UK House Prices -The next bubble waiting to burst ??
tanners - Thu, 22 Dec 05 :
hughey7 - 22 Dec'05 - 12:25 - 15650 of 15674
Jonty
if mike wants to put my 50% quote in the header then i have no problem with it
I bought my last proerty in 97 and sold it beginning 04 for 100% profit virtually to the penny.
If people cant see that 50% is simply a retrace back to 96/97 levels when the economy is weaker demand is lower and inflation(REAL inflation)is higher.
Add to that high levels of debt and over leveraging by btlers and ftb's, job insecurity and higher levels of unemployment i rest my case. I havent seen anyone who is positive on the market explaining why it should continue to rise or even stay at the current high multiples i.e a booming economy,lower energy prices,increased job security.If anyone would like to explain where i am wrong on the prospects of the housing market other than the bullsh4te low interest rates(no help to japan when their market crashed) and increased demand arguments then i am all ears.
happy xmas
h7
Hughey......I've made the point several times that due to low interest rates most lenders have been and still are leding in higher multiples before ( and I see this is now mentioned in the Capital report).
Surely the ultimate test of affordability is how much you need to repay per month, not the multiple of your income that the loan represents.
Due to the current low interest rates, I reckon that the %age ave. income spent on mortgage repayments isn't far different to that 15 years ago when interest rates were double and property prices 1/3 of what they are now.
Don't forget 35 year mortgages too.....people are living longer and working longer.
