A Good Time to Buy a House? - Will Prices Soar in 2025?
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- Опубліковано 24 жов 2024
- A look at UK housing market. Will interest rates really fall to 2.75% and if they do, how will that affect house prices.► Please SUBSCRIBE!
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For what's it worth, I hope prices don't rise. A few years of stagnant house prices would help rebalance the market.
Labour Govt's always see the highest prices rises; they always fuel inflation via spaffing money away and borrowing (sorry, "investing in public services") , and this lot are off to a cracking start.
I honestly hope for a bit of a crash in prices - home ownership is becoming increasingly unachievable - But the reality is it looks like Barclays and Llyods are going to become the UKs biggest landlords.
@@Tengu3000yes..I think Blackrock have a £1B fund to buy up rental property too. Only the largest companies will be have the economies of scale a large management teams that will stand chance of dealing with the Renter Right Bill nightmare which contains a massive number of new threats that could wipe out and small landlords, such a doubling rent repayment orders and the ability of tenant to delay paying any rent for months by playing the system. Once they have a stranglehold they'll ramp up rents through the roof.
Same - zero nominal until housing is viewed as a utility.
@@Tengu3000sorry to disappoint you but there’s zero chance of that with the population explosion we’re in the middle of. The best you can hope for is it goes sideways for a bit or a couple percent downwards.
All the sources quoted regarding house price projections for the next 5 years have a vested interest in seeing house prices increase. It is very important to assess the credibility of sources of information and unfortunately almost all those putting together projections, when it comes to house prices, are biased.
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Yes, they will rise in 2025 and 2026, >IF< interest rates drop to 3.5% to 4%. At 2.75%, they will surge (double figures) for a year or three. Great video
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy, or not?
Stocks with yields that outperform the market should be on your radar, as should shares that at least lag the market over the long term. But if you want a long-term strategy that works, I advise you to consult a broker or financial advisor.
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If you mean is currency going to depreciate due to high sovereign debt and the need for more QE then the answer is yes. Housing will appear to be worth more but in reality the currency will be failing like it has since 1973 and beyond.
Can't increase the population by millions and not expect the demand for housing to go up
Print another billion or 10
The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that our generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 54.
Safest approach i feel to go about it is to diversify investments. By spreading investments across different asset classes, like gold, silver, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
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Fantastic analysis
Thank you Sir
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1:34 The colour of that line on the graph matches your jumper! ;)
Great video....thanks....there are some bargains to be had at the moment especially if you want a larger home....have been saving with my wife for a decade and thought we would miss the second stepper stuff and go straight for a 4 bed detached homestead with an acre.....don't care if prices fall more from here have my forever home at last 😊
why are we looking at house prices in relation to inflation? to say house prices have fallen 15% in real terms whereas inflation mightve gone up 30% and wages have stagnated then its also true that house prices have gone up 15% in relation to wages? just seems weird to offset house prices against cpi inflation
Implement additional property taxes and invest the money into Social Housing, that'll soon bring down the prices people ask for their properties and make it more expensive for those who are under-utilizing the UK's finite housing stock. If you bought a property when property was overpriced that's your own fault, not the fault of the rest of the UK population.
Stagnate wages and declining immigration will help lower housing prices along with future base rate 8ncreasea to fund government borrowing.The lesson is to wait for property vslue falls across the UK.
Lovely let's get back to near enough 0% interest rates then everyone can binge on cheap credit and we can look forward to a massive financial crash........happy days!
While it's good that affordability has improved since 15 years ago, that's good for the same age cohort 15 years apart. For anyone who has been frozen out of the housing market for those 15 years, it means that they've forked out 15 years of rent that could have been used to pay down a mortgage, and lost 15 of their prime income earning years that they can't get back. The impact on that 'frozen out' generation will crystallise in the next 15 years.
So pleased to see both your collars outside the jumper this time
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I pray house prices drop so normal people can buy one with their normal salary
That would screw over a large number of normal people who have scrimped and saved in recent years to buy their first property. Negative equity is no joke, especially if the fixed mortgage term has come to an end meaning they're unable to mortgage and suddenly their monthly payments double or triple.
@@robsmith1184 true. not everyone can win
£££ House Prices can only go in one direction: Up Up Up £££
People don't understand reality. House prices will always go up with inflation, sometimes more, another time less, just like commodities. It's value of money dropping when goverment is printing more each year. If you want to blame anyone, blame goverment.
WTF are you talking about? I don’t think you even understand what inflation is, let alone what the BoE does
BOE released massive amount of stimulus to prevent market crash during covid bs. Massive inflation is effect of that cash flooding market. If you claim otherwise you are troll or on gov playlist. 🎉Have fun proving I'm wrong.
@@jontalbot1 Have I given any definition of inflation or what BOE does? WTF mind your language and grow up. If you don't know what printing money or borrowing does you may need to google it. And since you are talking about BOE specifically, biggest inflation we had recently is direct result of market stimulus to prevent the crash during covid and more that followed after. Market was just flooded with money.
@@MaxAcyWhat's your evidence to support your claims?
Really? What happened to Japanese house prices then.
And on average in the UK, maybe, but certainly not in a linear 1:1 way, and not in every area of the market. In terms of price per sqm, house prices have outstripped inflation by a significant amount in the south-east while in real terms they've actually gone down in the north, but so have incomes.
Multi Millionaires and Billionaires are putting the squeeze on everything you buy or want to buy.
House price to income ratio. The uk has a large tail of low paid workers who actually have their wages topped up by tax credits
It would be more sensible to talk about house prices to median wage, rather than ro mean wage
very good point. i have always heard of median house price to median wage, never the mean.
Blackrock, Blackstone, Edmond de Rothschild, Hines, Greystar are buying everything that private second homeowners are going to have to sell with higher taxes....this is a systemic issue. Build to rent is expected to increase 2.5 times by 2030. The inevitability will be you won't own anything and you 'must' be happy.
illuminati plans
Only the 'poor' will not own anything and those gen Z people who wish to consume more than they make. In most parts of the UK houses are still affordable even on a 25k salary, especially in the NW/Yorkshire etc. Yes, if you wish to move out of your family home at 18 and pay rent and eat out everyday, then ofcourse you dont have money to buy anything. But if you stay at home, live rent free, eat at home, live way below your means, i can assure you that anyone by the age of 28/30 can have well over 100/150k saved up. I am not making these figures up as i have lived it and so have my younger siblings and cousins who are currently 20-30 years old and every one of them has their own property. Some of them have even paid it off by 30 like me.
@@HDY0903 'still affordable even on a 25k salary'? well. not in London mate or surrey. yeah the minimum salary is 23-25k , however, you cannot buy a house near or in London. you need to go up north.
@@HS-sr9ww yes, that is why i mentioned NW/Yorkshire. Post covid you just dont need to be any where near London. Me and my wife have worked from home for over 4 years now. Im self employed, but she is part time employed and they only go in office once every 6 months.
@@HDY0903 This comment is laughable. Even if you save for a house to the age of 30 and save every penny. It won't make much of a difference as houses in South are out of the reach for you. Even if you save the dreamed 100k, the price of a house is around £300k - the bank will not give you £200k for the mortgage on that wage. Dream on.
The Government really need to step in on private equity firms buying up houses before it becomes a major problem but as always they won't intervene and we'll pay for it in the future.
Private Equity should/must be banned worldwide by govts.
It's the plan. Agenda 2030. You will own nothing and be happy. Blackrock & WEF (World Economic Forum)
Absolutely
It's the governments plan....😂😂😂
Unless we vote Jeremy corbyn nothing will change
Prices will soar every year. BoE is itching to begin QE and ZIRP policy, net immigration is set to be in the millions per year (although most will arrive on a beach with no paperwork.
Why lie? Most people coming to the UK don't arrive on a beach, and never have done. It's in the single digits by percentage. But that probably spoils your narrative.
40k a year boat immigrants doesn't match 750k legal migrants but this will fall as the clampdown on visas takes holdml.
The best time to buy a house was 20 years ago, the second best time is now.
word
On strict fundamentals, how on earth can house prices 'soar' from the nosebleed levels they've already attained? I understand 'how' of course: it will have nothing to do with economics and everything to do with politics! When all MPs became property owners/landlords (not just the Tory landed-gentry types) this was inevitable. Supporting house price hyperinflation is going to finally wreck the UK economy.
They'll soar if the supply of suitable homes becomes increasingly limited relative to demand.
Supply is relatively fixed and demand is going through the roof
Better invest in Moldavia instead in a mature market with low supply and sponsored by the mum and dad bank..
House prices need to drop at least 50% otherwise there is no future for the younglings of this country.
Conversely, wage growth. The issue is partially house price rises, but the real issue is the complete stagnation of wage growth. Minimum wage has gone up sure, but graduates are entering the job market being paid 2008 wages.
It's baffling to me that 70k was a great wage when I was a teenager and I'm 30 and it's still a great wage.
Pease read economics 101. Supply and demand
@@TheMajorpickle01 quite, the UK population has increased by almost 10 million since the year 2000. You can not do that and then act all shocked when Pay gets depressed, and housing costs (both rent and buying prices) get out of hand.
@@patdbean There has been a huge demand for more workforce, if you remember, UK has been welcoming new business to come in and wanted a bigger tax revenue. That in itself isn't bad idea, the problem is that UK governments had no plans to build enough houses to accommodate for the new workforce that was wanted/required. The results can be seen today - extra high prices for much smaller houses. And the key problem is still there - no workforce to build build build.
@@nothereandthereanywhere if we have this massive workforce shortage, why has pay been so depressed for the last 25 years? ,
The average full time wage In 2000 was 19k, to have kept up with REAL RPI inflation that would need to be 44k today, it is in fact 36k so the spending power of the average wage has done nothing but fall for 25 years.
So this shortage you talk of is not really a shortage of workers, we have 9 million nonwork adults. it is really more shortage of jobs that pay enough to live on.
Number of houses built in last 10 years(2010-2019) 1.4 million
Population increase since 2010-2020 4.3 million
Do the math
Maths
5:46 but that is 2% cpi. We should really be using RPI, because that includes housing costs.
💯 this
All this is mostly irrelevant until incomes catch up, inflation figures are still being used by employers to give out lower pay rises, even though they didn't give them during the period inflation was high. There is still a cost of living crisis in the UK.
Houses will double every year for the next 10 years. We will all be billionairs while doing nothing to get that money we can all retire at 40 so no one will need to work. The garden of Eden is here. All Governments will always back homeowners and make the poor pay for us homeowners as homeowners are the majority.
I find it really strange that they keep saying inflation is down when felt inflation (food shopping prices etc.) is still really high. Is that a bank of England statistic trick or there are other factors
I think inflation (annual rise in certain prices) probably is down, and this is important but as you say, prices are still a) high and b) rising (which is not to be confused with a rise in inflation)
inflation is just a measure of how fast costs are increasing. When inflation goes down it doesn't mean prices go down it means that the rate of increase in their pricing decreases
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I am a house and I can attest that my price will go up next year.🏠
lol
This is such a fukcin depressing reality
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Get a van / motorhome, sack paying mortgages - rent & rip off utilities!
The economy across the globe will go into a depression soon enough, crypto & silver are the assets to have - to beat inflation.
Landlords are exiting the market, this will have a large effect & bring house prices down. The world is in for one hell of a shock!!
And where did you study economics? Hang on, you know nothing at all about it
@@jontalbot1 Someone else living in denial, wakey wakey!
Well, if you're a private Equity Firm or you're sleeping on a mattress full of money, then yeah, it's okay to buy a house. Other than that, I think most people are going to find it hard to eat
This again??? It's never good to loan money. The thing is to accumulate money on one's account, expect others to do the same, and break everything apart.
It will. pound will tank.
If the Banks & Economists say interest rates are going to drop to 2.75% to 3.75% you know their going back to 0% 😂
They're never going back to 0%. Not unless there's another GFC/pandemic or other major black swan event.
I don't know about 0% but they do seem to underestimate changes.
@@palmtree-e2l The Chinese economy says hold my beer GFC! 😂
If prices 'soar' again after frankly soaring for years and years at this stage, then interest rates will have to go to 10%+ and people will default en-masse. The banks aren't going to let the older mortgage debts inflate away, trust me. Banks don't lose. History tells you as much.
Interest rates don't rise as a result of house price increases.
@@VTh-f5x I mean the interest rates banks apply to mortgages, which closely mirror the 10-year bond yield. Not the interest rates that are set by the Bank of England.
Reminds me of 2008
Thats it, and then banks buy up the defaulted property and control the rental market.
@@robc1014 Yes, sadly. Taxpayer should have never consented to the debt jubilee of 2008. We weren't awarded dividends for our ownership of the banks, and now that the banks are being sold off by the Treasury back into private hands, some of them are already admitting to pursuing rental income e.g. Lloyds.
UK is its own worst enemy, you'd think 16 years wouldn't be long enough to forget what happened, but it has been long enough.
This seems like great news. I am almost done reaching my downpayment and I hope to get into the property ladder by the end of this year or the beginning of 2025!
Congrats, you may then be mortgage free by 2100 😂
@@monkeh86 I'm not on a race, I plan the long run. Life is not a sprint, for me is a marathon.
Actually millions who are renting from private landlords do not wish to buy their own home. They know the usurious banking corporate landlords will squeeze them to the max. People wake up to Islam. Islam supports the traditional family.
Look how successful Islamic economies are. All those scientific breakthroughs in the Middle East
I'd wager the vast majority of renters would buy if they could.
How do you think Islam provides any alternative to traditional banking?
It’s not about if they could. The usurious bankers are trying to reel people into taking on mortgages. Then, the usurious bankers will jack up the rates putting so much pressure on UK traditional families that will end in divorce, and as we know all the homes will be given to single mothers and their children while landless fathers go out and work stupid hours paying for these single mothers. This is the design of the usurious bankers’ modernity. If the usurious bankers wanted to support traditional families they would support the males by making them financially strong and the single mothers would not divorce and be attracted to the free homes given to them paid for by landless fathers.
Islam supports the traditional family. We have dark designs in the UK by demonic forces.
I personally rent out my property in the UK at 50% market rate to a traditional family. I’m trying to do my bit and I speak out against usury by first using the word usury. It is a small step. You do your bit and start using the word usury.
@@D-A-H8585 that's good of you, less good of you because you'd only do so to a 'traditional family' I'd say. But you haven't actually answered my question.
You may be Muslim and charging less but what does Islam as a system or institution provide that improves upon traditional banking. It's not a trick question I'm genuinely curious.
First buy up the property, then slowly release them onto the market to control the supply. This will maintain the returns on your investment.
be helpful if we had data about HOUSEHOLD v's average income re mortgages.
Thank you for such clearly presented information.