House price news

[AtW]

Still on plan to retire at 50.

With your attitude you can expect to be "retired" much earlier than that

[ChimpMaster]

Still on plan to retire at 50.

next year?

[OwlHoot]

I've just realised. If, as they say, the average first time buyer is around 40 (let's say it's 46 for the sake of witticism), first time buyers are now too old to take out a 25 year mortgage

In Japan they've had multi-generational mortgages for some years

(Which seems a bit odd when you consider that within 50 years typical Japanese houses collapse in a heap of earthquake rubble and termite droppings. Maybe most of the mortgage is for the land, and rebuilding the houses the easy part.)

[TimberWolf]

Last May I got 5.4 fixed for 4 years

Do they provide the interest rate figure at the end of that fixed 4 years? Base rate + x? What's x?

[Halo Jones]

What mortgage interest rate does the average first time buyer pay these days?

Last May I got 5.4 fixed for 4 years

[MarillionFan]

Nah the "average" first time buyer is in their 30s.

BTW retirement age for those in their twenties and thirties is between 67-69, and will probably be increased to 70 very soon.

Still on plan to retire at 50.

[TimberWolf]

Nah the "average" first time buyer is in their 30s.

BTW retirement age for those in their twenties and thirties is between 67-69, and will probably be increased to 70 very soon.

Not far off 40:

The average age of the first-time buyer is now 38
No place like home: the generation who can't afford to buy - Property, House & Home - The Independent

And if price inflation continues to outstrip wage inflation, that age is looking to rise. Retirement age will have to increase year on year.

[SueEllen]

I've just realised. If, as they say, the average first time buyer is around 40 (let's say it's 46 for the sake of witticism), first time buyers are now too old to take out a 25 year mortgage

Nah the "average" first time buyer is in their 30s.

BTW retirement age for those in their twenties and thirties is between 67-69, and will probably be increased to 70 very soon.

[TimberWolf]

6-7%

Though there aren't many first time buyers as most people can't get a mortgage.

I've just realised. If, as they say, the average first time buyer is around 40 (let's say it's 46 for the sake of witticism), first time buyers are now too old to take out a 25 year mortgage

[SueEllen]

What mortgage interest rate does the average first time buyer pay these days?

6-7%

Though there aren't many first time buyers as most people can't get a mortgage.

[TimberWolf]

What mortgage interest rate does the average first time buyer pay these days?

[DimPrawn]

Rates should start going up this year, and banks will jack them up faster for loans/mortgages, savers will still be shafted - that's my prediction.

Indeed rates SHOULD have go up ages ago, instead those deeply indebted countries have held interest rates at approximately zero and then effectively taken them negative with QE.

We are more likely to see more QE than interest rate rises.

Inflation will be rampant.

[TimberWolf]

Yeah, they want inflation to do the work by inches. Still, a 5% a year drop in real terms is a 25% fall in 5 years and 40% in 10. Likely we'll get "unexpectedly" higher inflation than that though. If not, it's more QE.

Are we really richer than China, India or Patagonian hunter gathers when it takes 40 years to save enough even to get a mortgage debt, let alone buy a shelter?

[AtW]

however nothing can force people to sell and drop prices (unemployment makes no odds as the government pay your mortgage interest and interest won't rise for decades).

Rates should start going up this year, and banks will jack them up faster for loans/mortgages, savers will still be shafted - that's my prediction.

[DimPrawn]

BBC News - UK house prices fell 1.3% in December, Halifax says

UK house prices have continued to slip, falling by 1.3% in December from the previous month, the Halifax has said.

The lender, part of Lloyds Banking Group, said it meant the average property ended the year 1.6% cheaper than at the beginning of 2010.

But it said the decline was less than falls seen in the second half of 2008.

Halifax said it expected "limited movement in house prices during 2011" as interest rates were "likely to remain very low for some time".

It said that signs of a reluctance to sell from some homeowners could halt the decline in prices.

The average UK house price now stands at £162,435, Halifax said.

Prices can't rise (people can't/won't pay the silly prices), however nothing can force people to sell and drop prices (unemployment makes no odds as the government pay your mortgage interest and interest won't rise for decades).

So we'll have the prices we have now for the rest of our lives.



Here endeth my prediction.