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MSE News: House prices rising faster, Halifax says
Comments
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i am currently remortgaging and an increase in value will mean a better ltv for me
obv its not so good for those wanting to buy but for a lot of people it is good news :j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j0 -
clippy_girl wrote: »i am currently remortgaging and an increase in value will mean a better ltv for me obv its not so good for those wanting to buy but for a lot of people it is good news
Exactly.
Rising house prices are good for......
-The millions of people who are in or approaching retirement, and who either plan to, or may unexpectedly need to, downsize.
-The millions more people who are in their final property now, but will find themselves in the position above at some point.
-The couple of million people who bought within the last 7 years, who may be in or close to negative equity.
-The owners of the 2 million investment properties.
-The millions of people who may need to re-mortgage as and when rates climb, and want the best possible LTV ratio to get the best rates.
-House builders, construction industry, suppliers, investors, pension funds holding mortgage securities, banks, and all housing related industries, all of their shareholders and employees, whether they own a house or not.
-The family members of anyone who will leave an inheritance, or release equity to help their kids onto the ladder when downsizing, etc.
Rising house prices are bad for......
-A few hundred thousand potential FTB's at any given time...... But only until they get on the ladder, and become one of the groups above.
Rising prices are better by far for the vast majority of society, and falling prices only benefit a few, and then only temporarily.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I'm happy, we finished negotiating on a new build today, got a sizeable house for a good price and managed to drag a few incentives out of the builders, though it wasn't an easy job getting them to offer a few goodies, we basically got told they generally don't give incentives any more as sales have gone through the roof over the last 3 months or so.
Just got lucky as it's one of the last houses on the site being built and it's priced a little higher than most of the others ^^ Happy to know that our investment is more than likely going to gain value at a decent rate...0 -
Big increase in our property price this month on Zoopla - our 8 year old e-mailed me the details at work this afternoon!
Plus we completed on our 'project' house a few weeks ago at 25% BMV, both kids will be stripping the rest of the wallpaper and generally getting hands-on with their portfolio over the weekend...
Hot milk and biscuits all round I think :beer:0 -
http://www.telegraph.co.uk/finance/personalfinance/houseprices/10292697/House-prices-spiral-up-in-virtuous-circle.htmlProperty values are rising at their fastest rate for three years and first-time buyers are at a six-year high, new figures reveal, creating a “virtuous circle” which has given banks and building societies more freedom to lend at the current historically low interest rates.
The result is a “contagious” confidence in the housing market, which will have a knock-on effect for the wider economy, according to industry experts.
The latest evidence of Britain’s economic recovery comes days after forecasts for the country’s annual economic growth were doubled from 0.8 to 1.5 per cent.
The Halifax’s latest monthly index recorded an annual rise of 5.4 per cent, taking the price of the average home up from £160,292 to £170,231, the fastest rate of growth since 2010.
Meanwhile figures compiled by LSL Property Services’ First Time Buyer Monitor showed 26,100 first-time buyers took out loans in July, the highest number for six years and a 45 per cent rise on the same month last year.
David Newnes, director at LSL, said: “Mortgages are much more affordable for first-time buyers compared to last year, which has opened the door to thousands of would-be buyers who were shut out of the market.
“Economic confidence is returning, nudging many more buyers in the direction of property, and nudging lenders to offer more loans to buyers with smaller deposits. The uptick in confidence, beneficial to both parties, is contagious.”
More good news.
:beer:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Well the market price has certainly been artificially repressed for the last few years of mortgage rationing.
But that's ending now.:D
No it wasn't. The market returned to normal. With negative real interest rates, and tax payer underwritten mortgages and loans by Osbourne & chums the market is now returning to the same irresponsible madness that caused the downturn and housing crash in the first place. You are posting so much total bull, Hamish. If you are serious then you are deluded, if not then you are just trolling as usual.0 -
MiserlyMartin wrote: »No it wasn't. The market returned to normal. With negative real interest rates, and tax payer underwritten mortgages and loans by Osbourne & chums the market is now returning to the same irresponsible madness that caused the downturn and housing crash in the first place. You are posting so much total bull, Hamish. If you are serious then you are deluded, if not then you are just trolling as usual.
His facts are backed up with reference graphs, where are yours?0 -
MiserlyMartin wrote: »No it wasn't. The market returned to normal.
Absolute nonsense I'm afraid.
The global credit crunch caused mortgage rationing so severe that almost 70% of the lending in the market disappeared overnight.
The direct result of that was that house building fell off a cliff, to the lowest levels seen in a century, which worsened the already severe housing shortage and rents rose to all time record highs instead.
Over a million people have been prevented from buying since 2007 thanks to mortgage rationing.
It is an absolutely pernicious situation that has excluded more people from buying than higher house prices ever did, and caused an entire generation to enrich their landlords instead of themselves.
That is about as far from "normal" as you can get.MiserlyMartin wrote: »With negative real interest rates, and tax payer underwritten mortgages and loans by Osbourne & chums the market is now returning to the same irresponsible madness that caused the downturn and housing crash in the first place.
It is demonstrably the case that neither high house prices nor irresponsible UK residential mortgage lending caused the crash or global financial crisis.
As this article on the BBC points out quite clearly.....
http://www.bbc.co.uk/news/business-17398014"The banks made mistakes", these wise heads will say, "but really it's all our fault, for running up so much debt. We all had a binge, and now we have to pay."
It's an excellent morality tale, which chimes well with the British tendency towards self-flagellation.
There's just one problem.
It's not really true.
In a nutshell, that's the argument that Ben Broadbent, a member of the Monetary Policy Committee has made, convincingly, in a new speech.
He says that debt is indeed a large part of what caused the crisis, and a large part of the explanation for Britain's historically feeble recovery.
But the debt that's caused the problems hasn't been the debt of households.
It really has been down to silly bets by Britain's banks (and other parts of the financial system), which were NOT bets on UK residential property.
Most of them weren't even in the UK.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It will also help those who bought at the peak and were in danger of negative equity. It must have been awful for those people, so they're bound to welcome price increases.0
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It will also help those who bought at the peak and were in danger of negative equity. It must have been awful for those people, so they're bound to welcome price increases.
Indeed.
Rising house prices are to be welcomed, just as rising share prices, or any other asset price would be.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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