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Housing market

A lot depends on how you predict the capital growth. From the house you may get 5% income and 5% growth.
This is why housing is such a goose laying golden eggs and why successive governments are frightened to death of killing it. I've just done the sums on my house, bought 8 years ago. It has appreciated 6% a year, compound. Tax free of course, it's my home. That's as good/possibly better than my pension investments over the same time. I didn't have to buy this one, I could have bought a cheaper house. Am I ever glad that I didn't. I get the benefit of a bigger house in a nice area, there's no real financial downside to owning it, barring slightly bigger heating bills and fractionally more council tax (3/10 of bugger all compared to the old, smaller, house) and I'm being paid to live here!
No wonder prices have been going so mad, if you can borrow cheaper than prices are rising you're foolish not to.
 
This is why housing is such a goose laying golden eggs and why successive governments are frightened to death of killing it. I've just done the sums on my house, bought 8 years ago. It has appreciated 6% a year, compound. Tax free of course, it's my home. That's as good/possibly better than my pension investments over the same time. I didn't have to buy this one, I could have bought a cheaper house. Am I ever glad that I didn't. I get the benefit of a bigger house in a nice area, there's no real financial downside to owning it, barring slightly bigger heating bills and fractionally more council tax (3/10 of bugger all compared to the old, smaller, house) and I'm being paid to live here!
No wonder prices have been going so mad, if you can borrow cheaper than prices are rising you're foolish not to.

Although if leveraged this works against you when interest rates are rising and prices are falling, which they are now. Deposits can soon be vaporised, although only a real issue if crystallising the loss.
 
My only reaction, even as a house owner, to falling prices is this: Good.

House price inflation is still inflation, and it’s the most insidious kind - housing underpins every other cost in the economy. And I do mean every cost: you mightn’t think the price of gas is affected by the price of housing, but all those people who work to get that gas into your boiler all need a place to live, and if they have to pay more for that place to live, then wages reflect this, and so ultimately you are paying for it in your gas bills. Same for every single thing you buy.

(We’re still slowly rising here in Ireland, and a shortage of property and the associated high costs of finding a place to live is seriously curtailing our economic growth.. we Irish make the Brits look rational when it comes to blind faith in residential property price-growth)
 
Not just residential property but commercial as well. High rents feed into high prices for customers. Considering much commercial property is owned by large pension funds etc, vested interest in price growth is significant.
 
We have appalling parking problems around here and some chap has just applied to knock down 4 garages to build 4 flats . it specifically says this :

For fire safety, the proposed apartment block will be equipped with a sprinkler system due to limited access off ...... Road for a Fire Appliance.

there is no parking and they assume they will all use cycles !!! which they wont . how can folks get away with these developments ? anyway sent my comments to councillor !!
 
We have appalling parking problems around here and some chap has just applied to knock down 4 garages to build 4 flats . it specifically says this :

For fire safety, the proposed apartment block will be equipped with a sprinkler system due to limited access off ...... Road for a Fire Appliance.

there is no parking and they assume they will all use cycles !!! which they wont . how can folks get away with these developments ? anyway sent my comments to councillor !!

I don't think they assume, they want to utilise all the space for rent and not for harmony. The council probably see the benefit as more council tax for them and more people paying for road permits etc...and obvs the backhander from the developer for it to go through as he wants..

Seems Judges are getting on the pay wagon now from parking companies..

https://www.itv.com/watch/tonight/1a2803/1a2803a9364

Our road is getting busier and busier due to all the flats being built without off-street parking (despite having the space) and Europcar using our road as their overflow car park so regularly we get random cars parked in our drive that are nothing to do with residents here...and legally there is nothing we can do to have them removed.

Our wondrous Labour council is now removing parking bays at small shopping areas to put outdoor eating areas. They removed ten bays and four disabled bays at our local shops last year. As of yet, i;ve never seen anyone sitting on the wooden plinths they installed, but many of the shop owners have said business has been reduced and its carnage now as people just park in the middle of the street or over driveways, loading bays etc.

Hackney council are going all out for similar in on-street resident parking bays, allowing gardens to be installed in the bay, and now banning cars from 75% of the borough by enlarging their LTN.

I can see this spreading.

https://hackneypost.co.uk/hackney-parking-spaces-get-green-makeover/

https://www.standard.co.uk/news/lon...ban-council-pollution-toxic-air-b1055476.html

The irony in the garden bays is one of their key arguments is that cars don't move often when parked...lol.
 
Had beers with a mate last night who fixed an interest only mortgage 2 years ago at 1%. It’s going up to 7%. Lumpy sum too. If there’s much of this around it’s going to be carnage!
 
I see in the US 30 year mortgages are the norm, lots of people will be fixed at pre rate rise levels I bet. Whenever they see a Brit post about their 3-5 year fix ending they usually reply with bafflement.
 
This is why housing is such a goose laying golden eggs and why successive governments are frightened to death of killing it. I've just done the sums on my house, bought 8 years ago. It has appreciated 6% a year, compound. Tax free of course, it's my home. That's as good/possibly better than my pension investments over the same time. I didn't have to buy this one, I could have bought a cheaper house. Am I ever glad that I didn't. I get the benefit of a bigger house in a nice area, there's no real financial downside to owning it, barring slightly bigger heating bills and fractionally more council tax (3/10 of bugger all compared to the old, smaller, house) and I'm being paid to live here!
No wonder prices have been going so mad, if you can borrow cheaper than prices are rising you're foolish not to.

It’s what’s industrialised the residential property market- risk free year on year income from tenants, milked from an appreciating asset. No matter how hard and often the teats get pulled, the magic cow keeps getting fatter. One that can be cashed in for a guaranteed gain when the time is right.
 
I don't think they assume, they want to utilise all the space for rent and not for harmony. The council probably see the benefit as more council tax for them and more people paying for road permits etc...and obvs the backhander from the developer for it to go through as he wants..

Seems Judges are getting on the pay wagon now from parking companies..

https://www.itv.com/watch/tonight/1a2803/1a2803a9364

Our road is getting busier and busier due to all the flats being built without off-street parking (despite having the space) and Europcar using our road as their overflow car park so regularly we get random cars parked in our drive that are nothing to do with residents here...and legally there is nothing we can do to have them removed.

Our wondrous Labour council is now removing parking bays at small shopping areas to put outdoor eating areas. They removed ten bays and four disabled bays at our local shops last year. As of yet, i;ve never seen anyone sitting on the wooden plinths they installed, but many of the shop owners have said business has been reduced and its carnage now as people just park in the middle of the street or over driveways, loading bays etc.

Hackney council are going all out for similar in on-street resident parking bays, allowing gardens to be installed in the bay, and now banning cars from 75% of the borough by enlarging their LTN.

I can see this spreading.

https://hackneypost.co.uk/hackney-parking-spaces-get-green-makeover/

https://www.standard.co.uk/news/lon...ban-council-pollution-toxic-air-b1055476.html

The irony in the garden bays is one of their key arguments is that cars don't move often when parked...lol.

Buy a wheel clamp - So that anyone that thinks your drive is parking spot is going to get a nice surprise on their return. Then refuse to remove until they have paid up whatever fee you deem suitable for removal! :D
 
been trying to sortcaviity wall insulation quote for some months now although i am having the heeby jeebies about it a bit . finally found someone but surprise surprise they dont do rental property !! probably forget it now
 
been trying to sortcaviity wall insulation quote for some months now although i am having the heeby jeebies about it a bit . finally found someone but surprise surprise they dont do rental property !! probably forget it now


Best to wait until things get clearer about EPC requirements before doing that sort of thing, there may be some nice juicy grants for the taking.
 
Genuine question.

We are considering moving this year locally (within 10 miles).

We live in a relatively nice area. Moving to much the same and no kids at school.

With interest rates where they are or going, would it be prudent to wait?

We may need a small mortgage.
 
Genuine question.

We are considering moving this year locally (within 10 miles).

We live in a relatively nice area. Moving to much the same and no kids at school.

With interest rates where they are or going, would it be prudent to wait?

We may need a small mortgage.

From what I hear, buying and selling at the moment is pretty hard work. Even if you find a proceedable buyer at a price you are happy with (and their bank surveyor agrees), finding something else you like where the seller isn’t a kite flyer could be tricky. However, as long as you are selling and buying in the same market, it’s all relative.

As for IR’s the markets are predicting rates will top out probably by the end of the year then start coming down. There are signs of optimism (FTSE 100 closed at a record high on Friday). These things come down to personal circumstances but if I were buying something with debt, I’d be very tempted to go variable rate now on the basis I think rates will start coming down within 12 months. A gamble of course. Most would support the view that lower rates boost house prices and higher rates reduce them. There’s also a thing called life, which we have to get on with so if the right thing crops up and you can afford it, crack on. There are people on housepricecrash who have been waiting 25 years for a property meltdown. They’re still waiting and could have paid off a mortgage by now and living rent free rather than quite possibly paying ever increasing rent for the rest of their lives.
 
What I've noticed is prices have barely come down, people have just taken things off the market. I don't think there'll ever be a significant correction, like I said before unless some devastating global financial event happens in which case buying a house will be at the bottom of your priority list.

Folks will just wait until the economy bounces back and then we'll re-start the merry-go-round all over again.
 
Genuine question.

We are considering moving this year locally (within 10 miles).

We live in a relatively nice area. Moving to much the same and no kids at school.

With interest rates where they are or going, would it be prudent to wait?

We may need a small mortgage.
As others have said, if it's the right thing for you, you can afford it and not be too exposed, go for it. It may cost you a bit more, but you'll have the life and house you want.

What I've noticed is prices have barely come down, people have just taken things off the market. I don't think there'll ever be a significant correction, like I said before unless some devastating global financial event happens in which case buying a house will be at the bottom of your priority list.

Folks will just wait until the economy bounces back and then we'll re-start the merry-go-round all over again.
This is the case. If values decline then people will simply not move unless they are forced to. There are good times to buy, but equally you can't wait 20 years for a collapse. I did some of this, not 20 years but my employment situation was volatile and I was moving all over for work. Buying and selling housing would have been costly. But the cost was that prices doubled and I spent 10 years in rented places, some of which weren't great.
 


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