Jump to content
House Price Crash Forum
Sign in to follow this  
maxdiver

Things Aren't Going To Change

Recommended Posts

House prices in NI will remain stupidly high - not peak - but pretty poor.

Whichever way you look at it - buying a house in NI/Ireland/UK is a road to ruin.

What we should be pushing for is changes to tenacy laws - that mean you can rent a place for 5 years say which makes things like painting walls in a colour you like etc... something you want to do.

One side of HPC says that when prices fall - I'll buy.

Another says that property is overvalued and there are more efficient and more effective ways of making your money work for you.

If property scrapes along at current values - you can bet that the cost of living will erode the value of bricks in mortar in loaves and fishes

Oh - and cash savings are a waste of time too.

Share this post


Link to post
Share on other sites

I might add that the majority of people see saving up (or lying :P ) to buy a home as their main financial perogative over their 20's and 30's.

People are committed to endebting themselves to afford a slave box.

The media will be busy ensuring the message hits home "home ownership is good"

And alternative ways of investing your money will be considered "risky" - Property is not that risky - because there is no upside now - it's just a plain way to pay money to lose money slowly - for the next 25 years - interest only B) .

Share this post


Link to post
Share on other sites

For most people buying a home and paying if off, over 20 or 25 years (or earlier if they have the cash) is an prerogative or an ambition. If it gains real value during that time, so much the better. As long as you can afford the repayments and the interest then it is normally a good idea. There is nothing wrong with renting and most people, including myself have done that for portions of their life. However, when I retire I want to own my house. I don't want to have to worry about having to find rent or have to depend on state housing for that part of my life.

I agree if you bought your house at anything close to boom prices - this will be difficult. Perhaps 5 or 10% of the houses in the country were bought at boom prices and will suffer. However, the vast amount of these were investors.

Going forward home ownership will still be attractive. There will be less investors and very few will buy because of fear of 'missing the boat' but people will still purchase houses in the traditional manner and pay down the mortgage over 20 years rather than paying rent over that period and beyond. When people compare the rent v buy financial model they forget that that the mortgage stops at some stage and with natural inflation largely erodes over time (no guarantee that this will always happen in the future buy it seems to have always happen in the past. Of course you cant be factoring that into the buying process now. You must be able to afford the mortgage today at normal mortgage rates.

House ownership, is perhaps not for everyone. But you cant expect everyone to rent all their lives. We cant assume pensions will pay for rents in the future. Thats a big risk to take.

I am surprised to see you say house prices in NI will stay at their current price. We will disagree on whether we think that current prices are, or could be described as 'stupidity high'. There is probably more downward pressure on house prices here than there has been for the last 12 months.

As for 'Slave Boxes', whilst I assume you mean a very small 1 or 2 bed 700 sq foot town house or apartment. Don't buy one. Buy a 1,000 sq foot or larger semi.

I don't see buying a house as a way of making money. I believe it should save you money as at some stage it will be paid off and apart from maintenance costs (which on modern houses will be comparatively little)will never be as much as renting.

I am not aware of 25 year interest only mortgages and anyone taking that choice for their main residence is not thinking straight. The choice of home ownership has to mean that - ownership.

To make this work the house has to be bought at the right price. And that's the judgement and decision you have to make.

There is a time to rent and there is a time in your life to buy. I personally believe renting for your whole life and gambling on a pension or stocks coming good is a big risk and foolhardy.

I don't give and am not qualified to give financial advice but I would recommend a bit of both. I personalty pay quite a bit into pensions and I am really questioning am I wise. But when I retire I will own my house outright and will not have to worry about that.

Share this post


Link to post
Share on other sites

buying a property isnt always about making money ... for some of us more humble folk it is about putting a small stamp on the world and laying claim to a piece of earth in the knowledge that our family will have somewhere to call home.

Then when I snuff it they can sell it and make themselves some money :unsure:

Share this post


Link to post
Share on other sites

I really don't think the gov't can continue to afford to give most people in NI a job with the state or give work from the state to contractors. It will stop and house prices will go down, unless somehow the super private sector we have suddenly massively increases to employ all those civil servants with value-add skills (instead of all the unemployed people with manufacturing skills).

Share this post


Link to post
Share on other sites

I really don't think the gov't can continue to afford to give most people in NI a job with the state or give work from the state to contractors. It will stop and house prices will go down, unless somehow the super private sector we have suddenly massively increases to employ all those civil servants with value-add skills (instead of all the unemployed people with manufacturing skills).

I'll tell ya about a pet gripe of mine, that we don't have good business/entrepreneur classes in our school from a relatively early age. I know it isn't for everyone but if we want to make Northern Ireland a great economy we need a great private sector, and that will only come in the long term from local entrepreneurs. I remember subjects at school that I knew were never going to be of use to me, RE, CDT (woodwork), surely some kind of business education/entrepreneur classes would be good. Also we should have learnt how to type, is an invaluable skill for so many people. Rant over!

Share this post


Link to post
Share on other sites

I'll tell ya about a pet gripe of mine, that we don't have good business/entrepreneur classes in our school from a relatively early age. I know it isn't for everyone but if we want to make Northern Ireland a great economy we need a great private sector, and that will only come in the long term from local entrepreneurs. I remember subjects at school that I knew were never going to be of use to me, RE, CDT (woodwork), surely some kind of business education/entrepreneur classes would be good. Also we should have learnt how to type, is an invaluable skill for so many people. Rant over!

There is a subject called Business Studies. It's been around for years.

Share this post


Link to post
Share on other sites

Welcome to the forum. I would agree about the business education at school - I also think that financial education where students learn how to balance a budget and find out what happens when you run up debt on a credit card. I wonder how many of the people who took out interest only loans realised they would not pay off their loan without another investment product.

Financial Capability is part of the KS3 maths programme in schools.

Share this post


Link to post
Share on other sites

When I was at school some 20+ years ago we did basic economics. I remember very clearly they said 'it is not wise to borrow against your assets to pay short term expenses'. Anyway I have always lived by that. We did do other basic business classes aswell. I don't think the problem is education, we have had the most money spent per head on education of the whole UK for a long period, but I could be wrong of course.

I think perhaps the problem might be the small size of the population and basic corruption. Anyone who has a really good job has usually got there by who they know. There is of course doctors, but they are very cliquey in a different way. I'm sure there are exceptions but I've just seen too many good people not get anywhere and having to report to idiot bosses who know people in high places. This applies to public and private sectors.

Share this post


Link to post
Share on other sites

I'll tell ya about a pet gripe of mine, that we don't have good business/entrepreneur classes in our school from a relatively early age. I know it isn't for everyone but if we want to make Northern Ireland a great economy we need a great private sector, and that will only come in the long term from local entrepreneurs. I remember subjects at school that I knew were never going to be of use to me, RE, CDT (woodwork), surely some kind of business education/entrepreneur classes would be good. Also we should have learnt how to type, is an invaluable skill for so many people. Rant over!

ah comrad

in the new maskerplan

we will produck

100 tanks

1000 tracturs

10000 entrepreuneurnicks

rock on!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.