House Price Rise Discussion Thread

Romani_Ite_Domum

kingkano wrote: »

I personally dont think the stereotype is that prevalent. You only have to visit earl's court to see how many antipodeans there are around. And I wager a good percentage of them don't do manual labour (more IT, office, etc type jobs).

Agree, but this has been the case for a long time now. Would you say that this immigration in the city has increased or is it more a case of immigration to fill the jobs that the indigenous population no longer seem to want to do?

Do you also think that immigration would slow ( or possibly reverse) if the economy took a downturn?

MissMoneypenny

Conrad wrote: »

My parents in law owned in one of the best addresses in N London called Hadley Wood, a place full of surgeons, footballers, Lennox Lewis, city boys etc.

There house was calued at over £800,000 in 1987. They divorced and had to sell. THE MARKET price became £400,000 in 1992.

My Brother owned flat on the Essex London border cost £59995 pre - crash. It fell to £19,000 so in the end he handed back the keys, as did many in the area.

3.8% eh. Dream on.

My sister bought her house for £97,000 pre crash with a £76,000 mortgage and it went up in value. They eventually managed to sell the house for £64,000.

My friend's brother who had bought several student lets, was going to lose his own house because of the crash. His parents stepped in and sold their house and moved to a much cheaper area. They said he could have his inheritance now.

mjdh1957

I'm quite curious about the 'new paradigm' of perpetually increasing house prices.

I'm not an economist, but the theory of speculative bubbles is pretty clear, you get manic boom followed by deep crash, and in the case of housing bubbles a return to the long-term mean. It seems strange that they can keep happening, but I suppose there are people who have never experienced one so can carry on thinking that prices can only ever go up.

But what would be the real consequences of continuous house price inflation without any 'correction'? Especially if wages and salaries failed to keep up. I can vaguely remember that in the Japanese property price explosion there was talk of 3-generation mortgages... Obviously in our case that can't happen because debt can't be inherited but dies with the debtor and can only be cleared from his estate.

So come on guys - would it be an exciting 'New Paradigm' for all of us? Or would it result in social collapse?

kingkano

Romani_Ite_Domum wrote: »

Agree, but this has been the case for a long time now. Would you say that this immigration in the city has increased or is it more a case of immigration to fill the jobs that the indigenous population no longer seem to want to do?

Do you also think that immigration would slow ( or possibly reverse) if the economy took a downturn?

I'd say its increased from the 70s for example. But probably not exponentially in recent times. And I am not sure what affect an economic downturn would have. Perhaps the locals might re-evaluate those jobs if they needed one!! lol. If there was a downturn in OZ its possible people might not afford to come for example, or conversely maybe it'd be more incentive to do so.... hard to say really.

I could see europeans stop coming if Uk had a downturn. Africans would still come, and those from very challenging countries in asia etc. It'd still be better than their homelands to them.

Its a poser.

Good question there about inherited mortgages etc. Can't see that personally. What I COULD see is a return almost to fiefdom, with a larger landlord population owning 10-1000 houses each, and everybody else renting them. Using the leverage they have from remortgaging their current properties to buy ever more. owning your own home moving further and further out of reach, rich getting richer and others just renting....???

mjdh1957

kingkano wrote: »

Good question there about inherited mortgages etc. Can't see that personally. What I COULD see is a return almost to fiefdom, with a larger landlord population owning 10-1000 houses each, and everybody else renting them. Using the leverage they have from remortgaging their current properties to buy ever more. owning your own home moving further and further out of reach, rich getting richer and others just renting....???

But then you get a lot of people alienated from the system and so there is more incentive to have a revolution....

Look at what happened in France in 1789 and Russia in 1917. The ruling classes thought they had it made, but ended up being massacred or exiled.

ivegotabig1

YES !!!! I agree, this is a great time to buy a property...honest !!!!...Scouts honor & all that !!!... I just read this article in the Times & ive made my mind up...Ime going out to buy another one tommorow !!!!!!!
http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article2681755.ece

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

dolce_vita

ivegotabig1 wrote: »

YES !!!! I agree, this is a great time to buy a property...honest !!!!...Scouts honor & all that !!!... I just read this article in the times & ive made my mind up...Ime going out to buy one tommorow !!!!!!!
http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article2681755.ece

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

I'm going to buy two.

House prices are just going to go up, up, up.


They will never [STRIKE]CRA..,[/STRIKE] go down.




Never. Never I tell you.

So don't mention it again.

Notlob

franklee wrote: »

I've been thinking more about house prices and I really think they are going to rise. House prices will rise because of immigration and as they aren't making any more land. I've been watching house prices for a while now and they are still going up. I admit to being wrong before, I am going to buy now :money:

Franklee my dear, I don't give a damn.

mjdh1957

dolce_vita wrote: »

I'm going to buy two.

House prices are just going to go up, up, up.


They will never [strike]CRA..,[/strike] go down.




Never. Never I tell you.

So don't mention it again.

(OK, I know you're being sarcastic, but) what do you think would happen if house prices only ever went up, and up and up....

Would we have paradise on earth, or would there be guillotines set up in Trafalgar Square?

Just curious...

BobProperty

Notlob wrote: »

Franklee my dear, I don't give a damn.

:rotfl:
Congrats on beating me to it. I've been saving that one up for a while along with the Bettie Page gag (gag - another Bettie Page joke - get it ?) which I managed to post a week or two ago.