How Far Will House Prices Fall? [Volume 6]
Discussion
cc3 said:
Many of us lived in a world where the norm was to pay 8% for a mortgage. Think the First fixed rate mortgage when it was launched around 1990 was 13%.
yep - also a time when you could get 10% interest from a bank saving account. There has been a shift in "expectations" in the last 15 years for sure - expect to be able to afford that starbucks, that iphone 12.5, that holiday to the USA, nice furniture etc. I suggested to my daughter she may like to cycle to work (5miles each way) to save some money but nope time pressure to do other things is too great she says.
I
Edited by superlightr on Wednesday 21st September 11:01
number2 said:
We're looking at a stamp duty cut on Friday.
A bit less up front capital which is switched into higher house prices pushed up by increased demand, and paid off over the long term.
Not sure we'll get another mini boom as in recent years given where rates are headed.
Must admit I was gobsmacked to read about that - be very interesting to see if it has any effect this time around.A bit less up front capital which is switched into higher house prices pushed up by increased demand, and paid off over the long term.
Not sure we'll get another mini boom as in recent years given where rates are headed.
z4RRSchris said:
two different things,
capital growth who cares, its a home and in order to realise that i would need to sell, move to somewhere cheaper. (smaller, worse location, worse condition)
monthly repayments effect me because instead of paying 2k a month ill be paying 3k.
You should care otherwise rent capital growth who cares, its a home and in order to realise that i would need to sell, move to somewhere cheaper. (smaller, worse location, worse condition)
monthly repayments effect me because instead of paying 2k a month ill be paying 3k.
Capital growth allows you to re mortgage finance over a longer period although over life of mortgage you will pay more interest. Cheap money was available for far too long meaning people over committed and now moan that rates are returning to normal. Blame the Government that’s the easy answer they get blamed for everything instead of thinking we need to build a buffer in for when this cheap money ends !
GT3Manthey said:
Sheepshanks said:
Must admit I was gobsmacked to read about that - be very interesting to see if it has any effect this time around.
I think there are more that are worried about the financing costs of what they have rather than a saving on the costs to move. What the actual f are they thinking this time around? I fail to see the logic of this. Reduce the treasury take for what benefit? What is the benefit here for the taxpayer?
soupdragon1 said:
Look what happened with Covid and stamp duty. Fears of housing stagnating during covid so they brought in a stamp duty holiday. Prices climbed quickly.
What the actual f are they thinking this time around? I fail to see the logic of this. Reduce the treasury take for what benefit? What is the benefit here for the taxpayer?
It’s a fair question I can’t see it’ll make too much difference given rates were low over covid and yet now they are on the March . What the actual f are they thinking this time around? I fail to see the logic of this. Reduce the treasury take for what benefit? What is the benefit here for the taxpayer?
If it’s an attempt to get the housing market moving I can’t see it working for the reason I stated above.
Seems a lot of straw clutching going on
soupdragon1 said:
GT3Manthey said:
Sheepshanks said:
Must admit I was gobsmacked to read about that - be very interesting to see if it has any effect this time around.
I think there are more that are worried about the financing costs of what they have rather than a saving on the costs to move. What the actual f are they thinking this time around? I fail to see the logic of this. Reduce the treasury take for what benefit? What is the benefit here for the taxpayer?
I'm not a Sunak fan by any stretch, or many Tories for that matter, but when you've got a finance specialist as a candidate and public finances are arguably the Govts biggest challenge right now, it made sense to me to get Sunak into the PM seat. Was really disappointed to see Truss win the vote.
kingston12 said:
It's certainly strange times. Liz Truss has come in with her predictable plan to stimulate 'growth' by boosting the housing market, bankers bonuses and fracking, all whilst interest rates are going up...
Rich get richer, poor get poorer. Once you understand the plan, it is easy to realise that this is never going to change. superlightr said:
cc3 said:
Many of us lived in a world where the norm was to pay 8% for a mortgage. Think the First fixed rate mortgage when it was launched around 1990 was 13%.
yep - also a time when you could get 10% interest from a bank saving account. There has been a shift in "expectations" in the last 15 years for sure - expect to be able to afford that starbucks, that iphone 12.5, that holiday to the USA, nice furniture etc. I suggested to my daughter she may like to cycle to work (5miles each way) to save some money but nope time pressure to do other things is too great she says.
I
Edited by superlightr on Wednesday 21st September 11:01
Joey Deacon said:
kingston12 said:
It's certainly strange times. Liz Truss has come in with her predictable plan to stimulate 'growth' by boosting the housing market, bankers bonuses and fracking, all whilst interest rates are going up...
Rich get richer, poor get poorer. Once you understand the plan, it is easy to realise that this is never going to change. During covid lockdown did weekly benefits not get an extra £20?
Might as well give it a go cutting taxes it might bring more people back to paying it.
soupdragon1 said:
I'm not a Sunak fan by any stretch, or many Tories for that matter, but when you've got a finance specialist as a candidate and public finances are arguably the Govts biggest challenge right now, it made sense to me to get Sunak into the PM seat. Was really disappointed to see Truss win the vote.
Conversely I felt Sunak was a Tory version of Gordon Brown and was more interested in being popular and not doing the right thing which is to keep the economy in good shape. There are no easy choices but whoever is in charge has to keep inflation in check but not collapse asset prices i.e. houses - it's not one or the other. SDLT is relatviely small fry and if folks need to upsize/downsize then any reduction in those costs would be welcome.
soupdragon1 said:
What the actual f are they thinking this time around? I fail to see the logic of this. Reduce the treasury take for what benefit? What is the benefit here for the taxpayer?
Multiplier effects? Basic economic fundamentals in real estate. One basic home buying transaction generates business for multiple players; agent, surveyor, solicitor,lending brokers, movers / storage..Not to mention all DIY industry out there. Not a fan of Liz "the grenade" as cummings nicknamed
but I think it's a good move to keep economic activity in the current mess.ooid said:
soupdragon1 said:
What the actual f are they thinking this time around? I fail to see the logic of this. Reduce the treasury take for what benefit? What is the benefit here for the taxpayer?
Multiplier effects? Basic economic fundamentals in real estate. One basic home buying transaction generates business for multiple players; agent, surveyor, solicitor,lending brokers, movers / storage..Not to mention all DIY industry out there. Not a fan of Liz "the grenade" as cummings nicknamed
but I think it's a good move to keep economic activity in the current mess.There are many areas of the economy that could do with some of that stimulation, and I don't imagine that housing is towards the top of that list. Thats the bit that bemuses me.
ooid said:
soupdragon1 said:
What the actual f are they thinking this time around? I fail to see the logic of this. Reduce the treasury take for what benefit? What is the benefit here for the taxpayer?
Multiplier effects? Basic economic fundamentals in real estate. One basic home buying transaction generates business for multiple players; agent, surveyor, solicitor,lending brokers, movers / storage..Not to mention all DIY industry out there. Not a fan of Liz "the grenade" as cummings nicknamed
but I think it's a good move to keep economic activity in the current mess."lets move house now"
Ew those curtains need changing and now we can get a bigger bed. That garden shed needs to go and you'll need a bigger lawnmower etc.
Funk said:
The whole situation's a clusterf
k about to be made even worse by that idiot Truss. Well I guess we've all got front-row seats at the st-show and not much we can do about it.
so what would you do different ? Set out a few policies for us. I take it you don’t support giving help for things like energy bills ? Or keeping people in jobs? k about to be made even worse by that idiot Truss. Well I guess we've all got front-row seats at the st-show and not much we can do about it.Edited by cc3 on Wednesday 21st September 12:07
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