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

Jack_Johnson_the_acorn

ukcarper wrote: »

I disagree and I know plenty of people who are not worried about the value of there house. I suppose people who have just bought would not like it to fall in value just as people waiting for the crash will not like it when they don't .

I would like my home to increase in value as it will allow me more options later in life. Selfish, yeah maybe it is, I'm certainly not banking on it but I am fairly confident over the life of my mortgage the value of my house will be higher than the amount I paid.

The primary reason people purchase though is security, people want a home they can call their own. It also makes financial sense for most when the mortgage is equal or less when compared to the equivalent rent.

Crashy won't be able to grasp this concept. but HPI is just an added bonus to most.

Crashy_Time

townendwig wrote: »

I used to post a bit on HPC and got banned for no apparent reason and have always suspected it was that Bruce Banner who pulled the trigger. From memory I sarcastically and not so subtley hinted that he kept repeating himself and shortly after that I was banned.

Bruce if you're reading this can you unban me please? Username: Wig. I promise I won't type a word the next time you mention how much you've saved by renting vs buying over the past 20 years. It does seem to be a common view on this site in particular that HPC bans anyone who doesn't agree with them, sort of defeats the point of a forum, but I wasn't even ramping house prices over there!! I just had the temerity to joke with Bruce Banner.



I still enjoy reading HPC though because I find it a fantastic source of information with some extremely intelligent and free thinking posters on the forum, who give a credible and informed counter view to the mainstream which I always welcome. Inherently I feel that house prices are at completley unsustainable levels in relation to wages and the long term view worries me for the next generations.



I cannot fathom though, how a site called money saving expert could champion what is essentially, the highest component of the cost of living, going up.
Genuinely perplexed by that one, this whole site is about saving money and bringing your costs down yet the (apparent) dominant view is one of house price ramping. Cheer as I save a few pounds on quidco then cheer as I have to spend another £20k buying a house. Nuts.



For what its worth I'm currently renting a house with wife and young son. Believe it or not this is entirely by choice. I see zero value in the market and am acutely aware the combination of historic low interest rates and historic high prices is a nonsensical mix to buy into. In my opinion.

What do you say Bruce, can we give it another go?

Because you get more hits if you appeal to the basic sheeple viewpoint? You do underline though the idiocy of posters on this thread, being members of a money saving website while desperately trying to ramp property. Most of them are banned everywhere else though for constant trolling, that is why they wash up here. I would say the majority of the posters here bought at peak and are just starting to realise what a mistake they have made.

townendwig

Jack_Johnson_the_acorn wrote: »

Well they could sell..... a mortgage isn't a prison like some would have you believe.

Clearly I agree that renting provides more flexibility re moving home, but renting cannot compare with purchasing when it comes to security. I would hate to be settled and then pushed out by a LL.

Yeah I hear that one a lot, the whole settled and security thing, but it really isn't hard to find another place to move to is it. And I would suggest job security is a bigger concern in our economy than home security, which again is where the 'prison' (your words not mine!) of a mortgage becomes more of an issue. Its horses for courses aint it.


We have always moved on our terms and timescales with one exception where we moved due to the Mortgagee selling, which was annoying as it was a nice place but this was the only home we've ever been 'booted out of' on someone elses terms. We found a place down the road, moved all our stuff. No dramas :-)

ukcarper

townendwig wrote: »

I don't follow sorry, what group is this??

I thought you were referring to a post on the house buying, renting section of this site. That section is full of very unhappy renters.

Rota

Crashy_Time wrote: »

Doesn`t need a 50 - 70% crash to put a lot of UK mortgage holders in trouble, 7% would probably do that, especially in the I.O capital of London.

How would they be "in trouble"? People that bought in early 2008 would of been 20% underwater at the peak of the recession. Now they are probably 150k in the black. I'm sure the places were still rented out. Although I'll admit lots of people (including me) were scared of losing their job.

As I've mentioned before things sure look lots better than 2008.

ukcarper

Crashy_Time wrote: »

UK Carper is obsessed with "groups", he thinks only 23 people read this board.

15 at the moment how many do you think look over the course of a day.

Rota

Crashy_Time wrote: »

Because you get more hits if you appeal to the basic sheeple viewpoint? You do underline though the idiocy of posters on this thread, being members of a money saving website while desperately trying to ramp property. Most of them are banned everywhere else though for constant trolling, that is why they wash up here. I would say the majority of the posters here bought at peak and are just starting to realise what a mistake they have made.

:rotfl::rotfl::rotfl::rotfl:

Jack_Johnson_the_acorn

Rota wrote: »

How would they be "in trouble"? People that bought in early 2008 would of been 20% underwater at the peak of the recession. Now they are probably 150k in the black. I'm sure the places were still rented out. Although I'll admit lots of people (including me) were scared of losing their job.

As I've mentioned before things sure look lots better than 2008.

Hahaha he just can't accept it.... Today is the peak price!!!

Prices are now way higher than 2008....

*Is Crashy accusing all homeowners on this thread of buying today?!?!?

Crashy_Time

townendwig wrote: »

It isn't all sat in cash!!


Like everyone does in this country we first looked at getting a mortgage a fair few years ago because 'that's what you do its the natural next step' etc. but when I started to look into it more closely it vexed me that two people on well above average wages had to pay such a ridiculous amount for an 'average' house. So we stayed flexible and kept renting and have been able to move where the work is, take extended leave to travel the world etc and move closer to family since we've had the little one.


Of course we have spent money renting, money that we'll never get back (sob) but I don't see it as money down the drain because for a truly balanced view that needs to be offset against the cost of owning, opportunity cost of capital, cost of servicing the debt, maintenance, refurbishment etc.


Have been renting all my adult life so a good few years! and like I say it has afforded me the opportunities to move where the work is and stay flexible.

Why would you want it back? You don`t eat a jar of pasta sauce and go back round to Asda and ask for a refund do you? The rent is a cost, it is part of living, you get a roof, a bed, a shower, a toilet, cooking facilities, hopefully a nice environment, and a place to live, that is what you pay the money for. That would be like the VI`s on this thread asking the banker for their interest back.

ukcarper

Jack_Johnson_the_acorn wrote: »

I would like my home to increase in value as it will allow me more options later in life. Selfish, yeah maybe it is, I'm certainly not banking on it but I am fairly confident over the life of my mortgage the value of my house will be higher than the amount I paid.

The primary reason people purchase though is security, people want a home they can call their own. It also makes financial sense for most when the mortgage is equal or less when compared to the equivalent rent.

Crashy won't be able to grasp this concept. but HPI is just an added bonus to most.

My house is worth about 6x what I paid for it it would make no difference to me if was was worth half that.