Do you want house price to rise or fall?

ukcarper

homeless9 wrote: »

Some new build 2 bed homes on the Surrey/Hampshire border are priced at around £420,000...

It's plain ridiculous.

House prices are 20% too high in general.

How much have wages gone up on average in the past 10 years compared to house prices increases?

Yes but you can buy a nice two bed terrace for £275,000 and £200,000 for a flat.

Looking at what I was earning and paid for 3 bed in early 70s compared to pay in a similar job now I would say prices are 20 to 30% higher.

Woodsy

snowqueen555 wrote: »

I could just about afford a studio/1 bed apartment for 120k, just because I can afford it, doesn't mean I would want to spend on it. Quality of life would not be any better then living where I am in a house share.

There is nothing in my area I can afford, so will have to leave my region eventually, somewhere north like Liverpool or Manchester. Again, really risky as no support network and no career as such.

I used to think similar to this and even thought most flats were out of my price range (according to the news headlines) but when I really looked I found property I could afford. I bought a small 1 bed flat for £151,000 in mid sussex with easy links to London (I don't work there) when newpaper and news articles were telling me that the average flat price in my area was over £233,000. These headlines can put people off I think.

Quality of life might be one thing but the feeling I felt when I got my mortgage statement and within three years I have paid off about £13,000 of my mortgage instead of that money going to landlords (which I had been doing for about 18 years previously was amazing.

lisyloo

trf1960 wrote: »

People always want property to fall in value until they buy a house and then want it to rise in value ... and quickly !

I dont think that’s true of everyone.
We aren’t all selfish and some of us think of the younger members of our families.
Some of us see the value of living in it rent free and are happy merely for it to maintain its value over time. Oddly enough the people in my circle who are unselfish don’t have their own children but have nephews/neices etc.
You’d think parents and grand parents have good reason to be unselfish about it.

I would like price to stay the same nominally and fall in real terms.
This won’t hurt anyone with a mortgage (which is nominal) but will help younger people.
Unfortunately markets don’t work like that and whatever happens with brexit we have net immigration in significant numbers.
Since 2016 the mix has change (fewer EU, more non EU) but immigration figures have stayed quite high.
I am pro controlled immigration but we need the housing and infrastructure to suppport it.

phillw

lisyloo wrote: »

I am pro controlled immigration but we need the housing and infrastructure to suppport it.

Those are two completely different issues.

Housing is controlled to make them a scarce resource, if immigration is reduced then builders will just scale back house building more.

Woodsy

phillw wrote: »

Those are two completely different issues.

Housing is controlled to make them a scarce resource, if immigration is reduced then builders will just scale back house building more.

Sorry but I think house builders will still build houses even if they make £20k a house instead of £50k or whatever. If there's money to be made they will still want to make it.

phillw

Woodsy wrote: »

Sorry but I think house builders will still build houses even if they make £20k a house instead of £50k or whatever. If there's money to be made they will still want to make it.

Exactly just like diamonds. No wait.

I wonder which one I'd choose if I could do half the work and get the same amount of money...

phillw

A_to_B wrote: »

Not true. House prices are simply ridiculous and I don't really know who pays this much for them.

In what way are they ridiculous? Maybe nobody in your peer group is buying a house, but it's true that people are buying houses. It's not a conspiracy theory.

Thrugelmir

phillw wrote: »

In what way are they ridiculous? Maybe nobody in your peer group is buying a house, but it's true that people are buying houses. It's not a conspiracy theory.

With lower house prices then people having to fall back onto benefits and food banks would be greatly reduced in the future. Everyone wants more pie to eat at everyone elses expense. That's capitalism at it's worst.

chucknorris

A_to_B wrote: »

In 1999 bought house for 78k, today's price over 300k. Wages have hardly risen. Isn't that ridiculous?
I'm in jewellery trade and I can tell you diamond prices are inflated and ridiculous, because they are monopolised. But here you have an option not to wear diamonds, however with roof over your head you don't have much choices, you simply need one.

I certainly agree that house price inflation has well over preformed that of wage inflation. But I am truly amazed that your salary has hardly risen in 20 years! That is astonishing, but certainly not true of nearly everyone else who is doing the same job 20 years later.

phillw

Thrugelmir wrote: »

With lower house prices then people having to fall back onto benefits and food banks would be greatly reduced in the future.

If house prices were lower but wages were the same, but that is unlikely to be the outcome.

Lower house prices would allow you to offer lower wages.