Reply to: House prices

[oracleslave]

I've cracked open a Pot Noodle.

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

[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]

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]

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!

[DimPrawn]

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

[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?

[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.

[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.

[shaunbhoy]

Normally your heirs will thank you though.

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

[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.

[ASB]

Oh yeah, sure, buying is an investment

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.

[Bagpuss]

The key is not to stretch yourself to the limit, which it looks like many people may have. Let's just hope there's plenty of slack should interest rates rise >1%

[dang65]

Just as it does to rent one, unless you have uncovered some other means of surviving that does not involve a bridge and a cardboard box.

Oh yeah, sure, buying is an investment, renting is just paying for somewhere to live. Our house just hasn't made us the pot of money which was glinting in our eyes when we bought it. Hasn't been a good investment for us, emptied the bank account, and we'd only be back to square one if we sold up now. It's tough tulip though, innit.

[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!
Goodbye Janek etc. You are all sadly missed!!

I still stand by my prediction that a house price crash is due within the next 50 years. You have been warned.

[Dundeegeorge]

Really should stay away from money?

It does cost money to buy and run a house you know, especially when you've got a mortgage like ours. At best we haven't actually lost any money so far, if we sold up today. Thing is, this was supposed to be our grand money making scheme. I really should stay away from money. It would be best for everyone really.

WTF is Gordon Brown doing on this board????????