Friday, April 13, 2007

House price rises slow

House price rises show signs of slowing

"The London housing market continues to display considerable vigour but price rises in much of the country are more subdued, the latest FT house price index shows."

Posted by royston @ 12:01 PM (433 views)
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One thought on “House price rises slow

  • Fahrenheit451 says:

    They mention a rate of inflation of about 7% for house prices.
    Using compound interest that means that they will go up 100% in 10 years.
    Sounds about right for a sensible inflationary figure. So …
    1) This puts interestes on loans at about 8%
    2) Allowing a margin for profit, savings get an interest rate of 6%

    Spot on … Here we go … 8% mortgage rates are just round the corner.
    But what about all those who maxed out on mortgages 3 yrs ago. There will be a crash, “But we will survive” etc.

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