How far will house prices fall [volume 4]
Discussion
okgo said:
Be interesting to see stats on that, there are not 'that' many folk on 6 figs
350,000 will be affected by the planned changes pension payment allowances for those paid £150,000+ according to something I read earlier. I couldn't believe it, thought it was less crowded up here...Hitch78 said:
350,000 will be affected by the planned changes pension payment allowances for those paid £150,000+ according to something I read earlier. I couldn't believe it, thought it was less crowded up here...
that number incldes people who "employment package" goes over 150K . In other words one may earn 120k and have 40k of employer benefits, car etc So will be pulled into the bracket.It was in the Sunday times a few weeks go will try and find the article.Derek Chevalier said:
They've ridden the biggest bubble of all time, so have plenty of equity, and in my experience those that are buying the £1m homes are on a fair bit more than 100k
That maybe the case but it begs the question how todays young or the next generation will buy these houses ? If the people who live in these houses today cant really afford to buy them now, its only because they have ridden the huge bubble and built up huge equity. Then how the hell will their kids afford them ? with no big debt bubble /equity and todays young being worse off than their parents ; student loan repayments ,lose child benefit on over 50k, higher pension contributions (my wifes a primary school teacher and has to contribute way more than her mother who is also a school teacher for a less genreous pension ) etc
Still going it would appear...asking prices anyway.
http://www.cityam.com/234553/london-house-prices-a...
http://www.cityam.com/234553/london-house-prices-a...
jonny70 said:
Derek Chevalier said:
They've ridden the biggest bubble of all time, so have plenty of equity, and in my experience those that are buying the £1m homes are on a fair bit more than 100k
That maybe the case but it begs the question how todays young or the next generation will buy these houses ? If the people who live in these houses today cant really afford to buy them now, its only because they have ridden the huge bubble and built up huge equity. Then how the hell will their kids afford them ?
spikeyhead said:
turbobloke said:
Inheritance, depending on how thinly it's shared out i.e. how many kods and the level of their ambition.
I'll either be in my 60s or 70s before I inherit, by which time it would be a little late to start climbing the ladder.
In general, as happened in e.g. Chipping Campden from around 1980, if kids can't afford to buy locally in an instant they'll have to buy somewhere else first or be patient. It's not new.
turbobloke said:
At this point somebody is supposed to say 'better late than never'
In general, as happened in e.g. Chipping Campden from around 1980, if kids can't afford to buy locally in an instant they'll have to buy somewhere else first or be patient. It's not new.
The culture is new. Readily available finance, among other things, has promoted a massive 'have it now' culture. In general, as happened in e.g. Chipping Campden from around 1980, if kids can't afford to buy locally in an instant they'll have to buy somewhere else first or be patient. It's not new.
In terms if being patient, many people have been waiting over a decade having been priced out long ago. You could argue that's pretty patient.
Pork said:
turbobloke said:
At this point somebody is supposed to say 'better late than never'
In general, as happened in e.g. Chipping Campden from around 1980, if kids can't afford to buy locally in an instant they'll have to buy somewhere else first or be patient. It's not new.
The culture is new. Readily available finance, among other things, has promoted a massive 'have it now' culture. In general, as happened in e.g. Chipping Campden from around 1980, if kids can't afford to buy locally in an instant they'll have to buy somewhere else first or be patient. It's not new.
In terms if being patient, many people have been waiting over a decade having been priced out long ago. You could argue that's pretty patient.
turbobloke said:
IIRC on one previous occasion when discussing the real world, some people found it uncomfortable, not that there was any intent that way. With that proviso, what is there written in stone to say that waiting any amount of time is the right time - or indeed that a right to buy in a location of choice exists anyway? If the time is too long and patience is running out, do what Chipping Campden offspring have been doing for the past 40-odd years and buy somewhere else, or rent, or stay at home and wait. Relying on politicians to do something can hardly be a worthwhile strategy in any matter.
I think there are two separate issues here.Firstly how to react on an individual level. Personally I moved out of the south-east and that worked for me.
Secondly should we expect the government to intervene to correct a market failure they themselves have created. Most definitely yes.
What people don't like is some of the complacent boll*x spouted by people who live in houses they would not be able to afford if they were half their current price level. The baby boomers among them might become a bit less complacent about the situation if most of their children (and by extension grandchildren) move hours (if not days) of travel time away from home.
JagLover said:
I think there are two separate issues here.
Firstly how to react on an individual level. Personally I moved out of the south-east and that worked for me.
Secondly should we expect the government to intervene to correct a market failure they themselves have created. Most definitely yes.
Except that waiting for a government to intervene is always a weak strategy. Great expectations etc.Firstly how to react on an individual level. Personally I moved out of the south-east and that worked for me.
Secondly should we expect the government to intervene to correct a market failure they themselves have created. Most definitely yes.
JagLover said:
What people don't like is some of the complacent boll*x spouted by people who live in houses they would not be able to afford if they were half their current price level.
Not sure who that's aimed at...it's too general to be an effective slur.JagLover said:
The baby boomers among them might become a bit less complacent about the situation if most of their children (and by extension grandchildren) move hours (if not days) of travel time away from home.
So we self-identify as baby boomers or not (not) and self-flagellate or not (not)? Cool.Meanwhile the children you refer to can either help themselves by examining realisting options and choosing the best for them, or wait for politicians to do something. That's not a choice in effect.
Bedford Rascal said:
Certain posters actively enjoy it, too. "Baby boomer house price trolling", eh turbobloke? 
Mistaken identity m'lud?!I don't engage in trolling, regarding boomers or anything else, so that must be a reference to my supposed enjoyment in replying to boomer bashing trolls
Bedford Rascal said:
The government shouldn't intervene though. It should have never intervened in the first place. It should cease intervening and let it all unwind.
Yes indeed but as government intervention will be to assist the government in getting re-elected I can't see how anything to do with it should form part of an individual's response to a market position.Bedford Rascal said:
The government shouldn't intervene though. It should have never intervened in the first place. It should cease intervening and let it all unwind.
Government intervention, IMO, has been the bulk of the cause. Further attempts at helping people buy homes has, IMO, only exacerbated the problem.turbobloke said:
IIRC on one previous occasion when discussing the real world, some people found it uncomfortable, not that there was any intent that way. With that proviso, what is there written in stone to say that waiting any amount of time is the right time - or indeed that a right to buy in a location of choice exists anyway? If the time is too long and patience is running out, do what Chipping Campden offspring have been doing for the past 40-odd years and buy somewhere else, or rent, or stay at home and wait. Relying on politicians to do something can hardly be a worthwhile strategy in any matter.
The right time to buy a HOME is when you can afford it and expect to be able to afford to pay back any money secured on it.I get your point of buying somewhere else, I myself have can't live where I want and have to be flexible. It doesn't matter to me personally, I don't really have an area I call home and my siblings live in different parts of the world, but I sympathise with those who can't live In the village they grew up, the village their family and friends live in, purely because of HPI.
However, general feeling is that everyone is minted as houses are going up in value, so spending continues. As a result, the government don't care one jot if you have to live 2 hours from your family and friends, commute for 3 hours each day and your quality of life suffers. Just remember to keep paying your taxes, buying iPhones and other trinkets, ideally on finance, and everyone is happy. Everyone being government and big businesses.
turbobloke said:
jonny70 said:
Derek Chevalier said:
They've ridden the biggest bubble of all time, so have plenty of equity, and in my experience those that are buying the £1m homes are on a fair bit more than 100k
That maybe the case but it begs the question how todays young or the next generation will buy these houses ? If the people who live in these houses today cant really afford to buy them now, its only because they have ridden the huge bubble and built up huge equity. Then how the hell will their kids afford them ?
I imagine by the time these people inherit, they'll be on 4x salaries they are now, and those expensive properties they inherit will be 'worth' about 4x less Mars bars than they are today.
In my opinion anyone who thinks we're not in for a LOAD of money printing stimulus through the next decade of global economic doldrums is living in denial.
Either that, or Corbyn gets in because these young generations become completely disenfranchised with capitalism (not surprising at such extrems of wealth disparity), and we suddenly find ourselves living in socialist Britain where only the inner circle of Pigs get the nice properties
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