We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

House price increase - the future

http://www.fool.co.uk/news/property-home/2008/04/29/why-house-prices-must-fall.aspx

This is a good article, mostly due to the reasons why HPI can't continue as it has for the past 10 years.
«1

Comments

  • LillyJ
    LillyJ Posts: 1,732 Forumite
    The guy sold up three years ago ready for the crash and is now renting, so he is a bit biased. If he was that clever he wouldn't have sold till the end of last year.
  • snoopy78
    snoopy78 Posts: 128 Forumite
    LillyJ wrote: »
    The guy sold up three years ago ready for the crash and is now renting, so he is a bit biased. If he was that clever he wouldn't have sold till the end of last year.

    Still the wage increase to house price increase holds water, even if the guy is baised. Especially with cheap food and fuel potential being a thing of the past.

    It really has nothing to do with being clever you'd need to be able to see into the future to predict house price movements with any degree of accuracy. Look at all the so called clever people who only 8 months ago were estimating HPI of 10%+ for 2008.

    I was not interested in the short term veiw of the housing market but the longer term trend.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Simple compound interest calculations tell you the price of anything can't rise by more than the means of paying for it indefinitely.

    If something has to come to an end then one day it will come to an end. It looks like that day was a few months ago for house prices.
  • m00m00
    m00m00 Posts: 1,755 Forumite
    my basic argument has also always been that house prices have been out of sync with average wages for a long time, and something had to change. Either a fundamental shift in the make up of our society, or house prices
    It's a health benefit ...
  • lostinrates
    lostinrates Posts: 55,283 Forumite
    I've been Money Tipped!
    m00m00 wrote: »
    my basic argument has also always been that house prices have been out of sync with average wages for a long time, and something had to change. Either a fundamental shift in the make up of our society, or house prices


    or both.

    My expectations and hopes are very different from those of my mother, and indeed grandmother and I imagine, although this is purely uninformed!, that statistics outside war times showing women in work, income of working women compare to men, number of children born to each family, property ownership, number of people caring for members of their own family etc etc etc are all so different so as to have made a shift in society's make up (as are the wage to property price ratios, lol).
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    m00m00 wrote: »
    my basic argument has also always been that house prices have been out of sync with average wages for a long time, and something had to change. Either a fundamental shift in the make up of our society, or house prices

    Hooray! 200% wage increases on the way then :j
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • LillyJ wrote: »
    The guy sold up three years ago ready for the crash and is now renting, so he is a bit biased. If he was that clever he wouldn't have sold till the end of last year.

    True, but how many journalists are home owners, I guess that would make them biased as well....
    "One thing that is different, and has changed here, is the self-absorption, not just greed. Everybody is in a hurry now and there is a 'the rules don't apply to me' sort of thing." - Bill Bryson
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    or both.

    My expectations and hopes are very different from those of my mother, and indeed grandmother .

    For women my age, among my mates anyway, our lives are more similar to our mothers' than our mothers' lives are to our grandmothers.

    My mother's mother left school at the age of 12, to care for her "invalid" mother (she enjoyed ill-health, I reckon, as she died in the early 1980s aged about 90!) My grandmother never expected she would get much in the way of education or detailed training, or work much if at all outside the home. She did work from home as a dressmaker when her children grew up a bit, though.

    By contrast, my mother went to an academic girls' school, did O and A levels, and undergraduate and graduate degrees at Cambridge. She then went on to work as a teacher until she was pregnant with me, and went back to work part-time when her youngest was 9 years old.
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    True, but how many journalists are home owners, I guess that would make them biased as well....

    Lots. Although I guess it depends of what part of journalism they work in as some don't earn a lot.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    This piece on the Beeb is quite a good upsummer on the state of play - basically it's all down to when the credit crunch gets sorted.

    http://news.bbc.co.uk/1/hi/business/7375069.stm
    Trying to keep it simple...;)
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.9K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.