their house should prefer low house prices. For starters, unless their children also intend to never move anywhere more expensive, then high house prices are bad for them. Additionally high house prices may well mean estate duties & could even mean their kids have to sell the house in order to pay them, as opposed to being able to keep the lot & live in it.

Fella

Typhoon2000 wrote: »

That would only be true if everyone was buying with cash rather that leavering with a small deposit and the rest on a mortgage. For many prices rises on their smaller cheaper home is the only way they will obtain a large enough deposit to put down on a larger property.

An exceptionally unwise move & the kind of thing that caused the credit crunch in the first place. Using the small amount of equity built up on a first purchase as the only way you can afford a bigger house is a recipe for disaster the second rates rise or if circumstances change for the worse.

Typhoon2000 wrote: »

Same with landlords, rising prices is how they obtain deposits to grow their portfolio. Good landlords/ bussiness people will have an exit strategy - and if your a landlord you want prices to rise.

Only some landlords, and not the more astute ones. I know some exceptionally successful landlords & their exit strategy is to hold forever & collect the rent. If the yield is correctly high enough why should they want to sell. The main reason to have an exit strategy of selling is if you think property is overvalued & won't remain so.

LydiaJ

Sibley wrote: »

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

If you had a problem you could sell and downsize.
Your kids [STRIKE]will be happier when you leave them a nice lump sum if you prefer to hang onto it.[/STRIKE] would be happier if they could afford to buy their own houses without waiting for you to die and leave them yours.

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.

Corrected that for you, Sibley.

Out of interest, do you mention the idea of donating 2 quid to Africa as an example of bleeding-heartedness or of a pathetically inadequate level of generosity?