How much can house prices keep rising ?

AdrianC

midimanuser wrote: »

The price is not what the property is worth, it's the price that someone is willing to pay.

So, umm, how are you defining what it's worth?

The usual definition - and we're not just talking about houses - is what somebody is willing to sell for, and what somebody else is willing to buy for. There really aren't many other ways to define what something's "worth", unless you're trying desperately to prove some kind of political point.

midimanuser

AdrianC wrote: »

So, umm, how are you defining what it's worth?

The usual definition - and we're not just talking about houses - is what somebody is willing to sell for, and what somebody else is willing to buy for. There really aren't many other ways to define what something's "worth", unless you're trying desperately to prove some kind of political point.

It's fairly simple.


A developer buys land, purchases the materials and pays their staff to build the house.


Most 3 beds can be built for less than £150k.


Meaning the developer can make a tidy profit. Of up to £300k in some cases. New builds is a highly profitable area.


This spurns house prices, and pulls others with it. Buyers don't have any other choice but to pay what sellers are asking for!


To get around this the government needs to start building affordable homes so that developers have to reduce the cost of new builds. This will drag the other sellers down and we will start to sell more property coming onto the market at realistic prices.

Linton

midimanuser wrote: »

.......
Solicitors and agents where manipulating the land registry values.

How? The registry reports what houses are sold for. If you know different you should report it.

Most agents put a property £20 - £40k higher than what the seller wants.

Yes - about the same as the discount that the buyer wants.

Great for the seller and the agent. But not for the buyer, or the next person that comes to buy on that road.

Because they will use what number 20 sold for as the basis for their next sale. And this will just continue to inflate prices while people are prepared to buy and intrests rates are low.

If the seller wants to sell at a price and the buyer is prepared to buy at the price, then we have a deal and everybody is happy.

Raise mortgage rates and prices will have to slow down.

Indeed, but then fewer people will be able to afford to buy, perhaps you would be one of them. The number of people who find London prices unaffordable after a mortgage rate rise would be the same as now.

Prices in London has seen stagnation and some sellers are dropping prices by £100k!!!


Just think how overvalued they are when you can afford to do that.

So the evil EAs and solicitors arent that clever.

The price is not what the property is worth, it's the price that someone is willing to pay.

nearly right - the property is worth what someone is willing to pay. There is no other way of measuring it.

Common sense should dictate and buyers should walk away from the market.

No one is stopping them, there are plenty of cheap houses for sale outside London. But if they want a London house and can afford to pay for one why should the price be different?

AdrianC

midimanuser wrote: »

It's fairly simple.

A developer buys land, purchases the materials and pays their staff to build the house.

Most 3 beds can be built for less than £150k.

Meaning the developer can make a tidy profit. Of up to £300k in some cases. New builds is a highly profitable area.

This spurns house prices, and pulls others with it. Buyers don't have any other choice but to pay what sellers are asking for!

To get around this the government needs to start building affordable homes so that developers have to reduce the cost of new builds. This will drag the other sellers down and we will start to sell more property coming onto the market at realistic prices.

I notice you've completely and utterly failed to answer my question.

Also, I suspect you missed Bovis's chief exec "resigning" just a few days ago, following them issuing a profits warning. You might have seen Countryside's profits increasing, but you may have missed that they are ascribing that to having an unusually low exposure to residential development - and that those results have only just pulled them from net cash debt.

chucknorris

midimanuser wrote: »

Common sense should dictate and buyers should walk away from the market.

You mean like quite a lot of people from the HPC website did in the early noughties?

padington

The post industrial world is throwing up all sorts of problems. One of them will be a retail industry smashed to pieces pretty much everywhere apart from in London, New York, Tokyo etc where very grand retail showcases will exist as the opulent wealth made online will seek to associate itself with special places and special people. This will mean places like London will attract a world elete more and more.

As this happens more, it would be more true to talk about the price of London property in relation to multiples of the annual income of the global elete and not the income of average people.

So to answer this thread question, some special cities that the global elete want to be associated with could grow in price much much more.

For some of the special parts of the world, there are literally no limits in my mind what prices they could fetch in 50 years time.

This is especially true because there will be less costs in the future. Robots and websites are really cheap to run, the global elete will be hugely wealthy.

Buy as close to an apple shop as you can.

westernpromise

padington wrote: »

As this happens more, it would be more true to talk about the price of London property in relation to multiples of the annual income of the global elete and not the income of average people.

For as long as they're passing through I'll have some of that gravy.

For probably 90% of the last 70 years it has been an utter mug's game to bet against London property. Look how much of the graph is up and how much is down. To hold off buying because you think you can spot the bottom of the next down, and can properly cost what it costs you to wait for it, is grotesque hubris and / or the outward sign of a very low IQ.

London is what it is.

buglawton

padington wrote: »

The post industrial world is throwing up all sorts of problems. One of them will be a retail industry smashed to pieces pretty much everywhere apart from in London, New York, Tokyo etc where very grand retail showcases will exist as the opulent wealth made online will seek to associate itself with special places and special people. This will mean places like London will attract a world elete more and more.

As this happens more, it would be more true to talk about the price of London property in relation to multiples of the annual income of the global elete and not the income of average people.

So to answer this thread question, some special cities that the global elete want to be associated with could grow in price much much more.

For some of the special parts of the world, there are literally no limits in my mind what prices they could fetch in 50 years time.

This is especially true because there will be less costs in the future. Robots and websites are really cheap to run, the global elete will be hugely wealthy.

Buy as close to an apple shop as you can.

Don't buy near an Apple shop or Waitrose - buy where one is being planned for next year.

BTW it's elite.

economic

I'm thinking about buying another London property but not sure where. Ideally in zone 2. Buy to let. 2 bed upto 650k. Any suggestions?

hildosaver

economic wrote: »

I'm thinking about buying another London property but not sure where. Ideally in zone 2. Buy to let. 2 bed upto 650k. Any suggestions?

I suggest you save your money and look outside of the south east of England.