Debate House Prices


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Have house prices outperformed inflation over the longer term?

2

Comments

  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Cyberman60 wrote: »
    My house is now worth over four times what I paid 26 years ago, so it's pretty safe to say, YES !!!!

    Also, bear in mind all gains are tax free on your main residence, whereas on shares you are likely to be liable to Capital Gains tax.:D


    The value of the currency is four times less though? Plus if you bought with a mortgage you have paid out loads of interest to the bankers?
  • The value of the currency is four times less though? Plus if you bought with a mortgage you have paid out loads of interest to the bankers?

    Likelihood is you would be paying more or equal in rent though numnuts, at the end of the mortgage you own a rather valuable asset. :o
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Likelihood is you would be paying more or equal in rent though numnuts, at the end of the mortgage you own a rather valuable asset. :o


    As my rent was 350 p.m 17 years ago, and is 400 p.m now, and his time span is 26 years at all the much higher rates he would have paid, that is unlikely? "A rather valuable asset" is open to some debate I think. Lets debate it after the mother of all HPC`s (coming soon to a Valley near you!)
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As my rent was 350 p.m 17 years ago, and is 400 p.m now, and his time span is 26 years at all the much higher rates he would have paid, that is unlikely? "A rather valuable asset" is open to some debate I think. Lets debate it after the mother of all HPC`s (coming soon to a Valley near you!)

    We've gone through all your probably fictitious figures and shown you how much you have lost just incase you forgot £90k mortgage interest at 4% £300 a month that flat was probably £45k 17 years ago so £150 a month.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    ukcarper wrote: »
    We've gone through all your probably fictitious figures and shown you how much you have lost just incase you forgot £90k mortgage interest at 4% £300 a month that flat was probably £45k 17 years ago so £150 a month.


    The figures are accurate, not fictitious, and I wouldn`t want to have lived in that flat for 17 years (or be stuck in it now like the hopeful would be seller) Hope that clears things up for you.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The figures are accurate, not fictitious, and I wouldn`t want to have lived in that flat for 17 years (or be stuck in it now like the hopeful would be seller) Hope that clears things up for you.

    But what would you have got for £90k in 17 years ago.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    ukcarper wrote: »
    But what would you have got for £90k in 17 years ago.


    Didn`t have 90k 17 years ago, and I don`t do borrowing to pay bankers interest. Hope that clears things up for you.
  • chewmylegoff
    chewmylegoff Posts: 11,466 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    As my rent was 350 p.m 17 years ago, and is 400 p.m now, and his time span is 26 years at all the much higher rates he would have paid, that is unlikely? "A rather valuable asset" is open to some debate I think. Lets debate it after the mother of all HPC`s (coming soon to a Valley near you!)

    Yeah but 17 years ago you were renting a 4 bedroom house and now you're renting a rusty shopping trolley which has fallen into the canal.
  • MobileSaver
    MobileSaver Posts: 4,349 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    As my rent is 400 p.m now

    According to Rightmove the only thing you can rent in Edinburgh right now for £400pm is a lock-up garage!?!??! :rotfl:
    Every generation blames the one before...
    Mike + The Mechanics - The Living Years
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Didn`t have 90k 17 years ago, and I don`t do borrowing to pay bankers interest. Hope that clears things up for you.

    This is where you are going wrong there is nothing wrong with sensible borrowing especially if the rent you are paying is more that the interest on the mortgage.
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