Reply to: House Prices plunging

[AtW]

Hunting Lodge

[Diver]

I'm going to use the excessive profits to plant a forest and build a squirrel sanctuary.

Hunting Lodge

[AtW]

I'm going to use the excessive profits to plant a forest and build a squirrel sanctuary.

That's allright then!

[Diver]

And how did that benefit squirrels exactly? You need to redraft your post.

I'm going to use the excessive profits to plant a forest and build a squirrel sanctuary.

[AtW]

Merely as an exercise:

15 years ago, I bought a house in Newport south Wales for £42.000 (BTL). Just had it valued (last week) at £130,000.

If I had had it on a mortgage and paid £22,000 in interest over the 15 years, I would still be better off by approx £64,000. or at £44,000 in interest I would still be approx £42,000 better off.

And how did that benefit squirrels exactly? You need to redraft your post.

[PAH]

Or when Titanic hits iceberg it is wrong to say that looking over last few weeks of voyage would show that everything is normal.

I was just thinking something similar about the titanic. Maybe I've caught a virus from one of your fembots.

[Diver]

Merely as an exercise:

15 years ago, I bought a house in Newport south Wales for £42.000 (BTL). Just had it valued (last week) at £130,000.

If I had had it on a mortgage and paid £22,000 in interest over the 15 years, I would still be better off by approx £64,000. or at £44,000 in interest I would still be approx £42,000 better off.

[AtW]

Hang on Alexi; you were complaining the other day about the short-term view of holding assets. Now you are saying that studying 1 or even 3 month returns on house prices is OK, but 1, 2 or 5 years is wrong?

It's wrong to exlpain a trend. Say if you are on an airplane and right now it is plunging down to certain death, then it is wrong to say that if you look back 1 hour you will find that the plane is flying at nice average speed and everything is good.

Or when Titanic hits iceberg it is wrong to say that looking over last few weeks of voyage would show that everything is normal.

I am all for long term ownership of assets. For this taxation system should give tax relief, just the kind Brown just abolished

[HairyArsedBloke]

Yes and soon they will have to switch to prices 2 years ago to show that over 2 years period house prices have actually risen despite evidence that they are now dropping. Both will of course be right, only those who use annual figures are trying to use stats to further their lies.

Hang on Alexi; you were complaining the other day about the short-term view of holding assets. Now you are saying that studying 1 or even 3 month returns on house prices is OK, but 1, 2 or 5 years is wrong?

[BrilloPad]

I want to know how people know if prices are rising or falling. It is not as if their is a standard commodity continuously traded. Each house is different and I think is sold, on average every 7 years?

[AtW]

Presumably there were looking at the annual gain, which is up.

Yes and soon they will have to switch to prices 2 years ago to show that over 2 years period house prices have actually risen despite evidence that they are now dropping. Both will of course be right, only those who use annual figures are trying to use stats to further their lies.

[Sockpuppet]

Presumably there were looking at the annual gain, which is up.

Yes but are house prices rising or falling.

Annual says yes. Spot change (which is reality) says no.




Annual means tulip. If I can get a house tommorrow for less than I could today they are falling.

[max]

That really annoys me. I caught the start of the 1pm BBC News yesterday, and one of the headlines was "house prices rising at their slowest rate for a decade".

No they're not. IIRC it was 1.5% down in 3 months, which means 6% per year (or nearly 10% in real terms). And that's with people still buying because they believe the BBC saying prices are still going up.

Presumably there were looking at the annual gain, which is up.

[VectraMan]

Ah...but if you take a historical 12 month view they still rose 3.6% becuase of the gains at the start of the year!

BOOMED!

That really annoys me. I caught the start of the 1pm BBC News yesterday, and one of the headlines was "house prices rising at their slowest rate for a decade".

No they're not. IIRC it was 1.5% down in 3 months, which means 6% per year (or nearly 10% in real terms). And that's with people still buying because they believe the BBC saying prices are still going up.

[PAH]

Noticed on the news last night they did a comparison of mortgages payments for those that'll be coming off fixed rates soon. For each £100k of a repayment mortgage they said it would cost around 500 quid a month if interest rates are just over 5%.

Makes me grateful the company who's BTLing my current rented accommodation is only charging me 600 quid a month for a 200 grand 4 bed detached house. Even the 2 bed terraced ones in the crap end of town are almost 400 quid a month. Will almost be a shame when I move on and relocate again, though my neighbours probably won't think that.