Nationwide Building Society August 2020 House Price Index

[scooterscot]

Sure thing, poops.

London is not the UK.


And use a log chart, numpty.

[scooterscot]

If you're buying a house to have it as your home, a home that you'll keep for a long time, you don't give a crap about how much it's going to be worth in say 5 years.

Normal people don't always see everything as an investment in which you absolutely need to have a return.

People buy houses because they need houses.

They might when they discover they can't afford to live there anymore. This is what happen in the US during 2007. 'It can't happen to us' & 'this time it's different' - heard it all before.

[ladymuck]

Yes and no. There is the opportunity cost of being able to buy it cheaper in a year's time, if you can time the market right...

I get that but is it worth missing out on the right property just in case there's a cheaper deal next year? Most people just want somewhere to live.

[ladymuck]

If you're buying a house to have it as your home, a home that you'll keep for a long time, you don't give a crap about how much it's going to be worth in say 5 years.

Normal people don't always see everything as an investment in which you absolutely need to have a return.

People buy houses because they need houses.

I totally agree with the sentiment but if you take out a 5 year mortgage deal you could come a cropper when it comes to getting a new fixed rate, or whatever, and you're in negative equity with no lender willing to take you on.

[TheGreenBastard]

Let me get this straight... Save on stamp duty now or buy same property with stamp duty after 40% correction. Decisions decisions....

The former is tangible, the latter I suspect will play out as fantasy.

Not really - lay house price action over gold price, the relationship is full

If deflation comes, I'm 90% certain it will, we'll having crashing prices and a BoE losing the fight to keep interest rates low. Can't wait.

Institute for New Economic Thinking

"Another important insight is that total returns on residential real estate are on a par with the returns to equities—on average about 7% per annum—but they are far less volatile."

[scooterscot]

The former is tangible,the latter I suspect will play out as fantasy.

I think such a reply you'd have had, had you told folks in the early 90's a home would spring from 2.5 times your annual income to 12.

Seemingly fantasies can become true. Welcome to fairyland.

[Old Greg]

London is not the UK.


And use a log chart, numpty.

Did you see there is a UK chart?

Why don't you show us your chart? We could do with one of those.

[Old Greg]

The former is tangible, the latter I suspect will play out as fantasy.



Institute for New Economic Thinking

"Another important insight is that total returns on residential real estate are on a par with the returns to equities—on average about 7% per annum—but they are far less volatile."

For the average punter, there is also utility - you live in the house.

A 25 year repayment mortgage on the full value of my house would be cheaper than renting it, and rents are likely to go up over that period.

[scooterscot]

Yes and no. There is the opportunity cost of being able to buy it cheaper in a year's time, if you can time the market right...

Prices don't bounce back that hard. Look left... the consolidation periods lasted months if not years. Even then the build back up was always slow to start.

[scooterscot]

For the average punter, there is also utility - you live in the house.

A 25 year repayment mortgage on the full value of my house would be cheaper than renting it, and rents are likely to go up over that period.

Find me one 25-year repayment mortgage deal in the UK that does not require renewal during that time.

Us Europeans are baffled by Brits having to renew every few years.