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Debate House Prices
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Why Are High House Prices A Good Thing?
Comments
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PasturesNew wrote: »It could be. It's greed and people that make it hard.
Is that a John Lennon song coming on?
All markets are driven by fear and greed. Getting rid of all the people would certainly drive house prices down to record lows.;)In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
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PasturesNew wrote: »You see ... that's the thing. £65k IS a LOT of money!
A LOT.
It is.
When did you last save that much up?
From take home pay?
Alone?
It's a LOT ... people have lost sight of this.
It really is not a lot, I could save it up in approx 2 years.0 -
PasturesNew wrote: »If all studio flats were £20k, 1-bed flats were £30k, 2-bed flats £40k, 2-bed houses £45k, 3-bed houses £55k, 4-bed houses £65k,
Low house prices are a good thing all round.
I think if you doubled them figures it would cover the build cost and a profit for the builder. I think it would be great. Never going to happen though.0 -
Home-ownership is bad. That's the main problem. It is something that we have been brainwashed with by successive Governments because it brings in a lot of tax.
Council tenants made the move away from social housing more pallitable to the electorate. Some tenants treated their homes with very little respect safe in the knowledge that any damage, whether intentional or not, would be fixed by the Council.
So, high prices are good for the Treasury. they are also good for home-owners who stay put. Other people who move more often will pay more tax than those that do not.
Rising prices gives home-owners equity which can be used to fund the next move, the next holiday, the next big telly or the next credit card bill. Rising prices encourages more people into the pyramid scheme. So, rising prices are good for the shallow, !!!!less, inconsiderate and gluttonous home-owner.
Why don't we treat cars the same? Why not let them increase at 15% per year?
Our love of high house prices is as irrational as ad44downey's venom towards BTL LLs.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
It is supply and demand init.
What is the maximum amount of your income are you willing to spend to give your kids a decent home - pretty much all of it after food, heat and light?
Supply of housing in this country is fairly fixed so prices go up as far as people can afford to ration the fixed supply between all the people who want properties - how much people can afford depends to a large extent on how much the banks will lend - hence the boom and current correction.
If lots more land was freed up for housing then prices would be much lower as then supply could increase to the point where houses cost only a little more than what it costs to build them and there would e less scope for booms as if prices started to rise sharply above building costs then developers would quickly put up more to make a profit.
This brings me on to my pet theory that capital gains tax rather than stamp duty should be payable on housing - the gains are due to the fact that housing land is in short supply so should be shared with the country not just accrue to those who were lucky enough by an accident of timing or inheritance to own a house. After all if you struck oil in the ground under your house it would belong to the state not to you.I think....0 -
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
inspector_monkfish wrote: »i could do it in 1 year
I might have to make some serious cut backs to make that, like only have 1 foreign holiday.0 -
PasturesNew wrote: »If all studio flats were £20k, 1-bed flats were £30k, 2-bed flats £40k, 2-bed houses £45k, 3-bed houses £55k, 4-bed houses £65k, then most people would be able to own a home, to feel settled ....
PN, How could you build houses for these prices? It is a nice thought but purely fantasy land.0 -
inspector_monkfish wrote: »i could do it in 1 year
TA's don't earn that much!!
especially not on dead repo desks
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