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

nobblyned

TheChicken wrote: »

You are only arguing with me on the finer points of the English Language - nothing more.
I am sorry that I don't have the best understanding of my native language but I do believe I have an argument on the fact that houses are over priced and ARE NOT valued correctly in conjuction with realistic price rises.

Ch!ck

Your native language is English??!!!! :rotfl:

TheChicken

:beer: :rotfl:

nobblyned wrote: »

Your native language is English??!!!! :rotfl:

Jorgan_2

Rover wrote: »

That's great Jorgan - you must live in a Utopian area.
So sales volumes still holding up then? If so have you notified the IMF and the CML? No doubt Warren Buffet and George Soros will be flying in shortly.

Good luck old chap.

No I live in the real world. I had four buyers chasing the same property two weeks ago, it achieved within 2% of the asking price. I'm sorry if that doesn't tie with your idea of of what should be happening in the market.

I will concede that I expect the rest of the month to be quiet with new buyer enquiries, due to all the media attention on prices. The good news is that may help in getting price reductions from those sellers that have set their own, unrealistic asking prices.

If something is priced realistically it will still sell. People still need to move properties for various reasons, a number of my buyers have had or are expeting more children so they need to move to a bigger property, note that is need a bigger property, not want.

Rover

Go on then, I'll play on.

ARE VOLUMES STILL HOLDING UP JORGAN? For instance were March's -08 comparable with March O7 ? According to the CML and the Land Registry I'll wager they weren't.

And more pertinently, I maintain the availability of money, or more succinctly credit, sets price not some micro seller/buyer bargaining facilitated by an EA.

If you are naive enough to actually believe it's the latter, you are in for a rude awakening.

I could educate you further, but I'm actually quite busy . May I suggest a basic economics course.

Jorgan_2

Rover wrote: »

Go on then, I'll play on.

ARE VOLUMES STILL HOLDING UP JORGAN? For instance were March's -08 comparable with March O7 ? According to the CML and the Land Registry I'll wager they weren't.

No need to shout, Rover. I shall check the March '07 with March '08 figures when I am back in the office on Friday and I will post the answers up. The last time I checked comparable month on month was February, there was one less sale in Feb '08 to Feb '07, for your information.

Scabs

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

This abouts sums it up for me, people don't seem to realise that prices are totally over inflated. If the 2.5% drop is correct then this equates to a £4912 fall in march alone (BBC report yesterday)so the original OP question is not as daft as it sounds.

P.S. no i wouldn't buy the 20K car:rotfl:

Dan:_4

TheChicken wrote: »

Tell me then why should I pay £175k for the average house.

Ch!ck

No one is making you buy a house

real1314

TheChicken wrote: »

Nothing has value till it is sold!(apart from things that we cannot put a value on ie life)
BUT it has worth, which is not the same!

Ch!ck

I think you have confused value with price.

My house keeps me warm and dry from the elements. That is something that has value. Intrinsic value. There are many other aspects of my house that give similar value.

Meanwhile, when you tried to address the petrol comparison, you said that oil was in limited supply, but housing isn't. But in fact it is. There are a set number of houses. To build more houses you have to pay for materials and labour costs and land. The increased labour costs compared to the start date you chose are one of the reasons for higher house prices.

Also, despite you claim of unlimited supply, you have yourself stated that you do not want certain houses (rabbit hutches), therefore not only are you blind to the limited supply that actually exists, but you are blind to your own self imposed restrictions that limit the supply even further.

Rover

Jorgan wrote: »

No need to shout, Rover. I shall check the March '07 with March '08 figures when I am back in the office on Friday and I will post the answers up. The last time I checked comparable month on month was February, there was one less sale in Feb '08 to Feb '07, for your information.

That is apparently the situation over in Jorgan's World. However, back on UK soil, the CML say:

There were just 49,000 loans made to home buyers in February, 3.5% lower than in January and 33% down on February last year. Loans for house purchase made up only 30% of all mortgage lending, the lowest proportion on record.

mr.broderick

TheChicken wrote: »

Greetings,

I am currently looking at buying a house and came accross this news link:

http://money.uk.msn.com/mortgages/mortgageguide/article.aspx?cp-documentid=8011664

Now I pose the question "Would you pay £20,000 for a car worth £5,000?
Well simply "NO!"

Well thats in essence what I would be doing if I bought a house today: Quoting the above website -

"The average UK price has risen by 120,860 pounds during the past decade from 70,696 pounds to 191,556 pounds -- an increase of 171 percent."

Yes I understand that prices do rise over time but a realistic rise of a £70,000 house over 10 years should reflect inflation so there fore it would equate to around £90,000.

Now I beg of you if you are buying a house keep this in mind!

Why are we offering over £100,000 of the actual value of the house?
Estate Agents, Mortgage Lenders and Property Developers...........Need I say more!

What can we do to change the market?

I believe that if all first-time-buyers started to make offers of the Actual value of the house using Land Registry Records and a simple sum, House prices can be changed to once again reflect their true value.

Please discuss and if you are buying really think about what I said.

Thanks
Ch!ck xx

Wow what a load of tosh...the past 5 years events in 1 post. Where've you been all this time?