Do you want house price to rise or fall?

MobileSaver

RyanDodson wrote: »

I want to buy a house - surely fall

Will you be happy for prices to continue falling once you have bought a house?

Malthusian

MobileSaver wrote: »

Will you be happy for prices to continue falling once you have bought a house?

If he's likely to want a bigger, nicer or otherwise more expensive house in the future, which applies to most first time buyers, then of course he will.

MobileSaver

Malthusian wrote: »

If he's likely to want a bigger, nicer or otherwise more expensive house in the future, which applies to most first time buyers, then of course he will.

That's only true in the rose-tinted HPC view of the property market.

Back in the real world, in a falling market it's even harder to buy a property as:

1) less sellers want to sell so fewer (especially nicer) properties are on the market, and

2) lenders become more risk averse so lending criteria gets tougher.

lisyloo

With regards to housing, if prices fell to just £1 is the nation any better housed?

There are a number of empty, partially empty, partially occupied homes e.g. second homes.


If the finances changed then behaviour would change.


For example I have a large (excess) home and because it's CGT free with few penalties then I am not dis-incentivised from having a larger than necessary home, in fact I'd say the fact it's CGT free makes it's an attractive place to put some of my money and hence to a degree I'm incentivised.


I rent a second place and I am in no way dis-incentivised from doing that.


If people were incentivised/dis-incentivised then they would change their behaviour.


Extra council tax for empty properties and extra stamp duty for second homes are examples.


Nominal price might not be a big factor, but the tax regime e.g. stamp duty, CGT, council tax do have an impact on people's behaviour.

Sapphire

MobileSaver wrote: »

Will you be happy for prices to continue falling once you have bought a house?

Personally, I couldn't care less. I've always regarded my property as a home, not a speculative asset.

lisyloo

MobileSaver wrote: »

Will you be happy for prices to continue falling once you have bought a house?

For me they did and it wasn't an issue.
Now I'm mortgage free and have potentially 40 years rent free living to look forward to, so over the long term doesn't matter.
I would like things to be more equal in our society and better for young people so if that makes it a bit worse for me then so be it.

ukcarper

Malthusian wrote: »

If he's likely to want a bigger, nicer or otherwise more expensive house in the future, which applies to most first time buyers, then of course he will.

That's not so good if his house is worth less than his mortgage and is still falling.

lisyloo

ukcarper wrote: »

That's not so good if his house is worth less than his mortgage and is still falling.

Only if you need or want to move.
Hopefully they’ll be making repayments.

ukcarper

lisyloo wrote: »

Only if you need or want to move.
Hopefully they’ll be making repayments.

The post I committed on was about moving.

MobileSaver

Sapphire wrote: »

Personally, I couldn't care less. I've always regarded my property as a home, not a speculative asset.

Ditto. I own three properties, all bought outright as homes for myself and elderly family and all of these are forever homes.

However for the majority of home owners who will want to move in the future and/or require a mortgage then falling prices is not in their interests for the reasons previously given.

lisyloo wrote: »

I would like things to be more equal in our society and better for young people so if that makes it a bit worse for me then so be it.

"More equal" for younger people in what way? House prices back at the level they were for their parents/grandparents?