Ramble on housing affordability, wrong ONS figures and soaring cost of home ownership

[@scarlettspear7447]

Brilliant Charlie! My dad was on to this when he saw his friends trying to sell up and they could not believe what they were being offered.! They could not sell, even after substantial cuts. My folks have decided to keep their home and have help at home when the time comes. They have had to rethink their plans. However, they are grateful to be in this position............they are firm fans of your work!!

[@susanross8152]

My parents did the same ...

[@stephengreen8986]

My parent can't handle anything now. They were able to read, write and calculate better than today's 14 year olds but then you surpassed her in the next 2 to 5 years that she didn't get. She was also distracted by Hitler's bombs. She moved home again thanks to Hitler to house share. Not a new thing at all. Only heard these stories in the last 10 years.

[@01menyou]

Spotted the correction of house price to house value, well done. To be fair, yours is the only property channel prepared to address what matters. Relative value, not price.

[@frusciantesplectrum7980]

I bought my house in 2018 and bought well below my affordability…. I’ll pay it off in two years time on a 1.1% fixed rate…. Best thing I ever did….

[@MovingHomewithCharlie]

Nice one

[@ThelmaDickie]

Living in Scotland I had to have Home Report completed before listing house via Estate agent who had chosen the surveyor. Not only was this an expensive exercise but my beef is with the questionable competence of the surveyor as this has impacted on the house price - lots of 2s including double glazed upvc exterior doors and windows.( safety glass logos) Before he left I asked if there was anything I needed to do and his reply referred to the "crack in the bathroom window". WTF? There was no crack but exterior sealant which had worked loose from the top of the window. Surveyors are supposed to be experts but ought to be able to recognise the difference between a crack and sealant. It somewhat undermines confidence in the rest of the Report.

[@stephengreen8986]

Good to hear how other countries compare. Credit to Charlie that he doesn't bluff. He will qualify his level of knowledge.

[@ynwa5xinistanbul]

Agree stamp duty on uk resident owner occupier homes should be abolished

[@andymaidment111]

Nailed it Charlie. Apart from the SD cut. Because prices will just get hiked again if its cut. And then youll be on here saying asking prices are stupid. They should just stop tinkering with everything, SDLT, Help to Buy, all of it, for 5 years and let the market find its level.

[@MovingHomewithCharlie]

If the stamp duty cut was permanent, it wouldn't cause prices to rise, because there would be no deadline to meet, hence no rush, hence no need to pay more than the market value.

[@andymaidment111]

@@MovingHomewithCharlie That's true. But govts, and especially this one, can't and won't stop tinkering. Reeves. Destroyer of Worlds.

[@caroltaylor-hinds6050]

Thank you very much for this valuable information. So much food for thought. Great channel. Thank you 🙏

[@Alex82pd]

Agree. Owning your home is good, because though the real value goes down with inflation, it is your home, and rent also adjusts with inflation (up). The fact that everybody sees owning your home just as an investment surprised me, as a foreigner living here. Of course if you have money to invest, invest elsewhere... But your home is not a bank

[@andym.6141]

How many house buyers look past the headlines and what their Estate Agent tells them? Very few I would suspect.

[@KimThomas-vp4vm]

In the 90s I delivered millennium prophecies at exhibitions. When questioned, I replied, "you will be OK in the short to medium term, but long term, no".

[@mat-ur6qb]

All true Charlie. To throw into the mix 1. When real house price is this far below trend its a buy signal. 2. As a home owner if you buy with a 10% deposit then the ROI is 10x the nominal change in annual price (up or down!).

[@MovingHomewithCharlie]

minus your interest costs, and minus any real loss in value due to inflation.

[@jacquiollard8784]

in Australia the council rates are based on house prices - follow the money

[@YiannisSotiri]

I would love for them to get rid of the stamp duty but wouldn’t that make the house prices shoot up again . I think there is definitely going to be a crash in the market you’re 20% drop in price prediction looks like will happen the only thing that could stop it is if the interest rates come down quickly This government are clueless it’s like they don’t want anyone to buy a property with there stamp duty increase 😢

[@andrewlam5021]

If interest rates come down quickly, inflation will rise again.

[@TheActionslaxx]

The stringback just gives you that extra bit of purchase

[@fitat6092]

Eloquent and on the nail!

[@loubieloujones5698]

I love your insights Charlie. I am rather distracted by your headrest being too low. If you have an accident your neck is going to get it!

[@MovingHomewithCharlie]

Even on this 35 year old car, it's electric, I will raise it!

[@Jenks1]

Here's an idea to blow your mind. The costs associated with owning a home haven't really gone up at all. Wages have fallen for ordinary people and will continue to. The picture is obfiscated by inflation not caused by inflation. Fewer and fewer richer and richer ppl employ more and more poorer and poorer ppl leading to falling real wages.

[@claytonjane412]

Just got to get the majority of Agents & Sellers in the same Mindset as you n buyers ! Absolutely scrap stamp Duty .... Vote for that one.

[@andymaidment111]

SD down and asking prices will rise again. Leading to more stagnation. If £3k SD is stopping people buying a home, they cant afford it. And even if they saved that £3k how far will that go towards repairs etc. What we need is a housing MARKET not a vehicle for Govts propping up their donors. Govt cuts SD... Persimmon slaps £15k on the price.

[@BigHAL9001]

Nice interior what car is it? The headrest looks a bit low though, are you a 6 footer?

[@MovingHomewithCharlie]

Merc 560 SEL. 1989. Headrest is electric, I'll lift it next time!

[@stephengreen8986]

It's an Isetta and two cushions.

[@whizzalloverthecity]

No one should be buying houses for fun... surely not. Please God, no. Your house is your home. Never borrow against it. Do all you can to keep up your payments. Don't worry about inflation... MAKE YOUR PAYMENTS!

[@jasonbuksh2958]

Its completely corrupt and compromised .....

[@FreaksSpeaks]

Live and learn? May be not. Pumping is still happening.....

[@Michelle-72]

The latest video from Ramin at Pension Craft is interesting. He now expects house prices to drop (post budget).

[@wibblywobbly99]

How can how prices be up if they are rising less than inflation? The actual sell prices are all that matters, nothing else. As an investment I've got 25% on stocks and shares from July, add in the dividends and this is far easier than renting my spare property out.

[@MovingHomewithCharlie]

You’re confusing price with value.

[@delgriffithification]

If you can buy and can afford it you should. Someone extremely disciplined with finances may be able to make not buying a home a good decision these days but in my experience 99% of people aren't.

[@seanek9]

You make it sound like people are day-trading houses! Even if you happen to own an overpriced house it’s still a useful asset in a country where they aren’t building houses, the government regularly prints money and it’s a top destination for the wealthy seeking stability (in terms of property rights).

[@Leapops]

Precisely! Buying a home is generally a lifelong commitment so around a 50 year time horizon for most buyers. Even if you move you will almost certainly just buy somewhere else. Over that time horizon there will be several booms and busts. And if you do sell up you still have to live somewhere and negotiate the totally dysfunctional rental market. I think I will stick with my “overpriced” home rather than take that risk.

[@beemerdek]

I have 2 rental houses and I am still going to buy more.

[@01menyou]

@seanek9 Charlie's point, which is correct, is that a house most usually, with very few exceptions, falls in value over the time you own it. This is masked by a rising price in fiat. So, the house falls in value faster than its price in fiat rises. If you can not understand this, then get someone able to read a gold or silver historical price chart for you. Don't forget to correct the falling exchange rate of the £ against the US$, and the interest paid on the mortgage. Then, when grasped, do the same exercise with bitcoin instead of the metals. Houses are an appaling investment. You have to live somewhere, but don't kid yourself they're gaining value.

[@MovingHomewithCharlie]

It's only a useful asset if you're living it. Otherwise it's a liability. Only exception is professional portfolio landlords.

[@almostthere-q6c]

@@MovingHomewithCharlie Absolute nonsense. A house bought for investment is clearly an asset just like a business (or shares) and a bond are assets. The return on this asset is made up of: 1) The rental income less costs. This is similar to the dividend that a business pays or the interest on a bond. 2) The increase in price.. This is similar to the increase in price of the business . A bond generally has no increase in price. Inflation, of course, eats away at the return but this is true of all assets including businesses and bonds. Given we are in an everything bubble for assets, a proportion of assets in housing is a sensible decision. It is called asset sector diversification. The probability of a significant nominal fall in house prices is certainly lower than the probability of the S&P 500 facing a significant fall given its amazing run of the past few years.

[@andymcnab326]

Charlie you dont consider leverage. Even if house prices dont increase compared with inflation, the fact the buyer has access to huge leverage with the mortgage, the real money returns are significant.

[@MovingHomewithCharlie]

That's a fallacy that has caused many many people to now be in negative equity.

[@simonworsley8631]

If you own your own home, you are in control of your own destiny and you are paying off your own mortgage, not someone else’s and one day you will own it outright

[@Mrpanjani]

You don't own your home if you have a mortgage and the provider may be able to demand full payment of your mortgage at any time.

[@The_Unintelligent_Speculator]

@@simonworsley8631 Richest man in Babylon.

[@MovingHomewithCharlie]

Yes true. That’s a good reason to buy. Just don’t think you’ll make money from it.

[@popalop5680]

1st

[@Maggiemay1942]

Shilling, plain and simple. The whole house of cards is based on confidence. Applies to stocks, cryptos and other financial assets too.

[@andyjax9215]

Please reconsider making videos while driving, a distracted driver is not a good look.

[@MovingHomewithCharlie]

Please make sure you also write and complain to all tv car shows! Top gear, grand tour, 5th gear, drive tribe. I assume you don’t watch them right? If I hadn’t made that video then it wouldn’t have happened at all. I have no time.

[@andyjax9215]

Thats no excuse ​@@MovingHomewithCharlie

[@andyjax9215]

Defensive reasoning is not an intelligent argument