house prices always go up…
MSP, well aware of that, but 9 years takes to before the crash, and actually before the prices got silly.
I am buying it as a place to live, security not having to pay rent etc, so it is not as though you loose. As i said just made me think, all the property porn shows and mags etc. extolling the virtues of investing all your money in BTL, houses etc.
and yes houses are still over priced but in whose interest would a correction be? and do those people matter?
sadly the young don’t matter, and they can’t offer directorships with cushy perks.Posted 4 years agosamuriMember
My house was once valued at 138k. Now, if i ply the estate agent with gin i can get 100k.
Ditto but if we could get 100k for our house we’d probably accept the offer.
On the upside we’ve just bought a house for well under 200k that was probably valued at 250k at one point.Posted 4 years agoMoreCashThanDashSubscriber
Bought my first house in 1990, paid £36k for it, £6k of which was my own hard saved money. I was only 21 at the time. It was the house or a second hand MR2.
Sold the house in 1995 for £30k. Always knew it should have been the MR2…….
I’m sure I wasn’t the only one caught in that crash. Which makes me wonder what kind of feckwits were running the banks/economy in the 15 years since to not know that there is a fairly predictable cycle to all this and that it would happen again at some point.Posted 4 years ago
They’ll always be bubbles and those bubbles will always burst, in the long term (30 years +) I’m happy to believe in property being a sound pension option. In the meantime we’re still paying a mortgage at a rate we fixed in 2006 for 8 years. Probably not our best move in hindsight…
Cheers,Posted 4 years ago
Prices do NOT always go up. But you need to be of a certain age in the UK to remember the early 90’s when we last had a serious price crash (not excusing 2008 but it doesn;t seem to have been that bad).
The Economist reckons prices are still c 30% overvalued against rents and wages and if interest rates weren’t being held silly low then we would have seen more of a correction in recent years.
Personally whilst I like capitalism and free markets more than the alternatives, I’m not sure a market is really the best way to ensure people have somewhere to live securely, given current circumstances… if few people can afford a house then the market’s not workingPosted 4 years agovanilla83Member
Drac – Moderator
Zoopla will tell you what it has been bought over the years.
Be careful trusting Zoopla; its normally wrong especially their “valuation” prices. They get their sold data from weird sources (not always LR) and its manipulated frequently. Mouseprice is far better (just create a free account).Posted 4 years agoscotroutesSubscriberbrooess wrote:
Personally whilst I like capitalism and free markets more than the alternatives, I’m not sure a market is really the best way to ensure people have somewhere to live securely, given current circumstances… if few people can afford a house then the market’s not working
The market would work a lot better if we weren’t handing taxpayers money over to private landlords.Posted 4 years agoKryton57Subscriber
If you over pay , then you will lose long term.
Is this true? I’m busy saving for overpayment on the basis that:
A) we can finish our mortgage earlier
B) it lowers the monthly payments, so if either of us are forced to a lower income it makes life more affordable.
Should I be spending my cash on enjoying life instead?Posted 4 years agob rMember
1986 Bought £21k
1987 Sold £30k
1988 Bought £30k
1988 Sold £40k
1989 Bought £47.5k – went down, before going back up
1997 Sold £52k
2000 Bought £150k
2012 Sold £250k – had been as high as £290k in mid 2008
Not too bad, on paper – but still see a house as somewhere to live.Posted 4 years agomikewsmithSubscriberHo wrote:
In the long run they do, but in the short run they don’t!
and how long the long run is no one knows…
If house prices out run pay rises then it won’t end well. As a few have pointed out affordability isn’t there currently and the prospect of tieing up a huge amount of money in a house with uncertain prospects is putting plenty off.
The other factor is that your house is only worth something when there is someone willing to actually give you money for it.
As a controversial point of view a period of zero growth or falls would probably be a good thing long term to reset the market back to somewhere affordable and sensible. On the other hand with less jobs for life and greater mobility then home ownership might not be the best for some people as you wipe out your cash each time you move with fees & taxes or end up with a chain of rental properties.Posted 4 years ago
The topic ‘house prices always go up…’ is closed to new replies.