davyboy

So lets try and bring the old names of of the woodwork with this one.

BBC NEWS | Business | Where are house prices heading in 2007?

Experts see a rise for the next 2 years.

Keep putting of buying that house, buying 42inch plasmas and new cars while living at home with mummy

stilover

They've all forgotten about the crash.

Andy M3

I am thinking of buying another property to rent out. The Irish market sounds like it will grow further.

Not sure it will crash though. It would result in Economic crippling.

lozgti

I forgot the whole country was gainfully employed and not manned by an external workforce on a shilling an hour.

I feel a fool

kingofturds

iTrader: (1)

Its okay house prices will rise forever and homeowners will be able to wipe out the £1.4 trillion of consumer debt they owe.
The people who seem to be buying plasmas and new cars are those who have bought a house in the mid 90's and are remortgaging in the hope that ever rising house prices will pay for all their new clutter.

the_boy

How can house prices continue to rise?

Are the financial institutions going to start offering 7x your annual wage over 50 years?

stilover

If people are stupid enough to allow themselves to get into so much debt, then banks will be stupid enough to lend it to them

SJ_Skyline

Supply and demand. As long as demand outstrips supply the price will increase. As soon as demand falls and there is an excess of supply then the price will fall. The market is very good at balancing itself, be it gradually or by an abrupt change.

I'll be remortgaging soon but only to take advantage of a better rate if I can and I certainly will not be extending the mortgage to pay for plasma TVs and new cars!

the_boy

I'm not sure if it's stupidity or not.

At some point people want to leave home or they have no option.
Renting is very expensive and also deemed dead money.

The average wage in the NE is £21, 000
Even 4 times your wage if £84, 000

You won't buy a house for that up here, nothing decent anyway. Possibly a masionette or flat. After that you are stretched to the limit and have no chance of climbing up the ladder because you're already at 4x your salary.

It's crazy.

Karl 227

Bought mine yesterday, Dave, mind you, over here a 2% rise per year is considered a lot, it's nothing like what happens in the UK

Karl 227

Oh, and because we signed the contract before Christmas we got a free plasma telly

davyboy

I'd assume you'd have saved up some sort of deposit though.

davyboy

When is the house warming

Karl 227

When you're in England

TopBanana

These 'experts' are all heavily biased except Capital Economics who 'still believe that property is overvalued and will eventually fall in price'

the_boy

Define deposit. Another £20, 000 still wouldn't cut it.

davyboy

....sure you can't find a time to let me come round and spill beer?

Petem95

I wouldnt be surprised to see a further small rise over next year. Prices are a crazy levels, but its like what happened with IT shares in the late 90's - people know they're well overpriced, but if they're going to return 5-10% you dont care how overpriced they are as long as they keep going up.

I think only a fool would believe the current situation is sustainable - this is all being propped up by massive debt. Just look at the situation with house prices in the US btw - crashing rather heavily it would appear, and historically our market follows theirs by 12-18months.

Nobody really knows whats going to happen - certainly London bonus's are helping prop-up the London market - houses in Chelsea are said to have gone up something like £350,000 on average over the last 12 months - but hey Im sure that's a sustainable rate of increase in some peoples eyes

stilover

Maybe to Bernie Ecclestone.