Is property in a bubble?

westernpromise

ukcarper wrote: »

Because they don't earn enough. Prices in relation to earnings are about 20% higher than they have ever been and 50% long term average so it's obvious that fewer people can buy.

But interest rates are cheaper. A £200K house at 2% interest rates costs £254k to buy. A £100k house at 10% interest rates costs £273k to buy.

Which is the cheaper house, the one that's £254k or the one that's £273k? Or do you want 1988 prices and 2018 mortgage rates?

economic

ukcarper wrote: »

Because they don't earn enough. Prices in relation to earnings are about 20% higher than they have ever been and 50% long term average so it's obvious that fewer people can buy.

Well there clearly are people who do earn enough which is why they are buying and why prices are going up. Plus low rates make it sooooo easy to manage and pay down a mortgage.

AG47

Per capita there are now mor people renting than people who own property, the governments have to appease the majority to get the votes


nuff said

westernpromise

AG47 wrote: »

Per capita there are now mor people renting than people who own property

No there aren't.

economic

AG47 wrote: »

Per capita there are now mor people renting than people who own property, the governments have to appease the majority to get the votes


nuff said

Who cares, you worry too much about others

ukcarper

westernpromise wrote: »

But interest rates are cheaper. A £200K house at 2% interest rates costs £254k to buy. A £100k house at 10% interest rates costs £273k to buy.

Which is the cheaper house, the one that's £254k or the one that's £273k? Or do you want 1988 prices and 2018 mortgage rates?

True but the limiting factor is how much you can borrow.

ukcarper

economic wrote: »

Well there clearly are people who do earn enough which is why they are buying and why prices are going up. Plus low rates make it sooooo easy to manage and pay down a mortgage.

True but fewer than ever before, there is clearly a problem in London, large parts of South East and some other areas and just because some people are able to buy doesn't change that.

GreatApe

ukcarper wrote: »

True but fewer than ever before, there is clearly a problem in London, large parts of South East and some other areas and just because some people are able to buy doesn't change that.

Fewer than ever before?

Really?

ukcarper

GreatApe wrote: »

Fewer than ever before?

Really?

Perhaps not in absolute term but proportionally yes. Home ownership gradually increased unti early 2000s remaining fairly constant until 2007 and has been falling ever since.

GreatApe

ukcarper wrote: »

Perhaps not in absolute term but proportionally yes. Home ownership gradually increased unti early 2000s remaining fairly constant until 2007 and has been falling ever since.

Why would you compare now to a record high year? Why is that reasonable?

Surely if you do that then disappointment is just a matter of time as you simply can't keep growing ownership to 100%