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It Is Friday And House Prices Are Supposedly Up Again


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I am a bit sick of this by now and really thinking I should have mortgaged up to the neck and moved up the ladder in 2003. I know all the arguments for a hpc and I believe them in theory but this bear has had enough. I am really now wondering if it will actually happen...

S.

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I am a bit sick of this by now and really thinking I should have mortgaged up to the neck and moved up the ladder in 2003. I know all the arguments for a hpc and I believe them in theory but this bear has had enough. I am really now wondering if it will actually happen...

S.

house prices increase 10% YoY

see graphs in many other threads.

Get mortgaged and get in the game.

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house prices increase 10% YoY

see graphs in many other threads.

Get mortgaged and get in the game.

Yeah thanks but that does not really help that much because logically all the arguments for the bubble seem to me to stand but it just isn't happening. As it happens, I am "in the game" as you put it to the extent of being an unmortgaged owner just wanting to move up.

S.

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Media brainwashing at its best, this is why there's always a surge of people buying in before it all implodes!

That may well be the case but many people on here (myself included) have been saying that for a long while. It is not all media brainwashing that house prices have risen sharply in most areas over the last few years, however unpalatable.

S.

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Yeah thanks but that does not really help that much because logically all the arguments for the bubble seem to me to stand but it just isn't happening. As it happens, I am "in the game" as you put it to the extent of being an unmortgaged owner just wanting to move up.

S.

A bit frustrating when a move up the ladder puts you back in the same position as a 100% mortgaged individual of ten years ago,when you have conscienciously cleared your debts.Bit of a bummer too when you realise Merv is underwriting the crash.....no other explanation for yesterday's debacle.The darkest hour suddenly got darker .

Edited by crashmonitor
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Yeah thanks but that does not really help that much because logically all the arguments for the bubble seem to me to stand but it just isn't happening. As it happens, I am "in the game" as you put it to the extent of being an unmortgaged owner just wanting to move up.

S.

If you want to move up but dont want to take on too high a mortgage why not rent yours out and live in a bigger house until the crash.

Seems you just want a moan.

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Guest Popalot
I think a lot of us are fed up because January really looked like something was going to happen.

Our faith is being tested, O brothers.

Lord, we call upon you to send us a sign in our doubt and darkness

:(

Worry ye not. The MPC, acting under instructions (or Mervyn's flat in Nottting Hill) are making the whole denoument even more sticky. I have started embracing "hold" decisions as they are a sign of terror.....

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That may well be the case but many people on here (myself included) have been saying that for a long while. It is not all media brainwashing that house prices have risen sharply in most areas over the last few years, however unpalatable.

S.

Being mortgage free, can you save more per year than your next type of property is inflating?

If you can then there's nothing to worry about. I plan to pay off my mortgage (after moving into my btl) withing 3-4 years. After that I may stay put and save hard. I don't think the next rung up will inflate by the amount i'll be saving...not by then anyway.

But it is only a plan. Like many others, it is not entirely in my own hands.

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I am a bit sick of this by now and really thinking I should have mortgaged up to the neck and moved up the ladder in 2003. I know all the arguments for a hpc and I believe them in theory but this bear has had enough. I am really now wondering if it will actually happen...

S.

Scooter

It's not gunno happen!!

Certainly not in the way that some of the people here think..

Like many people, I used to take this forum and website very seriously, but then years passed, and things carried on regardless. The problem... is that if you look at the non-inflation-adjusted version of the graph from the front page, you will see that in the previous 'crashes', in general house prices didn't actually drop, instead they just slowed down. Certainly there was no plummet (in general).

If you show the not-inflation-adjusted picture to people, I am sure that the overwhelming majority would use the old axiom "house prices never fall"... and they would have good reason to use that.

If this time things are the same as before... what we will find is that house prices slow down, and then when inflation catches up, house prices shoot up again. There are too many people that are prepared to jump-on, if house prices were to drop even slightly.

If I had listened to the opinions on this forum, I would have STR a couple of years ago and lost out on the gained capital of my house. Instead, I sold and bought a step-up the ladder 4 months ago.. when it was convenient for me. Meanwhile the housing market in my area has continued unabaited.

In conclusion. Most of the really vocal people on this forum are as vested in their interests as the likes of Kirsty Allsop. They just come from the opposite end of the spectrum, and both sides are equally blind to the true middle-picture.

I think you should just get on with your life.

If you need to upgrade your house (for real life reasons.. like having a child)... then do it

If you need to sell (for real life reasons like taking a 3 year round-world trip)... then do it

If you need to buy, then buy

If you cannot afford to buy... then saver.

and so on..

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If you want to move up but dont want to take on too high a mortgage why not rent yours out and live in a bigger house until the crash.

Seems you just want a moan.

Too right I want a moan! :angry: :lol: I have considered renting mine but I am not sure I want the hassle of dealing with tenants and tax complications of letting a former main residence. Perhaps I will just leave it empty and watch it go up in value for ever and ever...

S.

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Media brainwashing at its best, this is why there's always a surge of people buying in before it all implodes!

'Always', huh?

What if this surge lasts another 10 years? What then?

If youre not considering possibilities like that then youre a mug.

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I think a lot of us are fed up because January really looked like something was going to happen.

Our faith is being tested, O brothers.

Lord, we call upon you to send us a sign in our doubt and darkness

:(

I do feel a bit like a cult member-where is the rapture when you want it? :lol:

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'Always', huh?

What if this surge lasts another 10 years? What then?

If youre not considering possibilities like that then youre a mug.

Doubt it is sustainable that long,another seven years at the present rate would bring them up to 400K,where will wages be(no more than a third higher at best) say 33K from 25K.Is that supportable(12 times)?There again I never thought 8 times would be.

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Too right I want a moan! :angry: :lol: I have considered renting mine but I am not sure I want the hassle of dealing with tenants and tax complications of letting a former main residence. Perhaps I will just leave it empty and watch it go up in value for ever and ever...

S.

Whats more important to you - avoiding the renting hassles or living in the bigger house you want?

Go on go for it!

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Being mortgage free, can you save more per year than your next type of property is inflating?

If you can then there's nothing to worry about. I plan to pay off my mortgage (after moving into my btl) withing 3-4 years. After that I may stay put and save hard. I don't think the next rung up will inflate by the amount i'll be saving...not by then anyway.

But it is only a plan. Like many others, it is not entirely in my own hands.

I probably can overtake house price inflation through saving but I remember the last crash and it would just be my luck, after putting off moving up for years, to go for the big one (much larger house/flat) just in time for the bubble to burst. Who can know? This could be the same or worse in a years time or the bears could all be celebrating. Hmmm...

S.

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Whats more important to you - avoiding the renting hassles or living in the bigger house you want?

Go on go for it!

It is certainly an option. God but have you seen the price of houses in NW3 (Belsize Park/Hampstead Nth London)? Shocking...really.

S.

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I probably can overtake house price inflation through saving but I remember the last crash and it would just be my luck, after putting off moving up for years, to go for the big one (much larger house/flat) just in time for the bubble to burst. Who can know? This could be the same or worse in a years time or the bears could all be celebrating. Hmmm...

S.

Sods law that prices will crash if you go for it and rise if you don't,my philosophy anyway.Like you I can just about keep pace with the average house if I stay out of the market,earning about 15K net interest on my savings;but if it was in property that could be higher assuming its continued stellar performance,which I doubt.

Edited by crashmonitor
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Scooter

It's not gunno happen!!

Certainly not in the way that some of the people here think..

Like many people, I used to take this forum and website very seriously, but then years passed, and things carried on regardless. The problem... is that if you look at the non-inflation-adjusted version of the graph from the front page, you will see that in the previous 'crashes', in general house prices didn't actually drop, instead they just slowed down. Certainly there was no plummet (in general).

As a survivor of the last crash let me give you some figures to chew on.

I lived with a friend in a 3 bedroom flat in Chiswick. He bought it for £110,000 in 1987. At the peak of the house price boom he had it valued (for MEW to fund a gap year) at £190,000 and indeed similar properties in the road sold for £190,000 in that year (1999/2000). But by the time he came to sell in 1991/2 he only got £105,000.

He only lost £5k but from the perspective of an overstretched borrower who bought in 1999 the value of their propertiy halved.

I haven't seen the graph recently but there was an image from the telegraph or somewhere that documented the falls in London, they were real and worst in places like Chiswick and below. Chelseas etc did quite well but places like Clapham, Stockwell and the gentrified rougher areas were slaughtered.

I was there, I saw it and lived it. Put an end to the no real falls myth.

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The smart money got out last year all those dodgy assets passed onto greater fools.

Be patient.

Thats what people claim, but people will always be selling up and getting out of the "game" whilst other people get in. This is a pretty normal cycle. I know dozens of "smart people" who have been buying since the 80's and have rarely sold who are multi £££ - incidently will still buy if they find something worthwhile, not just with equity wealth either btw

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