OK This has been 'getting my goat' for ages and just in case anyone
else feels the same, here's a thread to vent your feelings & views!!

So then...House prices currently...
1. Are they truly realistic?
2. Do you see a crash and burn possible in the next 12 months?
3. Is it lulling people into a false sense of wealth that really
is just an illusion?

My thoughts are they are not realistic and as controversial as this
may be, I hope some type of re-dress does occur sooner rather than
later - although a crash and burn scenario seems a little harsh!

This can't go on surely?? The last two booms didn't, is it different this time?
I can't see it, sooner or later be it through interest rates or
economic factors (unemployment) it has to change. The longer it goes
on the further people will have to fall financially.

It is causing an illusion of wealth?
Well when I speak to friends who are younger who don't remember
the last crash and haven't experienced
15% interest rates on mortgages (which I have) and they can't imagine
having to tone down their lifestyle to pay higher mortgages, or can't
imagine a time when thier homes wont just automatically go up every year...
YES IT'S CREATING AN ILLUSION!!!!!

Any typos please excuse - the bunny's not 100% today!!

we have been told that this is a housing bubble for the last two years at least. as i said before i early listened. i nearly went inot rented accomodation and waited for the bubble to burst , ready to pounce. i am so glad i didnt and borrowed to our maximum and bought a property 15 months ago.all the reasons being given today are the same things that were said back then . there is so much logic to the arguements given that this is a bubble that it is almost impossible to argue against . i think what people should be doing instead of looking at their homes as an investment , is to look at them as a HOME, somewhere to live for the next 5 to 10 years or longer. then it really doesnt matter if it is a bubble .thats how i looked at it. its our home , not a pension , sipp, isa , money making , load of bollocks . yes we have what for us is a large mrtgage , but have done the sums and we are ok until interest rates hit about 8 %. (then we are f**ked,lol). i really dont see interest rates hitting the 15 % highs of the mid 80's early 90's. the other thing i have noticed amongst ftb's is that expectaions are different . my ftb was a bit of a shed that needed some work . i did the work and sold at a profit , thats how you get on the ladder . ftbs now are looking for the 3 bed semi in a nice area as a ftb. i dont know too many ftbs who managed to do that.

I can't see 8% certainly not in the short term, and I hope for
you that it doesn't get that far, but 6% I can foresee. It's not
people like yourself bosley, it's the ones who are financing off
the back of their properties that are the problem. Some have a string
of properties all financed from each other at high mortgage values
and those buying expensive consumer goods again financed by their
bricks and mortar. They are driving up debt and the housing market.
I agree with you first and foremost our houses should be our homes!