Labour = lower rents and house prices

GreatApe

Crashy_Time wrote: »

I don`t care if people are landlords, in fact landlords have provided me with very nice and very reasonably priced places to live for years, all I am saying is that property is in a bubble and that is in no way for the benefit of ordinary people. I wouldn`t count JC out yet either BTW.

Still interested in hearing about the last property downturn where prices stayed "broadly flat" from another poster, or anyone who wants to comment.........

Crashy the average property sells only once every 24 years or so
Even if someone bought at the very peak month they are unlikely to make a loss 24 years later
And they enjoy 24 years of paying interest at 2% rather than rent at 4%


Property is not in a bubble at least be honest with your posts and put in brackets (disclaimer I've been saying property is a bubble for more years than I care to remember)

GreatApe

The-Joker wrote: »

You sound like many former perma property bulls, you have accepted that a large property correction is very likely very soon

A nominal fall over a 24 year ownership period is close to zero likelihood imo with inflation target of 2% a year that means nominal prices will be maintained even if real prices fall 40%

Plus individuals purchase homes not a house price index
I bought a home not long ago and another very similar on the street is up for £17k below what I paid. This is just general variation it bothered me for about 10 seconds before I shrugged my shoulders and said oh well and then just got on with the rest of my day

The-Joker

GreatApe wrote: »

A nominal fall over a 24 year ownership period is close to zero likelihood imo with inflation target of 2% a year that means nominal prices will be maintained even if real prices fall 40%

Plus individuals purchase homes not a house price index
I bought a home not long ago and another very similar on the street is up for £17k below what I paid. This is just general variation it bothered me for about 10 seconds before I shrugged my shoulders and said oh well and then just got on with the rest of my day

Wow you are talking about a 40% nominal fall, that certainly would be a crash

I’m in the camp expeciless fake than that, but yes it could be as much as 40% crash

chucknorris

The-Joker wrote: »

You sound like many former perma property bulls, you have accepted that a large property correction is very likely very soon

I forgot to mention, when property prices corrected in 2008 our property portfolio dropped by approx £1m, but when we sold a very significant percentage (on average about 10 years later) it had increased by £2m (from that low point).

Why are you so obsessed with corrections, did you actually buy any properties in the last correction? We did, if you didn't, why on earth do you keep going on and on about it? You seem to be just that Crashy, you talk about it, but when it happens, you do not take advantage.

Sailtheworld

Crashy_Time wrote: »

Still interested in hearing about the last property downturn where prices stayed "broadly flat" from another poster, or anyone who wants to comment.........

Read the posts from the time on HPC you'll see plenty of complaints about how prices were supposed to be falling but buyers were still being delusional.

All that happened was that the market was made by distressed sellers because they have to sell. Everyone else just shut up shop and waited until their valuation was matched by the market. People aren't willing to sell their house for less than they think it's worth.

Fishman68

I vividly remember house prices sky rocketing when Labour were last in Government but think more needs to be done to make owning a house more accessible and affordable.

parking_question_chap

Are falling houseprices really such a good thing.

For a long while now the UK economy has been significantly propped out by its high houseprices. If you cause houseprices to fall you will reduce stamp duty and the government will have a lot less money to invest in the country.

Thrugelmir

parking_question_chap wrote: »

For a long while now the UK economy has been significantly propped out by its high houseprices.

Nah. Consumer spending on credit cards and the PPI refunds. The demise of the High Street isn't just down to online shopping. It's overcapacity. As is the case with the motor industry.