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Debate House Prices


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Who should be able to buy?

1246

Comments

  • before_hollywood
    before_hollywood Posts: 20,686 Forumite
    headcone wrote: »
    Oh just more rubbish from the I can`t afford to buy brigade.

    It gets boring.
    erm......not quite

    my ex lived in germany so i know their rental system is much different to ours, as is the one in belgium where some of my family live ;)

    before you say anything i have my own place- and i rent part of it out under the government rent a room scheme :A
    things arent the way they were before, you wouldnt even recognise me anymore- not that you knew me back then ;)
    MercilessKiller wrote: »
    BH is my best mate too, its ok :)

    I trust BH even if he's from Manchester.. ;)

    all your base are belong to us :eek:
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    carolt wrote: »
    Can someone remind me why we've put the base rate down to a 400-year low, again? :confused:
    FallenAngel9898 wrote: »
    To me the only reason is to stop the avalanche of repo's and the then inevitable bursting completely of the property bubble. At the moment I would guess hundreds of thousands of people who cannot remortgage because of lost equity have dropped off deals onto a cushy SVR, if base rate was at even an historical low of say 4%, pushing SVR's upto say 7%+, the falls in property prices that we have seen would be small beer as to what would happen then.

    lowering the base rate has/had very little to do with house prices...

    the recession and the global economic issues that need to be dealt with are more important than UK house prices...
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    chucky wrote: »
    lowering the base rate has/had very little to do with house prices...
    Er. Are you sure? I think it has a lot to do with it. Wonder whose 'facts' are more correct?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    mewbie wrote: »
    Er. Are you sure? I think it has a lot to do with it. Wonder whose 'facts' are more correct?

    another thread that mewbie is trying to cause an argument... oh dear...

    can you tell me why lowering the base rate didn't had very much to do with house prices...

    because what you're saying is that base rates were lowered just to help out home owners...
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    chucky wrote: »
    another thread that mewbie is trying to cause an argument... oh dear...

    can you tell me why lowering the base rate didn't had very much to do with house prices...

    because what you're saying is that base rates were lowered just to help out home owners...
    No. I am not saying that. But it is difficult to explain in such a way that you are able to understand. Lower base rates mean heavily indebted overborrowers have survived for longer than in more normal rate scenario.

    There. Does that help you?
  • Framps
    Framps Posts: 71 Forumite
    Lowering base rates is standard issue in any recession, whatever the cause/s of the recession.

    This reduces the opportunity cost of spending and reduces the cost of borrowing, both of which lead to greater consumption and boost the economy (if I remember my macro economics correctly something like 70% of GDP is consumption-driven).
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    chucky wrote: »
    lowering the base rate has/had very little to do with house prices...
    mewbie wrote: »
    Er. Are you sure? I think it has a lot to do with it. Wonder whose 'facts' are more correct?
    chucky wrote: »
    can you tell me why lowering the base rate didn't had very much to do with house prices...

    because what you're saying is that base rates were lowered just to help out home owners...
    mewbie wrote: »
    No. I am not saying that. But it is difficult to explain in such a way that you are able to understand. Lower base rates mean heavily indebted overborrowers have survived for longer than in more normal rate scenario.

    errr yes you did -you've now back-peddled and told me what happens when the base rate goes down when we were talking that the reason fore lowering the base rate had little to do with house prices... :rotfl:

    i'll put in capitals for you so that you can try to understand...

    LOWERING THE BASE RATES HAD VERY LITTLE TO DO WITH HOUSE PRICES.
    DUE TO THE BASE RATE BEING LOWERED IT HAS HELPED MANY HOME OWNERS WHO ARE ON SVR OR TRACKER MORTGAGES...

    i hope that's clear for you now...
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    Er back to topic.

    Who should be able to buy? Anyone with a 10% deposit, 3.5 times income. Should also get you in a two bed somewhere - not a new build 'studio' apartment.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Framps wrote: »
    Lowering base rates is standard issue in any recession, whatever the cause/s of the recession.

    This reduces the opportunity cost of spending and reduces the cost of borrowing, both of which lead to greater consumption and boost the economy (if I remember my macro economics correctly something like 70% of GDP is consumption-driven).

    thank you for explaining it to newbie... it took a few posts... but he got there...
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    Framps wrote: »
    Lowering base rates is standard issue in any recession, whatever the cause/s of the recession.
    .5% is not a usual limit though. Wasn't it the lowest rate since 1620 or something like that?
This discussion has been closed.
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