MILLIONS of Young People WANT & NEED Higher House prices!!!

TickersPlaysPop

Those new houses will most likely end in the hands of buy to letters in the current climate.

TickersPlaysPop

We don't need price control. That is a crude blunt tool.

We need policies in place to slowly fix the many problems in the housing market.
Examples of policies that encourage HPI:
Scraping the slab stamp duty system is arguably a change to encourage HPI.

Increasing demand, by allowing over seas investors

Increasing demand by allowing individual's pension money to go into buy to let

CLAPTON

TickersPlaysPop wrote: »

Those new houses will most likely end in the hands of buy to letters in the current climate.

obviously you are about to quote the facts and figures to support this

jjlandlord

TickersPlaysPop wrote: »

We don't need price control. That is a crude blunt tool.

You're very quick to change your mind, at least.

System

LydiaJ wrote: »

Unless you are willing to consider the different stages of your life separately, then your life as an example is not relevant to the discussion of whether HPI benefits young people in starter homes wishing to trade up to 2nd time buyer homes, which is the topic of this thread.

That is exactly the point I was making.
I made a profit moving up from 1st time buyer to 2nd house. I chose to use that profit in order to downsize (actually upsize in space terms, but downsize in money), but that does not alter the argument. I could have stayed in the system and continued to climb upwards.

Voluntarily stepping off the ladder having climbed half-way up doesn't alter the fact that HPI got me there.
It seems so obvious to me that only someone with a brilliant mathematical mind could fail to see it.

Are you seriously saying that if house prices were today exactly the same as they were in 1976, I could have become mortgage-free with a much larger house simply by paying my mortgage from 1976 to 1984?
I was a single junior grade local government admin trainee. Obviously HPI was responsible for my good fortune.

Spidernick

Bravo_Zulu wrote: »

Negative equity is my problem and it means that I'll be stuck with the property until the mortgage has reduced enough for me to be actually be able to sell it. Devastated in all honesty, bought it in 2006, did all the wrong things and now it's worth £20K less than what was paid. It's lost about 20% of its value.

If I'm lucky I'll walk away with no debt from it. A far cry from my thoughts of buying a house, owning it for a few years then selling at a profit. Worse money making decision ever.

Stick in there.

I bought a flat in June 1989 for £55,500 with a 95% mortgage just before prices crashed and at one stage the value was under £20,000. Added to that interest rates were sky high at that stage. In the end I had to rent the flat out just to get on with my life. I was lucky in that a mortgage lender was prepared to take a bit of a risk on me and I was able to get a second mortgage to buy a house in the new area I was living in in 1997. I didn't sell my flat until December 2007, so just before another crash (so glad I got out then), but it then went for almost double what I paid for it and the profit went a long way towards paying for our house extension in our current house.

The long of the short of it is: stick it out and you'll be OK in the end. While interest rates are low you might want to pay down the mortgage as quickly as you can, unless you can get a better rate saving the money (in which case keep those funds for the mortgage or towards a new property).

TickersPlaysPop

Clifford_Pope wrote: »

Are you seriously saying that if house prices were today exactly the same as they were in 1976, I could have become mortgage-free with a much larger house simply by paying my mortgage from 1976 to 1984?
I was a single junior grade local government admin trainee. Obviously HPI was responsible for my good fortune.

It would be useful to know this guys wage at the time.... however...

.... This guy bought a house in 1976 with a VERY junior position and a 10% deposit... is there anybody here that thinks this is still possible with today's wages and house prices?

Crashy_Time

Bravo_Zulu wrote: »

Negative equity is my problem and it means that I'll be stuck with the property until the mortgage has reduced enough for me to be actually be able to sell it. Devastated in all honesty, bought it in 2006, did all the wrong things and now it's worth £20K less than what was paid. It's lost about 20% of its value.

If I'm lucky I'll walk away with no debt from it. A far cry from my thoughts of buying a house, owning it for a few years then selling at a profit. Worse money making decision ever.

Many on here no doubt in the same boat. At least the amount of debt seems within reasonable limits of being able to pay back. Many will never pay off their home loans IMO.

ukcarper

Crashy_Time wrote: »

Many on here no doubt in the same boat. At least the amount of debt seems within reasonable limits of being able to pay back. Many will never pay off their home loans IMO.

I'm not sure how you reach that conclusion most people pay off their loans now and did when interest rates were much higher.

Crashy_Time

ukcarper wrote: »

I'm not sure how you reach that conclusion most people pay off their loans now and did when interest rates were much higher.

Why are so many people on I.O loans then?