Debate House Prices


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Berlin Balks

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I do get where you're coming from but TBH there are a few reasons they're maybe moving out of the price range of the next gen of buyers; mainly though because often they're gradually getting bigger.

    Size alone doesn't account for the price differential. Think of it as an era when people lived in a two up two down terrace with no bathroom and an outside toilet. Now new houses have minimum specifications of bathrooms and downstairs toilets. With double glazing and central heating as well. The product wouldn't sell if it didn't meet the buyers expectations.

    Providing finance solutions bridges the gap. No one cares once the buyer has bought.
  • A_Medium_Size_Jock
    A_Medium_Size_Jock Posts: 3,216 Forumite
    edited 7 August 2017 at 3:51PM
    Thrugelmir wrote: »
    Size alone doesn't account for the price differential. Think of it as an era when people lived in a two up two down terrace with no bathroom and an outside toilet. Now new houses have minimum specifications of bathrooms and downstairs toilets. With double glazing and central heating as well. The product wouldn't sell if it didn't meet the buyers expectations.

    Providing finance solutions bridges the gap. No one cares once the buyer has bought.
    I did say "mainly", not "totally" or "solely" but I understand what you're trying to say.
    However, here's where that reasoning falls down:
    "Size alone doesn't account for the price differential."
    But if that's true why is a Mondeo not the same price as a Fiesta - or an i30 the same price as an i10?
    Why is a Sony 65" TV not the same price as a Sony 32" TV?
    Why is my 2 litres of milk not the same price as a pint of milk?
    Etc. etc. etc.

    Suggesting that building a Victorian-style two-up two-down house with no inside bathroom would somehow not cost less to build compared to a modern-specced fully-equipped house is unrealistic -
    they cost more to build because as you correctly suggest, "The product wouldn't sell if it didn't meet the buyers expectations."

    Increasing desires and expectations will by and large lead to higher prices and you're again correct in that providing finance solutions bridges that gap.
    That's at least partly why the Ford Fiesta remains the UK's top-selling car and not say the far cheaper Dacia Sandero or Skoda Citigo/VW Up/Seat Mii.

    I just don't see people's expectations regarding the future of cars changing certainly in the near future for that very reason; longer-term perhaps, but in my opinion that will be so far in the future as to be beyond the scope of my concern.

    ETA
    Also today comes this:
    "Germany should consider electric cars quotas, deputy econmin says"
    "We want Germany to remain the top car country in the future," Machnig told Reuters, adding that issues like digitalization and new technologies in motors would decide who stays at the top of the game.
    "That's why we should talk about a binding target to really get electromobility going in Europe and also in Germany,"
    http://uk.reuters.com/article/us-germany-autos-idUKKBN1AN13Y?il=0
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