House Prices

[shaunbhoy]

Or are you a person that believes house prices only ever go up ?

In any 25 year period they only ever do go up. Of course you being a nomad, and presumably living in a hedge, don't have to consider the fact that wherever you live is going to consume money, and can therefore hypothesize till the cows come home about "buying power" and all the other buzzwords the grown-ups in your vicinity bandy about!

[BlasterBates]

Well, we are talking about 25 years time. How many chances that houses in 2032 will be 10% less than now?

No they won't that is true, but if you were wise enough to put your money in say GAZPROM wait for prices to drop 20-30% in 2-3 years time and then buy, you might be sitting under a palm tree in the caribbean drinking pinacolada rather than in your raincoat drinking lager in Bognor Regis, for example.

[AtW]

if you were wise enough to put your money in say GAZPROM wait for prices to drop 20-30% in 2-3 years time and then buy

I got GAZPROM shares in ... 1992... free too as part of privatisation drive where all Russian citizens were given vouchers that they could invest into shares of companies. A lot of them sold vouchers for bottle of vodka and some for little more, laughing off claims of the person responsible for privatisation that voucher will be worth a "Volga" car (better than Lada, kind of Rover 75 normally use by communist party and KGB at the time), it actually turned out to be true.

[The Lone Gunman]

Just as a matter of interest. Gunman Towers was valued last week at 230K. I purchased it about 2 years ago for 110K. Before you start with the "a valuation is not a sale price" bull, I would like to point out that a near neighbour valued at less sold for more and only took 3 weeks from advertised to sold.

[Lucifer Box]

Just as a matter of interest. Gunman Towers was valued last week at 230K. I purchased it about 2 years ago for 110K. Before you start with the "a valuation is not a sale price" bull, I would like to point out that a near neighbour valued at less sold for more and only took 3 weeks from advertised to sold.

But essentially it doesn't matter whether it's worth £1 or £1m because you live in it. If you're thinking of selling up and downsizing, then it might matter.

[The Lone Gunman]

But essentially it doesn't matter whether it's worth £1 or £1m because you live in it. If you're thinking of selling up and downsizing, then it might matter.

That is a possibility. I didnt buy it as an investment, it was purchased as a place to live.

What does matter is the fear of a house price crash. Values would have to fall 50% to hit the purchase price and go a lot further to achieve negative equity. If the majority are in the same position then the crash is less likely as people wont be too woried about mounting debt. As long as interest rates dont get silly and they can still service their mortgage there will be no panic selling.

Mrs Gunman keeps banging on about selling up and moving abroad. I am tempted to cash in and go and start an outsourcing business in Mumbai, might try Goa as I have business contacts there. I realy like India.

[AtW]

But essentially it doesn't matter whether it's worth £1 or £1m because you live in it.

It does matter if you get taxes the heck out of and your only means to increasing wealth is load up with debt, that's where high house price is totally necessary as otherwise you would not get cheap loan. And cheap to service loan means the debt bubble will last longer...

[Shimano105]

Mortgages? FFS we're contractors aren't we? What do you want to saddle yourself with a mortgage for? They are for permies, surely....

[Lucifer Box]

Mortgages? FFS we're contractors aren't we? What do you want to saddle yourself with a mortgage for? They are for permies, surely....

Quite.

[AtW]

They are for permies, surely....

How big is your morgage?