House prices and rents post-GE 2015

Fretwired

mellowsun said:

Fretwired;" said:

The Tories are going all allow housing associations to sell off properties and keep the money to build new properties - they will also make up the shortfall. The turnover of HA properties is low .. if people can afford to buy it frees up cash to build a new property that can be let. There are a lot of people in council houses who could afford to buy such as the late leader of the RMT Bob Crow who earned £160K per annum and a couple of high-profile Labour MPs.

I'm not sure why selling off council houses at 100k discount is going to help here.

If Bob Crow et al can afford to buy then they should pay full market rate, I don't see why they should get further taxpayer subsidies to buy their council home.

They've paid rent .. it's an incentive to take the next step. Not saying it's right just pointing out that the aim is to replace the houses sold. In the 1970s I worked for a council - once you had a council house you had it for life and could pass it on to your kids. The net result was long waiting lists and no housing stock turn.

Sambostar

The net result was long waiting lists and no housing stock turn.

Same as today then.

capo4th

If you own a house or two then obviously you want prices to go up in value. If you don't own one then you probably want to buy one and want house prices and rents to fall. 

We saved hard for 4-5 years to get a deposit together then sold and bought at good times and I won't apologise for wanting my asset to appreciate having paid so much mortgage interest. 

We live on a small island it's simple supply and demand prices will rise in the long term.

thomasross20

Why are rising prices good for you though unless you're going to downsize? If you want to buy a bigger place it will cost you even more!! So basically it is an I'm alright jack situation as you've admitted, even though years prior you'd have preferred lower prices as you didn't own at the time. I'm not being nasty but don't you think that's a bit selfish? Similarly, I can't apologise for wanting the whole thing to come crashing down. Honestly I hate it with a passion.

sweepy

The only way my twins could afford a house, is if we both peg it and they get the money from the house sale, I can't see them getting the best part of £300k together for a  mortgage with the wages/salaries on offer

Drew_TNBD

sweepy said:

The only way my twins could afford a house, is if we both peg it and they get the money from the house sale, I can't see them getting the best part of £300k together for a  mortgage with the wages/salaries on offer

Where I'm from, peg it means to run really quickly. So your statement is confusing to me.

sweepy

Aha , well to us Soft Southerners it means , to shuffle off this mortal coil, be no more, knock on Peters Pearly Gates etc etc

Drew_TNBD

sweepy said:

Aha , well to us Soft Southerners it means , to shuffle off this mortal coil, be no more, knock on Peters Pearly Gates etc etc

And to the Northerner's it means female to male butt secks.

sweepy

Well there ya go

Hertz32

and to those from the midlands it means a rather distasteful combination of the two...

mellowsun

thomasross20;628663" said:

Why are rising prices good for you though unless you're going to downsize? If you want to buy a bigger place it will cost you even more!! So basically it is an I'm alright jack situation as you've admitted, even though years prior you'd have preferred lower prices as you didn't own at the time. I'm not being nasty but don't you think that's a bit selfish? Similarly, I can't apologise for wanting the whole thing to come crashing down. Honestly I hate it with a passion.

Simple answer: leverage. You take out a 100k mortgage, in 5 years the house value has doubled so you borrow another 100k against it as a deposit on property number 2 which you rent out. Rinse and repeat until you have half a dozen properties.

strtdv

mellowsun said:

Simple answer: leverage. You take out a 100k mortgage, in 5 years the house value has doubled so you borrow another 100k against it as a deposit on property number 2 which you rent out. Rinse and repeat until you have half a dozen properties.

This is pretty much why it all hit the fan so badly first time round.

octatonic

strtdv said:

mellowsun said:

Simple answer: leverage. You take out a 100k mortgage, in 5 years the house value has doubled so you borrow another 100k against it as a deposit on property number 2 which you rent out. Rinse and repeat until you have half a dozen properties.

This is pretty much why it all hit the fan so badly first time round.

No it did not.

The problem is when people take out mortgages that don't earn them money.

Mortgaging a property with a 2-5% interest rate to buy another property that generates a 10-12% return isn't a problem.

Mortgaging a property and spending the money on holidays, or renovating, or other non-profit generating stuff is where people get into trouble.

Especially in a downturn when you find yourself out of work.

mellowsun

strtdv;629080" said:

mellowsun said:

Simple answer: leverage. You take out a 100k mortgage, in 5 years the house value has doubled so you borrow another 100k against it as a deposit on property number 2 which you rent out. Rinse and repeat until you have half a dozen properties.












This is pretty much why it all hit the fan so badly first time round.

Maybe, but risk has now been removed from the system and shifted onto the taxpayer. Quantitative easing and permanent, zero interest rates mean there is no risk now to either the banks or for those who loaded up on debt.

ToneControl

sweepy said:

The only way my twins could afford a house, is if we both peg it and they get the money from the house sale, I can't see them getting the best part of £300k together for a  mortgage with the wages/salaries on offer

Not if they want to live in the South East, where supply has been constrained, and demand has risen vastly

It's a fantasy to imagine this was caused by BTL, as some claim

I had a look yesterday at houses near me in an affluent part of Cheshire, with many jobs nearby. Unemployment is very low here, 2.3%

So, the asking prices are: 

a nice semi-detached one-bed bungalow £100k

Detached 4 bed £200k

detached 3 bed £155k

semi 3 bed £150k

1990s modern 2 bed terrace £115k

Supply and demand also drive prices up in the North west, but much less so in county towns

In Liverpool, you can buy 2 bed terraces for £40-£50k

If I was born down south, I would have moved away as soon as possible to somewhere affordable, rather than trying to compete against more and more people for the properties around London. There is collusion to oppose house building, and prices go up to stupid levels.

holnrew

At least they're investing in the North, with the Northern rail hub planned and other boosts. 

capo4th

I moved down south from the north 20 years ago. Friends in the north are delighted to make £10000 on a property it's a different ball game down south....

Sambostar

Like I said 2000 purchase price £270k  Unsaleable in 2005 for £550k.  Sale price within two weeks in 2015 £925k.

I'm just waiting for the council to put the rates up.

WezV

thomasross20 said:

Why are rising prices good for you though unless you're going to downsize? If you want to buy a bigger place it will cost you even more!! So basically it is an I'm alright jack situation as you've admitted, even though years prior you'd have preferred lower prices as you didn't own at the time. I'm not being nasty but don't you think that's a bit selfish? Similarly, I can't apologise for wanting the whole thing to come crashing down. Honestly I hate it with a passion.

I want the value of my house to rise, for me its security.  you never know when you might hit hard times and have to sell up, or might need to remortgage to fund something else essential

I brought my second house last year.  Its a 3 bed victorian semi that cost £145k.  £130k of that is mortgage.  The other £15k came from the sale of my old house which was a 2 bed victorian terrace which sold for £82k 

My house has already gone up in value this year (we got it at a bargain price) which means if I am ever in the position I have to sell I will be able to pay off the mortgage and have a security blanket of extra cash  to tide me over.   If the house price suddenly dropped below £130k and I needed to sell I would be fucked!

I brought a house I think I could live in forever, but it doesn't mean I will be able too

This isn't the poor north either, although we are a bit industrial.... I live in Burton On Trent in in the midlands.  Apparently we have a high percentage of home ownership and low  percentage of unemployment.   We also have good transport links to most places.

capo4th

Every property owner wants their property to increase in value. I feel sorry for young people who will now find it impossible to get on the housing ladder in the South East. 

People moaning about it just make me laugh. Go and buy a terrace house in Liverppol for peanuts or a terrace in Richmond for a £million.

 Life is about choices and the decisions we take, moaning about it on the Internet will not help you move forward.