|
mav@octaval wrote: house prices never fall
Actually, falling prices is happening all over the USA.
Even where I live, a popular beach area, the prices have dropped $100,000 for a $400,000-$500,000 home. Basically, the selling price of homes for the middle-class is dropping.
The really expensive homes, bought by rich people, are unaffected as they still have all the money (I believe it was given them as a poor-judgement-bonus for bringing their employer to the edge of bankruptcy a few year ago).
| "The difference between genius and stupidity is that genius has its limits." - Albert Einstein | | "As far as we know, our computer has never had an undetected error." - Weisert | | "If you are searching for perfection in others, then you seek disappointment. If you are seek perfection in yourself, then you will find failure." - Balboos HaGadol Mar 2010 |
|
|
|
|
|
Norm .net wrote: Devaluation won't occur,
Have you been living on Jupiter for 4 years? 
It has happened already, not in London, admittedly, but other regions have seen drops of up to 30%, which is entirely expected in a market correction.
And yes, even if digit figure remain the same, the inflation brought on by QE will devaule house proces, but dont ecxpect much activity for at least 5 years.
Norm .net wrote: Nobody is prepare to take a drop - would you?
When unemployment kicks in and houses get repossesed, the 'owner' has no choice...
==============================
Nothing to say.
|
|
|
|
|
Erudite_Eric wrote: drops of up to 30%
Only in the northern wastelands.
London has still risen annually, and the south east in general has maintained a fairly even keel.
------------------------------------
I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave
CCC Link[ ^]
Trolls[ ^]
|
|
|
|
|
Dalek Dave wrote: Only in the northern wastelands.
And Wales.... 
Dalek Dave wrote: London has still risen annually
As always, those regions that saw the big increases just before the bust, see the biggest falls after.
Down here in Provence prices only came off about 5% at the worst and are back up to old levels so our place is still worth about 750.
==============================
Nothing to say.
|
|
|
|
|
Those losses are disproportionately concentrated in places where they were the worst excesses of the bubble, like those big shiny blocks of 'executive' riverside flats they put up in places like Leeds. I'm from the North (Yorkshire) and prices around us have been stable, roughly, since 2007.
|
|
|
|
|
True. Those that saw the bug rises prior to the crash dropped the most after.
==============================
Nothing to say.
|
|
|
|
|
Absolutely agree. As someone struggling to be a first time buyer its interesting (if you want a 'new' home), but a correction is necessary and this is just perpuating the stupid state of affairs we've got into over the last decade or two.
Regards,
Rob Philpott.
|
|
|
|
|
There's a reason it's only on new builds. Nobody who could afford to buy a house in the first place would actually buy one of these (unless it's buy to let). We currently rent a 2 bed detached new build, it's tiny, the walls a paper thin, parking in the entire area (apparently the biggest private development in Europe) is insane - partially due to inconsiderate neighbours, and partially due to moronic planning. We have a garage attached to the house which doesn't even belong to it! Ours is part of some communal plot of garages currently used for flytipping.
On top of that, because it's so "affordable", the area is quickly becoming a dive, my car has been vandalised twice, grafitti everywhere, and 3 burnt out cars so far this year.
He who makes a beast out of himself gets rid of the pain of being a man.
|
|
|
|
|
The UK?
My big concern about the inaffordability of house prices I saw in the UK with families increasingly forced to live in small, badly insulated (for sound) flats, with children having no garden to play in, and neighbours impingeing on each other purely because of the lack of space (ie stingyness of the developer) is the social issues and tension it causes.
It is unjust and unfair in every way, and governments must make it a basic right for a family to have accomodation of a decent size with propper facilities and it should enforce that through legislation.
==============================
Nothing to say.
|
|
|
|
|
Go and live in DR Congo, pleny of space for houses there.
|
|
|
|
|
Belgium and Holland have more land pressure than the UK yet manage to produce bigger homes.
The size of modern houses in the UK are inhuman.
==============================
Nothing to say.
|
|
|
|
|
Yep, specifically Peterborough.
It's frustrating for me and my missus, we're both young (25), in well paying stable jobs, very comfortably covering our rent. Our problem is the deposit. From what I can gather, we need something in the region of 40k for anything other than a new build. We're saving hard, but it's going to take a while, and in the mean time we throw our money away paying someone else's mortgage.
He who makes a beast out of himself gets rid of the pain of being a man.
|
|
|
|
|
What percentage is theat 40k, cant be 15% surely? (I mean, thats a super expensive house based on the assumption that lenders are looking for a 15% deposit these days).
Still, at least you have work.
On the continent renting is far more popular, thetre isnt the desire to own like in the UK.
Other interesting factors are legal debt levels. In France you cant be more than 33% of youyr net in debt. So if you take home 3k a month your total outgoings on loans cant be more than 1k.
You also need a good deposit, 15% is the norm. Plus mortgage terms are usualy 20 years.
ALl this keeps prices low, since the cash isnt there to push them up.
But it also means the owner has 66% cash each month to soend on what ever else he likes. So this actually benefits the economy since it is spent in restaurants, holidays, etc.
In the UK, where housing often takes up 50% of net, there is less cash to spend elsewhere.
You can see why I think the UK has gone badly wrong.
==============================
Nothing to say.
|
|
|
|
|
UK is rotten to the core, over population, high number of immigrants, too many people living off the goverment - it's a complete mess.
I hope to join the migrants club and get the hell off this island in the next 15 years.
|
|
|
|
|
Norm .net wrote: high number of immigrants
Norm .net wrote: I hope to join the migrants club
==============================
Nothing to say.
|
|
|
|
|
I could just be a politician 
|
|
|
|
|
I hope as an immigrant in another country, you are doomed to the same reception as you'd give them here.
(I doubt it though, the rest of world has more civilised attitudes to such migration in my experience).
|
|
|
|
|
I'm happy and welcoming for different ethnic groups to our country where there is business and jobs for them, what I don't agree with is the influx of immigrant who to come to our county for a free ride, leaching of the few people left who do work for a living.
|
|
|
|
|
You forgot that the garden is so small that if you have a barbecue you have to turn the food through the kitchen window.
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
|
|
|
|
|
That would be an interesting challenge in our house, the kitchen is at the front 
He who makes a beast out of himself gets rid of the pain of being a man.
|
|
|
|
|
Sounds good, I may give up my 74 foot back garden for that
|
|
|
|
|
and the smoke fumes the neighbours washing!
But anyway, at least it is something of a garden to muck around in. I hate what happened to Britain in respectof housing in the last 20 years. OK, we aparantly did well out of it, our place there is paid off and worth 130 streling, 15 down form the peak, but I feel very sorry for the social injustice the whole thing caused, and the financial mess it is responsible for us being in now.
==============================
Nothing to say.
|
|
|
|
|
Rob Philpott wrote: this is just perpuating the stupid state of affairs we've got into over the last
decade or two
Quite. It is utterly moronic for the tax payer to prop up BS house prices. Let the tax payer spend his money where HE sees fit, not be dictated to by incompetent government.
If the government really wants to speed up the inflation-devaluation process then they should force the banks to lend some of the 80 billion pounds they have been given over the last few years.
Personally, I would like to see the government print cash and give it to the pensioners. Add 30% to their pension. That would feed money direct into the high street and benefit the entire economy fomr the bottom up, rather than waiting for banks to trickkle it down. And it would get them big votes.
==============================
Nothing to say.
|
|
|
|
|
The housing bubble has not burst.
From 1997 to 2007 house prices doubled (at least, in some areas it tripled).
Since 2007 they have fallen back, at an average of about 10%.
Reduction or softening in price, yes, but the bubble is still there.
see here[^]
------------------------------------
I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave
CCC Link[ ^]
Trolls[ ^]
|
|
|
|
|
Dalek Dave wrote: an average of about 10%.
Yes, some areas there is almost no change, London for example, but other have seen up to 30%.
True though, this isnt a sufficient correction, but, as much as we arent out of the recesion caused by the debt crisis, we havent seen the full correction yet.
==============================
Nothing to say.
|
|
|
|
General 
News 
Suggestion 
Question 
Bug 
Answer 
Joke 
Praise 
Rant 
Admin 
Submit an article or tip
