How low will property go?

System

Property won't go low because it is controlled by the central bankers........

The housing market is rigged free market lol

p1212

ukcarper wrote: »

if you look back you will see that London has always been higher than national average
Varying between 30% and 60% more apart from 90s

Sorry there is the linked data in my post with the exact numbers, all I can see is that in London after the 1990 crash the house price/salary ratio dropped from above 5 to below 3 and it stayed there until around 2000.

It was around 6 between 2008-2012 and even that number was unprecendented and now it is 10.

This 10 is outrageous and on top of it the tution fee is 9 grand per term now + accomodation in uni costs way more too, most young will leave uni with huge student debt.

Anyone seriously thinks we can put that much debt on the young ones and they will just nicely pay it back without saying a word? I doubt it...

Interest rates being low at the moment does not mean anything, the mortgage is for 25 years, in 5-10 years time you still have the majority of the debt, but nowadays the economy takes turns much more frequently, we just had a crash yesterday, today we have brexit and a new government, tomorrow we will have scotland leaving, a day after that italian banks will collapse etc...

You can't trust the interest rates staying low, most economist do not even know what happens tomorrow, not in 25 years time.

ukcarper

p1212 wrote: »

Sorry there is the linked data in my post with the exact numbers, all I can see is that in London after the 1990 crash the house price/salary ratio dropped from above 5 to below 3 and it stayed there until around 2000.

It was around 6 between 2008-2012 and even that number was unprecendented and now it is 10.

This 10 is outrageous and on top of it the tution fee is 9 grand per term now + accomodation in uni costs way more too, most young will leave uni with huge student debt.

Anyone seriously thinks we can put that much debt on the young ones and they will just nicely pay it back without saying a word? I doubt it...

Interest rates being low at the moment does not mean anything, the mortgage is for 25 years, in 5-10 years time you still have the majority of the debt, but nowadays the economy takes turns much more frequently, we just had a crash yesterday, today we have brexit and a new government, tomorrow we will have scotland leaving, a day after that italian banks will collapse etc...

You can't trust the interest rates staying low, most economist do not even know what happens tomorrow, not in 25 years time.

Did you not look before the 90s crash the 90s were an unusual period. I agree that 10x is very bad but although prices have been pushed up by foreign investors that does not apply to all of London and a large number of the new builds have been aimed at them.

System

Don't worry p1212. Some people on here prefer to live in a fantasy world. The central bankers have lost control and are clueless. In the long run, lowIRs are doing more harm than good.

System

That was not a dig at you ukcarper. I mean people in general.

economic

p1212 wrote: »

Sorry there is the linked data in my post with the exact numbers, all I can see is that in London after the 1990 crash the house price/salary ratio dropped from above 5 to below 3 and it stayed there until around 2000.

It was around 6 between 2008-2012 and even that number was unprecendented and now it is 10.

This 10 is outrageous and on top of it the tution fee is 9 grand per term now + accomodation in uni costs way more too, most young will leave uni with huge student debt.

Anyone seriously thinks we can put that much debt on the young ones and they will just nicely pay it back without saying a word? I doubt it...

Interest rates being low at the moment does not mean anything, the mortgage is for 25 years, in 5-10 years time you still have the majority of the debt, but nowadays the economy takes turns much more frequently, we just had a crash yesterday, today we have brexit and a new government, tomorrow we will have scotland leaving, a day after that italian banks will collapse etc...

You can't trust the interest rates staying low, most economist do not even know what happens tomorrow, not in 25 years time.

wow i would hate to know you, life would be depressing!

i think comments like yours are very silly. misses the big picture completely. always negative. yes the future is uncertain. but how do you know confidence and inflation and the economy wont pick up in a big way? you dont. the young have time on their side and all the possibilities with a technological future. i wouldnt feel too sorry for them!

economic

another thing is the focus is so much on income multiples. it really doesnt matter. property is traded at the margin. if there are enough people who can afford it they will push prices up. dont matter about the average. yes given recent market it means inequality in london has gone up. but people still survive and have cheaper options like renting further out. the price is the price so theres nothing overvalued or undervalued about it. you may want to take a view what will happen to future prices however....

System

I dont care because I know there will be a new monetary system in place. Being negative creates positive results....hope so.

economic

mrlegend123 wrote: »

I dont care because I know there will be a new monetary system in place. Being negative creates positive results....hope so.

i too think there will be a new monetary system in place soonish. the system is screwed up. but things can change fast and surprise us all

cells

p1212 wrote: »

Sorry there is the linked data in my post with the exact numbers, all I can see is that in London after the 1990 crash the house price/salary ratio dropped from above 5 to below 3 and it stayed there until around 2000.

It was around 6 between 2008-2012 and even that number was unprecendented and now it is 10.

This 10 is outrageous and on top of it the tution fee is 9 grand per term now + accomodation in uni costs way more too, most young will leave uni with huge student debt.

Anyone seriously thinks we can put that much debt on the young ones and they will just nicely pay it back without saying a word? I doubt it...

Interest rates being low at the moment does not mean anything, the mortgage is for 25 years, in 5-10 years time you still have the majority of the debt, but nowadays the economy takes turns much more frequently, we just had a crash yesterday, today we have brexit and a new government, tomorrow we will have scotland leaving, a day after that italian banks will collapse etc...

You can't trust the interest rates staying low, most economist do not even know what happens tomorrow, not in 25 years time.

how affordable does London look for the young when you consider they will be inheriting £8.8 trillion?