House Price Increases-what for?

b0rker

nembot wrote: »

Most people buy a house to live in, only those who suffer with self esteem issues, are so against the possibility of dropping prices which would ultimately result in better standards of living for everyone.

This however goes against the "I made X amount this month" in the self absorbed wine parties, these people think is so important.

HPC bot alert!

geoffky

People who wish for high hpi is most of them do not have the skills or brains to cash in on anything else....simple really,
so they wish high house prices to bail out their inadequate financial position in society..

nembot

b0rker wrote: »

HPC bot alert!

Just to clarify the situation, I do own a house - so if prices go up, I become that bit richer on paper

However, you may notice I don't gloat so much about the fact and laugh at the families who really should be able to buy a place of their own, like some on here do, which is poor form to be honest.

[Deleted User]

Really2 wrote: »

indeed that is why I said that owning a house does not come in to value until after you have repaid it (well 25 years I said).

But on average you would expect to pay more in mortgage payments than rent for the above reason.

i would base it on what is the most cost effective. Final value and TCO come in to that calculation.

I would say if you were only planing to live some where for 2 years there would be no case for buying unless there was HPI. (not advocating it but just saying how i would look at it on a cost basis.)

Not necessarily, I would have to pay nearly £2K a month to rent a house like mine, my mortgage including interest is less than half!

Pobby

Interesting post. Wish they hadn`t risen so much in thefirst place. If they fall then that is good for the folks coming into the market and they will have the same access to ownership as we did years ago. On the other hand that is also rubbish for other people who will be in negative equity.

In truth, houses should never got so out of hand. Mr. Brown promised that he wouldn`t let it happen.

Sapphire

wintersunshine wrote: »

I don't particularly want massive HPI. I just don't want massive HP drops which will damage the construction industry, damage the banking industry and damage the economy.

We are dangerously reliant on the housing 'market' (and financial institutions) for our 'wealth', particularly since much of it is built on borrowing.

Far better to have real manufacturing businesses and support them to the hilt – that's where the real wealth of a country lies, and how it used to be in this country.

HAMISH_MCTAVISH

Sapphire wrote: »

Far better to have real manufacturing businesses and support them to the hilt – that's where the real wealth of a country lies, and how it used to be in this country.

Hmmmm, because that worked so well for us in the 70's, eh?:rolleyes:

Oh how I miss those world beating products that we used to be known for, like the Morris Marina or the Sinclair C5......

A single investment banking Spiv in a city office can generate more profit in a day than ten thousand Brummies building awful cars and striking all the time can generate in a lifetime.

So whilst Britain still leads the world in manufacturing some things, mostly high value, high innovation, and high technology, like Formula One racing cars for example, and whilst the manufacturing sector in the UK is still almost twice as large as the financial services sector....... The days of mass manufacturing in the UK are long dead and good riddance to them.

Because we weren't very good at doing it to begin with, and we certainly can't compete with a China or India where the costs of Labour are as little as a dollar a day..... Nor would we want to.

HAMISH_MCTAVISH

ThyKingdomCome wrote: »

hi to all of you who wish for HPI, or delight in it. what is your reason for your beliefs?
.

Because HPI is good for the vast majority of people.

HPI benefits.....

1) The millions of people who are approaching retirement and may wish to, or need to, downsize and release equity to support themselves.

2) The millions of people who have mortgages and who are reliant on achieving a certain LTV to get the best rates.

3) The owners of the two million or so investment properties in the UK.

4) The millions of people who have purchased in the last few years, and who would be in, or close to, negative equity.

So the vast majority of people.....

HPC on the other hand, only benefits.....

1) A few hundred thousand potential FTB's, and as soon as they buy they will benefit more from HPI for all the reasons above.

2) Another few hundred thousand potential upsizers, in theory.... But the reality is that most upsizers in this crash have hardly benefitted at all, because the prices of FTB properties have fallen further than the prices of more expensive properties. So they have seen their flat fall in price by 15% or 20%, but the house they want to buy has only fallen by 10%, as an example. So instead of the rungs narrowing, they have actually become wider apart.

3) A few hundred STR's who may have got it right on the timing. Most will not though.

So HPI benefits tens of millions of people..... HPC benefits a few hundred thousand people.

No contest really as to which is better for the vast majority of people in society.

kabayiri

HAMISH_MCTAVISH wrote: »

A single investment banking Spiv in a city office can generate more profit in a day than ten thousand Brummies building awful cars and striking all the time can generate in a lifetime.

....and he/she can lose 90% of it the next day.

Tell me Hamish, have you ever visited the Mini plant, or the Sunderland Nissan plant, for that matter.

Contrary to your hot air, these are extremely well run, and highly efficient.

I guess you do all your research from the telly.

Sapphire

HAMISH_MCTAVISH wrote: »

Hmmmm, because that worked so well for us in the 70's, eh?:rolleyes:

Oh how I miss those world beating products that we used to be known for, like the Morris Marina or the Sinclair C5......

A single investment banking Spiv in a city office can generate more profit in a day than ten thousand Brummies building awful cars and striking all the time can generate in a lifetime.

So whilst Britain still leads the world in manufacturing some things, mostly high value, high innovation, and high technology, like Formula One racing cars for example, and whilst the manufacturing sector in the UK is still almost twice as large as the financial services sector....... The days of mass manufacturing in the UK are long dead and good riddance to them.

Because we weren't very good at doing it to begin with, and we certainly can't compete with a China or India where the costs of Labour are as little as a dollar a day..... Nor would we want to.

Mass manufacturing in a diverse number of areas gave employment to masses of people – and meant that communities formed around such employment.

For you to say that 'we weren't very good at doing it to begin with' is nonsense and insulting. Britain was once known for quality production of a wide range of items, such as ships, pottery and textiles, and their production allowed real communities to develop all around the country, not centred solely on London, as are financial services, currently our primary source of income for the economy apart from the housing 'market'. This is a dangerous state of affairs given the unconcerned and immoral spivs involved in the financial sector, who are only out for themselves and over whom there is no control. Many other areas of the country are depressed and run down due to lack of employment, with a devastating effect on the local population. (And by 'local population' I don't mean the people who have second homes outside London.)

You are zealous indeed in attempting to defend the policies of your beloved labour 'government'. :cool: