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

System

Crashy_Time wrote: »

Got any more earth shattering "argument buster`s" Joeskeppi?

No, but I am genuinely intrigued if you notice anything different with your apostrophes compared to all the others?

robmatic

Crashy_Time wrote: »

If they need to move for work they have a headache, where if they rented they could pack up and move in a day or two. Please don`t say "They could just rent it out" because there are masses of empty BTL in the area, and your posts are moronic enough already.

I own a flat in central Edinburgh. I didn't have much of a headache when I moved to Turkey at the start of the year, just rented it out - seemed to be plenty of demand as I only had a 3 week void period at a notoriously quiet time of year. And the tenant wanted an 18 month rental agreement.

robmatic

Rota wrote: »

Because your views are so ridiculous they are funny. When do you admit you are wrong? Is it 10, 15 or 20 years of being on the losing side of life's biggest trade?

Regardless of whether renting is or isn't slightly dearer or cheaper than owning means nothing. Ill make it really simple for you.

A house is always worth more than you paid for after 25 years and when you own it there is no monthly cost. With renting all you see is a smiling landlord because you paid his house off for him.

A capital repayment mortgage for an owner-occupier is one of the most tax-efficient savings vehicles, whichever way you look at it.

Percy1983

The failing in logic is quite amazing.

Buy house for self and then live in it rent free, or buy house for somebody else and pay rent until you die.

However you cut the sums buying makes sense.

The other issue of HPI and the young being priced out I am with that and don't want rampant HPI to which I will argue all day, but you can't argue with very basic maths.

ukcarper

Crashy_Time wrote: »

http://www.rightmove.co.uk/house-prices/detail.html?country=scotland&locationIdentifier=POSTCODE%5E1071618&searchLocation=EH11+2LA&referrer=landingPage


http://www.rightmove.co.uk/property-for-sale/property-44904080.html

I've already explained why the buyer would be better off you just don't seem to understand why is that does it upset you to much.

Rota

ukcarper wrote: »

I've already explained why the buyer would be better off you just don't seem to understand why is that does it upset you to much.

They just don't get it. Maybe his light-bulb moment will be when he turns 68 and realises he cant pay rent next month. Can't say we haven't tried to help.

MRMX9

Percy1983 wrote: »

The failing in logic is quite amazing.

Buy house for self and then live in it rent free, or buy house for somebody else and pay rent until you die.

However you cut the sums buying makes sense.

The other issue of HPI and the young being priced out I am with that and don't want rampant HPI to which I will argue all day, but you can't argue with very basic maths.

I agree with the sentiment - but timing can be critical. If you bought a house in Northern Ireland in 2006 - and within 2 years its price had collapsed 50% you might wish you had waited. Same might have applied in London in the late 80s/early 90s.

And of course given that average house prices in many areas are now 10 times median incomes (5 times for a couple) buying may not always be possible for many. And yes you can move to a cheaper area - but the job opportunities may not be as good.

Inevitably people who own property want reinforcement of their decisions (i.e. house prices will never fall) and those who want to buy hope for price falls. That's the problem with debating the topic - its the biggest thing most people ever buy and people get very emotional on the topic!

In parts of London there is evidence of some sort of slow down - well its been manic - whether that's just a summer blip we shall see.

HAMISH_MCTAVISH

MRMX9 wrote: »

Northern Ireland

Northern Ireland was a completely different situation to the rest of the UK though.

The mainland UK did not have a speculative bubble in house prices, just a genuine imbalance between supply and demand which caused prices to rise in order to ration the limited supply.

Which is exactly how healthy markets are supposed to work.

Northern Ireland had no such shortage, and instead saw an influx of hot money from the ROI which caused prices to almost double in just over a year.



It was the only region of the UK which saw a genuine speculative bubble. And that's why it has performed so differently to the rest of the UK both before and after the credit crunch.

After all, monetary policy in Northern Ireland is exactly the same as monetary policy in the rest of the UK.

Yet record low interest rates, QE, FFL, etc, could not stop prices there falling.

Which is exactly what you'd expect when their price rises were not caused by fundamental shortages like the UK's were, but were instead caused by a speculative bubble.

When prices here double in just over a year, then by all means bring up NI again as a comparator. Until then.....

MRMX9

I think the last post proves my earlier comments.

Surprisingly there may be some posters on here who live in Northern Ireland!

House prices are influenced by economic factors as well as the supply of housing and population - because you do actually need to have enough money to buy them! As with the stock market sentiment places a big factor.

Thrugelmir

MRMX9 wrote: »

As with the stock market sentiment places a big factor.

Markets move on confidence and safety in numbers (the herd instinct).