What would cause negative HPI in London

westernpromise

The thing about house prices is that logically they always look overvalued.

If a house is clearly going to be worth £200k in a year's time then that's going to be its price today. Obviously nobody is going to sell it any cheaper than that.

It follows that at any time, the price of a house includes all foreseeable future capital inflation. Anyone buying a house is paying top money, by definition.

The pitfall that most avoid (but into which your "boomer"-envying, landlord-hating HPCer has plunged headlong) is to assume that this today value is static. A house worth £200k in 2005 can easily be worth £250k the following year because that's what the market now foresees. Crashtrolls routinely interpret this as madness, but in reality, it is the outcome of there being another year of information available.

Anyone who waits to buy a house until it's crystal clear that its price will only go up will wait a long time. All that upside will be priced in now so what you are buying is the prospect of the market undervaluing the upside.

Of course landlords and owner-occupiers largely don't make such a speculator's calculation. They buy not in anticipation of gain, but according to whether the house is useful to them right now.

MobileSaver

TheCountofNowhere wrote: »

The attacks are just brutal.

By "attacks" you mean people posting actual facts? Uncomfortable truths are just that, uncomfortable. We know the HPC crowd don't like such things; on here they post one liners that don't even attempt to rebut the facts and on HPC they invoke the stealth ban to silence anyone not towing the party line.

TheCountofNowhere wrote: »

yours appears to be abusing people on the Internet.

That's rich from someone who called people "idiots" on this forum and whose namesake on HPC recently said "now, #### off to mse"!

TheCountofNowhere wrote: »

Idiots

TheCountOfNowhere_on_HPC wrote:

brilliant. now, #### off to mse where the greatest fools post.

System

I don't think this account is the real Count. He may be an odious little cretin but I'm going to credit him with a least a tiny amount of self awareness which this doesn't show.

padington

The left field crashists always undermine a key argument that they should be making, namely the system is rigged in favour of property owners. Instead they chose to argue that soon the market will remedy itself. Which compromises a chance to push for real change for generation rent.

Quite a counter productive strategy.

Whilst them applauding more taxes on rental properties is tantamount to self harm.

michaels

lonestar1 wrote: »

Failure of Thames Barrier ?

Lots of mortgages would be underwater....

chucknorris wrote: »

Sounds a lot like the Omega Man, I loved both versions of it, but sometimes when I see a dog in a movie, I just know that I am in for a very sad ending. My first thought of the re-make is that his dog died, it reduced the enjoyment of the film for me.

I am Legend?


If house prices were lower how many would spend less on housing and settle for what they have and how many would keep their monthly spend the same and upgrade?

Same number of houses, same amount of income, prices will rise to the level where rationing shares out the available stock so lower prices require either less demand (fewer people) or more supply. Current trends are for population to rise much more quickly than the housing stock.

Mistermeaner

TheCountofNowhere wrote: »

Would you like me to post 'Joeskeppi is a baffoon' on HPC? Would that excite you?

Yes please

chucknorris

michaels wrote: »

I am Legend?

Je suis Diesel

Yes it was a remake of Omega man (which in itself was a remake of The last man on Earth (based upon the book 'I am legend'), although I never saw that). I am legend was very good, but the moment I saw the dog, I just knew that I was in for an even less than happier ending.

westernpromise

chucknorris wrote: »

Je suis Diesel

Yes it was a remake of Omega man (which in itself was a remake of The last man on Earth (based upon the book 'I am legend'), although I never saw that). I am legend was very good, but the moment I saw the dog, I just knew that I was in for an even less than happier ending.

Great book, mediocre film.

chucknorris

westernpromise wrote: »

Great book, mediocre film.

That's subjective, as is my opinion that Omega Man was better, and your opinion is not less valid than mine. But what is definitely not mediocre, was the death of Diesel.

Je suis Diesel

http://www.bbc.co.uk/news/blogs-trending-34861540