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Don't you think property Prices are climbing too high


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What are the advantages of high rents and high house prices?

 

Well the advantages of high property prices is that it keeps the writers of the Daily Mail readers happy. Their headlines are always gleeful when house prices rise! Except of course those Daily Mail readers who have children and they can't afford to get on the property ladder!

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All-ready have one.Not much point in buying your own, if it's not going to gain in value .Something to pass on to the kid's.

 

If it's the only house you ever buy maybe but most people don't do that.

 

Most people still climbing the property ladder don't realise that rising house prices makes it harder for them to move up to the next stage. If you have a house worth £100,000 and want to buy one worth £200,000 you'd have to find an extra £100,000 after selling yours. If the prices go up by 10% you'd be able to sell yours for £110,000 but the one you want to buy would be £220,000 - you'd have to find an extra £110,000. If instead the prices fall by 10%, you would only get £90,000 for yours but the one you wanted to buy would be £180,000 and you'd only have to find an extra £90,000.

 

When you get to the end of the property ladder and finally die, you might have a bigger legacy to leave for your kids, which won't go as far as property prices for them would be higher, but would they have preferred you to spend a greater proportion of your income on big mortgages or more on toys, holidays, trips to the zoo, etc. when they were kids?

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but would they have preferred you to spend a greater proportion of your income on big mortgages or more on toys, holidays, trips to the zoo, etc. when they were kids?

 

that's a very worthy point to consider really. not only the money side of things but also the time dedicated to chasing money....

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that's a very worthy point to consider really. not only the money side of things but also the time dedicated to chasing money....

 

Indeed. "Dad was never around to read us bedtime stories or help us with our homework but at least he left us a big house." Who'd want that as a legacy?

 

One thing I forgot to include in my post yesterday was that the rising price of your house, assuming you want to see any grandchildren grow up, isn't going to help your kids get on the housing ladder. The price of the properties they want to buy before you pop your clogs will condemn your kids to put effort into earning money to keep up with the mortgage rather than spend time with their kids.

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If it's the only house you ever buy maybe but most people don't do that.

 

Most people still climbing the property ladder don't realise that rising house prices makes it harder for them to move up to the next stage. If you have a house worth £100,000 and want to buy one worth £200,000 you'd have to find an extra £100,000 after selling yours. If the prices go up by 10% you'd be able to sell yours for £110,000 but the one you want to buy would be £220,000 - you'd have to find an extra £110,000. If instead the prices fall by 10%, you would only get £90,000 for yours but the one you wanted to buy would be £180,000 and you'd only have to find an extra £90,000.

 

When you get to the end of the property ladder and finally die, you might have a bigger legacy to leave for your kids, which won't go as far as property prices for them would be higher, but would they have preferred you to spend a greater proportion of your income on big mortgages or more on toys, holidays, trips to the zoo, etc. when they were kids?

 

Excellent post.:thumbsup:

People seem to be sacrificing their lives just to chase money. Oh well at least it keeps the banks happy.

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