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Why is everyone happy when property prices increase?


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Why are the majority wrong?Are you suggesting that you are smarter than 20 million home owners-that seems a little presumptuous?

 

If you can't be bothered to read the thread then I might suggest I'm smarter than you as well.

 

Yes, 20 million people can be wrong.

 

---------- Post added 09-10-2013 at 07:31 ----------

 

He said they were wrong to feel happy-I think he meant they were misguided.I cannot help it if he expresses himself ambiguously-people cannot be wrong when expressing a subjective statement ie an opinion.

 

They are wrong to feel happy about house prices rising. Misguided also works, but they are still wrong in the basis of their happiness.

You clearly understand what I meant because you asked if I was smarter than they are, as if there being lots of them made them collectively intelligent.

Are you trying to claim in that quote that happiness is a subjective opinion and so can't be "wrong"? A strange splitting of hairs simply to find something to argue about!

 

---------- Post added 09-10-2013 at 07:34 ----------

 

Equity is and always will be the most important thing in property and I'm surprised nobody has mentioned that. Technically it doesn't matter if you would have been (less in debt) in times gone by or (more in debt) now. Its irrelevant if you are in positive equity, its win win all the way.

 

House price rises can take home owners out of negative or make less negative Equity, and that can be a breath of fresh air for some home owners if they need to bail out of home ownership for any reason.

 

You'd have to explain first how a house owner would get into negative equity.

 

If prices were stable then it would be impossible.

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Anybody who has kids should be very worried about house prices rising, especially if the market is in a bubble. It causes lots of issues none of which are good for you, or them:

 

1. It prices young people out

2. They're likely to get stuck living with you, perhaps into their 30s

3. They're going to come to you for money

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Until dementia calls at your door..Then watch and weep as your lovely nest egg is eaten away rather quickly by the care home...

Unless your family look after you of course.

 

Taken care of via a good financial advisor.. thanks for your concern :)

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You'd have to explain first how a house owner would get into negative equity.

 

If prices were stable then it would be impossible.

 

but they aren't and it isn't

 

it is only a problem, however, if the homeowner needs to sell at the "wrong" time

 

temporary negative equity is irrelevant if the homeowner is still able to pay the mortgage and has no intention of selling

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but they aren't and it isn't

 

it is only a problem, however, if the homeowner needs to sell at the "wrong" time

 

temporary negative equity is irrelevant if the homeowner is still able to pay the mortgage and has no intention of selling

 

That's all very well in theory, however in practice, recent events has shown that negative equity comes around whenever we suffer a credit crunch or depression. Since this affects numerous people, resulting in either losing their job or having their hours reduced, they may have no choice but to sell.

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If you can't be bothered to read the thread then I might suggest I'm smarter than you as well.

 

Yes, 20 million people can be wrong.

 

---------- Post added 09-10-2013 at 07:31 ----------

 

 

They are wrong to feel happy about house prices rising. Misguided also works, but they are still wrong in the basis of their happiness.

You clearly understand what I meant because you asked if I was smarter than they are, as if there being lots of them made them collectively intelligent.

Are you trying to claim in that quote that happiness is a subjective opinion and so can't be "wrong"? A strange splitting of hairs simply to find something to argue about!

 

---------- Post added 09-10-2013 at 07:34 ----------

 

 

You'd have to explain first how a house owner would get into negative equity.

 

If prices were stable then it would be impossible.

 

Another turgid tiresome tedious tirade.:(

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That's all very well in theory, however in practice, recent events has shown that negative equity comes around whenever we suffer a credit crunch or depression. Since this affects numerous people, resulting in either losing their job or having their hours reduced, they may have no choice but to sell.

 

that's partially true - hence my second sentence - but a fall in property prices doesn't always mean negative equity - it can sometimes just mean less equity available - it all depends how long you've owned your house, how much deposit you were able to pay and at what point on the price curve you bought your house - if you bought when property prices were still going up you are more likely to avoid negative equity than if you bought at the peak

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You'd have to explain first how a house owner would get into negative equity.

 

If prices were stable then it would be impossible.

 

But the question is, why are people happy when price houses increase?

Not a discussion on the stability of the market.

 

Simple answer is, it gives the owner more options to do what they want.

 

A few good points have been made RE downsizing, selling and moving to another country, potentially people in negative equity.

 

Even if you're staying in the same property you can benefit from an increase in price value.

If you're loan to valuation is lower, you will generally get a lower interest rate.

You could look to do borrowing on your property knowing sufficient equity is there.

 

To simple state the majority who think house values increasing is a good thing, is not correct.

 

It's about personal opinion, on what you can and can not do.

 

It has many good points, it has many bad points. Each persons circumstances are not always the same. So whether it is good or not is not for any one of us to say, but on your own belief.

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