Wednesday, Oct 14, 2009

House price inflation by suppressing savings

Daily Express: £1,000 A MONTH SURGE IN PRICE OF AVERAGE HOME

First paragraph: "THE property market is starting to shrug off the effects of the recession after it was revealed that house prices are rising by up to £1,000 a month." sounds very bullish but later the article states: "By 2014 prices should be back to their 2007 peak – up 21.5 per cent on current values." which is roughly equivalent to 4% per annum compounded over 5 years after tax, by my calculations. In other words, if savers could get a decent return, houses wouldn't be good investments.

Posted by quiet guy @ 09:10 AM (2120 views)
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16 Comments

1. mark wadsworth said...

Well that's all right then. If they going up in value we won't need to build any new ones, will we?

Wednesday, October 14, 2009 09:46AM Report Comment
 

2. Neil B said...

Wheres all the credit coming from to buy these houses?

Wednesday, October 14, 2009 09:58AM Report Comment
 

3. japanese uncle said...

Those genuinely ignorant who join this propaganda rubbish without any knowledge in the historic past are forgivable. But those who do this with the full knowledge of what happened in the past are guilty beyond words.

Wednesday, October 14, 2009 10:10AM Report Comment
 

4. crunchy said...

Many people can't get their heads around the idea of this boom being engineered.

What is happening now is engineering at it's most obvious. Yes it does happen folks! Are you finally getting it?

Wednesday, October 14, 2009 10:22AM Report Comment
 

5. mrflibble said...

Confidence in the market is at a two-year high with almost 80 per cent of home owners believing prices will rise in the next six months.

Only in the UK can this be the case with unemployment touching a 14-year high.

Wednesday, October 14, 2009 10:31AM Report Comment
 

6. happy mondays said...

"For every force there is an equal and opposite force" Newton
"Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe." Einstein

Wednesday, October 14, 2009 11:09AM Report Comment
 

7. crunchy said...

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6319330/Lloyds-Banking-Group-plans-to-sell-200-strong-Halifax-Estate-Agents-to-LSL-Property-Services-for-about-10m.html


Yeah things are looking so good!

Wednesday, October 14, 2009 12:08PM Report Comment
 

8. icarus said...

If the gullible believe this ramping where does that lead? Would-be buyers would want to buy now, but would-be sellers would want to hold out.

Wednesday, October 14, 2009 12:43PM Report Comment
 

9. icarus said...

......so higher house prices based on smaller and smaller volumes.

Wednesday, October 14, 2009 12:50PM Report Comment
 

10. estrader said...

@7 Icarus

Exactly, all I keep hearing and reading is that "Now is a good time to buy", nobody ever seems to say "Now is not a good time to sell"...but you can't have one without the other. I am selling, am I right or wrong?

Wednesday, October 14, 2009 01:41PM Report Comment
 

11. mark wadsworth said...

Estrader, exactly.

Wednesday, October 14, 2009 01:59PM Report Comment
 

12. will said...

You all forget we live in a two-tier society. The bankers are still getting their bonuses. The rest of us are irrelevant.

Wednesday, October 14, 2009 03:07PM Report Comment
 

13. timmy t said...

Only in a country full of thick people could rising house prices be considered a good thing - We all need to live somewhere. The only reason it could be good is if you want to sell and rent (How many seriously want to do that?), or if you want to MEW in which case you are a tw@t. If we had cheap houses we'd have more disposable income. Why, for the love of God are people so obsessed with having inflated house prices so they feel rich. YOU'RE ONLY RICH IF YOU SELL IT AND IF YOU DO THAT YOU WILL BE HOMELESS.

Wednesday, October 14, 2009 03:33PM Report Comment
 

14. Capt. Picard said...

to stick to the Einstein theme...

“We can't solve problems by using the same kind of thinking we used when we created them.” Einstein

(someone pls tell McBroon)

Wednesday, October 14, 2009 04:57PM Report Comment
 

15. happy mondays said...

timmy t said YOU'RE ONLY RICH IF YOU SELL IT AND IF YOU DO THAT YOU WILL BE HOMELESS.
Unfortunatly it's the harry Enfield Syndrome http://www.youtube.com/watch?v=AHo2pXO_XAI

Wednesday, October 14, 2009 05:02PM Report Comment
 

16. tenyearstogetmymoneyback said...

mrflibble

Why would anyone be worried about jobs when house prices are going up £1000 a month ?
Just buy a couple of Buy To Lets and as the Inside Track adverts said "Its life on easy street" :-)

Wednesday, October 14, 2009 07:14PM Report Comment
 

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