MSE News: House prices up at fastest rate for three years

bitsandpieces

SG27 wrote: »

More likely they can see through it as the terrible idea it is!

If people are struggling to pay increasing housing costs then a scheme that looks likely to further inflate house prices is a rather odd way to try to help them!

makeyourdaddyproud

happenstance wrote: »

... house prices divert money away from productive investment, its destroying the economy! They are bad bad bad bad bad for the country, but everyone likes to feel rich and get money for nothing.

Bad for the country, possibly. Bad for me, no. The downsizing cash affords me to avoid having to confront greedy employers and concentrate on my hobbies without financial worry. Why the heck would I care about the economics around me if I'm free of wage labour?

SG27

makeyourdaddyproud wrote: »

Bad for the country, possibly. Bad for me, no. The downsizing cash affords me to avoid having to confront greedy employers and concentrate on my hobbies without financial worry. Why the heck would I care about the economics around me if I'm free of wage labour?

Very lucky generation..

HAMISH_MCTAVISH

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 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.

And as for upsizers......

It used to be commonly believed that falling prices were better for them.

However this crash has proved that to be wrong, in most cases, because the price of their FTB property has fallen by far more than the price of the 2TB properties.

So the gap between rungs on the ladder has widened, not narrowed, with falling prices.

In summary, rising prices are better by far for the vast majority of society, and falling prices only benefit a few, and then only temporarily.

Doc_N

HAMISH_MCTAVISH wrote: »

Rising house prices are good for......

Rising prices are bad for......

And as for upsizers......

There's an awful lot of multiple counting going on in the first part, an awful lot of undercounting in the second part, and an awful lot of flawed logic throughout.

However.........you're entitled to your view, of course, and I don't have the time right now to go through it all piece by piece. Others will, though, I'm sure!

Pincher

Affordable home idea:

Build buildings like filing cabinets with slots, and apartments that look like shipping containers that slot into the buildings.

You can own or lease the apartment/container, but you rent the building slot. When you want to move for work or whatever, the removals people come with a special lorry to move the container to the new location. Maybe they can fit on trains, and the bigger communes would have rail tracks.

I expect an IKEA prefab would cost £10,000 , but a nicer model would go for £20k to £30k. So it's car loan territory. I would like pension companies etc. with a long term perspective to invest in and run these communes.

When you get married, you get adjoin slots, like hotel rooms with adjoining doors. Nursery container? Probably time to get a proper house then. Can't afford a house, donate the baby to society, where its organs are no doubt wanted. Too many people, population reduction is crucial.

HAMISH_MCTAVISH

SG27 wrote: »

Very lucky generation..

The "lucky generation" were Gen X, who bought in the mid 1990's at the cheapest price to income levels seen in several generations, and then saw the benefits of low rates in the 2000's.

The "foolish generation" were those in the 2000's who thought that lucky confluence of events would ever be repeated, and waited for the 50% off that never came.;)

Pincher

My parents bought the family house in 1977 for £27k.
I bought the same house from them in 1997 for £170k,
and now it's worth about £650k.

My 1997 deal matches the "Generation X" label,
but is it "luckier" than the 1977 deal?

With MIRAS tax relief for loans below £30k, the repayments were very affordable. In 1992, when interest rate hovered around 13%, the balance owing was probably £20k or less, whereas wages had gone up. In fact, you were laughing because you have a £20k mortgage on a £120k house.

I would contend that the previous generation who bought in the 70s had the better deal. For £30k, you got a brick four bed semi in suburban London, full MIRAS tax relief, with staggering appreciation to come.

Doc_N

Pincher wrote: »

My parents bought the family house in 1977 for £27k.
I bought the same house from them in 1997 for £170k,
and now it's worth about £650k.

My 1997 deal matches the "Generation X" label,
but is it "luckier" than the 1977 deal?

With MIRAS tax relief for loans below £30k, the repayments were very affordable. In 1992, when interest rate hovered around 13%, the balance owing was probably £20k or less, whereas wages had gone up. In fact, you were laughing because you have a £20k mortgage on a £120k house.

I would contend that the previous generation who bought in the 70s had the better deal. For £30k, you got a brick four bed semi in suburban London, full MIRAS tax relief, with staggering appreciation to come.

1974, decent part of Bromley (South London, though liked to call itself Kent), 3 bed semi - £15k. Seemed a fortune at the time, though!

SG27

HAMISH_MCTAVISH wrote: »

The "lucky generation" were Gen X, who bought in the mid 1990's at the cheapest price to income levels seen in several generations, and then saw the benefits of low rates in the 2000's.

The "foolish generation" were those in the 2000's who thought that lucky confluence of events would ever be repeated, and waited for the 50% off that never came.;)

And the 'no chance generation' trying to buy now...