Nationwides House Price Index - Sept 2013

[AtW]

So a typical middle age couple's ideal house might be big, plenty of bedroom/living/study space for all the kids, close to great schools, in a densely populated area so there's plenty to do but with a fast/easy commute to a major business centre so you can have a decent work/life balance.

No, that would be two ideal houses so that they can't see each other too often ...

[DS23]

wws

[Wanderer]

Except, when you are trading down, first off you get used to a certain size of property in a nice area. The only way to release large amounts of money is to move somewhere tulipe in a cramped little box.

So a typical middle age couple's ideal house might be big, plenty of bedroom/living/study space for all the kids, close to great schools, in a densely populated area so there's plenty to do but with a fast/easy commute to a major business centre so you can have a decent work/life balance.

When you retire, you have no further need for the big house, the kids have finished school and you aren't bothered about a fast/easy commute either. So you can now sell up so a young family and move out of the big smoke to a quiet area where you can get a nice house which is easy to look after (but big enough to entertain visitors) for half the price of your house in the city.

Your house in the city cost £x when you brought it, you sell up for twice what you paid for it and buy a nice place in the country for £x. That leaves you with a nice stash of money to spend during your retirement.

[northernladuk]

I do but my chair's got wheels - I'll need something light and strong when the whiff of fresh meat brings them in...

Well that is BP, MF and SY out of the running then. Best stick to a chair!

[cojak]

For some reason I always imagined you had a whip close to hand at all times

I do but my chair's got wheels - I'll need something light and strong when the whiff of fresh meat brings them in...

[northernladuk]

<dashes off to look for chair and whip>

For some reason I always imagined you had a whip close to hand at all times

[cojak]

<dashes off to look for chair and whip>

[SilverSmith]

The lower house prices are, the better.

...except, of course, for people stuck with negative equity.

Nobody would express joy that TVs had gone up in price, why do people treat houses like that? It's mad. OK, you can pretend that you have more money (when in fact you're just paying more interest to a bank and having to save more as you go up market). The only time you gain at all is when you trade down and that pale into insignificance in relation to all the extra interest you will have paid over the life of a mortgage.

The core of the problem is that banks (which create 97% of the money our economy uses, and all of that as debt) determine where they loan money into and they do love a nice recoverable fixed asset as collateral (rather than a truly productive business that might just fail).

Fortunately there's a rapidly growing UK-based campaign that can fix the problems with money creation... Positive Money.

[PEEL]

The thing is that if you buy a house for £100k and sell it for £200k you haven't necessarily made money on the deal because during the time you were in the £100k house the one you are trading up to has gone up from £200k to £400k so you are £100k worse off.

An excellent point, showing that leverage is kind during times when house prices are on the up.

[DimPrawn]

The thing is that if you buy a house for £100k and sell it for £200k you haven't necessarily made money on the deal because during the time you were in the £100k house the one you are trading up to has gone up from £200k to £400k so you are £100k worse off.

Of course, if you are trading down then you are better off and you then give £100k to your kids for a deposit on a house which pushes the price up even more.

Prices have gone mental, I've had a house for a while but there is no way I could afford to buy my current house at today's prices.

Except, when you are trading down, first off you get used to a certain size of property in a nice area. The only way to release large amounts of money is to move somewhere tulipe in a cramped little box.

And even then, are you going to gift the money to the kids or look at how all this inflation has made your pitiful pension worthless and spend the money to survive old age?

Apart for mortgage advisors, banks, estate agents and our wonderful government, most people are better off with house prices staying static and incomes rising.

But our NIMBY land owning Tory overlords are never going to let that be an option...

[Wanderer]

it's time to upgrade the bricks and mortar. get in while the prices are low!

The thing is that if you buy a house for £100k and sell it for £200k you haven't necessarily made money on the deal because during the time you were in the £100k house the one you are trading up to has gone up from £200k to £400k so you are £100k worse off.

Of course, if you are trading down then you are better off and you then give £100k to your kids for a deposit on a house which pushes the price up even more.

Prices have gone mental, I've had a house for a while but there is no way I could afford to buy my current house at today's prices.

[DS23]

it's time to upgrade the bricks and mortar. get in while the prices are low!

searches underway, full survey booked for monday. we might be in by christmas.

[NorthWestPerm2Contr]

Key Points

UK house prices increased by 0.9% in September and were 5% higher than September 2012

The typical UK home is now worth (Nationwides words Dim Prawn - not mine - hehe) £172,127

Southern regions of England, especially London, continued to record strongest rates of house price growth.





http://www.nationwide.co.uk/NR/rdonl...531C5M,6OGQO,1

Just over a year ago I used to constantly keep track of these figures. I finally managed to get onto the housing ladder and I can finally not bother with them anymore!

[DimPrawn]

See sig.



PS. I caught my house flicking through a Porsche brochure yesterday, the economy must be fixed.

[Martin@AS Financial]

Key Points

UK house prices increased by 0.9% in September and were 5% higher than September 2012

The typical UK home is now worth (Nationwides words Dim Prawn - not mine - hehe) £172,127

Southern regions of England, especially London, continued to record strongest rates of house price growth.





http://www.nationwide.co.uk/NR/rdonl...531C5M,6OGQO,1