'We've reached a tipping point' Signs of house price weakness

saguk1234

Typical fossils thinking about yesteryear. I am talking about young people buying today and in the future. Its not about ipods, iphones, flash cars, flash holidays and such. I know many who have crap or last years phones and have never left the country. Back in the day you could buy property on 1 salary but today you need two or buy with friends or some wild government scheme.

And then there will be a crash and all those with cash/international money launderers will swoop in and buy the houses for dirt cheap because the banks have to be bailed out again.

Some of you lot will reap what you sow.

I don't want a massive crash. I just want to buy without having to sell my soul!!

In_For_A_Penny_2

mayonnaise wrote: »

You have to love it.

These HPC crashoholics are even too extreme for our most hardened MSE bears. :rotfl:

I'm fairly new to all this but I have to say I've been disappointed with the standard of "debate" on this section of the forums - from both "sides".

In the investment section there is a much more balanced discussion with even the most experienced investors happy to admit they do not "know" what the market is going to do next.

Equally those looking to invest are seeking advice rather than obsessively calling for a market crash in order to get better value for money.

ukcarper

saguk1234 wrote: »

Typical fossils thinking about yesteryear. I am talking about young people buying today and in the future. Its not about ipods, iphones, flash cars, flash holidays and such. I know many who have crap or last years phones and have never left the country. Back in the day you could buy property on 1 salary but today you need two or buy with friends or some wild government scheme.

And then there will be a crash and all those with cash/international money launderers will swoop in and buy the houses for dirt cheap because the banks have to be bailed out again.

Some of you lot will reap what you sow.

I don't want a massive crash. I just want to buy without having to sell my soul!!

I'm not sure why you thanked above post as you have put forward no reasoned points.

I've provided figures to show it is better to rent even without HPI you just ignore them.

chucknorris

saguk1234 wrote: »

Typical fossils thinking about yesteryear.

The only references that I can remember seeing about 'yesteryear' were in response to comments (mainly whinging) about how easy it was to buy back then.

My financial focus now (and has been for the last decade) is on how to build up my forthcoming retirement income.

saguk1234 wrote: »

But you and house have not "made" £100k. You have to sell it first. And then what will you buy because every other property has increased. Scotland is a cheap place to buy but where will you buy to get the benefit of the £100K?

There is nothing wrong with holding valuable assets/investments, IMO it is much better than holding cash, especially at the moment with such low interest rates. Apart from cash ISA's and an emergency fund I moved away from cash last year. Even my cash ISA's will be converted to SS NISA's as my cash ISA fixed rate bonds mature, the first two mature next month.

N1AK

In_For_A_Penny wrote: »

I'm fairly new to all this but I have to say I've been disappointed with the standard of "debate" on this section of the forums - from both "sides".

In the investment section there is a much more balanced discussion with even the most experienced investors happy to admit they do not "know" what the market is going to do next.

There's a lot of old grudges on here, so too many posts are based on proving 'foes' wrong, rather than debating.

However, you're always going to get more disagreement when you stray closer to politics which this board is. Generally when talking about investments parameters are pretty well shared and accepted. Everyone thinks high returns are good, risk should be controlled etc. When debating the economy you get onto issues like welfare on which there is huge variations in opinion.

If someone went onto the Investment boards and entered discussions by highlighting the sins of usury and wickedness of interest rates you'd probably get a pretty big bust-up

N1AK

chucknorris wrote: »

There is nothing wrong with holding valuable assets/investments, IMO it is much better than holding cash, especially at the moment with such low interest rates.

I don't think he was saying there was. His point, if I understood it correctly, is that an increase in the value of the property you live in is effectively meaningless if you don't intend to buy somewhere that prices have gone up less, or downsize.

I know that I'm better off for buying 3 years ago because what cost me ~£130k then is worth ~£160k now with a mortgage considerably lower than renting. However I'm arguably worse off than if house prices had remained the same, because I'm likely to want to buy a more expensive house in future and that will have increased in price by even more!

ukcarper

N1AK wrote: »

I don't think he was saying there was. His point, if I understood it correctly, is that an increase in the value of the property you live in is effectively meaningless if you don't intend to buy somewhere that prices have gone up less, or downsize.

I know that I'm better off for buying 3 years ago because what cost me ~£130k then is worth ~£160k now with a mortgage considerably lower than renting. However I'm arguably worse off than if house prices had remained the same, because I'm likely to want to buy a more expensive house in future and that will have increased in price by even more!

That's a valid point but not the point Hamish was making if you read Hamish's post you will see the £100k he was talking about was the amount he had saved on rent.

chucknorris

N1AK wrote: »

I don't think he was saying there was. His point, if I understood it correctly, is that an increase in the value of the property you live in is effectively meaningless if you don't intend to buy somewhere that prices have gone up less, or downsize.

I know that I'm better off for buying 3 years ago because what cost me ~£130k then is worth ~£160k now with a mortgage considerably lower than renting. However I'm arguably worse off than if house prices had remained the same, because I'm likely to want to buy a more expensive house in future and that will have increased in price by even more!

I know what he is trying to say, and I wouldn't disagree, but he is also saying (or certainly inferring) probably unintentionally, that you have not made profit until you actually sell. But my point is that that does not mean that it isn't a good thing to hold assets and investments, they are worth something before selling.

chucknorris

ukcarper wrote: »

That's a valid point but not the point Hamish was making if you read Hamish's post you will see the £100k he was talking about was the amount he had saved on rent.

That went right over his head (the fact that it was rent saved, not equity), he doesn't seem to be able to comprehend what has been said on this thread.

IveSeenTheLight

Crashy_Time wrote: »

So if it sells at todays price they would only be fifty quid short?


The problem arises as prices took off after 2002, as those diving into the Ponzi then especially on I.O, are going to come up much shorter.

plus 16 years FREE rent