House prices > Rent = Price fall

[HRH]

Yadda yadda from those who didn't take advantage of the biggest housing boom in history. Because prices were over-valued in 1999-2000
Tell you what atw, even if prices fell 50%, you wouldn't be able to buy.
So forget about commenting on house prices, it's only theoretical for you.
Now go and write out your rent cheque for this month, there's a good fellow.

Here here! I don't care in 4 years time my house will still be worth 15-40k more than when I bought it plus I'll have paying £750 a month mortgage payments for 6 years and eaten into a decent chunk of my mortgage.

It makes me laugh when my mates who are not in as fortunate position as me keep saying 'I bet you wish you hadn't bought now....' it's jealousy basically and in 4 years time they'll still be paying the likes of you guys £600 pm to rent a tulipty 'designer shoebox'

[AtW]

There is finite value in the world economy.

So by that you mean it is a zero sum game? First of all it isn't a zero sum game - economics are growing, and if they were not we'd still be in the stone ages where everyone would own (or rent) a cave and the arguements of this kind would have been settled with a few punches.

I don't mind fair competition anyway - that is nothing dishonourable in Intel creating new ways of doing calculations and abacus makers out of business. There is no dishonour in that so long as competition is fair and the best (overall) product wins.

[Moscow Mule]

..., why not increase the rate by the same amount? I would.

Most rental agreements (at least the one's I've signed in the last 5 years) include a specific clause tying rate increases to a low percentage figure. You'd have to kick out you're current tenants if you wanted to increase it by more than that.

[HRH]

I think you confused me with some of your buddies - I want to get rich but only through my work in an honourable way, for you clearly it does not matter but I am not you and I am following my own path, which may or may not lead to big money, but it will certainly prevent me from being the kind of scumbag person that I detest.

Why is he a scumbag? You are so bitter and jealous its frightening.

[AtW]

What economics degree? Atw's "degree" was a collection of hastily cobbled together freshers courses after the Soviet Union collapsed and they had to "modernise" their education system. It's what some prof thought would be the contents of a Western degree.
But of course he topped it up with a Business Admin degree at that fine institution, the Polytechnic of Wolverhampton.

Prices for houses are now falling fairly rapidly already and the outlook is very grim. I was saying this will happen for the last 3-5 years and the only reason it did not happen earlier was because of stupid banks lending to every Harry, Dick and Joe - if this wrong subprime lending (as it is now clear) was not taking place, then the house prices would have started falling years ago.

I don't know what economical education all those people who got into house market recently got, but mine suggested me to stay away from this bubble. I am pleased that I did.

[AtW]

Why is he a scumbag? You are so bitter and jealous its frightening.

I am not bitter. And I am certainly not jealous - as I said it clearly I would NOT want to be that kind of person.

The reason those speculants are scumbags is because they cause economical problems that will affect good people too who had nothing to do with this speculation - this makes speculants scumbags in my book.

[tay]

I don't mind fair competition anyway - that is nothing dishonourable in Intel creating new ways of doing calculations and abacus makers out of business. There is no dishonour in that so long as competition is fair and the best (overall) product wins.

No different to property then. Stop this silliness about honourable profits. Its just ATW speak for ' I am bitter that I was chicken little 6 years ago and now look like a muppet'

[snaw]

Prices for houses are now falling fairly rapidly already and the outlook is very grim. I was saying this will happen for the last 3-5 years and the only reason it did not happen earlier was because of stupid banks lending to every Harry, Dick and Joe - if this wrong subprime lending (as it is now clear) was not taking place, then the house prices would have started falling years ago.

I don't know what economical education all those people who got into house market recently got, but mine suggested me to stay away from this bubble. I am pleased that I did.

Yep, and the landlord who's mortgage you've been paying for his bedsit would agree.

The price could fall 40% and I'd still be ahead, after buying my place 4 years ago. In 21 years time I'll own my place outright - you'll still be paying for someone else's mortgage ;-)

[AtW]

Yep, and the landlord who's mortgage you've been paying for his bedsit would agree.

I rent a house. It has got 4 bedrooms (albeit 1 very small - used for server anyway), living room, garage for 2 cars (or a lot of junk), big garden: house is located in a nice leafy squirrelly part of Brum - very nice neighbourhood.

I pay £600 per month for it.

The price could fall 40% and I'd still be ahead, after buying my place 4 years ago. In 21 years time I'll own my place outright - you'll still be paying for someone else's mortgage ;-)

You seem to be under incorrect impression that your personal position is of any difference to macroeconomics - if you bought 4 years ago you might just be all right and you probably were not stupid enough to oveextend yourself. That's fine by me - I don't wish on people like you to lose your house, not at all.

[AtW]

No different to property then.

What does property create actually? If you take Intel they created lots of things that could not have been possible before - this certainly created a lot of jobs, very relevant to posters on this forum.

Stop this silliness about honourable profits.

No I won't. You may have profits from it but they certainly have no honour attached to them - you have not created anything positive, you merely ride the gravy train that is about to become a wreck.