Property Inflation.

[Atheist]

Why is property inflation, especially housing property, considered a good thing? It's terrible for young people hoping to buy their first home, especially when so-called social or affordable housing is under attack from a government wanting to oblige local auhorities to sell off property below the market price.

[jno]

pasta, as well as the cost of commuting there's the time. My son spent 3+ hours a day commuting, which I suspect helped the breakup of his marriage. He now lives within walking distance of his office.

[wolf63]

Renting a property gives you more flexibility, you can move without the hassle of buying/selling property.

Many people are happy living in rented property.

[pastafreak]

Not to worry...they bought in an upwardly mobile area of London with good access to the shops, services, and social life they want.
Too true jno. If she works in the office, daughter has the choice of central London...or out to the boondocks that is Windsor...about 2-3 hours a day if I'm not mistaken. If she already lived in more "affordable" areas, shed be spending much more time on the trains for the privilege.

[dave50]

Whats happened to the idea of buying a house simply to live in rather than an investment to make money? Does this obsession exist in any other country?

[Redhelen72]

Because Jennyjoan I lived in London and can guarantee that what you paid was a fraction of what I would have paid

[Redhelen72]

no dave it doesn't!
In Belgium for example it is not unusual to rent a house when newly married and still live in it when you die!

[SparklyKid]

Avatar Image Redhelen72no dave it doesn't!
In Belgium for example it is not unusual to rent a house when newly married and still live in it when you die!15:24 Thu 09th Jun 2022.

Presumably as ghosts,lol.

[pastafreak]

I'd say owning is pretty/more common in the States also. Renting was always seen as throwing money away. Not sure if its the same now, with "flipping" property becoming a thing.

[Redhelen72]

Of course is there any other way to live in a house once dead?

[youngmafbog]

//the most ridic thing of course is that rents are often higher that a mortgage payment//

Why? If you own a place you have to pay for maintenance on top of the mortgage (if you have one). If you move you will be 20K down or more. Things like this are never black and white.

Personally I dont think rents are a high enough return for Landlords
anymore, we sold all ours.

[Atheist]

YMB; my son's mortgage repayments are now lower than when he was renting. I don't know why, it just seems to be a fact. I don't know much about mortgages, but when we had one, the repayments stayed more or less stable as the general cost of living and wages gradually rose, so that as the years went by the mortgage payments became very cheap.

[youngmafbog]

Mortgage Interest rates are at an all time high. They will rise in the near future, hopefully stabilising around the 5% mark.

If you had a repayment you are paying back the money so the amount you are paying interest on drops a little each month. A way to make this quicker is to use an offset mortgage. They are brilliant especially if you are a higher rate tax payer and dont want to pay tax on savings (although this has now changed a little).

[youngmafbog]

D-oh, its been a long day

Mortgage Interest rates are at an all time **LOW**

[jennyjoan]

youngmabog - what is an offset mortgage.

this is a silly question perhaps - but do you believe in Equity

[bednobs]

offset mortgage is when you have a linked savings account, and the intereste is only charged on mortgage minus amount in savings.
so if you had 100k mortgage, but 50k in the savings account, you would only get charged interest on 50k, however you savings remain available to you should you need/want them

[jennyjoan]

LOL - oh beddy dear - dutch language to me - hopeless. I'll leave things well alone.

The new will has been set up but unsigned - so it'll go to others or the care home whatever comes up first LOL

[Deskdiary]

I think property inflation is marvellous.

Our house is now worth well north of a million with very little mortgage, and the appreciation because of where we live has been fantastic.

When I retire in 15 years or so, my wife and I will downsize, release a load of equity to our two kids to allow them to get on the ladder.

I couldn’t care less whether other youngsters get on the ladder, just so long as my kids can.

Selfish? You betcha. But let’s be honest, most people will think like this.

[Ryzen]

Dont get too excited Dd..capital gains tax on your sole property will be introduced well before your 15 years is up :-)

[giuliettapaul]

Real estate inflation is beneficial for those who own several houses or plots. I agree that this is very bad for young couples who hope to buy a house for a family, children, or a future life. Unfortunately, such inflation has not led to anything good. On https://timthomas.co/signs-of-a-housing-market-crash/ , I read that the real estate market is expecting a crash. Of course, the situation in the country is not so bad to make such terrible predictions. But people often abuse their ownership of houses and inflate the price. All this creates inflation. In addition, the current prices for building materials are forcing everyone to inflate the price of repairs, houses with fresh repairs, and so on.