Do you want house price to rise or fall?

BobQ

What a stupid question. It does not matter what people want just what the market and economic climate makes happen

BobQ

westernpromise wrote: »

I can't see large companies moving to the Midlands. Property there is cheap for a reason: nobody wants to live there.

The effect of HS2 will be an influx into London of people commuting from Manchester. There will be very little interest in the reverse journey. There's nothing to do or see in the north that isn't better in the south, plus the weather is better.

I thought that you were a misguided fool but now I realise you are just the latter.

Nobody wants to live there? It has the UK's second most populated city.

The north that you so readily dismiss contains so much of what is good about this nation

martinbuckley

At the time of writing, 127 people have expressed a desire for an item to be more expensive next year than this year.

I wonder how many of those 127 are happy if water, gas, electricity, groceries, petrol, public transport, clothing etc also rise by the same amount.

silverspirit

If we own houses and our family own a house, then it has to be a vote for a rise but if we have children and grandchildren saving, really saving, for a home, then it has to be fall

Herzlos

martinbuckley wrote: »

I wonder how many of those 127 are happy if water, gas, electricity, groceries, petrol, public transport, clothing etc also rise by the same amount.

Not many people have equity in any of those things. House prices have an impact on affordability and mortgage rates - higher values means lower LTV => lower risk => lower rates.
For those that don't plan on moving up, or using the equity in retirement (directly or via pension funds), house prices going up is good.


For those wanting to get on the ladder or moving up the ladder, lower prices are good.



I'd love to see them drop, but I'm not quite in a position to capitalize on it - a drop that'd be enough for me to get to jump up to my forever home would wipe out the equity in this one and leave me with no deposit. It'd probably also hurt my pension, and if prices were that volatile the banks would be a lot more conservative with lending.


So if they could stay where they are now, and then collapse in about 5 years that'd be perfect

lisyloo

I think it would be disingenuous for most people who own an asset to not choose for that asset to increase in value

Firstly there is a difference between real and nominal.
Mortgages are nominal, so there is a win-win where house prices stay the same and makes it easier for new buyers (as wages go up) but home owners do not lose out.


Also what makes you think that those of us who have plenty can not be altruistic?
I wouldn't mind being a bit worse off (and the paper value isn't the be all and end all if you have free rent for 40 years) if it helped worse of people including younger members of my own family.


If you cannot envision selflessness then either that's an issue of yours or perhaps you've never been well-off enough to relinquish some? I could be way off the mark but if you cannot envision selflessness it's your view that's incorrect rather than the non-existence of selfless people.

GreatApe

snowqueen555 wrote: »

I think it's a a shame we can't criticise current market forces without being called moaners.

Same argument with rising house prices, Just find a better paying job and save more is what you would probably say as well. I am trying.

You dont understand what I am saying.
Fundamentally wealth is about productivity and capital
Money is just a medium of exchange without improved productivity or capital we can pay people 10x as much and everyone will be just as rich/poor as before

If you want conditions to improve, which I am sure everyone does, the way to go about it is to follow policies which improve productivity and capital formation

With regards to housing, if prices fell to just £1 is the nation any better housed?
No because there is the same population and the same housing stock so how can the nation be better housed? If you want housing to improve you either need more homes, better quality homes or fewer people. Arguments about price miss the fundamental truths

GreatApe

lisyloo wrote: »

You are free to criticise/debate but moaning is exactly what it is isn't it?
One interpretation of market forces is other people competing with you, so you are effectively moaning that other people are doing better than you.

I think the point about least productive thing is that you could instead spend the time trying to improve your lot whether that is getting more qualifications, experience, looking for a better job or reviwing your budget.

Even if moaning (about your extremely lucky circs) did get you any sympathy (unlikely) it won't actually improve anything.

Exactly, at an individual level your best bet is to improve your own life rather than hope to change the economic system so you come out on top in the new system (still unlikely)

People should aim to do great in every area of their lives. Health Fitness Family Education Skills Friends Work Wages Capital everything. Putting in the effort might not get you to your dream life but it will get you closer to it

Having said this I understand it can be hard to change jobs or get better pay but at least start with all the other things which are as easy as just making the effort. Especially health fitness friends and relationships, anyone can improve those things its just a matter of deciding you will spend 1-2 hour a day on those and 1 hour less a day on TV/Internet/Etc.

andrewf75

GreatApe wrote: »

With regards to housing, if prices fell to just £1 is the nation any better housed?
No because there is the same population and the same housing stock so how can the nation be better housed? If you want housing to improve you either need more homes, better quality homes or fewer people. Arguments about price miss the fundamental truths

Not sure about that logic. Many people are adequately housed, they are just paying a fortune for private rentals which pays off someone elses mortgage, while they will never be able to retire because they won't ever own their own home.
Not dismissing the fundamentals of supply and demand, but there are other factors - mainly the rising inequality of society.
I wonder if anyone's ever tried to work out how much excess housing capacity there is when you take into account for older people living alone or as couples in huge houses? Its surely a lot more than the number of homeless people so in that sense there *is* enough housing.

RyanDodson

I want to buy a house - surely fall