House prices

[SpaceCash]

http://www.sharelynx.com/chartstemp/USHLSPOG.php

 

 

Hi everyone!  Long time no speak, I dipped out of the forum for a short time after quiting a job and moving on to pastures new. My newfound interest in PMs and economics forced me to confront the stark reality that I was accepting far too low a price for my time and labour relative to my skills and experience, so I made an economic decision to move into a more lucrative field. Amazing how an interest in economic history can impact on how you live your life so much. I hope to start stacking again when my first check comes in this october, just hoping the price doesn't do anything too strange in the meantime

 

I wondered how you would analyse this chart I found? A reasonable price for a house, when looking at the entire chart from the eighties to present, seems to be around 10,000 ounces of silver. At today's spot price that's about £117,000 (GBP) which seems rather reasonable, or around 200 ounces of gold (£155,000 GBP at spot).

 

Seems to indicate that silver and gold are good places to be at the moment when the housing market is going a little silly (group viewings of up to forty people, same day offers in sealed envelopes, eastate agents representing sellers more than buyers because they hold all the power..,.). Anyway just wondered if anyone had any insights into housing prices relative to silver and gold at the moment?

 

Apologies if this has been discussed before,

 

Adam

 

 

 

 

[motorbikez]

Anyway just wondered if anyone had any insights into housing prices relative to silver and gold at the moment?

 

 

 

Not really I've always viewed my house purchases as somewhere to live,although they have turned out to be good investments,I can remember exactly what my 1st house cost in 1982  £13,400 for a terraced sandstone 2 up 2 down,the same houses in the same street sell for 140,000 plus, a more than 10 fold return in cash terms( excluding inflation )if you look at it like that.

 

But I would not advocate looking at property as an investment (look at it as somewhere to live) unless you are in the property business, property has its cycles same as everything else, ups and downs.The difference is as long as you can afford the mortgage you can ride out any downturn as everyone else is in the same boat.

[craig12]

I had a survey on 2 properties I bought 2 years ago  both independent surveyors came back with around 20% less than the estate agent had them on at , id say  there about 25% overpriced in Sheffield  we have in s10 terraced houses at around £160000  they were no more than £70000 before the 2007 housing rip off  they say spain is still 27% overpriced even after the crash   mainland spain  £30000

[Ares]

My extremely general view is that when PMs drop, stocks/property go up and vice versa. 

[HelpingHands]

I'm not sure what to make of the graph. It doesn't suggest I'll be able to buy a house anytime soon for 200 oz or so. Maybe that level around 1979 could happen again.

Everybody repeats the same line on TV that the solution is to build more houses. I think they just copy each other because it makes no sense. If there aren't enough houses then where to people go at night?

[SpaceCash]

I have always viewed property as just somewhere to live but none the less renting is something that swallowed about 60/70% of my income over the last five years so it makes sense to try and view it as an economic thing for me. My long term goal would always be to try and keep the percentage of my income spent on housing as low as humanly possible to allow me to save better and work a little less hard.

[motorbikez]

Everybody repeats the same line on TV that the solution is to build more houses. I think they just copy each other because it makes no sense. If there aren't enough houses then where to people go at night?

 

There are over 900,000 empty houses in the UK, including social housing run by local councils,private landlords and government agencies,the government should concentrate on getting this waste of resources into use,instead of listening to the crap on TV by property pundits estate agent etc that there arn't enough houses.

[SpaceCash]

There are over 900,000 empty houses in the UK, including social housing run by local councils,private landlords and government agencies,the government should concentrate on getting this waste of resources into use,instead of listening to the crap on TV by property pundits estate agent etc that there arn't enough houses.

Couldn't agree more. there is both a massive amount of empty property and a huge homelessness problem round where I live. We could easily house everyone but that would drive down the prices and upset the banks and landlords. Don't think the average man in the street would mind too much though...

[HelpingHands]

I try not to think about the total rent I've paid as I won't like the answer. Much the same as to why I don't keep average price per oz records.

[Kman]

There are over 900,000 empty houses in the UK, including social housing run by local councils,private landlords and government agencies,the government should concentrate on getting this waste of resources into use,instead of listening to the crap on TV by property pundits estate agent etc that there arn't enough houses.

 

Some councils are trying, sellng £1 houses

 

http://www.dailymail.co.uk/news/article-2691491/Weve-bought-Britains-cheapest-house-1-Couple-terraced-home-worth-70-000-practically-new-regeneration-scheme.html

 

Only problem is they don't sound like a lovely place to live..

 

On Denbigh Street - the road the Poxtons live on - only eight out of 90 houses have been made up, and Mr Poxton admits they 'stick out like a sore thumb' in between all the other dilapidated buildings.

 

As a result, security guards patrol the road 24 hours a day to ensure none of the houses are vandalised or any copper is stolen.

[morezone]

There are over 900,000 empty houses in the UK, including social housing run by local councils,private landlords and government agencies,the government should concentrate on getting this waste of resources into use,instead of listening to the crap on TV by property pundits estate agent etc that there arn't enough houses.

 

For government/council and social housing it all comes down to funds.  Older houses need modernising and bringing upto standard after years of neglect  but there isn't the funds available any more.  Unfortunately the government and councils don't collect enough taxes to cover the spending that is wasted

In some areas you can see streets and streets of houses where a lot of the homes are boarded up ready for regenerations.  Only problem is that it can take many many years to start because either they're waiting on funds or they're still waiting for the last residents to relocate before work can commence.  It can take some times to evict people especially if there are a few of them.

 

There are also lots of houses privately owned which have all been forgotten about.  Wasn't there a new law which came into effect recently where it gives the council/government to seize a property if it hasn't been lived in for X amount of years?  

[FTYBR]

I think Mike's one of the very few to analyse these charts and provide commentary on them. I'll certainly be keeping an eye on this (and Dow/Gold Dow/Silver ratios) over the coming years

[motorbikez]

For government/council and social housing it all comes down to funds.  Older houses need modernising and bringing upto standard after years of neglect  but there isn't the funds available any more.  Unfortunately the government and councils don't collect enough taxes to cover the spending that is wasted

 

 

They seem to have enough money to pay ridiculous amount of so called housing benefit to people,if they diverted a proportion of that money to renovating property and adding it to the social housing stock it could become a self generating virtuous circle,but that would require some effort and intelligence,neither of which are in abundance in the government or town hall/councils of the UK.

[Cointreau]

I have always viewed property as just somewhere to live but none the less renting is something that swallowed about 60/70% of my income over the last five years so it makes sense to try and view it as an economic thing for me. My long term goal would always be to try and keep the percentage of my income spent on housing as low as humanly possible to allow me to save better and work a little less hard.

My rent is 20% of my income (net).

[HighlandTiger]

My rent is 20% of my income (net).

My rent, rates, council tax, TV, electricity, internet etc is also 20% of my income, and I probably earn a lot less than most of the people on this forum.

 

Me and Smokestack are the founding members of the Guild of the Poor and Usually Broke Silver Stackers, although I think Madhatter is close to becoming a new member 

[II DALTON II]

I've pretty much given up on owning a home in the UK. Not a decent home anyway. This nation has a bizarre fetish for runaway house price inflation and it is not gonna end anytime soon. I've been looking at property over in the states and I'm thinking of actually emigrating over to there in the next couple of years. I mean you can get a well built 3 bedroom 2 storey 1500sq ft home on half an acre in North Carolina for $110,000. At current exchange rates that is £66,267! And no, that is not in the back-end of nowhere, that is in the suburbs of Greensboro! Over here that kinda money will get you a run down flat situated above a crack den, or in London it may get you a walk in closet in a housing block LMAO.

[SilverPirate]

My rent, rates, council tax, TV, electricity, internet etc is also 20% of my income, and I probably earn a lot less than most of the people on this forum.

 

Me and Smokestack are the founding members of the Guild of the Poor and Usually Broke Silver Stackers, although I think Madhatter is close to becoming a new member 

Can i become a member of the impoverished stacker also?

I am not sure where the market is going, as deposits are huge for kids to get on the housing ladder,and i personally could not afford to rehouse my family in a rented accommodation if i lost my house.The rents for the same size property are higher than my combined gross wage here in Surrey.

The government austerity measures i can understand where there coming from,but it takes money out of pockets to spend on the economy to get it going, I think it just slows down a recovery.

The government needs to invest in regeneration of area's to create jobs,homes and spendable personal wealth,build some more schools,homes,roads,hospitals get the people working out of this situation,then they can buy the homes they need.

Build some affordable housing, that stay in the rent cycle and not sold on.otherwise my kids will be at home for ever.

[HelpingHands]

Jim Rickards thinks the UK will be the next to have a currency crisis. If something causes an interest rate snap back then we'll find out what's what with the property market.