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High property prices



jimbob5

Banned
Sep 18, 2014
2,697
High property prices are caused mainly by low interest rates. This suits whoever is governing.
 














jakarta

Well-known member
May 25, 2007
15,616
Sullington
That's right, Russian criminals, oops I mean businessmen, buying Properties in Central London only do so because of low interest rates......
 






Moshe Gariani

Well-known member
Mar 10, 2005
12,068
High property prices are the result of the transformation in attitudes to debt which happened post-Thatcher.

Ever higher salary multiples, ever longer mortgage terms and the advent of "interest only" created the market conditions that allowed prices to soar.

The beneficiaries of the price boom have been people who own houses and particularly people who own several houses.

Interest rates now stay low because so many people would not be able to afford their mortgage payments at normal or above normal rates. This plays further into the hands of people who recklessly took on debt and especially those who bought multiple properties.

It is all a sorry mess that works to the further benefit of those already better off.

What is not to like...?
 
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jimbob5

Banned
Sep 18, 2014
2,697
That's right, Russian criminals, oops I mean businessmen, buying Properties in Central London only do so because of low interest rates......
That's why I said MAINLY. Mainly does not mean the same as only or solely. That's 'MAINLY' MAINLY MAINLY
 


Buzzer

Languidly Clinical
Oct 1, 2006
26,121
High property prices are caused mainly by low interest rates. This suits whoever is governing.

Polish interest rates for the last 10 years:

2z9a9ae.png


Polish house prices for the last 10 years:

rbcpk2.gif


How do you explain that then?
 




Bold Seagull

strong and stable with me, or...
Mar 18, 2010
29,719
Hove
Polish interest rates for the last 10 years:

2z9a9ae.png


Polish house prices for the last 10 years:

rbcpk2.gif


How do you explain that then?

Looking at those graphs, presumably a large proportion of the population can't move because of negative equity. Imagine buying at the end of 2007 - ouch!
 


jimbob5

Banned
Sep 18, 2014
2,697
Polish interest rates for the last 10 years:

2z9a9ae.png


Polish house prices for the last 10 years:

rbcpk2.gif


How do you explain that then?
It shows prices going up as rates fall and vice versa! It backs up my premise.
 


Buzzer

Languidly Clinical
Oct 1, 2006
26,121
It shows prices going up as rates fall and vice versa! It backs up my premise.

No it doesn't! Firstly you said there's an inverse relationship between property prices and interest rates, those graphs are at complete odds with your theory, secondly that bottom graph shows % change NOT the value. It means that prices since 2008 have carried on falling EVERY YEAR despite interest rates dropping lower and lower.
 




jimbob5

Banned
Sep 18, 2014
2,697
No it doesn't! Firstly you said there's an inverse relationship between property prices and interest rates, those graphs are at complete odds with your theory, secondly that bottom graph shows % change NOT the value. It means that prices since 2008 have carried on falling EVERY YEAR despite interest rates dropping lower and lower.
Yes it does! They're rising albeit slowly in response to the lower interest rates.
 


Moshe Gariani

Well-known member
Mar 10, 2005
12,068
It means that prices since 2008 have carried on falling EVERY YEAR despite interest rates dropping lower and lower.
Hardly surprising given the completely MENTAL boom between 05 and 08...
 








Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Patreon
Oct 27, 2003
20,938
The arse end of Hangleton
high property prices ARE properties having prices which are high, not caused by them

That's why I said MAINLY. Mainly does not mean the same as only or solely. That's 'MAINLY' MAINLY MAINLY

Yes it does! They're rising albeit slowly in response to the lower interest rates.

Rubbish. Now go and produce your graphs over the 80's period - property prices still rose above inflation despite very high interest rates. It is pure lack of properties and greed that produces the high property prices. I'd have a guess that a vast majority ( 95%+ ? ) had the property they currently live in before the fall to 0.5% interest rates.
 


Pantani

Il Pirata
Dec 3, 2008
5,445
Newcastle
High property prices are caused mainly by low interest rates. This suits whoever is governing.

It is probably young people that caused this, they are the people you normally blame for everything else...
 



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