Do you want house price to rise or fall?

lisyloo

ukcarper wrote: »

The post I committed on was about moving.

Ok, but they usually have to fall for a prolonged period to put people in negative equiy. If they are talking about moving right now it shouldn’t be an issue (as prices have been rising for years).

In general people should be aware it’s not a liquid asset and prices can go down.

ukcarper

lisyloo wrote: »

Ok, but they usually have to fall for a prolonged period to put people in negative equiy. If they are talking about moving right now it shouldn’t be an issue (as prices have been rising for years).

In general people should be aware it’s not a liquid asset and prices can go down.

For people to be badly affected they do not have to go into negative equity as less equity can restrict your access to better mortgage deals and prevent you moving if you need to. I think prices in some areas are to high but the best thing would be for prices to stagnate or fall very slowly so the equity people who have recently bought have is not reduced.

lisyloo

I agree, nominal rises below wage inflation or nominal stagnation I.e. falls in real terms would help some and shouldn’t hurt anyone.

phillw

lisyloo wrote: »

I agree, nominal rises below wage inflation or nominal stagnation I.e. falls in real terms would help some and shouldn’t hurt anyone.

We might see that post brexit if gas, electricity & food prices go up.

But for the majority there will always be people with slightly more money than you, it may not help very much.

lisyloo

phillw wrote: »

We might see that post brexit if gas, electricity & food prices go up.

But for the majority there will always be people with slightly more money than you, it may not help very much.

I think you are right.
If demand outstrips supply then houses will go to the highest bidder.
Even if they are cheap and confidence falls (as it has due to brexit) they will still go to the highest bidder under those conditions. People who can get good mortgage deals or have cash or can afford to take a risk have an advantage over those with a high LTV.

lisyloo

MobileSaver wrote: »

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

I didn't mean between the generations, I meant between the wealthy (including corporations) and the just about managing.


Other countries (looks to the nordic countries) follow a model that is more equal.
I used to believe we'd dis-incentivise people if we tax too much, but the nordic model disproves that.

andrewf75

I think the problem in the UK is not so much the high level of house prices, but the way you are completely screwed over if you rent. More people don’t own houses in Scandinavia or Germany or any other more equal society. But they rent at much lower rates and with long term security. We always seem to focus on how can we get more people to be able to buy, surely we should focus on improving things for renters?

Tridentmorph

Rise for me. Own my own home, won't ever need to move to anything larger and paying off mortgage so rises for me are good personally. When I come to downsize once the kids have gone then price rise means gap down larger which will be the equity I can take out more.

GreatApe

andrewf75 wrote: »

I think the problem in the UK is not so much the high level of house prices, but the way you are completely screwed over if you rent. More people don’t own houses in Scandinavia or Germany or any other more equal society. But they rent at much lower rates and with long term security. We always seem to focus on how can we get more people to be able to buy, surely we should focus on improving things for renters?

renting in the uk is a transitional tenure most renters go on to buying their own home (or get gifted one for free) or get put into social housing. There are very few long term renters in the uk something like 4% of the housing stock is long term rentals

andrewf75

GreatApe wrote: »

renting in the uk is a transitional tenure most renters go on to buying their own home (or get gifted one for free) or get put into social housing. There are very few long term renters in the uk something like 4% of the housing stock is long term rentals

But I suspect we have a ticking timebomb on our hands now that there isn’t enough social housing. That 4% must be rising fast.