10 years ago.....

beingjdc

danm wrote: »

I never said double, and i never said another about it being good or bad.

this is purely my opinion based on the 10yr returns on house prices over the last 50 years or so.

I've got a quick question for HPC'ers, or more specifically, those who feel the MPC cutting rates is folly in light pf persistent inflation concerns.

If affordabilty improves, i.e. less money is spent on mortgage liabilities, what happens to inflation. What will people do with the extra money they have. Isn't this in itself a concern. Whats worse, high house prices/low affordability, or high inflation.

They'll spend it, but it will be offset by fewer people buying a new car or taking a holiday using "equity withdrawal".

dolce_vita

danm wrote: »

I never said double, and i never said another about it being good or bad.

this is purely my opinion based on the 10yr returns on house prices over the last 50 years or so.

quote]

Have a look at the facts, instead of trotting out the same old sh1te that you heard from some HPI cheerleader.


http://www.fool.co.uk/news/property-home/2008/01/03/house-prices-double-every-seven-years.aspx

It is interesting reading, if you care to open your eyes.

and tell me if you think massive unaffordable house prices are a good or bad thing.

itsgototstop

Only my personal situation, trying to buy 10 years ago in London, which I found nigh impossible.

Rightly or wrongly ( and I don't think prices can go up any more) at least buying something 10 years ago helped me, If I has stayed renting I would have been struggling even more to eventually find something.

I don't know what house prices will do short term who does but do think that if you can afford it, have a deposit its not always a bad thing to buy.

Sorry didn't mean to be snide earlier, just tired of all the house price crash prophets who don't even wait to hear peoples circs before saying don't buy.

Turnbull2000

itsgototstop wrote: »

That post smacks of HPC , reported to abuse and you are on ignore.

And your 'renting' remark smacks of a smelly troll.

itsgototstop wrote: »

just tired of all the house price crash prophets who don't even wait to hear peoples circs before saying don't buy.

carolt put forward a good post. You're sounding rather hypocritical now.

dolce_vita

itsgototstop wrote: »

Only my personal situation, trying to buy 10 years ago in London, which I found nigh impossible.

Rightly or wrongly ( and I don't think prices can go up any more) at least buying something 10 years ago helped me, If I has stayed renting I would have been struggling even more to eventually find something.

I don't know what house prices will do short term who does but do think that if you can afford it, have a deposit its not always a bad thing to buy.

Sorry didn't mean to be snide earlier, just tired of all the house price crash prophets who don't even wait to hear peoples circs before saying don't buy.

But it's about timing.

10 years ago was more or less the start of high price rises - the "bottom" if you like.

today we have reached the top, so it is not the same situation.

pamaris

Personally, I can't understand why so many people get so upset by the "HPC doom monger brigade" or whatever you want to call people who think that safe, modest, secure housing should be accessible to normal hard working people on average incomes. Seriously, it is not in the best interests of society if house prices set a new paradigm which will return Britain to feudalism. What is wrong with thinking that productive, hard working members of society should be rewarded with a safe, secure home environment? If Britain cannot offer that then guess what, the productive hard working members of society will leave and then where will the country be?

Do you people (i.e. "optimists", glee and joy mongers) just not believe us when we say we can't afford to buy a home? Do we just not work hard enough? Right, we have too many ipods. What so many people just don't get is that we really... really... can't afford it. It just is no longer an option. Oh and it wouldn't be an option for you either if you were born at a different time. Yes we could afford something in a slum/ ghetto but we have children to raise so forget it.

I am really bored of people calling me a doom monger when I just want to be able to provide a secure and safe environment for my children. Seriously, when I talk to people, they either get it or they don't. Most of the time, they don't!

"Just buy something that needs a little work, and do it room by room". Ha! There is no money left to do the rooms after the mortgage! In this situation, if the boiler goes, you are screwed.

"Maybe you could get by in a 2 BR and move up in a few years". Right. If we did that, we would be sure to be in negative equity in a house we were trapped in with 2 kids of opposite sexes. Not going to trap myself in that situation.

I don't even really understand why sellers are being so stubborn. Why don't they get it that they can turn their "loss" into savings up the chain. Most of this equity is on paper anyway, so even if their next house purchase is £300k their mortgage is £80k due to all their previous equity.

I think that this standoff is going to last another 6 months. I think that the real bargains (or... affordable homes for normal people) won't really start popping up for another 12 months after the standoff ends. So... maybe we can afford a home in summer 2009. Well that is just too much doom for some people. We'll never be able to afford a home! Now that is optimism.

danm

beingjdc wrote: »

They'll spend it, but it will be offset by fewer people buying a new car or taking a holiday using "equity withdrawal".

thats not the arguement here. the discussion is around affordability.

if we had current house-prices but the same level of affordability (i.e. everyone was earning more) then would there be these discussions?

danm

dolce_vita wrote: »

danm wrote: »

I never said double, and i never said another about it being good or bad.

this is purely my opinion based on the 10yr returns on house prices over the last 50 years or so.

quote]

Have a look at the facts, instead of trotting out the same old sh1te that you heard from some HPI cheerleader.


http://www.fool.co.uk/news/property-home/2008/01/03/house-prices-double-every-seven-years.aspx

It is interesting reading, if you care to open your eyes.

and tell me if you think massive unaffordable house prices are a good or bad thing.

So i'm talking about 10yr house price inflation, you show me an article about 7 yr house prices, and i'm trotting out the sh1te???

i've done the sums (as required as part of my job) and i found that over a rolling 10yr period house price growth was always positve..i'll pm you the numbers on monday if i remember.

Unaffordable housing is a bad thing.

so given we had a mortgage of 80K being supported by a salary of 15K (circa 10 yrs ago) you would be happy today with a 800K mortgage supported by a salary of 150K (today) ....assuming of course the averages rose in the same manner??

itsgototstop

Why are all these links supposedly showing that long term, residential property is a bad bet always slightly off target?.

If you want a long term home, can afford the repayments and can weather interest rates rising why is it so bad to buy a property?.

I do think prices are too high, I do think people should be able to afford a property ( not perhaps a house as a FTB) but there is research which I am trying to find showing that 40 years ago affordability was still a problem.

Its not a right to own a home, its only percieved as this in the last 15 odd years. ( Not agreeing or disagreeing with this BTW). Proportion of people owning has ben steadily rising since 1950's, see below

http://www.guardian.co.uk/money/2007/mar/27/firsttimebuyers.houseprices

itsgototstop

pamaris wrote: »

Personally, I can't understand why so many people get so upset by the "HPC doom monger brigade" or whatever you want to call people who think that safe, modest, secure housing should be accessible to normal hard working people on average incomes. Seriously, it is not in the best interests of society if house prices set a new paradigm which will return Britain to feudalism. What is wrong with thinking that productive, hard working members of society should be rewarded with a safe, secure home environment? If Britain cannot offer that then guess what, the productive hard working members of society will leave and then where will the country be?

Do you people (i.e. "optimists", glee and joy mongers) just not believe us when we say we can't afford to buy a home? Do we just not work hard enough? Right, we have too many ipods. What so many people just don't get is that we really... really... can't afford it. It just is no longer an option. Oh and it wouldn't be an option for you either if you were born at a different time. Yes we could afford something in a slum/ ghetto but we have children to raise so forget it.

I am really bored of people calling me a doom monger when I just want to be able to provide a secure and safe environment for my children. Seriously, when I talk to people, they either get it or they don't. Most of the time, they don't!

"Just buy something that needs a little work, and do it room by room". Ha! There is no money left to do the rooms after the mortgage! In this situation, if the boiler goes, you are screwed.

"Maybe you could get by in a 2 BR and move up in a few years". Right. If we did that, we would be sure to be in negative equity in a house we were trapped in with 2 kids of opposite sexes. Not going to trap myself in that situation.

I don't even really understand why sellers are being so stubborn. Why don't they get it that they can turn their "loss" into savings up the chain. Most of this equity is on paper anyway, so even if their next house purchase is £300k their mortgage is £80k due to all their previous equity.

I think that this standoff is going to last another 6 months. I think that the real bargains (or... affordable homes for normal people) won't really start popping up for another 12 months after the standoff ends. So... maybe we can afford a home in summer 2009. Well that is just too much doom for some people. We'll never be able to afford a home! Now that is optimism.

Its not falling prices that upset me, more people posting who are relying on huge price falls to snap up a bargain from a distressd vendor which otherwise they would not be able to afford.

I got by with a 2BR place for 7 years as it was all I could afford by the way, would have loved a house but couldn't afford it, still can't.

Huge price falls now are bad news=recession.