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House Prices Double In Last 4 Years!

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troll alert but i like this guy so it will be fun taking him down as he does seem to have a low IQ and i felt sorry that no one had posted on his new thread

thank you for bumping my thread, super genius boy.

I notice from the graph on the front page that house prices appeared to double between 2002 and 2004.

In other words (and I'll make this simple, so Justice League of Trumpton can understand it) prices haven't budged in 2 years

So the real headline shouldn't be

'House prices doubled in 4 years' but

House prices do diddly squat for 2 years

Is this what you all mean by ... 'spin'...?

Edited by PropertyGuru

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"House prices do diddly squat for 2 years"

yeah but my money has paid a good return during these two years

and i'm sorry but i bumped your thread up again but you i think you need all the help you can get to get your message across

Regards

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"House prices do diddly squat for 2 years"

yeah but my money has paid a good return during these two years

and i'm sorry but i bumped your thread up again but you i think you need all the help you can get to get your message across

Regards

So you would agree that the current headlines are simply desperate attempts to 'spin' the fact that nothing much has happened in the last 2 years?

What will they say NEXT year? 'House prices have doubled in the last 5 years'???

Thanks for the bump again, Trumpton.

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Something has happened in the last year:

http://www.houseprices.uk.net/articles/odpm_regional/

UK prices go from £180,000 to £192,000 in 24 months?

Which equates to 3.2%pa.

I think calling 3.2% diddly squat is a fair comment.

My current account generates capital faster than that, hell CPI is 2.5% so real growth = 0.7% per annum. ( I know CPI was ~ 2.2% last year)

Fashion is whats holding up the market at the minute. You can tell when something is fashionable because it's on TV when it has no really reason to be.

And like any fashion you should be in before it's in, and out before it's out.

Edited by ?...!

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Interesting graph, Causal Onomatapia, but it looks to me as if the change in the specified time period ('last four years') is from

135k to 190k.

Hardly a 'doubling'.

and since mid 04 its...

175k to 190k

bugger all.

Good - just what I'd hoped for, a decrease in HPI.

(BTW, onomatapoeia means a word sounds like its meaning)

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Interesting graph, Causal Onomatapia, but it looks to me as if the change in the specified time period ('last four years') is from

135k to 190k.

Hardly a 'doubling'.

and since mid 04 its...

175k to 190k

bugger all.

Agree.It seems as though hpi has doubled in 6 years not 4.

But disagree that £15k is bugger all, not to ftb's. That's their adeposit wiped out straight away. £7.5k/year is better than a kick in the.........

This trend must be worrying for bears http://www.houseprices.uk.net/graphs/

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Agree.It seems as though hpi has doubled in 6 years not 4.

But disagree that £15k is bugger all, not to ftb's. That's their adeposit wiped out straight away. £7.5k/year is better than a kick in the.........

This trend must be worrying for bears http://www.houseprices.uk.net/graphs/

Enworb has a point - to make 7.5k in interest you'd need 150k offshore. Or nearly 300k onshore.

However, that rate of growth doesn't cover the transaction costs. So those people are still effectively negative, I'd say.

Phew. Glad I'm out.

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Agree.It seems as though hpi has doubled in 6 years not 4.

But disagree that £15k is bugger all, not to ftb's. That's their adeposit wiped out straight away. £7.5k/year is better than a kick in the.........

This trend must be worrying for bears http://www.houseprices.uk.net/graphs/

It is bugger all if you borrowed the money and left it in your bank accout you would have made more.

£175,000 in 2004

to

£190,000 in 2006

If I were an FTB and had a £20,000 deposit in 2004, and I put it in a savings account @ 5% then by 2006 I would have £22,050.

As a percentage of the average price, my deposit in 2004 would have been = 20,000/175,000 = 11.43%

in 2006 it would be 22,050/190,000 = 11.61%

Having done zero work my property purchasing power has increased by 0.18% in 2 years and I have saved no more money beyond the original £20,000 at all.

I would have no debts, no mortgage and yet I would have moved up this 'ladder' 0.18%.

I may even have saved the £1000 pcm I was going to spend on mortgage repayments, meaning I would now have ~£46,650 or 24.55% of the 2006 value (having saved £44,000).

Lets say the guy who bought also had a £20,000 deposit and borrowed £155,000 @ 6% over 25 years, total repayable = £303,000. So in 2006 (having outlaid £44,000) he would own 14.5% of his property.

So the man who bought, owns 14.5% of his house after two years and at the cost of £44,000 (@ 2004 price of £175,000).

The man who saved, has the cash equivelent of 24.84% of the same house after two years also at the cost of £44,000 (@ 2006 price of £190,000).

If these numbers look odd to you, thats because you don't understand compound interest, one man is fighting it, the other is enjoying it.

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It is bugger all if you borrowed the money and left it in your bank accout you would have made more.

If I were an FTB and had a £20,000 deposit in 2004, and I put it in a savings account @ 5% then by 2006 I would have £22,050.

Where would you have lived though?

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It is bugger all if you borrowed the money and left it in your bank accout you would have made more.

£175,000 in 2004

to

£190,000 in 2006

If I were an FTB and had a £20,000 deposit in 2004, and I put it in a savings account @ 5% then by 2006 I would have £22,050.

As a percentage of the average price, my deposit in 2004 would have been = 20,000/175,000 = 11.43%

in 2006 it would be 22,050/190,000 = 11.61%

Having done zero work my property purchasing power has increased by 0.18% in 2 years and I have saved no more money beyond the original £20,000 at all.

I would have no debts, no mortgage and yet I would have moved up this 'ladder' 0.18%.

I may even have saved the £1000 pcm I was going to spend on mortgage repayments, meaning I would now have ~£46,650 or 24.55% of the 2006 value (having saved £44,000).

Lets say the guy who bought also had a £20,000 deposit and borrowed £155,000 @ 6% over 25 years, total repayable = £303,000. So in 2006 (having outlaid £44,000) he would own 14.5% of his property.

So the man who bought, owns 14.5% of his house after two years and at the cost of £44,000 (@ 2004 price of £175,000).

The man who saved, has the cash equivelent of 24.84% of the same house after two years also at the cost of £44,000 (@ 2006 price of £190,000).

If these numbers look odd to you, thats because you don't understand compound interest, one man is fighting it, the other is enjoying it.

You're right, the numbers look odd if not a little complicated.

Simply question. Could this imaginary person have saved £15k in 2 years and been able to live at an equal standard, ie not with parents?

I know I couldn't ;)

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You're right, the numbers look odd if not a little complicated.

Simply question. Could this imaginary person have saved £15k in 2 years and been able to live at an equal standard, ie not with parents?

I know I couldn't ;)

Sorry didn't give any thought to much other than the economics/finance behind the decision.

Assume both are buying/not buying second properties. Or assume both are small businesses looking to expand into a second premises.

The truth is bank accounts are more profitable than property and bank accounts are historically the lowest yield, lowest risk venture around.

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Sorry didn't give any thought to much other than the economics/finance behind the decision.

Assume both are buying/not buying second properties. Or assume both are small businesses looking to expand into a second premises.

The truth is bank accounts are more profitable than property and bank accounts are historically the lowest yield, lowest risk venture around.

Not once did you refer to R-E-N-T.

Nor did you state where you could get a guaranteed 5% return NET OF TAX.

I may be a bear but sloppy maths like yours is an embarrassment. Believe it or not there are actually areas where mortgages are markedly less than rents for the same property types.

It depends a lot where you live, and various personal circumstances.

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Not once did you refer to R-E-N-T.

Nor did you state where you could get a guaranteed 5% return NET OF TAX.

I may be a bear but sloppy maths like yours is an embarrassment. Believe it or not there are actually areas where mortgages are markedly less than rents for the same property types.

It depends a lot where you live, and various personal circumstances.

Probably because I wasn't talking about rent or tax.

I thought I was talking about bank account yields and hpi? I was saying how prices rising from £175,000 to £190,000 was not as significant as some thought.

The rent aspect is covered in the first part of what I said, where the first individual does not add to his deposit (leaving him £1000pcm to pay the rent) but still moves closer to being worth 100% of the average house price (mainly because in this example IR are higher than HPI). I apologise if that realisation was a step too far for anyone, I don't usually feel the need to patronise anyone here, I will hold you hand when talking through future points.

And here is a regular saver account with a maximum investment of £1000 pcm @ 6.4% Net APR.

See HSBC Bank PLC, Regular Saver 2.

http://www.moneysupermarket.com/savings/SavingsResults.asp

When I do 'maths' I always use data that is biased against the point I am trying to show (use bullish data to show a bearish point). I always felt this added strength to a point.

Sorry if I have caused you any embarrassment, but I suspect you're quite familiar with the feeling?

.

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Sorry if I have caused you any embarrassment, but I suspect you're quite familiar with the feeling?

.

I would guess from the strength of his attack on you, embarrassment is a way of life.

As for Caustic Onanist, yes, the owner could indeed move back in with mum and rent out his house.

But could he cover the mortgage with the rent?

That's the point you both missed.

("Nice one PG! That showed 'em!)

In most parts of the UK right now, no.

And before you bang on about 'depends when he bought' this refers to current actions, not historical.

After all, I remember a newspaper article about Felix Dennis, one of the richest men in the UK, keeping a 1 bed flat in Soho because he'd rented it in the 60's, it was rent controlled, and costing him £10 a week or some such.

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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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