£1.2tn given to old from young

Really2

Graham_Devon wrote: »

Glad to see it's the "older generation" who are acting like kids thinking they have won some sort of argument.

I just can't be bothered going round in circles and having questions asked which have been worded so that you are boxed in.

GD how old are you? I am early 30's I though that was current perspective owner territory on here?

Could you remind us the point of debate again please.

chucky

Graham_Devon wrote: »

I just can't be bothered going round in circles and having questions asked which have been worded so that you are boxed in.

surely it's up to you to provide an intelligent answer if a question is put to you???

do you want me to answer that for you or are you struggling with the answers?

Harry_Powell

Graham_Devon wrote: »

The bears want sensible house prices. Sensible credit.

How do you control this in a free country with a free market economy? Who decides what is 'sensible'?

The Thatcher government tried to manipulate the market and open up home ownership to the masses by various schemes, the largest being Right to Buy. Many people now view this as being a disaster (except those who profitted by it).

How would 'the bears' open up home ownership to the masses, Graham? What is their scheme?

mbga9pgf

Harry_Powell wrote: »

I agree, but it's easy to be wise after the event. Had you been advocating tighter banking legislation prior to the credit crunch, I would be very impressed. How do you decide what is an unsustainable investment? .

I posted on HPC from 2005 (same username), I didnt know CC exactly was going to happen perse, I just knew it would all end in tears. And I am predicting now that it will again.

I would suggest spunking all your corporate equity on retail mortgage backed securities that had assets against people with no job and on benefits as going a bit too far. I would also say ANY lending at non-punatative rates at more than 3.5X single and 3X joint salary needed to be installed from 2005. Finally, I would (if I was working for the FSA) insisted on much higher capital adequacy requirements, rather than the completely inadequate arrangements we had. I would say doubling of personal debt over 7 years was pretty dim too...

Really2

mbga9pgf wrote: »

And I am predicting now that it will again.

So am I and I will be right without a time frame.;)

Harry_Powell

Really2 wrote: »

So am I and I will be right without a time frame.;)

Even a stopped clock is right twice a day.

mbga9pgf

Harry_Powell wrote: »

How do you control this in a free country with a free market economy? Who decides what is 'sensible'?

The Thatcher government tried to manipulate the market and open up home ownership to the masses by various schemes, the largest being Right to Buy. Many people now view this as being a disaster (except those who profitted by it).

How would 'the bears' open up home ownership to the masses, Graham? What is their scheme?

Gifted donation of property development rights based of greenbelt to any FTB having contributed to National insurance and income tax for more than 5 years. Starting at 1/16th of an acre for singleys, 1/8th of an acre for married couples.

No nimby rights to stop it, although property design must fit in with the local environment.

Max 3.5X mortgage multiples and Maximum 4.0X times single salary when including unsecured debt

Sale price of these properties to be constrained to invoiced completion cost plus RPI as a subclause on the freehold, thus generating a future source of economic property to FTBs.

You control property further up the ladder from the bottom rung. Once you establish the bottom rung, rungs above cannot extend too far.

Harry_Powell

mbga9pgf wrote: »

Gifted donation of property development rights based of greenbelt to any FTB having contributed to National insurance and income tax for more than 5 years. Starting at 1/16th of an acre for singleys, 1/8th of an acre for married couples.

No nimby rights to stop it, although property design must fit in with the local environment.

Max 3.5X mortgage multiples and Maximum 4.0X times single salary when including unsecured debt

Talk about one generation raping the country to serve themselves. No green fields and country walks for your Grandchildren then eh mbga9?

I can imagine them on here talking about the way Generation Y destroyed the environment just so they could have a nice large FTB property for themselves.

Hypocracy.

ukcarper

Thrugelmir wrote: »

The chief economist at the BOE in a speech given in September. Estimated that around £250 billion of assets had been transferred from young to old on the back of HPI in the 10 years 1999 -2009.

The basis of his theorey was that as house prices rose, the older generation who had already moved up the property ladder and had no/mimimal mortgages. Were able to realise the gain to downsize or retire abroad. Therefore enjoying the benefit of the excess.

The young are now of course left paying the cost of their elders good fortune.

How can the £250 billion have been transferred from the young did they actually have the £250 billion.

The older generation’s assets may have increased by £250 billion but what percentage actually sells and goes abroad.

I see it said were able not did.

abaxas

Harry_Powell wrote: »

How would 'the bears' open up home ownership to the masses, Graham? What is their scheme?

I'd start by removing all mortgage protection for owner occupiers, then add in automatic reposession for anyone who missed one payment.

Let the market decide house prices.