UK House prices rise by 5.9% in 2009

A clever guy once told me "keep buying land the don't make it any more"

And with more and more people coming to the UK and less and less houses being built, people living longer it's always going to simple business - supply and demand.

What amazes me is peoples view on property - if the market has gone up by say 10% yes your house has risen by 10% but so has the one you are trying to buy and the reverse when falling.

You only make real money from property if you trade it - as always just my 2 cents worth

Never really that straight forward though. Normally people will aspire to a bigger house, as familes grow etc, which will be a lot more expensive than their current property. But you tend to find that more expensive houses can rise quicker than chaeaper houses, and certainly fall quicker in a downturn.

In fact some starter housing can actually increase in value during a recession, as new building is cut back, but top end property will fall.

As people get older and the family flies the nest, they want to downsize, so i guess it depends on your circumstances and the economy at the time time you want to sell/buy.

I used to work in an estate agent in a former life, so feel free to throw your old tomatoes at me

Dont get me started on this subject.
I find it infuriating that we as a society deem that only people who own property are socialy acceptable.

I sold my house at the top of the boom and minted it all the way to the bank and I now rent investing the money in various shares and funds that will mature within the next 18 months and will leave me mortgage free for the rest of my life but I am looked down upon.
yet the guy next door who it mortgaged up to the tune of 250k and has 2 beemers both on HPI is put on a credit leveraged pedistal..

As Tomsk pointed out property is only worth anything when it is traded.
The masses can continue to think they are doing well mortgaged to the hilt and funding the banks bonuses.

RAH RAH RAH.
Rant over

whoops, obviously a controversial issue

but in fairness there are 2 sides. Why do you see yourself as viewed as not socially acceptable? Have you been refused credit?

Renting can be a good short term solution, and full marks for bailing out at the top of the boom, but thats a very risky proposition for most people.

Long term renting is dead money, you are paying for the flexibility of being able to upstick at a moments notice. If you plan on being in the same property or area for say 3 years plus, then buying is a sounder alternative.

The neighbour may have a large mortgage and a shiny BMW on credit, but as long as he's not over stretched and has plenty of cash coming in to cover his outgoings, as well as build up his emergency pot, whats the problem?

Isn't that better, knowing that he can do whatever he wants to his house, any improvements are for his benefit, and in 3 years, he can chop in his shiny BMW for another new one.

Its down to common sense and financial planning. The problems start when people overstretch and live on credit. Credit itself is a useful tool which when used and managed sensibly can enhance your lifestyle.

Hope that didn't sound like preaching, just get bored of hearing the 1950's "if you want it, you must save up for it" If that was the case, I'd never own a home, or a nice car!

I have never applied for credit so I could not tell you.

and the above addage has always worked for me and prooves my point most peeps (and I cast no judgement upon yourself) are overleveraged and it has become the social norm to do so.


Cash is still king in my book.

haha, love this!

Many years ago, I worked for DFS, and all my co-workers headed for the Shiney BMW's and Merc drivers, I headed for those in a family car, beat up 10 year old motors (I drive a 10 year old motor by the way)

And I had the highest commissions, always.

You get paid more for cash deals, I know for a fact, that people that would rather pay cash, are more careful, less impulsive and shall inherit the earth!

We do not own our house either, and frankly, would not want to, self build is what I am aiming at.

Not everyone that pays for their comforts on HPI are struggling, but a lot more than those who believe that Cash is King (Myself included).

And as the Mrs and I have just paid off a very large amount of it, we do not want any more of it, gone into 2010 without owing a single penny to anyone. And it feels great, and we certainly do not want any other debt.

Cash, Cash, Cash!

I'm happy to have a (small) mortgage, and currently getting quotes for a cheeky extension, because its our gaff and we can

Nice new shiny (her) Audi is paid off this year, the missus who has far more financial prowess than me made us borrow over 18 months rather than pay in cash.

Her argument, which she has won me round to, (ie she told me) is that cash lives in the savings account. The amount of interest we have to pay over 18 months is negligable, and is outweighed by the advantage of leaving the cash in the bank for the doomsday just in case scenario.

Although totally anti old bangers after driving them for so many years, having just let my Beamer go after the lease was up, will admit my main wheels is now a 2004 Nissan Patrol Caravan tug

I'm still fantasing about chopping it in for a RR sport, obviously 12 months old, let other suckers take the hit!

A thumbs up from credit corner

SO if i have read this right you rent your car and then let the interst accumulate in the bank to pay it off.

HMMM sounds familiar.

nahh we only rented the engine and wheels, we paid for the body and seats


right, might go and drill a hole through my wall just because I can