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Attitudes Changing

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I had an interesting conversation yesterday with a 20 y.o. apprentice electrician. Was totally unplanned and started with the subject of cars (cars themselves, not the cost of them or money to buy them with).

Anyway, two comments from him were somewhat enlightening (and surprising). Note that the figures are in Australian dollars not Pounds.

1. "I wish I hadn't borrowed to buy a car. My debt was up to $26K at one point so I sold a few things and am paying it off. Now it's down to $20K."

I then made some comment to the effect of "just wait until you buy a house. Then you'll know what debt's all about".

His response?

"Being in debt that far will suck absolutely. But house prices are falling now, I saw one the other day that was advertised at over 15% less than similar houses were selling for in that area last year. So I think prices have come down. Do you think prices will continue to fall? I hope so."

I then said something to the fact of "at last someone I can mention house prices to without starting an argument. Yes I think they will keep coming down but I didn't realise they were down that far already".

Apprentice: "How long do you think they will keep falling for?"

Me: "Nothing is certain where money is concerned but this has happened before and the cycle seems to be around 15 years. So around 2010 would be my best guess in rough terms. It won't jump straight back up again, rises generally start slowly, so any time early next decade would be a good time to buy IMO".

Apprentice: "2010? That's great! That's about the time I'll probably be wanting to buy one. Will stay living at home until then".

Bottom line is that the young who are in no position to even consider buying a house at the moment seem to be getting the message, simply through their own observation, that prices are falling. It's only those with a vested interest of some sort (including older first time buyers who WANT prices to fall and who would have already bought if not for the price) that are in any doubt about what's happening.

Edited by Smurf1976

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  • 301 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%

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