Worth a look

Pobby

At this point I am not going to say much. As we know this board was almost relegated to discussion time due to the bull and bear rows some years ago. In Plymouth where I live, pretty much unchanged from 2008 but my wife and sisters jointly owned property in Reading has gone ballistic in the last 3 years. From £260,000 to about £450,000 now, based on stuff in the same area selling prices. Going back to 1988 we were about 23% loan to mortgage. Happy with £400 a month, including endowment, pretty hairy when it rose to far more than that.

Reading is part of the new railway system so it has a boost and is, of course, overcrowded. Having said that, due to many factors, Plymouth is seeing a large influx of people so in both places there is a high demand for a place to live.

https://www.youtube.com/watch?v=MGuKtz2uGy4

Historically, interest rates were for many years averaging around 7 or 8 per cent. 0.25% is very unusual. This is not only going to effect savings but is also going to do annuities some damage. I think what these guys are saying is how many more schemes will be needed to keep homes at such a high level. Have a look and would like to hear your comments.

Conrad

I have not watched the video as I will have to leave this site to so do as I'm on an iPad, but all I can say is I'm a keen property investor and take little notice of ups and downs as the long term trend is only upwards in terms of capital and income generated.

People have a habit of thinking thier time here and now is full of danger. Just step back and think how may things we've come through in the last fifty years, and yet good old property has been a brilliant investment

We have rising population, are a safe haven, people accross the globe want to invest here. You won't go wrong with property

Brexit accentuates are safe haven status relative to the lumbering EU morass.

AFF8879

Firstly, though a lot of people don't like to admit it, low interest rates didn't come about for the sole purpose of boosting / maintaining house prices.... (Not saying you meant that but I had to highlight before this thread transcends into the usual immature battle between the same 4-5 posters as usual )

Secondly, as seen by with the US, when rate rises do happen they will be very gradual. You could be looking at 50yrs plus before they hit 7% again, if that ever happens at all. Looking long term, past brexit uncertainty, house prices would tend to rise steadily in real terms due to population increase be that organic or through net migration. Therefore by the time rates return to what some older people would consider "normal", my opinion is there would have likely been enough organic growth to sustain that.

My parents tell me that every year after they first bought (back in the 70s), everyone was saying how house price growth was unsustainable and a crash was imminent. No one knows what is going to happen, but long term there has only really ever been one trajectory.