High property prices

[jimbob5]

Rubbish. Now go and produce your graphs over the 80's period - property prices still rose above inflation despite very high interest rates. It is pure lack of properties and greed that produces the high property prices. I'd have a guess that a vast majority ( 95%+ ? ) had the property they currently live in before the fall to 0.5% interest rates.

Interest rates in the 80s were high compared with now but over a longer span they were low. When they rose towards the end of the decade property prices fell and rose again in the late 90s when interest rates rose. Maybe it's you talking rubbish but then I'm too polite to suggest that.

 

[Uncle Spielberg]

Low interest rates are only good if you can actually access that money. Mortgages and property transactions are still running at only 50% of pre 2008 levels, 7 years on

 

[jimbob5]

It is probably young people that caused this, they are the people you normally blame for everything else...

Oh come on! I also blame foreigners and women. Be fair!

 

[Buzzer]

Yes it does! They're rising albeit slowly in response to the lower interest rates.

No they're not! They're not rising at all. The rate at which they are going down is varying but they have fallen year on year since 2008! Look at the graph. At no point since 2008 have property prices risen - it says they kept falling.

Example very loosely based on that second graph about annual % change in prices:

 

[ditchy]

High property prices are the result of the transformation in attitudes to debt which happened post-Thatcher.

Ever higher salary multiples, ever longer mortgage terms and the advent of "interest only" created the market conditions that allowed prices to soar.



Interest only mortgages have been around far longer than Thatcher. they were called endowment mortgages beforehand

 

[Uncle Spielberg]

High property prices are the result of the transformation in attitudes to debt which happened post-Thatcher.

Ever higher salary multiples, ever longer mortgage terms and the advent of "interest only" created the market conditions that allowed prices to soar.

Interest only mortgages have been around far longer than Thatcher. they were called endowment mortgages beforehand

The mortgage term is irrelevant on an interest only mortgage as to the cost of the mortgage

 

[jimbob5]

No they're not! They're not rising at all. The rate at which they are going down is varying but they have fallen year on year since 2008! Look at the graph. At no point since 2008 have property prices risen - it says they kept falling.

Example very loosely based on that second graph about annual % change in prices:

Not very clear. Anyway, Poland is empty now, so houses WOULD be cheap there!

 

[Moshe Gariani]

Interest only mortgages have been around far longer than Thatcher. they were called endowment mortgages beforehand

Haha... Yes, and people were required to make substantial monthly payments into a repayment method. The removal of this requirement, along with greater salary multiples and longer terms, has allowed people to borrow more, which has pushed up house prices to ridiculous levels that benefit only the relatively empowered and better off.

 

[Moshe Gariani]

The mortgage term is irrelevant on an interest only mortgage as to the cost of the mortgage

Splitting hairs. My point is about the availability of interest free loans AND the availability of longer terms for repayment loans. With increased salary multiples it was a TRIPLE WHAMMY that allowed the market to boom.

 

[Buzzer]

Poland is empty now, so houses WOULD be cheap there!

Err...nope.

 

[kevo]

Interest rates now stay low because so many people would not be able to afford their mortgage payments at normal or above normal rates.

Can't see interest rates ever achieving 'normal' levels now - or at least not for a very long time to come. Thousands would be made homeless, and that's not good news for anyone.

 

[jimbob5]

Err...nope.

you've only shown the last few years

 

[Moshe Gariani]

Err...nope.

I bet that graph was produced originally to illustrate the recent boom in Poland's population... i.e. less than 1% growth

 

[Buzzer]

you've only shown the last few years

2006 to 2014, same as the first graphs.

Keep digging.

 

[jimbob5]

2006 to 2014, same as the first graphs.

Keep digging.

you keep digging. Not sure why you are going on about Poland. This my friend is NOT Poland. Well not yet.

 

[Triggaaar]

High property prices are caused mainly by low interest rates.

I thought you were stating the obvious, but you've still managed to find people willing to argue with you.

 

[Westdene Seagull]

Interest rates in the 80s were high compared with now but over a longer span they were low. When they rose towards the end of the decade property prices fell and rose again in the late 90s when interest rates rose. Maybe it's you talking rubbish but then I'm too polite to suggest that.

Really ? So with politeness, where was the "price fall" ??

 

[jimbob5]

I thought you were stating the obvious, but you've still managed to find people willing to argue with you.

you know what I'm like!

 

[Buzzer]

you know what I'm like!

 

[Westdene Seagull]

Not very clear. Anyway, Poland is empty now, so houses WOULD be cheap there!

you keep digging. Not sure why you are going on about Poland. This my friend is NOT Poland. Well not yet.

There, there, nurse will be along soon with your medicine.