House prices

[dang65]

An all too common misunderstanding. Buying your first property is getting somewhere to live. Subsequent properties are investment.

You might feel better if your prime residence is worth what you consider to be a lot, but this doesn't really enable you to realise it in general. Normally your heirs will thank you though.

Well, it's an investment because the same percentage increase on a larger property equals a bigger amount of actual money than on a cheaper property. The idea was to then sell up and buy a cheaper place with the profit. Could still happen. It's not a complete disaster or anything because it is our family home, so at least we're getting value that way.

[shaunbhoy]

Normally your heirs will thank you though.

But they won't thank you as much as the Chancellor of the day.

[AlfredJPruffock]

Anyone noticed the complete lack of the gloomy ne'er-do-wells on here these days that were consistently predicting collossal crashes over a period of 2-3 years during which time prices rose by around another 20%?
You have to laugh really. They babbled on about everything from Japanese deflation to US realty issues, "real terms", and everything in between without ever fully grasping the fact that the UK Housing market is almost unique. Ah well, some people will never learn!
Goodbye Janek etc. You are all sadly missed!!

Very true SB, the housing market has defied all the pundits,and you have been the lone voice in your stance, so well done.

Still as long as the Pruffock Estate continues to prosper long my the house market boom.

My prediction however remains accurate, Grey Slates have remained Grey Slates.

[ASB]

Well, it's an investment because the same percentage increase on a larger property equals a bigger amount of actual money than on a cheaper property. The idea was to then sell up and buy a cheaper place with the profit. Could still happen. It's not a complete disaster or anything because it is our family home, so at least we're getting value that way.

True. Thats the leverage argument - essentially you are gambling that the rate of increase in prices will be greater than the difference between the comparable rental rate and the interest you pay.

The problem arises when you want to cash in and capitalise on this. Typically the trade down often doesn't happen, although with average luck it will provide a means to release to capital if it is needed.

[woo]

fed will raise rates for the 17th time in a row tonight!
17 x 0.25 increases from 1% to 5.25%. rates are still low though?

[DimPrawn]

We don't live in the US so who cares?

[DimPrawn]

Anyone noticed the complete lack of the gloomy ne'er-do-wells on here these days that were consistently predicting collossal crashes over a period of 2-3 years during which time prices rose by around another 20%?
You have to laugh really. They babbled on about everything from Japanese deflation to US realty issues, "real terms", and everything in between without ever fully grasping the fact that the UK Housing market is almost unique. Ah well, some people will never learn!

Yes, imagine anything like that happening here in a few years time!

[oracleslave]

Yes, imagine anything like that happening here in a few years time!

Bet you just about creamed yourself reminding SB of that. Been holding back on that for a while?

[DimPrawn]

Bet you just about creamed yourself reminding SB of that. Been holding back on that for a while?

I've cracked open a Pot Noodle.

[oracleslave]

I've cracked open a Pot Noodle.

Nothing wrong with a Bombay Bad Boy on a cold day.