Disaster for Britain as housing becomes more affordable

mr.broderick

What do you do graham?

Graham_Devon

mr.broderick wrote: »

I actually was referring to your profession.

Ahhh, see this is the rub, I know, but as I said earlier, I like your style, so have decided to adopt your style of answering questions put forward.

I hope I'm earning some little funky points

Rick62

stephen163 wrote: »

I can also appreciate how increases in house prices will tend to benefit the economy as a whole. People feel wealthier and this wealth is even crystallised through remortgaging, so aggregate demand increases and the economy grows faster than it would have done. In theory, everyone benefits (thought the benefit is disproportionately weighted to the homeowner!) and things look rosy for the government of the time.

quote]

All it means is that people are borrowing money (i.e. using money that they don't have) to buy mostly imported goods (TVs, cars, holidays - to the tune of £200 billion a year) that they should not be able to afford. As a result we are probably the most indebted nation (per capita) in the world. That doesn't sound like good economics to me.

Thrugelmir

stephen163 wrote: »

Housing is the biggest form of wealth in the UK. I am a prospective FTB so obviously want house prices to fall but I can also appreciate how increases in house prices will tend to benefit the economy as a whole. People feel wealthier and this wealth is even crystallised through remortgaging, so aggregate demand increases and the economy grows faster than it would have done. In theory, everyone benefits (thought the benefit is disproportionately weighted to the homeowner!) and things look rosy for the government of the time.

If you realised the wealth by downsizing your property rather than remortgaging that would be different.

harrup

Out,_Vile_Jelly wrote: »

I'm just speaking from the experience of hearing people talk in disgruntled tones about their house "only" making £5k last year (this was a couple of years ago).

The ones who really annoy me and take the above another step further are those who continuously whine how much their property has lost. Totally understandable for FTB, of course. But I know people who were stretched to live where they used to live but then deliberately stretched themselves even further. For no other reason than they wanted an even bigger, more prestigious home. Not talking about young couples who traded up a bit to accomodate a family. I'm talking about those yuppie couples already living in a 4 bed house but who decided they now needed a HUGE 4/5 bed house.

Perhaps uncharitable - but I feel little sympathy. If you can't afford it, don't buy it.

StevieJ

Generali wrote: »

We are where we are. We can be thin skinned about it or use gallows humour to lighten the load.

I wasn't referring to you Gen (although it may a have seemed so), I was merely pointing out that falling house prices are not good for everyone and can in fact have certain dark consequences.

mr.broderick

Graham_Devon wrote: »

Ahhh, see this is the rub, I know, but as I said earlier, I like your style, so have decided to adopt your style of answering questions put forward.

I hope I'm earning some little funky points

Style? You have me confused with someone else. What do you do graham?

StevieJ

mr.broderick wrote: »

What do you do graham?

Actually if you ignore the charisma bit:D

http://forums.moneysavingexpert.com/showthread.html?t=1518171

geoffky

mrs b you are upsetting the natives...stop it..get some bloody work done..

Graham_Devon

mr.broderick wrote: »

Style? You have me confused with someone else. What do you do graham?

Quite an inquisutive little one aintcha!

Tell you what. You tell me how it makes an iota of difference what I do or don't to do to this thread, and then I'll let you know.