Buying A House? Would you pay £20k for a £5k car?

TheChicken

Kez100 wrote: »

Actually, people do pay £20,000 for cars worth £5,000. Cars cost a certain amount to build as, yes, the better brands may cost some more besides but margins still differ. Some brands or design will attract a higher margin.

Overall, the analogy made is a very poor one due to - as others say - the difference in the type of asset. They don't seem to have a grip on big market either. People have been trying to get everyone to abandon certain fuel companies for ages but it just doesn't happen.

The anology is more on the fact of if you went and bought say an S Reg Landrover Discovery with 110,000 miles on the clock you would not pay £20,000 for it!

The same as I wouldnt pay £175,000 for a house on the market that was built and worth £75,000 ten years ago especially when the description reads:

Requires much modernisation, partially double-glazed and has an energy efficency rating of D/E or below. (It basically needs another £25,000 spent on it for insulation, modernisation and other problems found during the course)

Ch!ck

TheChicken

Jorgan wrote: »

Estate Agents, Mortgage Lenders and Property Developers do not control the housing market, its controlled by the buyers & sellers. The seller dictates the asking price and between them they dictate the sale price.

Yes but if you go into an estate agents they want you to spend the maximum so they get bigger commision, when they value the house the bigger the value the more they get. And also they are the ones putting the ridicolous prices in the window!

Mortgage lenders have increased the amount that they lend some up to 6 times your income - does that not say to people lets spend more on a house!!
Property Developers Buy and sell houses, apparently improving them but in essence pushing the prices up and making houses not an asset, not a family abode nor a dwelling but a buisness.

Ch!ck

Markyt

OTOH, you could buy a rusting Rolls Royce from the 20's for a few grand, spend another few grand doing it up, and have a car worth significantly more than the total outlay.

TheChicken

Markyt wrote: »

OTOH, you could buy a rusting Rolls Royce from the 20's for a few grand, spend another few grand doing it up, and have a car worth significantly more than the total outlay.

Yes but you wouldnt initially outlay £20,000 for the wreck and THEN spend £5,000 doing it up?

Ch!ck

pinkshoes

TheChicken wrote: »

The anology is more on the fact of if you went and bought say an S Reg Landrover Discovery with 110,000 miles on the clock you would not pay £20,000 for it!

The same as I wouldnt pay £175,000 for a house on the market that was built and worth £75,000 ten years ago especially when the description reads:

Requires much modernisation, partially double-glazed and has an energy efficency rating of D/E or below. (It basically needs another £25,000 spent on it for insulation, modernisation and other problems found during the course)

Ch!ck

My home is my castle, the place where I belong, and a feeling of being settled which I never had in the 10 years I rented. My car is that 4 wheeled metal thing I drive to work in.

You cannot compare the two. Either price wise or emotional wise!

So long as the mortgage interest is less than what you'd pay in rent, and you can sensibly afford it, then I'd say buying a home is a great thing to do.

Obviously in some areas, prices are way beyond what you'd ever have to pay in rent, but in others it's still cheaper to buy.

Markyt

TheChicken wrote: »

Yes but you wouldnt initially outlay £20,000 for the wreck and THEN spend £5,000 doing it up?

Ch!ck

Why wouldn't you, if you knew you could then sell it for £40,000 to someone who couldn't be bothered doing it up but wants that model?

TheChicken

pinkshoes wrote: »

My home is my castle, the place where I belong, and a feeling of being settled which I never had in the 10 years I rented. My car is that 4 wheeled metal thing I drive to work in.

You cannot compare the two. Either price wise or emotional wise!

So long as the mortgage interest is less than what you'd pay in rent, and you can sensibly afford it, then I'd say buying a home is a great thing to do.

Obviously in some areas, prices are way beyond what you'd ever have to pay in rent, but in others it's still cheaper to buy.

I do understand the emotional side as I long for a house, but I don't want to be paying £125k for a rabbit hutch in a 'bad' area because its all I can afford when joe bloggs only paid £60k ten years ago for the beautifull house in the 'good' area which is now selling for £180k!

Ch!ck

TheChicken

Markyt wrote: »

Why wouldn't you, if you knew you could then sell it for £40,000 to someone who couldn't be bothered doing it up but wants that model?

lol

I dont know much about collecters cars but you do get my jist?

House prices are over inflated and dont reflect their value.

Ch!ck

epsilondraconis

Of all the threads in all of MSE, I had to stumble along this one. Just my luck!

What a rubbish analogy between the house and the car. What is the point in all of this. Some people are renting, some people own their property. Some people don't think it is a good idea to buy now, some people see it as a home, not an investment.

Some people buy red cars, some people buy blue cars. I would never buy a pink car - some people do.

Another rubbish house / car analogy don't you think.

Well, if you can't beat 'em, join 'em I say.

Dan:_4

TheChicken wrote: »

House prices are over inflated and dont reflect their value.

Ch!ck

so what is their value?