House price increases. Is everyone absolutely loaded?

fewcloudy

This thread reminds me of the Debate House Prices & the Economy board, mercifully closed nowadays...

Davesnave

fewcloudy said:

This thread reminds me of the Debate House Prices & the Economy board, mercifully closed nowadays...

Yes I remember, and even if people clicked on something like Travel and Transport, the web site dumped them there instead and wouldn't let them out. Terrible!

lookstraightahead

RelievedSheff said:

lookstraightahead said:

Ramouth said:

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

Yes good point.

I do think there is a risk of losing your house though, which then makes you homeless effectively.

What risk?

Provided you can pay your mortgage there is no risk at all!

Well .... exactly my point. If you can no longer pay your mortgage.

Bonniepurple

We are probably overpaying about £5-7000 on our (hopefully) onward purchase.  Does it bother me?  No.  We knew we needed to move house as our current one is no longer suitable.  We are deliberately fixing for 5 years as I like the security of knowing my repayments.  In 5 years interest rates are pretty likely to be higher, but we will have had advanced warning.  It’s not like the 80s when fixes were unusual and most people were on the SVR.

We are looking to future proof the house.  Stair lift, level access, ramp potential etc. I only intend to move out in a box!

getmore4less

lookstraightahead said:

RelievedSheff said:

lookstraightahead said:

Ramouth said:

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

Yes good point.

I do think there is a risk of losing your house though, which then makes you homeless effectively.

What risk?

Provided you can pay your mortgage there is no risk at all!

Well .... exactly my point. If you can no longer pay your mortgage.

You go back to the rental(you could no longer afford either).
or
if you had not bought go into rent arrears.

mundibananas

Ditzy_Mitzy said:

Greymug said:

Prices are unlikely to ever going down.

Especially when sale price/valuations are based on the sale prices of similar properties in the near past. So, even after the stamp duty holiday is over, still my hypothetical property will be put on the market at a price based on the one of a property sold 2-3 months ago when the holiday was still on.

Vicious circle that will make almost everyone poorer in the long run because we're borrowing more and for longer.

Ironically, the price crash that the majority of renting millennials clamour for is likely, if it happens, to be the worst possible thing that could happen to them.  They'll get their parents' houses eventually and, having little in the way of other savings, need to pray to God the places will be worth enough to cover their retirements.  Which is difficult as inflation in other parts of the market, new builds and so on, will encourage them to try and sell their inherited baby boomer seventies execs for even more.  But execs aren't in fashion, presently, for reasons of lifestyle.  Maybe they will be in time, when the current generation of modern newbuilds have fallen down.  Good Lord we're in a mess.  

a lot of parental homes are disappearing to downsizing or equity release to fund early retirement - especially as lifespan has increased and the state pension just about covers fuel bills and a dinner of sausage and chips ! 

lookstraightahead

getmore4less said:

lookstraightahead said:

RelievedSheff said:

lookstraightahead said:

Ramouth said:

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

Yes good point.

I do think there is a risk of losing your house though, which then makes you homeless effectively.

What risk?

Provided you can pay your mortgage there is no risk at all!

Well .... exactly my point. If you can no longer pay your mortgage.

You go back to the rental(you could no longer afford either).
or
if you had not bought go into rent arrears.

You won't be able to rent if you're repossessed.

Sometimes house ownership can be a burden. Yes if people are sensible they can cover the extra interest etc, but people aren't being sensible.

Crashy_Time

getmore4less said:

lookstraightahead said:

RelievedSheff said:

lookstraightahead said:

Ramouth said:

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

Yes good point.

I do think there is a risk of losing your house though, which then makes you homeless effectively.

What risk?

Provided you can pay your mortgage there is no risk at all!

Well .... exactly my point. If you can no longer pay your mortgage.

You go back to the rental(you could no longer afford either).
or
if you had not bought go into rent arrears.

They will still chase you for the debt though?

newsgroupmonkey_

I think many of us office drones have realised we don't need to have our bums tied to the office chair.

As such, those who live in expensive areas of the country are looking to move out to the country. This will have an impact of driving up prices (whilst at the same time, there appears to be a glut of London flats, for instance).

What you may consider expensive may well be cheap to others.

If you were to move to the East Midlands coast, £500k would buy you a rather fancy property.

In some areas of London, perhaps a 1 bedroom flat.

People on that East Coast would think that's rather expensive.

We moved 10 miles north in Buckinghamshire which I reckon has saved us 10% (and got us out of a town into a village).

As an example, many people moved from North London into areas like Watford and Hemel Hempstead. Those in South Hertfordshire are now moving into Bedfordshire and Buckinghamshire as those areas have become too expensive. In turn, those in Beds and Bucks are moving into Northants and those in Northants are moving into Lincolnshire and North Cambridgeshire.

And so on.

lookstraightahead

newsgroupmonkey_ said:

I think many of us office drones have realised we don't need to have our bums tied to the office chair.

As such, those who live in expensive areas of the country are looking to move out to the country. This will have an impact of driving up prices (whilst at the same time, there appears to be a glut of London flats, for instance).

What you may consider expensive may well be cheap to others.

If you were to move to the East Midlands coast, £500k would buy you a rather fancy property.

In some areas of London, perhaps a 1 bedroom flat.

People on that East Coast would think that's rather expensive.

We moved 10 miles north in Buckinghamshire which I reckon has saved us 10% (and got us out of a town into a village).

As an example, many people moved from North London into areas like Watford and Hemel Hempstead. Those in South Hertfordshire are now moving into Bedfordshire and Buckinghamshire as those areas have become too expensive. In turn, those in Beds and Bucks are moving into Northants and those in Northants are moving into Lincolnshire and North Cambridgeshire.

And so on.

Then everyone will have longer commutes when they're expected back at work potentially!