Boards Index General discussion Getting serious Why are house prices so high?

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  • #1140693

    Bed sit boys talking property high finance 😂

    Bed sit boys talking property high finance 😂

    Welcome Back thin ice :bye:

    Having fun are we?

    Stop trying to get me to bite.  Its only a matter of time before budha gets another ban and makes a donation to Martin Reeds yacht fund. And tracy’s so poor she needs to flash her bits to get men to buy her accounts  :yahoo:

    So carry on  ;-)

    #1140694

    The primary driver of prices, not physical supply and demand.

    That’s how prices work.

    Not with the housing market, its what people can afford to borrow and the size of there deposits. If you go on any mortgage calculator website its terrifying how much people can borrow with little or no deposit. Whole life mortgages means they can borrow a lot more too.

    No comodity is exempt from the law of supply and demand.

    If demand grows faster than supply then price goes up.

    I know know why you mentioned borrowing or mortages, they aren’t relevent.

    Increasing the supply of money would increase the demand for higher end housing (very slightly), but it wouldnt have any effect on lower end housing.

    #1140695

    but you bought tracy an account too :wacko:

    #1140696

    Increasing the supply of money would increase the demand for higher end housing (very slightly), but it wouldnt have any effect on lower end housing.

    This is wrong, it would effect lower end housing but not as much.

    The inflationary effect is limited in this case, everyone needs a house and there is little incentive to buy more than one house because its too much of a burden (if its easy to buy houses then renting them out isn’t a viable idea). The only thing it can do is cause people to live in a house on their own where they otherwise would have to live with other people.

    Inflation is still an effect of supply and demand however.

    #1140697

    Increasing the supply of money would increase the demand for higher end housing (very slightly), but it wouldnt have any effect on lower end housing.

    This is wrong, it would effect lower end housing but not as much.

    The inflationary effect is limited in this case, everyone needs a house and there is little incentive to buy more than one house because its too much of a burden (if its easy to buy houses then renting them out isn’t a viable idea). The only thing it can do is cause people to live in a house on their own where they otherwise would have to live with other people.

    Inflation is still an effect of supply and demand however.

    It would be more accurate to say that cheap loans reduce the value of money in general, it doesnt effect the value of the house.

    #1140698

    Hmmm…..

    If you look on any property website you will find a good section of housing.   There no shortage of supply.  Unfortunately peoples trust in the housing market is so strong they borrow the maximum amount.   The twisted logic is they wont be there more that a few years and the more expensive housing will realize the biggest profit in the shortest period of time.

    I blame those house make over shows for this.   They need banding before another generation its trapped in endless debts.

     

    #1140699

    Ge

    :negative:

    • This reply was modified 2 months, 3 weeks ago by  Ge.
    #1140701

    Your up late……..did you pull a minger last nite after the game?  Was you really that drunk  B-)

    #1140702

    If you look on any property website you will find a good section of housing. There no shortage of supply.

    There is absolutely, undeniably a shortage of housing.

    This is a bizzare claim. :wacko:

    The net population growth, is far, far higher than the number of houses being built.

    In 2019 184,000 houses were built.

    Even ignoring that, in 2019 there were 640,370 births and 530,841 deaths, that’s a net increase of 119,529 people.

    In 2020 the net (legal) immigration was an additional 313,000 people.

    So 184,000 houses and 432,000 people.

    (Its actually worse because legal immigration numbers are under-reported, and its estimated that about 500 people illegally cross the channel every day)

    #1140703

    Hmmmm…. you need proof  :scratch:

    How about city living in sunny Hull for 70k?

    https://www.rightmove.co.uk/properties/106850771#/

    Or London for the same price?

    https://www.rightmove.co.uk/properties/105598541#/

    I know you want to be by the seaside ….40k?

    https://www.rightmove.co.uk/properties/90358054#/

    The myth of a property shortage is promoted by estate agents, home builders and homeless charity’s.   When you take a good look around, there is no shortage of afford housing cross the UK.

Viewing 10 posts - 11 through 20 (of 45 total)

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