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

TheChicken

epsilondraconis wrote: »

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.

So you would Activley buy a car for 4 times its value and be happy about throwing away the money?

People mainly buy cars as they need to travel, people buy houses to live in and use the money from the work they do travelling in their car. The similarity is in that people don't waste money on other assets so why on a house?

Ch!ck

TheChicken

Dan: wrote: »

so what is their value?

Certainly not what you see in the window - have a look at www.housepricecrash.co.uk their graphs and statisics.

Ch!ck

Dan:_4

TheChicken wrote: »

Certainly not what you see in the window - have a look at www.housepricecrash.co.uk their graphs and statisics.

Ch!ck

:rotfl: That site is full of lunatics!

pinkshoes

TheChicken wrote: »

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

But every many and his dog, including Joe Bloggs will nearly always be searching for the beautiful house in the good area, so those are the ones where prices will remain more resiliant.

The rabbit hutches in the bad areas are often the ones that have been inflated, with people stating they were an "up and coming area". Those are the ones that will drop the most.

cowbutt

TheChicken wrote: »

So you would Activley buy a car for 4 times its value and be happy about throwing away the money?

People mainly buy cars as they need to travel, people buy houses to live in and use the money from the work they do travelling in their car. The similarity is in that people don't waste money on other assets so why on a house?

Ch!ck

That's what people say they buy cars and houses for, but the reality is often far more complex than that. Hardly anyone is truly aware of all of their real motivations when making a buying decision.

People 'waste money' on all sorts of things. A 3.0l V6 engine in a car is worthless to me (worse than that, in fact; a liability), but to someone who likes getting from 0 to 60 in under 5 seconds with the air conditioning on, it's a must-have feature. Some people sneer at my extravagance and declare that a car itself is worthless to them, and use a pedal cycle instead.

Clothes with fancy labels on are of no more value to me than a bunch of basics from a high street shop. Some people sneer at my extravagance and insist that the high street clothes I buy provide no additional benefit over their supermarket "value" clothes.

Different people place different priorities on different attributes.

The tendency to 'waste money' is even more pronounced when the person doing it is seeking to compensate for some self-perceived inadequacy; whether that's feeling as though they're not attractive enough to their preferred sex, feeling as though they don't have enough friends, or feeling as though they don't have enough time, or intelligence. It should be no surprise that advertisers and marketers are aware of these common weaknesses and exploit one or more of them in nearly every campaign they produce.

Rover

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.

Absolute tosh and are you actually a financial advisor ?

I'd have to agree though, the car/house thing is a poor analogy.

TheChicken

cowbutt wrote: »

That's what people say they buy cars and houses for, but the reality is often far more complex than that. Hardly anyone is truly aware of all of their real motivations when making a buying decision.

People 'waste money' on all sorts of things. A 3.0l V6 engine in a car is worthless to me (worse than that, in fact; a liability), but to someone who likes getting from 0 to 60 in under 5 seconds with the air conditioning on, it's a must-have feature. Some people sneer at my extravagance and declare that a car itself is worthless to them, and use a pedal cycle instead.

Clothes with fancy labels on are of no more value to me than a bunch of basics from a high street shop. Some people sneer at my extravagance and insist that the high street clothes I buy provide no additional benefit over their supermarket "value" clothes.

Different people place different priorities on different attributes.

The tendency to 'waste money' is even more pronounced when the person doing it is seeking to compensate for some self-perceived inadequacy; whether that's feeling as though they're not attractive enough to their preferred sex, feeling as though they don't have enough friends, or feeling as though they don't have enough time, or intelligence. It should be no surprise that advertisers and marketers are aware of these common weaknesses and exploit one or more of them in nearly every campaign they produce.

The Average person cannot afford to waste money - If you can then well done!

nobblyned

I have applied your logic to petrol, and found it to be only 'worth' 40p per litre. In the spirit of your campaign, this was all I gave the garage this morning when they asked for 110p/l, before I drove off.

TheChicken

nobblyned wrote: »

I have applied your logic to petrol, and found it to be only 'worth' 40p per litre. In the spirit of your campaign, this was all I gave the garage this morning when they asked for 110p/l, before I drove off.

I like your humor - but the government have added the tax to fuel the government haven't added 170% tax to the value of a house............

Ch!ck

lostinrates

The problem is house values DO change outsidde of inflation. Demand - more people live alone now, meaning more homes are needed per capita, second home ownership incrases I think, immigration, aging population (living in their homes longer), then areas change, regeneration, new employment etc, thats before all the ways to add value to a home. I also wonder if mortgages have an effect on this: until very recently mortgages have been very much more available than in the past, both increasing demand and also the way 'value' of a house/home is regarded. I really don't think its possible to judge the value of a house by what the person before paid for it. That does't mean I don't think many, many, many houses are overpriced though!

(also worth pointing ot as a waiting FTB I should, I guess, be trying to agree with OP )

BTW I do know some men who would spend more on cars than houses LOL