Comments on: House prices: digging beneath the foundations

By: Hans

Hans — Mon, 17 May 2010 11:40:10 +0000

Beware property prices can go down as well as up; it all depends on the local economy and if that economy is based on reality or expectations; the recent property collapse in the Middle East (50% down or more), Spain (similar falls) and before that in Singapore, where prices once fell 80after a boom-bust cycle gives a good indicator. The UK is not immune by any means, and with the poor economy and no real industry causes the decline of the Pound, in real terms: the UK saw a 30 – 35% decline. If as expected there is a double-dip in the economy, we could actually see up to a 70% loss in value! Perhaps every property sale should carry a warning as do other investments.

By: Miles

Miles — Fri, 26 Mar 2010 09:08:04 +0000

Does the rental price fluctuate with the waxing and waning of the general property market? I have recently had to slash the monthly rental price to compete with others in the market.

By: colliers

colliers — Thu, 21 Jan 2010 13:43:09 +0000

In Elliottwave terms it looks like we are in a wave 2 up, correcting the wave 1 fall of last year. WAVE 3 down should therefore be next, the strongest decline in the 5 wave sequence, which could take prices down by c 50% or more–the market speaking!

By: Vivienne

Vivienne — Wed, 20 Jan 2010 23:07:35 +0000

When I was 18 I bought my first home for £18,000 and three years later sold it for £36,000. At the time I was earning £7000 per year and my husband was unemployed. This was the best rate of return and such a shock for us.
My dad had always advised me to to overstretch when buying a home, just as this article states as within a few years the mortgage feels like nothing.
I come from a family who have always invested in property, my grandfather in the 19402 recognised the shortgage of housing bought land, rented property out and his own plumbing company
I have bought buy to let property over the last 10 years, bought land and hope that history repeats itself………..

By: Simon

Simon — Wed, 20 Jan 2010 15:41:34 +0000

When I was a boy ( well, 20 actually) I bought my first little cottage for £18,000. I bought it on my own, on my modest salesman’s salary, having saved the 10% deposit the building society demanded. This was the norm in those days and many of my friends did the same. And like many others I was able to support the mortgage and the (non-working) wife and two children. That same cottage sold again last year for £180,000. No lowly paid salesman could afford it – the purchase would require two decent incomes. The wife would have to work and the children would have to wait. It has now become the norm that two incomes are required to buy a property and property prices simply rise to meet the amount of capital available. If the available capital rises by adding a salary, extending the mortgage term to 50 years or increasing the income multiple to 5 or 6 times joint salary then, much as nature abhors a vacuum, the property price will rise to swallow the extra funds.