Why Are High House Prices A Good Thing?

Really2

Wookster wrote: »

Rising house prices has the effect of distributing wealth from FTBers (usually young people just starting out) to older more established people.
.

Honest i am not picking or disagreeing.

But does death not redistribute it?
Could part of the problem not stem that the redistribution from death is going to a rising population (so less per head)

eg £100K going to 2 people (£50K)

£100K going to 4 people (£25K)

just a thought, as obviously this wealth as to come back or go somewhere, it does not just stick at the top.

lostinrates

Dan: wrote: »

It's up to the individual to make this happen, not general society.

But its up to society when the individual is unable or fails to make it so.

Dan:_4

lostinrates wrote: »

But its up to society when the individual is unable or fails to make it so.

Yes but im sure they would have contributed in tax at some point during their life, and any benifits, including the state pension, are pretty poor compared to someome who's been more successful.

lostinrates

Dan: wrote: »

Yes but im sure they would have contributed in tax at some point during their life, and any benifits, including the state pension, are pretty poor compared to someome who's been more successful.

Thats not something I dispute (apart from raising the proportionality which is neither here nor there in what I'm trying to say). Society contributes now or later: I wonder which is most beneficial. I suppose its an argument for social housing restacking I haven't followed it through in my own mind yet. :)

chucky

Wookster wrote: »

One of the other effects is that current house prices have only been sustained by UK banks borrowing from international money markets leaving the UK as a country highly susceptible to market trends, which can change suddenly as we've seen over the last 2 years.

you should really tell that to the Germans - they have low home ownership and their banks and economy are in a right mess.

lostinrates

chucky wrote: »

you should really tell that to the Germans - they have very low home ownership and their banks and economy are in a right mess.

As a matter of interest is their low home ownership supported by more social housing or more private rental, or both.

(fwiw not a leading question)

chucky

lostinrates wrote: »

As a matter of interest is their low home ownership supported by more social housing or more private rental, or both.

(fwiw not a leading question)

germany have very high private rental - 49% private rental, 8% social housing compared to England is 11% private rental and 18% social housing
http://www.lse.ac.uk/collections/LSELondon/pdf/SocialHousingInEurope.pdf

lostinrates

chucky wrote: »

germany have very high private rental - 49% private rental, 8% social housing compared to England is 11% private rental and 18% social housing
http://www.lse.ac.uk/collections/LSELondon/pdf/SocialHousingInEurope.pdf

Thank you:)

That's interesting. Do you know how rental income is treated fiscally, are swathes of property held by ''old money'' or pension companies, or is more a BTL model?

(again, no leading from me.)

greggymagic

IveSeenTheLight wrote: »

Thinking we are hard done by and that we expect to get more out of life for our wages really gets my goat. You should try seeing how the people live in areas such as the floating villages in Campbodia and then assess we are really so poor.

One little Campbodian girl about 3 or 4 stole my heart in an attempt to beg some dollars from me by asking where I was from and then telling me the capital of Scotland was Edinburgh.
Sure they are gaining only enough education in order to sway people to give more charitably, but how many UK children under 5 would know the capital of Campbodia?

ISTL Normally I think what you write makes good sense but please spare the anecdotal rubbish!

Why is it that the people nearer the top of the food chain always insist on telling people nearer the bottom of the food chain how lucky they are and that they should be grateful for what they've got!! Total champagne socialist rubbish.

I walk past a private school every morning and everyday I can here all the mummies chatting to each other about how "everyone is feeling the pinch" and how "people should just get on with it and tighten there belts if they don't have enough money, I mean we're all going through it" -

They then get into their 09 reg Landrovers and BMW X5s and toddle off for another hard day!

Really2

lostinrates wrote: »

Thank you:)

That's interesting. Do you know how rental income is treated fiscally, are swathes of property held by ''old money'' or pension companies, or is more a BTL model?

(again, no leading from me.)

There are some companies who own lots of property in Germany (25,000+ units). It was seen as a good place to invest as it as a reasonable yield and little to non boom or bust.