House Prices - Where does it end?

johnny6 said:
Surely a better solution would be for the government to force housing developers to build more houses quicker instead of just enough to make a profit but not enough to satisfy demand and therefore keeping housing prices high.
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In London there just isn't any room to build many more houses, defintiely not enough to meet demand. Its not a case of developers artificially inflating price, its purely down to the lack of available land and the price of it when it is available.
 
Visage said:
Tell me - what would the attitude of the banks shareholders be if they turned around and said 'We've lost a load of money because we did the right thing. Sorry about that'
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I didn't realise that "doing the right thing" automatically meant losing money.

What about pension funds that invest on the stock market? The whole system is predicated on each and every company doing its best to earn as much wonga as possible.
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Pension hardly compensates for massive increases in the most expensive thing you are ever going to buy...
 
scorza said:
You're buying a house for an Islamic extremist? :eek: :p
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Yeah, bless 'em. Sponsor a terrorist and all that, I gave them the "AthlonTom" hat, T-Shirt and trainers. I have to ask if its really doing any good though, bit of a let down so far - not even a letter bomb!
 
The Mad Rapper said:
That's what's wrong with the world we live in now though. The West is full of greedy ***** who are more concerned about profit then the good of all.

This topic really doesn't bring out the best in me does it? :(
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I agree. If only we still had society then we could exert some sociological pressure on such institutions. Sadly, in the modern 'everyone for himself' world there is no milage in concern for your fellow man.
 
chimaera said:
In London there just isn't any room to build many more houses, defintiely not enough to meet demand. Its not a case of developers artificially inflating price, its purely down to the lack of available land and the price of it when it is available.
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Exactly, hence someone paying £85m for an flat overlooking hyde park.
 
This thread really is growing quickly...

I *am* on an Interest only mortgage at the moment, working on the basis that if the housing market carries on doing what it is doing, at the end of the 2-year fixed rate the house will be worth £20k more than it is now therefore giving us equity to put towards a better mortgage in 2 years.

As for starting a family, at only 21 I'm not in hurry to start a family. Granted, if we were to lose an income then we would struggle but kids aren't on the cards for a few years yet- The idea there being that i should be earning more and repayments will be lower due to the reason listed above.

I have to agree, it is a complete gamble and if the Interest rates shot up and housing prices froze, then I would be up ****-creak. I simply resent having to pay to rent a property when I could be making the same payments on a house that I own
 
In London there just isn't any room to build many more houses, defintiely not enough to meet demand. Its not a case of developers artificially inflating price, its purely down to the lack of available land and the price of it when it is available
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People and skills will go where the work is. International companies need to get out of the mindset that they need to be based in London. An international company headquarters could just as easily be based in north Wales as it can be in London.
 
ci_newman said:
This thread really is growing quickly...

I *am* on an Interest only mortgage at the moment, working on the basis that if the housing market carries on doing what it is doing, at the end of the 2-year fixed rate the house will be worth £20k more than it is now therefore giving us equity to put towards a better mortgage in 2 years.

As for starting a family, at only 21 I'm not in hurry to start a family. Granted, if we were to lose an income then we would struggle but kids aren't on the cards for a few years yet- The idea there being that i should be earning more and repayments will be lower due to the reason listed above.

I have to agree, it is a complete gamble and if the Interest rates shot up and housing prices froze, then I would be up ****-creak. I simply resent having to pay to rent a property when I could be making the same payments on a house that I own
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You dont own it - the bank do. You're merely 'renting' the money that you borrowed to pay for it.
 
ci_newman said:
I simply resent having to pay to rent a property when I could be making the same payments on a house that I own
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I see your logic but you are not really making payments on your house at the moment. You are effectively renting off the bank except you have the liability of repairs, insurance and price falls.

However as prices seem to continually rise at the moment things look like they should be on your side. :)
 
Visage said:
You dont own it - the bank do. You're merely 'renting' the money that you borrowed to pay for it.
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Yes, but the value of the house is increasing where-as renting is just wasted money.

In this area, prices have risen (on average) £5k / 6 months. Owning is a different ball-game to renting, as you can do what you like to the property. I have rented, and I didn't like it (they were student digs though...). I much prefer the freedom of my (the banks) own home
 
Will_3rd said:
just wait for the American house market collapse, will have a spill over effect here....I hope :(
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Negative equity is bad, mm-kay! A collapse would probably bankrupt a considerable number of middle-class families, or rather destroy any hope of a reasonable retirement wage.
 
I'm buying in the next month or two. Unfortunately I'm just short of the 10% deposit so will go for a 2 year fix, hoping that the value will rise and that I will be able to overpay a fair amount to get more equity to negotiate a better rate after the 2 year term :)

Doing the mortgage alone as well as I don't want to risk losing half the house in the future to anyone :p
 
I watched a program about the current housing situation in America. One of the main reasons why the housing market in some areas is in decline (other than crime) is because houses have been and still are being built quicker than they are needed resulting in over supply. Not a problem for the UK market at the present time.
 
Solari said:
I'm buying in the next month or two. Unfortunately I'm just short of the 10% deposit so will go for a 2 year fix, hoping that the value will rise and that I will be able to overpay a fair amount to get more equity to negotiate a better rate after the 2 year term :)

Doing the mortgage alone as well as I don't want to risk losing half the house in the future to anyone :p
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Fortuantely, I'm not alone in my mortgage however I'm in the same situation as you.. no money for a deposit! I want the market to carry on going up at the moment :p
 
ci_newman said:
Fortuantely, I'm not alone in my mortgage however I'm in the same situation as you.. no money for a deposit! I want the market to carry on going up at the moment :p
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Highly annoying as I have 8% for deposit but nevermind... run out of time to save as I don't want to risk being priced out of the market. At the moment I can handle the mortgage comfortably I think (I've been saving the equivalent of a mortgage payment on my top price range house + £400 every month). Hopefully that should prepare me a little.
 
ci_newman said:
I can't understand why people are saying that buying a house in unaffordable..
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Maybe if you were actually buying a house you would be in a position to comment with some sort of context.
 
Jonnycoupe said:
Maybe if you were actually buying a house you would be in a position to comment with some sort of context.
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For your info, I completed last Friday :p So I am in the perfect place to say what I can / can't afford
 
Point goes sailing over head....

What term was the mortgage? Will you own the house, and therefore have bought a house, at the end of the term.

Didn't think so.

It was the bank that decided what you could/could not afford, not you.
 
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