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Buying A House? Would you pay £20k for a £5k car?
Comments
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Originally Posted by Jorgan
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.
Where have I posted I am a financial advisor?
Please explain why what I have posted is absolute tosh?
Do you own a property yourself? If so, which who dictated the selling price, the agent, the lender, the developer or the buyer & seller?0 -
TheChicken wrote: »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
The cost rise of petrol has been driven by the price of the underlying commodity. The same applies to a majority of tradeable commodities over the last 2-3 years - Gold, Wheat, Jet, Crude, Gas etc.
The point was that the value of a tradeable commodity isn't set by a formula of a historic price plus an arbitrary increase. The price is set by the market. The market has set the house prices high, and may well take them lower again.0 -
My apologies, your strap line confused me - it's easy to do.
The availability of money controls prices.
Are you an EA? If so how many sellers do you have and how many compatible buyers? Are volumes holding up?
I'm a FTB, can you arrange a 115% mortgage for me? No, how about a 95% one then.
How come, they've been easy to come by in recent years?anger, denial, acceptance
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I read the above and totally agree but it doesnt constitue 170% increase!
I for one will be offering initially less than 30% of the asking price, yes the house is worth alot to me in an emotional way as a home but I am not going to live with my outgoings maxed out and being unable to afford to feed my children which is what a maximum mortgage with an average house price would more than certainly do.
Ch!ck0 -
My apologies, your strap line confused me - it's easy to do.
The availability of money controls prices.
Are you an EA? If so how many sellers do you have and how many compatible buyers? Are volumes holding up?
I'm a FTB, can you arrange a 115% mortgage for me? No, how about a 95% one then.
How come, they've been easy to come by in recent years?
Exactly my point - the consumer can control the price of goods through want, need and greed but with others such as EA, Property developers and Mortgage Lenders this pushes out a large percentage of consumer control. Now that Mortgage lenders are becoming somewhat more rational there should be decent reflection in the market and prices should become more realistic in accordance to the average wage.
No I am not an EA, lol!
Ch!ck0 -
The cost rise of petrol has been driven by the price of the underlying commodity. The same applies to a majority of tradeable commodities over the last 2-3 years - Gold, Wheat, Jet, Crude, Gas etc.
The point was that the value of a tradeable commodity isn't set by a formula of a historic price plus an arbitrary increase. The price is set by the market. The market has set the house prices high, and may well take them lower again.
Yes commodity, however fuel is not in abundance and as accesibility and quantity of fuel decreases prices increase, as price increase the amount of tax increases even if the percentage of tax stays the same making the rise appear to be worse.
Houses are constantly being built, sold and bought. Although there may be statistics to say there arent enough houses it doesnt matter, people can't afford to buy at the current prices so they don't meaning empty houses. Also now people buy there council houses as it is a cheaper alternative there is less housing for those requiring rented accomodation which will effect the statistics of 'there isn't enough houses'.
Ch!ck0 -
It would seem rational arguments bounce off you somewhat.
You sound like one of those folks down the pub, propping up the bar, banging off some fallacious argument they heard from someone else. Completely ignoring the obvious facts staring them in the face that several people have already pointed out.
The market sets the price.
If a car sells for 20k, that is what people are prepared to pay, and that is what it is worth. If people become unwilling or unable to pay, then the price may fall, and the car is worth less. What the car is worth is always set by the market. Your formula carried across from inflation statistics is irrelavent toot.0 -
My apologies, your strap line confused me - it's easy to do.
The availability of money controls prices.
Are you an EA? If so how many sellers do you have and how many compatible buyers? Are volumes holding up?
Yes, I'm an EA. We have roughly the same number of sellers as we had six months ago & the number of people registered as buyers is similar. Some buyers are trying offers 10-15% below asking price, all have been unsuccessful so far. Other buyers are fighting over the same houses.I'm a FTB, can you arrange a 115% mortgage for me? No, how about a 95% one then.
How come, they've been easy to come by in recent years?
I'm not qualifed to offer mortgage advice.
I struggled with the concept of the 120% mortgages when they first came out. I'm from the 'if you want something, save for it' school of thought. I think that used to be called 'old school', but has been renamed to 'sensible' now.0 -
It would seem rational arguments bounce off you somewhat.
You sound like one of those folks down the pub, propping up the bar, banging off some fallacious argument they heard from someone else. Completely ignoring the obvious facts staring them in the face that several people have already pointed out.
The market sets the price.
If a car sells for 20k, that is what people are prepared to pay, and that is what it is worth. If people become unwilling or unable to pay, then the price may fall, and the car is worth less. What the car is worth is always set by the market. Your formula carried across from inflation statistics is irrelavent toot.
Tell me then why should I pay £175k for the average house.
JUST because something is sold for more than its worth doesnt mean thats its value!
value
Ch!ck0 -
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