Monday, December 8, 2014

Completely wrong idea

Young people need houseprice rises

Of course what they actually need is price falls as the next step gap DECREASES...in the 90s nadir they Solved the nequity problem with nequity loans

Posted by taffee @ 12:43 PM (2677 views)
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14 thoughts on “Completely wrong idea

  • Yes, especially if they work for Foxtons!

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  • Thank goodness we didn’t buy until our last year. Had we taken a punt on a 1 bed place before we had kids we would have been stuffed.

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  • This article truly beggars belief! So, 63% of youngsters think their property can go up while others remain static in price? Madness!

    It should read: ‘A growing number of people would like all houses in the UK to be free. The only people who don’t are those with a vested interest, either because they want to profit from the sale of one or more houses themselves, or are paid to carry advertising by those people.’

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  • Bobby Dazzler says:

    frustrated middle movers, first time buyers unable to got a foot up. the top end starting to ‘top out’ (apart from Vanity London Pad purchases of super rich of course) interest rates at historic low, limited stock HTB to help shift new builds, the question is really, Is there a market here at all? i am thinking that some areas are still overvalued by 30%.

    I almost cannot believe what I have read This article is almost on another planet!! it is almost like it is a rite of passage just to seamless keep getting bigger and bigger properties.

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  • Again, totally wrong. Yes, first time buyers need affordable prices, but second time buyers need equity rise with higher house prices because they can leverage equity via a larger deposit. Stamp duty changes have made that process easier.

    First time buyers need balls. The article shows that those who have property have compromised on location, size and outdoor space. Soon as they get equity, they buy their way out of those compromises, but those compromises have got them on the ladder. This is my point, we chose the cheaper part of Enfield as a huge compromise in location, but the size of property and outdoor space is not a compromise. Our next move is to resolve the location compromise, whereas others closer to town will move to their second home to resolve the size of property compromise.

    So, go compromise, and then benefit from equity, both from property value rises and from paying down the mortgage. Just do it, for goodness sakes! There is a property for everybody if only you would make that compromise to get on the ladder.

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  • sibley's b'stard child says:

    There’s nothing more pathetic than a HPCer turning pro-HPI.

    For the record I’ve joined the ranks of beautiful homeowners. I’m still hoping for a crash though.

    In other news turkeys vote for two Christmas per year.

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  • +1 sibley’s b’.

    I am also joining the homeowners/bank renters again, but still hope for a rate rise & sensible prices.

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  • Khards, prices were this high with 5% rates in 2007. Prices fell when rates plunged.

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  • @libertas – it depends where you live. Prices down here in Somerset are at 2004 levels primarily because wages haven’t risen for the 99% and living expenses have gone up resulting in zero inflation over a decade.

    London is different as financial sector and related area wages are in a massive bubble.

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  • Khards, if you’d owned since 2008, despite prices not rising, you could have paid off, say, £5k per year on a £250k mortgage, so may have amassed £35k equity. That is down-payment for a larger house, providing 10% deposit for £350k further borrowing.

    Alternatively you could have paid that money for a BTL landlord’s down payments.

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  • Seeing all these folks turning bullish on housing is quite wonderful. Top of the market too.

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  • Libertas – I don’t think think you get it, there is only one ratio that matters in property and that is average wages v average property prices. First time buyers make the market move, without a first time buyer there is no chain. You flippantly commented on this in comment 3 about first time buyers needing lower prices, well unfortunately the majority of those first time buyers are already priced out of the market.

    To get on the housing ladder those first time buyers are having to borrow ratios which far exceed the long term average which makes them over leveraged in a period of abnormally low interest rates. Rates will go back to the long term average of 5%+ but that will break those first timers financially. Now that rate rise could be 20 years away, you don’t know and I don’t know, but one things for sure it means check mate in the property market and the market stops moving.

    Banks are fighting to lend their money at lower and lower rates, of course they are, because theres a smaller and smaller number of customers as each quarter goes by!

    In Derby where I live the market has virtually stood still for months, apart from the rental type smaller properties, everything above a 3 bed has just stopped selling, the same houses have been on month after month.

    The only thing which we break the stalemate is if wages rise considerably and that aint happening any time soon, in fact I would argue they will go down yet further.

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  • Is this a Daily Mash headline?

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  • Have you actually bought a house yet libertas? – to justify your shameless volte face

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