Jump to content
House Price Crash Forum
Sign in to follow this  
The Masked Tulip

Data Show Housing Not Always A Safe Bet

Recommended Posts

http://www.ft.com/cms/s/0/86e6380a-a70e-11df-90e5-00144feabdc0.html

If you bought a house in England or Wales in June 2006 – well before the market reached boiling point in late 2007 or early 2008 – in any location except London, it will be worth less today than it was back then, taking inflation into account.

I personally think this is boll ox - if I could buy a house at Swansea 2006 prices now I would as they would be a good 40% or more cheaper than today.

Share this post


Link to post
Share on other sites

FT is trying to say house prices are OK now because they are the same as they were in 2006 - so they are not over priced but they probably were a bit over priced in 2007. In other words the new paradigm is average house price is 5.5x average salary. Also do the MSM have property adverts by any chance ... ?

Oh and prices will not fall

...this is VI 'speaktalk' ....unless you are buying a house to live in for the next 25 - 30 years... property including OO is a a high risk investment.....and the lenders are mad giving the punters their stakes on along term loan basis.... :rolleyes:

Share this post


Link to post
Share on other sites

http://www.ft.com/cms/s/0/86e6380a-a70e-11df-90e5-00144feabdc0.html

I personally think this is boll ox - if I could buy a house at Swansea 2006 prices now I would as they would be a good 40% or more cheaper than today.

Please post some evidence of this, it sounds astonishing. Like the examples I gave you a few months ago before we entered the fear phase I could find no evidence of your claims.

You promised you would back these statements up with examples of previous sold prices and current asking prices.

Share this post


Link to post
Share on other sites

In one sense it doesn't matter what people or indexes say house prices are today.

I paid within £2k of the 2004 price for my house and this was in Q3 2009.

Almost any seller will accept the peak 2007 price if you were to offer it, the key is find the seller who will sell for below the 2006 price.

I paid £145k less for my house than it had sold for almost exactly 12 months earlier. The reason this was possible was it had been acquired by a developer as part of a part exchange deal, and they didn't have any business holding on to it (they build new homes, they don't trade in old ones) and they needed the money very urgently to help their books.

I turned up with my STR fund and nowhere to sell and in the end they accepted my offer, knocking £75k off their already reduced asking price.

Edited by Mikhail Liebenstein

Share this post


Link to post
Share on other sites

Thanks AteMoose. It would be interesting to see graphs (doubt they exist) that show the relationship between house prices, over time, with say, for example, wage inflation for public Vs private sector workers and even for specific professions, job roles, etc.

In my neck of the woods the offer on the table from the employers (Universities) this year is 0.4% whereas RPI is around 5% (I really should have looked up the exact figure before posting this).

Edited by Alfie Moon

Share this post


Link to post
Share on other sites

I paid  £145k less for my house than it had sold for almost exactly 12 months earlier. The reason this was possible was it had been acquired by a developer as part of a part exchange deal, and they didn't  have any business holding on to it (they build new homes, they don't trade in old ones) and they needed the money very urgently to help their books.

So it hadn't actually sold at that 12 months earlier. That notional price was part of the Virtual HPI scam of above-market prices.

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.

  • 144 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.