people want house prices to fall

mwpt

Generali wrote: »

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:

They have. Markets go up and down. Except property though, it seems. Can't lose in bricks and mortar. Safe as houses guv.

mwpt

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 as much less investment would be attracted to our shores.

I think you need to take your own advice and have a think. Just do the sums.

Generali

mwpt wrote: »

They have. Markets go up and down. Except property though, it seems. Can't lose in bricks and mortar. Safe as houses guv.

Part of that is that house price indices are very bad at measuring falling prices.

padington

mwpt wrote: »

I think you need to take your own advice and have a think. Just do the sums.

If we had a stagnant house price inflation since 2008, we would still be teetering on the edge of having just bailed out the banks with no equity giving those banks any room to move.

I would like hot sun shine every day but the UK plants wouldn't. Same with economics. You need the right externalities to support the ecosystem you are trying to protect, even if its not ideal for us.

lisyloo

I agree with what you say.
2008 was an emergncy though, shouldn't we (for everyones sake) try to revert to a situation where we don't just continually pile up future liabilities to bigger and bigger levels. If we do we're just taking from our children's futures' aren't we?
I would agree it can be done during a global financial crisis.

mwpt

padington wrote: »

If we had a stagnant house price inflation since 2008, we would still be teetering on the edge of having just bailed out the banks with no equity giving those banks any room to move.

That is complete speculation. It could be entirely the opposite. A proper reset and true market forces of weening out the losers (and speculators) may well have worked better for everyone.

Besides, this isn't even your original claim. You implied it wasn't good to buy into a stagnant or falling house market.

wotsthat

The-Joker wrote: »

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

They say that's what they want - they're lying. What they want is for the houses they're buying to fall whilst the houses they're selling to go up.

I'd like my cake and to eat it too but I'm in a queue behind some blokes who want cheaper asset purchases, the moon on a stick, and every day to be sunny.

MJ12

Imagine house price goes down
It's easy if you try
No sales below us
Above us only sky
Imagine all the owners
Going broke today...

Imagine a moon on a stick
It isn't hard to do
Nothing to keep Earth's balance
And no more tides too
Imagine the heat from impact
Making life extinct...

You may say I'm a nutter
But I'm not the only one
I hope someday you'll join us
And assets will be meaningless

Imagine no more raining
I wonder if you can
Sunshine everyday
And every evening too
Imagine all the green plants
Dying around the world...

You may say I'm a nutter
But I'm not the only one
I hope someday you'll join us
And the world will be screwed as one.

PS. I can't fit the cake in...sorry

MARTYM8`

cells wrote: »

65% of the population dont want house prices to fall.
15% do
20% dont care

I think that's more representative of the UK

Lets provide a nice example.

You buy a flat for £200k – it doubles in price to £400k. Wow - quids in.

You have kids and need a house in the same area. That house was £400k – now its £800k. So instead of needing an extra £200k to buy that house – you now need an extra £400k. So perhaps you are actually £200k worse off – cos you actually do need somewhere to live!

Your flat halves in price to £100k. Disaster – you have lost £100k.

But that house now costs only £200k. So you now need an awful less money to buy that home you need for your family.

Just some basic maths!

Most people care more about their kids and grandkids – and want to see them living in a decent secure home – than they do about their house price which they are unlikely to realise any direct benefit in most cases from as they will generally live there until they die.

Downsizers/bankers/developers love rising prices – for most people though it’s a matter of pure paper wealth or actually bad news. Who wants your kids still living at home in their late 20s or 30s cos they cannot afford a home of their own. Who wants to see their grandkids living in a cramped flat cos your son/daughter can’t afford a house with a garden.

There is more to life than your house price!

Thrugelmir

Generali wrote: »

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:

Why aren't shares cheap now?