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Debate House Prices


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Six reasons to be optimistic

1) The £ falling should help exporters be more competive.

2) Despite number 1 , inflation is set to plummet over the next 6-9 months. Even the mythical "real" inflation.

3) Interest rates will be cut by 1% over the next 4 months.

4) House prices will be more affordable in 1 years time.

5) Tough times never last for ever.

6) A Democrat in the white house might mean no more crazy wars.
US housing: it's not a bubble

Moneyweek, December 2005
«13456

Comments

  • napoleon
    napoleon Posts: 611 Forumite
    Doom, doom, we're all doomed
  • abaxas
    abaxas Posts: 4,141 Forumite
    7) Kylie's bum
  • skap7309
    skap7309 Posts: 874 Forumite
    Cancel number 3. Not big or clever for savings.......
  • kennyboy66 wrote: »
    1)

    4) House prices will be more affordable in 1 years time.

    6) A Democrat in the white house might mean no more crazy wars.

    4 - They will only stay afforable for so long then it'll be back to ever rising prices. Simple reason being their aren't enough properties available. Even now in this downturn the government should be looking to build more housing. Obviously block them off not to be sold until 5 years down the line in small batches so as not to flood the market. Once buyers start buying their wont be enough available properties, especially with many people not wanting to sell for less than what they paid for it to begin with. Then it's back to first time buyers moaning again.

    6) - No, they'll just have a president who is wanting to talk to states like Iran. All these rogue states will be laughing away with Obama in the white house because they know he hasnt got the backbone to do anything to them. They can do what they like.
  • ray123
    ray123 Posts: 659 Forumite
    1) Cheap booze in the supermarket
  • michaels
    michaels Posts: 29,223 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    kennyboy66 wrote: »
    1) The £ falling should help exporters be more competive.
    Shame no-one abroad is buying anything anyway
    2) Despite number 1 , inflation is set to plummet over the next 6-9 months. Even the mythical "real" inflation.
    Really? At the moment even the oil price is struggling to fall fast enough to keep up with the falling GBP - compare petrol prices now to what they were when oil was at 65 USD on the way up...
    3) Interest rates will be cut by 1% over the next 4 months.
    Great except that the rate charged to borrowers in small businesses and SVR mortgages will not budge as libor will not fall - and almost everyone will be on SVR as house prices drops put the majority of people to less than 25% equity preventing them from getting a sub-svr deal
    4) House prices will be more affordable in 1 years time.
    Except that no one will have a reliable enough job to get a mortgage and falling incomes for those in work will mean that multiples remain high
    5) Tough times never last for ever.
    No but the 30's depression did not really end until the 2nd world war 7 years later
    6) A Democrat in the white house might mean no more crazy wars.
    Hmm - the closest we came to Nuclear War was a certain young, inexperienced charismatic democrat by the name of Kennedy and the Cuban missile crisis. Plus the left wing bias towards protectionism in hard times was one of the factors often quoted as making the great depression as bad as it was.
    [/quote]
    I think....
  • Realy
    Realy Posts: 1,017 Forumite
    michaels wrote: »
    Shame no-one abroad is buying anything anyway

    Really? At the moment even the oil price is struggling to fall fast enough to keep up with the falling GBP - compare petrol prices now to what they were when oil was at 65 USD on the way up...

    Great except that the rate charged to borrowers in small businesses and SVR mortgages will not budge as libor will not fall - and almost everyone will be on SVR as house prices drops put the majority of people to less than 25% equity preventing them from getting a sub-svr deal

    Except that no one will have a reliable enough job to get a mortgage and falling incomes for those in work will mean that multiples remain high

    No but the 30's depression did not really end until the 2nd world war 7 years later

    Hmm - the closest we came to Nuclear War was a certain young, inexperienced charismatic democrat by the name of Kennedy and the Cuban missile crisis. Plus the left wing bias towards protectionism in hard times was one of the factors often quoted as making the great depression as bad as it was.
    [/quote]

    How Cheery.
    I bet Santa is going to steel all my kids toys also.:rotfl:
  • mitchaa
    mitchaa Posts: 4,487 Forumite
    michaels wrote: »

    Really? At the moment even the oil price is struggling to fall fast enough to keep up with the falling GBP - compare petrol prices now to what they were when oil was at 65 USD on the way up...

    I have a fuel receipt Oct 2007 showing fuel @ 96.9ppl

    Petrol today is @ 94.9ppl.
  • confused31_2
    confused31_2 Posts: 1,272 Forumite
    I can definately see the interest rates coming down, ive still got 2 years left on my fixed rate but if iwas going to get a mortgage now i wouldnt jump on a fixed rate.

    The libor rate is also coming down, and they reckon its going to come down even more, happy days for people who need to re mortgage.

    http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4992350.ece

    confused
    I am not a Mortgage Adviser
    You should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Sir_Humphrey
    Sir_Humphrey Posts: 1,978 Forumite
    michaels wrote: »
    Great except that the rate charged to borrowers in small businesses and SVR mortgages will not budge as libor will not fall - and almost everyone will be on SVR as house prices drops put the majority of people to less than 25% equity preventing them from getting a sub-svr deal

    Libor is falling, although I very much doubt it will fall enough to start a new housing bubble.
    michaels wrote: »
    No but the 30's depression did not really end until the 2nd world war 7 years later

    The Depression started after the Wall St Crash in 1929, which was 10 years before the start of WW2. For the USA the lag was 11 years. The UK missed the worst of the Depression (although it was still very bad) by coming off the Gold Standard and public works.
    michaels wrote: »
    Plus the left wing bias towards protectionism in hard times was one of the factors often quoted as making the great depression as bad as it was.

    Tradionally, protectionism was a Conservative trait and free-trade a Liberal one. To build a high-tech manufacturing industry will probably need selective protectionism. That is how America built it's industrial capacity in the early 20th Century.

    To illustrate:

    http://en.wikipedia.org/wiki/United_Kingdom_general_election,_1931
    A main issue was the Conservatives' wish to introduce protectionist trade policies. This not only divided the government from the opposition but also divided the parties in the National Government. The Liberal Nationals under Sir John Simon supported the Conservative protectionist trade policies. The Liberals led by Samuel and Lloyd George campaigned in defence of free trade.

    In the event, the Labour vote fell sharply, and the Conservatives, led by Stanley Baldwin, won a landslide majority of 324 seats, although Ramsay MacDonald remained Prime Minister in the new National government.
    Politics is not the art of the possible. It consists of choosing between the disastrous and the unpalatable. J. K. Galbraith
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