House Prices Up....

MobileSaver

pop_gun wrote: »

Someone will buy the place with 10% deposit and pray like crazy it doubles in value over the next 5 to 10 years.

Why would they "pray like crazy it doubles in value?" Most people would be perfectly happy if it was worth the same or maybe a little bit more in 5 to 10 years. This is the problem with HPCers like yourself, you simply don't get that for the vast majority of ordinary people a house is a home and not an investment.

pop_gun wrote: »

When their work situation deteriorates they'll change to an interest only mortgage.

So no different to any other time in history when someone loses their job then?

ukcarper

p1212 wrote: »

Ok, then prices being 3-4 times cheaper compared to your wages did not help at all. Or that your debt got inflated away sometimes at a rate of 10-15% per year.

You keep saying this but according to nation wide the long term average is about 4x and it's about 6x now when I first bought in early 70s it was just under 5x.

Carl31

With more and more people falling over themselves to get into this country before Article 50 is invoked, prices will only go one way for the next couple of years

p1212

ukcarper wrote: »

You keep saying this but according to nation wide the long term average is about 4x and it's about 6x now when I first bought in early 70s it was just under 5x.

how many times I have to link in the data?

It is 10 in london and number 10 is unprecedented in the whole data series ever.

http://www.nationwide.co.uk/~/media/MainSite/documents/about/house-price-index/downloads/ftb-hper.xls

Conrad

Real incomes are far higher than official stats reveal.

ukcarper

p1212 wrote: »

how many times I have to link in the data?

It is 10 in london and number 10 is unprecedented in the whole data series ever.

http://www.nationwide.co.uk/~/media/MainSite/documents/about/house-price-index/downloads/ftb-hper.xls

Those figures only go back to 83 and London has been over 5x before but if you move out to the commuting belt affordablity is much better.

pop_gun

MobileSaver wrote: »

Why would they "pray like crazy it doubles in value?" Most people would be perfectly happy if it was worth the same or maybe a little bit more in 5 to 10 years. This is the problem with HPCers like yourself, you simply don't get that for the vast majority of ordinary people a house is a home and not an investment.



So no different to any other time in history when someone loses their job then?

A house is an investment. An investment in your future. When people need a lump sum of money, they remortgage. When they have a spare room and not enough to cover the bills. They let the room out.
If you can't afford a nursing home, your home is used to cover the cost.
It's extremely naive of you to think a house is just a home.

So no one who owns a house wants to see it rise as fast as possible, so as to cash in at a later date?
Mobilesaver, you must live in a perfect world where greed doesn't exist. But here in the real world everyone wants more.

My original point was about equity. If you keep remortgaging or become unemployed you'll have little to no equity in your property. Which in essence makes you a tenant of your mortgage provider.

ukcarper

pop_gun wrote: »

A house is an investment. An investment in your future. When people need a lump sum of money, they remortgage. When they have a spare room and not enough to cover the bills. They let the room out.
If you can't afford a nursing home, your home is used to cover the cost.
It's extremely naive of you to think a house is just a home.

So no one who owns a house wants to see it rise as fast as possible, so as to cash in at a later date?
Mobilesaver, you must live in a perfect world where greed doesn't exist. But here in the real world everyone wants more.

My original point was about equity. If you keep remortgaging or become unemployed you'll have little to no equity in your property. Which in essence makes you a tenant of your mortgage provider.

You are just reaffirming mobilesaver's point. Most homeowners don't keep taking equity out of there house or are to concerned about the value of thier home and in the majority of cases will pay off thier mortgage. If you lose your job in gives you problems whether you own or rent.

p1212

pop_gun wrote: »

A house is an investment. An investment in your future. When people need a lump sum of money, they remortgage. When they have a spare room and not enough to cover the bills. They let the room out.
If you can't afford a nursing home, your home is used to cover the cost.
It's extremely naive of you to think a house is just a home.

So no one who owns a house wants to see it rise as fast as possible, so as to cash in at a later date?
Mobilesaver, you must live in a perfect world where greed doesn't exist. But here in the real world everyone wants more.

My original point was about equity. If you keep remortgaging or become unemployed you'll have little to no equity in your property. Which in essence makes you a tenant of your mortgage provider.

That's why we have "clever" regulators, like government. For example you cant kill someone on the streets and take his money, regardless of how greedy you are, as this is a "regulated" activity.

If you want to live in a world where everything is validated by the saying "people just want more", then let's just allow robberies etc... happen, it's also just someone wanting more.

If we can invest in basic needs like living somewhere, why we can't invest in air for example and start charging people for having air and being able to breath?

Lets make artificial restrictions on the amount of air (like we have in case of land through strict planning) and let them bid against each other, bigger and bigger sums for the available amount of air, issue mortgages, and watch them getting into more and more debt, just because they need to breath. Then GDP will go even higher as banks will make a big profit on mortgages.

If its free to invest in peoples basic needs lets do this.

pop_gun

Conrad wrote: »

Real incomes are far higher than official stats reveal.

Another one pulled from your a**.