House Prices Up....

padington

interest rates down. Who would have thought it ?

wotsthat

Crashy_Time wrote: »

What, like a big HPC :rotfl: Woo Woo.... Scary :eek::rotfl:

Do you read HPC at all?

A collection of people who can't imagine anything scarier than owning a house which falls in value. For them rent is an insurance against having to face this fear - as a 20 year renter who sold to rent at '90's prices you'll know how expensive it can be.

When the next crash has come and gone they'll still be renting as will you.

carslet

wotsthat wrote: »

Do you read HPC at all?

A collection of people who can't imagine anything scarier than owning a house which falls in value. For them rent is an insurance against having to face this fear - as a 20 year renter who sold to rent at '90's prices you'll know how expensive it can be.

When the next crash has come and gone they'll still be renting as will you.

this is true bit like my story

I was on HPC on 2004 a time when I thought houses were so overpriced I was waiting for them to fall and get a couple of them cheap.

while I was waiting and feeling smug about it all and watching idiots like my brother (only a delivery driver) who went out and bought 4 very cheap houses (20k each up north ) at the time and rented them out at £300 each a month paid them off in about 3 years.

I was still waiting and telling him he was stupid and they would be worth nothing soon.

He then remortgaged them all to buy another 3 houses. all went up to about 70k in price he sold the lot, and walked away with about 350k in the bank

anyway in 2010 I realised and bought myself, and also bought a couple of cheap houses (50k each)and rented them out, tenants have been fantastic one still in since the day i bought it. so they are paying for them

TO be honest buying is the best thing I have done, and wish I had earlier.

I still think houses are overpriced, way way overpriced, and I would welcome a 20% fall in prices, to help younger people but i do not think we will get the 50-75% falls some of the HPC lot are thinking.

Even if they do fall or crash unless you are forced to sell you can wait it all out for another 10 years.

pop_gun

The perma-bulls have no one to buy their homes at their current (unrealistic) market value, hence the need to shame rational posters into raising a deposit and buying those properties off you (or someone like you).

The housing market is in an artificial bubble, just like bonds are\were. Now the yield on those bonds are near zero. Buying a bond means you've lost money at the point of purchase. How long before properties suffer the same fate?

economic

pop_gun wrote: »

The perma-bulls have no one to buy their homes at their current (unrealistic) market value, hence the need to shame rational posters into raising a deposit and buying those properties off you (or someone like you).

The housing market is in an artificial bubble, just like bonds are\were. Now the yield on those bonds are near zero. Buying a bond means you've lost money at the point of purchase. How long before properties suffer the same fate?

i think you are just bitter and angry you missed the boat. your angry smiley says it all really. perma bulls perma bears are all the same. the price is the price. buy your own home if you can and want to and stop complaining.

MobileSaver

pop_gun wrote: »

Buying a bond means you've lost money at the point of purchase. How long before properties suffer the same fate?

The difference is that for most people a mortgage is cheaper than renting so, even in a downward trend, in the mid to long term you will almost always be better off buying.

As it happens all the current forecasts are for modest house price gains over the next few years so the only losers are those who could buy but choose to rent...

iantojones40

economic wrote: »

its youre lot who always claim people are buying into a bubble. what you dont realise or fail to admit is that you have lost out big time because you were scared to buy - as you thought it was a bubble. you simply do not understand how markets function and i feel sorry for you. do you have family? if you do i feel really sorry for them having to put up with your bad financial decisions because of some crap about a housing bubble.

but hey, we need people like you to lessen the demand so i can buy it cheaper. i welcome a crash simply so i can upsize.

I think that is an inaccurate observation... property is nothing like a ''free market'' and is only in it's current state due to massive levels of government/BoE intervention.

MobileSaver

iantojones40 wrote: »

I think that is an inaccurate observation... property is nothing like a ''free market''

Who mentioned a "free market?"

iantojones40 wrote: »

and is only in it's current state due to massive levels of government/BoE intervention.

We live in a capitalist society and so that is exactly what the government should be doing. You have three choices; be angry at the system and do nothing, be angry at the system and try to change it or embrace the capitalist society we live in and join the party.

mwpt

MobileSaver wrote: »

We live in a capitalist society and so that is exactly what the government should be doing. You have three choices; be angry at the system and do nothing, be angry at the system and try to change it or embrace the capitalist society we live in and join the party.

Can anyone decipher this argument for me? Can we just make up our own definitions of what capitalist means? I want to start a banana farming business in the UK and expect the government to provide liquidity to support this business because "We live in a capitalist society and so that is exactly what the government should be doing". I mean, wut?!

MobileSaver

mwpt wrote: »

Can anyone decipher this argument for me? Can we just make up our own definitions of what capitalist means?

You can have a "free market" where prices are determined entirely from supply and demand.

Alternatively you can have a capitalist economy whereby the overriding concern is to generate wealth. You still need a basic supply and demand but this is supplemented by outside forces in order to generate profit.

Regarding your banana example; if banana farming is significant enough to the prosperity of the country then, yes, the government (as elected representatives of the people) should intervene as necessary to support such a business.