people want house prices to fall

padington

There are two types of people ....

Those that want property to go up

Those that want property to go down so they or their tribe can buy and then go up

Anyone that wants to buy or encourage their family to buy into a deflationary or stagnated market as opposed to a long term rising market just doesn't really know what they want because they haven't understood the personal consequences of their actions.

mwpt

padington wrote: »

Anyone that wants to buy or encourage their family to buy into a deflationary or stagnated market as opposed to a long term rising market just doesn't really know what they want because they haven't understood the personal consequences of their actions.

Could you elaborate how stagnant prices are no good for me (I want to eventually trade up)?

kinger101

I'm happy with them staying where they are to be honest. I don't need to use my home as a bank, and I don't want the next rung getting further away. Large drops will have negative consequences on people's mobility if they become trapped by equity.

padington

mwpt wrote: »

Could you elaborate how stagnant prices are no good for me (I want to eventually trade up)?

Because to trade up you'll benefit from having some equity in your property so you can get a better mortgage rate and a bigger mortgage and when you finally trade down you'll be better off by a long way. A snagnant housing market will also mean a stagnant economy and you'll probably find that a life in that situation is not as desirable either as it has knock on consenquences on employment possibilities and pension pots. All while the national debt may have eaten us alive as much less investment would be attracted to our shores.

chewmylegoff

Generali wrote: »

Great. I wish that the price of loads of assets would fall so I could buy a load of them. Unfortunately the price is the price and is set by the interactions between buyers and sellers.

I'd love to live on the river in Sydney and pay a couple of bucks for the pleasure. It's unlikely to happen any time soon.

I want the moon on a stick and I asked before you so get in line.

Graham_Devon

caronoel wrote: »

Source is Moneyweek: the financial world's answer to the Beano

What a rag. Wouldnt clean my shoes with it

The source actually appears to be the FT.

chewmylegoff

Graham_Devon wrote: »

The source actually appears to be the FT.

The source actually appears to be a survey by ING.

kinger101

padington wrote: »

Because to trade up you'll benefit from having some equity in your property so you can get a better mortgage rate and a bigger mortgage and when you finally trade down you'll be better off by a long way. A snagnant housing market will also mean a stagnant economy and you'll probably find that a life in that situation is not as desirable either as it has knock on consenquences on employment possibilities and pension pots. All while the national debt may have eaten us alive.

Not really. Let's say there are two houses, A and B. A costs £100,000 and B costs £200,000. I decide to buy house A.

Scenario 1. 5 years later I've paid off my mortgage. House prices have increased 10% in that time. I have £110K equity, so need another £110K to buy house B.

Scenario 2. House prices have increased 100 %. I have £200K equity, but need £200K to buy house B. That's another £90K.

Either way, I've got 50% equity. Under scenario 2, my mortgage payments are higher though as a need to borrow more.

Under scenario 2, I might have got better rates if I remortgaged during the term, but once you've got 10% equity, you can already get a fantastic rate. The difference between 60,70,80,85,90 % mortgages isn't that exciting to be honest.

Stock markets have done well when the housing market has dragged it's feet, and vice versa. In fact, this year house prices have probably done better than many would have expected, while the markets have taken a dip.

And I would say this years' stock market is bad news for most people building for pensions; those at or near retirement should have shifted into lower risk, and everyone else now gets to buy equities at a better price.

The-Joker

Everyone wants prıces to fall and they wıllö the questıon ıs when:

Generali

The-Joker wrote: »

Everyone wants prıces to fall and they wıllö the questıon ıs when:

Excellent. I'd really like to be able to buy a load of shares up cheaply so if you could arrange for the price of those to fall too then I'd really appreciate it.:money: