House Prices Back To 2008 Level

[Ash4781]

Have you heard what's happening in maidstone ? Word is london commuters are or are planning to sell up as train services to the town deteriorate and neighbour towns gain high speed lines.

[Guest Daddy Bear]

Don't talk crap man, house prices are massively sustainable and you know it

HOUSE PRICES are Massively, totally, utterly sustainable - you get the picture too. Well Done for being in the top 1% of intelligence on this website.

Very few on this board do.

Now if someone had said HOUSE VALUES are not sustainable - I would agree - 100%

People on here still cannot understand the conceptsof Nominal Terms and Real Terms (House Prices and House Value).

It will cost those people dear......

CASH WILL BE TRASH

DB

[scottbeard]

I've got the foolproof solution though: do a sibley but also prepare yourself for bankruptcy. Put all your assets in your wife's name, make sure you've got nothing left in your name, and then go find one of these 95 or 100% loans

As one whose wife just ran off with savings put in her name for tax purposes, I wouldn't do this.

What something is worth and what someone can afford to pay for that something are different things.

Not quite true - something is worth the highest amount that another person is (1) willing and (2) able to pay for it.

In 1985 we bought our first house, a three bedroom Victorian mid terrace in the South East. We were both earning just below the average wage. We put down a 10% deposit . Interest rate at that point was 11% and not long after that shot up to %14.

It was hard at times but we managed. A young couple nowadays could not do what we did despite the 0.5% interest rates!!!

Of course houses are too expensive!!!

Is it not the case that house prices have gone up BECAUSE the interest rate has come down, rather than FTBs struggling to buy DESPITE the fall?

Edited October 4, 2009 by scottbeard