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Debate House Prices


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Bit of good news

2

Comments

  • bluey890
    bluey890 Posts: 1,020 Forumite
    Pobby wrote: »
    Still amazes me how they bang on about HPI. IT`S NOT GOOD FOR THE ECONOMY. Might be OK for Brown and his lot in taxes but it`s a total drain on other areas. Will somebody please sort these nutters out.

    It keeps banks solvent. Solvent banks are more willing to lend money.
    In the short term, it is GOOD FOR THE ECONOMY.
    Favourite hobbies: Watersports. Relaxing in Coffee Shop. Investing in stocks.
    Personality type: Compassionate Male Armadillo. Sockies: None.
  • fc123
    fc123 Posts: 6,573 Forumite
    edited 8 August 2009 at 8:46PM
    Pobby wrote: »
    Still amazes me how they bang on about HPI. IT`S NOT GOOD FOR THE ECONOMY. Might be OK for Brown and his lot in taxes but it`s a total drain on other areas. Will somebody please sort these nutters out.


    It'll sort itself out over the next few years. The Banks are out for No.1 so they won't fund another spree. The odd Lottery winner may be able to pay whatever but the majority will just wait it out. Things will unravel in the end....just takes time.
    Mistake was seeing houses as a wealth creating (like making things) part of the economy when they are just shelter for those that create.
  • bluey890
    bluey890 Posts: 1,020 Forumite
    edited 8 August 2009 at 8:51PM
    House prices will rise as long as population does, and the rate of housebuilding lags population growth.

    Far be it for me to disagree with a bull, but you're a rogue in any case.

    House prices are more closely linked to the expectaions of monies in circulation than population.
    Favourite hobbies: Watersports. Relaxing in Coffee Shop. Investing in stocks.
    Personality type: Compassionate Male Armadillo. Sockies: None.
  • Pobby
    Pobby Posts: 5,438 Forumite
    Who said growth would be infinite? None of the bulls have said that at all.

    House prices will rise as long as population does, and the rate of housebuilding lags population growth.

    Eventually population will stop growing. The planet has a limited capacity. But until then prices will keep rising. There will doubtless continue to be boom and bust, but the underlying trend is always up.

    Of course the underlying trend is up but not by the amounts we have seen in the last 10 years. My nearly 400% increase ( peak at 2007 ) which in fact was 9 years of purchase was just plain daft. Like the stock market it`s fits and starts but i have never seen gains in that market by so much in such a period of time.

    You would have needed to be a fairly basic earner to have bought my house 9 years ago. Now you need to be a way over average wage earner to do it now. Where is the logic in that?
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    bluey890 wrote: »
    Far be it for me to disagree with a bull, but you're a rogue in any case.
    Please be nice to all MoneySavers. Even Hamish.
  • Pobby
    Pobby Posts: 5,438 Forumite
    fc123 wrote: »
    It'll sort itself out over the next few years. The Banks are out for No.1 so they won't fund another spree. The odd Lottery winner may be able to pay whatever but the majority will just wait it out. Things will unravel in the end....just takes time.
    Mistake was seeing houses as a wealth creating (like making things) part of the economy when they are just shelter for those that create.

    Clearly agree. I never saw houses as a way to create wealth. When I bought our last place it is like saying a brick was like a burger. By 2007 it could be said that brick is a very fine steak.
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    bluey890 wrote: »
    Relaxed and confident ... more like in denial.

    Absolutely untrue, I look at issues directly, logically and base a decision up on it, what you are proposing is that I know something to be true but refuse to believe it. My beliefs are based on weak economic fundamentals that are being falsified by government borrowing and QE, government borrowing will have to stop and be repaid by higher taxes and spending cuts and QE will have to be reversed at some point to make sure inflation/large rate hikes don't raise their heads to crush the over indebted.

    These are facts that I'm confident and relaxed will come to pass over the next 12 months onwards............ denial is not a concept I'm familiar with, as when I perceive myself to be wrong, I do and would admit it instantly.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    mewbie wrote: »
    Please be nice to all MoneySavers. Even Hamish.

    Good thing he's a moneytaker instead of saver then.

    You are deluded Hamish.
  • bluey890
    bluey890 Posts: 1,020 Forumite
    ad9898 wrote: »
    Absolutely untrue....denial is not a concept I'm familiar with, as when I perceive myself to be wrong, I do and would admit it instantly.

    That's exactly what someone in denial would say.
    Favourite hobbies: Watersports. Relaxing in Coffee Shop. Investing in stocks.
    Personality type: Compassionate Male Armadillo. Sockies: None.
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    bluey890 wrote: »
    That's exactly what someone in denial would say.

    So what part of my statement appears to be untrue and therefore something I would be in denial about ?
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