Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

On balance, do you reckon it is better if property prices go up? Or would it be better if they came down?

32 replies

RattysPicnic · 24/02/2011 15:28

Following on from the 'prices to drop 20% in the next year' discussion.

Can I ask if you want house prices to drop or to rise?

Presumably lots of people are in the 'I'd like my particular property to rise while all the others become more affordable to me' position Grin. But if ALL property was to go down or up, which would suit you better?

OP posts:
Original poster
RattysPicnic · 24/02/2011 15:40

Or stay the same?

OP posts:
mamatomany · 24/02/2011 17:10

It's better for everyone if they come down, the less money people have to spend on basic needs like housing, food, heating the more they can spend on small business like cafe's, decorating, extending, improving their homes or horse riding holidays or a new car all of which creates jobs and makes the world go around.

TheSpook · 24/02/2011 17:29

I'd love it if they came down.
That's because I have teenage children who face starting life with massive student loan debt and no prospect of ever owning their own home as things are now.

LemonDifficult · 24/02/2011 19:13

Yeah, I'm thinking down would be best too.

mrsravelstein · 24/02/2011 19:17

down be better for me cos we're upsizing - but sadly we've had to sell our house at a loss and looks like we're buying at a premium as moving to a diff area where prices are much more, err, buoyant

TheCrackFox · 24/02/2011 19:30

Stay the same but TBH we are not planning on moving for 10-15 yrs so it wouldn't really affect us. TBH the price of property is a disgrace.

LemonDifficult · 24/02/2011 19:41

But wouldn't it affect you TCF? I mean, if prices dramatically drop then you could be paying a fair bit more to live in your house than your neighbours would be in exactly the same.

They'd have more disposable income than you and d effectively, you could be worse off than others because of it.

Original poster
RattysPicnic · 24/02/2011 20:35

Surely someone's hoping for it to go up? No-one planning to sell soon and move in with a DP?

OP posts:
mamatomany · 24/02/2011 21:00

Maybe everyone sees the bigger picture that the one ones who benefit from high house prices are the banks who charge interest and the government who gain from stamp duty.
Everyone I know who's made money out of property has blown it on crap because they didn't work for it so they didn't see it as real money if that makes sense ?

jenandberry · 24/02/2011 21:04

I want them to go down. I say that as a homeowner and a landlord.

We have paid for our property and have to live with that. We paid what we could afford and are happy with that decision and its consequences.

Property prices are a social evil at the moment. Often when you look at things wrong in Uk society high property prices have a role to play.

smashingtime · 24/02/2011 21:10

It is ridiculous how much housing costs compared to a generation ago. I hope that eventually the cost of property will meet average wages for most people to be able to buy if they want to. I do feel sorry for anyone caught in NE if prices do go down but feel in some areas they are out of all proportion. Personally, I think stagnation if not a small fall is most likely in many places with a larger fall where it has gone up most (except London where it bears no logic due to bonuses and foreign money!).

I agree with you mama that most people that have mewed over the last 10 years of property boom has probably spent it on shite!

Original poster
RattysPicnic · 25/02/2011 14:15

DH wants them to go up.

Says it's become too relevant an indicator of the economy. If house prices plunge the lack of confidence of the well-off owners will stop them employing FTB-types and so on.

OP posts:
mizu · 25/02/2011 19:58

Down, maybe then we would have a cat in hells chance of buying a house.

lecce · 25/02/2011 21:21

Down please. We will want to upsize in a year or two and will need ftb to buy this place.

We only managed to get where we are, which is lovely but a little small now we have shorties with us, thanks to a generous contribution from mil. I really feel for those who feel they'll never be able to buy.

MollysChambers · 25/02/2011 21:24

It is better for society as a whole if they come down relative to average income. How else will our kids ever be able to afford to buy?

I say that as someone who owns their own house outright.

awubble · 25/02/2011 21:25

RattysPicnic

Tell your hubby to think it through and come back with some details please. A well off owner who OWN's their house will not care as a house is required and unless it falls down is always in the same market position it was when it was purchased.

A not so well off owner who 'bought' their house against profits from their business or leveraged their business against the house might well worry somewhat but unless something else changes, the loan, the house and the terms will remain what they agreed to.

If any business relies on an ever increasing market it will eventually fail regardless.

abdnhiker · 25/02/2011 21:30

Personally I hope they stay the same and let inflation bring costs down. I wouldn't wish negative equity on anyone and for people who need to move for jobs etc, falling prices are horrible. But housing isn't as expensive in Scotland as some parts of England so maybe we're not as overpriced.

preghead · 25/02/2011 21:34

Down, but i am looking to buy and sold to rent so i would say that. From a less selfish point of view I think it is appalling that a couple in normal, pretty well paid jobs, in the southeast at least, struggle to buy a family house without inheritance money or family help. I dont think it is sustainable in the long term.

Original poster
RattysPicnic · 25/02/2011 21:43

The thing is, our whole business is based on property and it actually took DH awhile to decide whether or not he wanted prices to go up or down. He decided on up because of the confidence indicator.

But it doesn't sound like increasing prices are making you all more confident.

OP posts:
mamatomany · 25/02/2011 22:54

So you'd say you and your DH have something of a vested interest then Ratty ?
For the man in the street the basic need of housing their family should cost 3 times the main earners salary, any more than that and other industries such as cars, furniture, double glazing etc should be affected the only reason they weren't for 5-7 years was 0% credit cards.
The party is over and now all the owners of the car dealerships, furniture shops, double glazing companies are letting go of their staff who in turn will not be able to pay their mortgages, keeping house prices high will have no impact on that whatsoever.
Interest rates simply have to stay low now otherwise people will be on the streets, again I don't think that is good for keeping inflation under control, so it's a bad thing for the general population.

KingofHighVis · 25/02/2011 23:04

rattyspicnic I'm currently selling to buy with DP. Already agreed sale for mine so would be quite happy for prices to fall between now and when we get round to buying.

I think everyone is agreed that house prices are too high, though the property boom has allowed the regeneration of some of the shitter parts of the UK. Hopefully the executive apartments of today don't become the sink estates of tomorrow.

LemonDifficult · 25/02/2011 23:08

Right so, going by this thread, there's a real desire for prices to come down why do politicians and economists seem to take such extreme fright from falling house prices?

Why do journalists report it as though the sky will fall in if house prices come down by 10%?

Maddikins · 25/02/2011 23:10

I hope they drop. I have a LTV of approx 35% on the house I have owned for 10 years. I bought it in 2001 and its value trebled within 5 years which is ridiculous. It is a typical FTB home and was 3 x my income when I bought, it would now be over 7.

My house is rented out and I have no intention of selling it so the amount of equity doedn't really matter. We live in Dps house and want to move (without selling either property) but property in the area we want is still overpriced imo.

I live in the North East so property is obv much cheaper than down south but still very high compared to the averge salary in this area. I'd say where I live prices have dropped around 10% compared to 2007 prices and need to drop another 20-25% to be about right.

mamatomany · 25/02/2011 23:12

Because an awful lot of them have buy to let portfolio's that's why.

The only way prices will come down is if people keep putting in offers 20% below the asking prices, the message will start to sink in.
However from what I've read on other threads I am going to put mine on for 20% more than I expected for it in case some fool comes along and pays it Grin

ilovecrisps · 26/02/2011 14:29

down down down
do the maths with different figures

high house prices transfer money from the young to the old and the poor to the rich
(read it on here a few yrs ago) it's so true

Maddi sorry but if prices do eventually drop it is likely to be when events make it unrealistic for one family to own 3 houses, if they don't then prices are a lot less likely to drop

I have also read that you should stress test your ability to pay your mortgage to 8%!!

Swipe left for the next trending thread