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House Prices Have Not Risen At All….your Just Imagining It… Seriously

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So you all think house prices have risen do you?

It cost roughly 55k to build a 3 bed semi in 1997

It now costs about 75k to build a 3 bed semi.

If you take 3% inflation per year into account, house prices have not gone up a single penny!

LAND prices have risen and it is vital that you understand this. To fix a problem you must first understand the problem.

Firstly I recommend you think of this site as LAND_PRICE_CRASH.co.uk

The land your house sits on has appreciated in value, not the bricks, not the mortar, the land it sits on. For further proof look at the price of a plot with planning permission for 3 beds 10 years ago, and look it now. A PERFECT MATCH TO so called HPI

Now that you understand it is land price inflation, the simple answer to fix this large problem is………

Release more land with planning permission. Increase supply and the prices go down

Simple, yet very few people even on this site understand this simple fact.

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So you all think house prices have risen do you?

It cost roughly 55k to build a 3 bed semi in 1997

It now costs about 75k to build a 3 bed semi.

If you take 3% inflation per year into account, house prices have not gone up a single penny!

LAND prices have risen and it is vital that you understand this. To fix a problem you must first understand the problem.

Firstly I recommend you think of this site as LAND_PRICE_CRASH.co.uk

The land your house sits on has appreciated in value, not the bricks, not the mortar, the land it sits on. For further proof look at the price of a plot with planning permission for 3 beds 10 years ago, and look it now. A PERFECT MATCH TO so called HPI

Now that you understand it is land price inflation, the simple answer to fix this large problem is………

Release more land with planning permission. Increase supply and the prices go down

Simple, yet very few people even on this site understand this simple fact.

...this does not include the price of land which is a rogue variable depending on location..... :o:o

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Are you drunk or just tired?

Explain yourself a bit more. What exactly do you mean by

...this does not include the price of land which is a rogue variable depending on location..... :o:o

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Are you drunk or just tired?

Explain yourself a bit more. What exactly do you mean by

..you stated:

"It cost roughly 55k to build a 3 bed semi in 1997. It now costs about 75k to build a 3 bed semi."

The cost of building a house does not usually include the cost of land... :rolleyes:

If you build that semi in Lochgelly and another in Kensington....there may be a variable in cost when you include the land.......... :rolleyes:

Trust this helps and if I have misunderstood your original despatch please clarify.... :rolleyes::rolleyes:

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..you stated:

"It cost roughly 55k to build a 3 bed semi in 1997. It now costs about 75k to build a 3 bed semi."

The cost of building a house does not usually include the cost of land... :rolleyes:

If you build that semi in Lochgelly and another in Kensington....there may be a variable in cost when you include the land.......... :rolleyes:

Trust this helps and if I have misunderstood your original despatch please clarify.... :rolleyes::rolleyes:

all property prices are linked. If flat prices drop they will drag house prices down with them. If house prices rise they will drag house prices up with them ect

If the price of a house in outer London drops it will drag down the price of a house in inner London ect

so building more houses in every major city but London, would actually still decrease London prices!

anyway, my point was, house prices have not increased, it is the land they sit on. which is true.

so release more land, and rents/prices will drop

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If you take 3% inflation per year into account, house prices have not gone up a single penny!

LAND prices have risen and it is vital that you understand this. To fix a problem you must first understand the problem.

Firstly I recommend you think of this site as LAND_PRICE_CRASH.co.uk

THIS MAKES GOOD SENSE TO ME - WELL SPOTTED.

Oops caps on again.

It goes to show how easily manipulated things can be as land prices are in effect a government issue IMO.

If one can manipulate as many variables as possible then the debt machine can go into overdrive and we'll have houses at 6 or 8 times salary - which we have.

Once this is reached it's crunch time and we are gonna see this crash happen. It's gonna be messy.

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Release more land with planning permission. Increase supply and the prices go down

Simple, yet very few people even on this site understand this simple fact.

Buy a copy of Fred Harrisons's "Boom Bust House prices, banking and the depression of 2010".

£25 from Amazon....

http://www.amazon.co.uk/Boom-Bust-Prices-B...n/dp/0856831891

He explains the relationship between house prices and land prices very clearly.

And you'll find that many people on this board have read his book, along with many others, so before you start making wild assumptions, do some reading yourself.

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Guest happy?

The land your house sits on has appreciated in value, not the bricks, not the mortar, the land it sits on. For further proof look at the price of a plot with planning permission for 3 beds 10 years ago, and look it now. A PERFECT MATCH TO so called HPI

Now that you understand it is land price inflation, the simple answer to fix this large problem is………

Release more land with planning permission. Increase supply and the prices go down

Simple, yet very few people even on this site understand this simple fact.

Simple, and entirely wrong. I can name one major south coast city (pop 250k) and one major south coast town (pop 85+K) where large tracts of land previously owned by the MOD have been disposed of for re-development. Consequence - massive increase in local house prices as luxury properties on these sites have driven-up values of other properties.

Like all simple solutions yours would be believed only by a simpleton.

There is a correlation between supply and demand: the trick is to understand that text-book theories are just that - a model by which we understand a problem - not the complete solution to how we resolve it.

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A good point, but you are totally wrong on the release of more land. It's not a supply of land problem the way you think, however it might explain why the UK have a bigger bubble than the US had, but it does not explain the high house prices Spain had then. The problem is supply of cheap money, driving up land prices, not restriction on Land. if you had been right, house prices in Spain would not be where they are today.

Edited by carseller

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One problem here:

I happen to know a piece of land here in Nottingham was sold for £1.5million last year which now has 42 2 bedroom flats on it. So you would think that the land price part of the equation would be £35k per flat plus the build cost of £35k (which i know is the correct value). So the build price is £70k and the selling price is £145k - where did the extra £75k come from? price of the land? No, sentiment, pure and simple.

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Guest Bart of Darkness
Like all simple solutions yours would be believed only by a simpleton.

:lol:

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A good point, but you are totally wrong on the release of more land. It's not a supply of land problem the way you think, however it might explain why the UK have a bigger bubble than the US had, but it does not explain the high house prices Spain had then. The problem is supply of cheap money, driving up land prices, not restriction on Land. if you had been right, house prices in Spain would not be where they are today.

Properties in spain have gone up 3 or 4 times in value, you'd have made a BIGGER PROFIT IF YOU BROUGHT OVER THEIR. Spain has so much land, its where the land is positioned and how many are after the land/house combined with cheap credit. Take away cheap credit and the amount of people wanting to buy a place in that area drops, that area will drop in price and it will have an effect on ajoining areas. If credit wasnt easy then people couldnt afford to pay that price.

What people forget is that spain you could have made much lager profits on property than in the uk. i can tell youi this because my parents have a few places over there and were brought cheap in 1999 and now the prices people are asking is crazy, example a 59k villa now worth 350k just in 7 years.

Edited by crash2006

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all property prices are linked. If flat prices drop they will drag house prices down with them. If house prices rise they will drag house prices up with them ect

If the price of a house in outer London drops it will drag down the price of a house in inner London ect

so building more houses in every major city but London, would actually still decrease London prices!

anyway, my point was, house prices have not increased, it is the land they sit on. which is true.

so release more land, and rents/prices will drop

.....yeah but....the builders make a lot of money just sitting on the land, speculating and at the right time 'when the price is right'....build on part and sell of pockets to other builders to finance the project.....nice work if you get the timing right... :lol::lol::lol:

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So you all think house prices have risen do you?

It cost roughly 55k to build a 3 bed semi in 1997

It now costs about 75k to build a 3 bed semi.

If you take 3% inflation per year into account, house prices have not gone up a single penny!

LAND prices have risen and it is vital that you understand this. To fix a problem you must first understand the problem.

Firstly I recommend you think of this site as LAND_PRICE_CRASH.co.uk

The land your house sits on has appreciated in value, not the bricks, not the mortar, the land it sits on. For further proof look at the price of a plot with planning permission for 3 beds 10 years ago, and look it now. A PERFECT MATCH TO so called HPI

youd have to be a proper retard not to realise this already.

has a light bulb just gone off in your head and you thought you should share this with everyone??

or is this post aimed to explain things to those that maybe even simpler than yourself...

Edited by mfp123

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