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Why are house prices still so high?
Comments
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Does anybody else get the feeling that we are at a very important time in history for the uk.
This could be a monumental moment with incredible changes to society
House prices could fall a long way.Nothing has been fixed since 2008, it was just pushed into the future0 -
You keep posting that renting temporary have you got any proof
I could prove it mathematically and with some obvious logic (if there are new private renters entering the market there must be some private renters leaving the market) the only question is how fast this churn is not if it is churn
The data is from the ONS iirc its only 25% of private renters rent long term (10+ years) and even that is an over estimate imo because some 500,000 private rentals are rented for £0 off family and friends (eg people buying a home and putting grandma in it for no rent)
BTW this is similar to the unemployment statistics. 1.3 million (or whatever) unemployed but that is not the same people all the time. People become unemployed and unemployed people get jobs so it is a flow into and out of this pool.
This is why economists usually say 4-5% unemployment is full employment, it is not that they are heartless !!!! holes who dont care about the unemployed 1-1.5 million but it is because they understand 4-5% unemployment actually means closer to 1% long term unemployment and the rest is short term churn
Like I keep saying once you know the data and stats and can do some math everything starts to fit into place and makes sense0 -
Does anybody else get the feeling that we are at a very important time in history for the uk.
This could be a monumental moment with incredible changes to society
House prices could fall a long way.
As a landlord and a property bull in the short term (15-20 years) I actually agree with you that in the long term there will be a 100% house price crash. I mean this, when the AI arrives everything will be free including homes so you will have been proven correct only for the wrong reason and 3-4 decades too late0 -
I could prove it mathematically and with some obvious logic (if there are new private renters entering the market there must be some private renters leaving the market) the only question is how fast this churn is not if it is churn
The data is from the ONS iirc its only 25% of private renters rent long term (10+ years) and even that is an over estimate imo because some 500,000 private rentals are rented for £0 off family and friends (eg people buying a home and putting grandma in it for no rent)
Like I keep saying once you know the data and stats and can do some math everything starts to fit into place and makes sense
Why would anyone do that?
1. Grandma could claim LHA elsewhere.
2. The potential value as a rental property is lost to the owner.0 -
As a landlord and a property bull in the short term (15-20 years) I actually agree with you that in the long term there will be a 100% house price crash. I mean this, when the AI arrives everything will be free including homes so you will have been proven correct only for the wrong reason and 3-4 decades too late
Are the robots going to create new land and build loads of houses for free?
How many free houses will I be able to claim? What if I want to take my neighbour's house instead?
50 years ago there was the claim that technology would free the population from work. Technology has developed - but wages are actually lower (in proportion to houses) and working hours are as long as ever...0 -
Housing demamd is very high. This is linked to the booming population.
In 1990 the population was about 56 million it's now over 70 million.0 -
James_Green_1982 wrote: »Why would anyone do that?
1. Grandma could claim LHA elsewhere.
2. The potential value as a rental property is lost to the owner.
It is what it is, some 500,000 properties are 'let' for free I assume mostly to friends and family0 -
James_Green_1982 wrote: »Are the robots going to create new land and build loads of houses for free?
How many free houses will I be able to claim? What if I want to take my neighbour's house instead?
Yes the robots will build them for free you can have any many as you like but when people have the choice of lots they actually tend to only want little. Put it this way most people would love a £100 million mansion but iamgine every human on earth died and it was just you would you go live in a big !!! mansion or go live in a small manageable apartment? probably the latter what this means is a lot of what we do is for showJames_Green_1982 wrote: »50 years ago there was the claim that technology would free the population from work. Technology has developed - but wages are actually lower (in proportion to houses) and working hours are as long as ever...
in the past you started working age 10-15 and worked until you died age 60 so where working 80% of your life. Now most kids dont start working until 21 and they will have 30 years of retirement too so about half their 100 year life they are not working
Wages dont matter capital does and what we know if ownership for brits is more or less as high as it every has been for the last 12-13 billion years
also 2017 & 2018 saw about +500,000 homes to owner occupied so things are quite good and going the right way0 -
James_Green_1982 wrote: »Why would anyone do that?
1. Grandma could claim LHA elsewhere.
2. The potential value as a rental property is lost to the owner.
It does happen, when my wife and I moved in together (girlfriend at the time) her mother stayed in her house rent free for about 10 years, and she also paid all her housing costs, it was an expensive house too (she sold it a couple of years ago shortly after her mother died for over £1m). It wasn't just the opportunity cost and housing expenses that she contributed, she also had to pay CGT too. Not every decision is driven by profit.
I did suggest to her after we got married a couple of years later that she should buy her mother a smaller more suitable house, but her mother wasn't well, and she would have been unsettled by such a move.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
As a landlord and a property bull in the short term (15-20 years) I actually agree with you that in the long term there will be a 100% house price crash. I mean this, when the AI arrives everything will be free including homes so you will have been proven correct only for the wrong reason and 3-4 decades too late
When the AI arrives everything willl be free? Even gold and silver:rotfl::rotfl:
In 3-4 decades,? This is when I will retire, I hope my silver will not be free, but if it is then I will stack all of it in the world then and AI would die because I have all the silver needed for electronics, if it’s free ha
Can you explain this please?Nothing has been fixed since 2008, it was just pushed into the future0
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