BBC blog - Politician says lowering prices is "politcal suicide"

brit1234

Graham_Devon wrote: »

Very disturbing that you see life savings as HPI wealth.

Just to back that up and show how mistaken bulls are here is a peter schiff video on investing in property. He outlines what is investment and what is not which may educate some of the bulls here.


http://www.univision.com/uv/video/Peter-schiff.-making-money-from-real-est/id/1295957683

kabayiri

Politicians just need to up the supply of houses in areas of demand.

100,000 of these bought as a job lot would be a start in the capital
http://www.spacebox.nl/

Plenty of park land in London to stick a selection of these on. Nice selection of colours too.

StevieJ

brit1234 wrote: »

Just to back that up and show how mistaken bulls are here is a peter schiff video on investing in property. He outlines what is investment and what is not which may educate some of the bulls here.


http://www.univision.com/uv/video/Peter-schiff.-making-money-from-real-est/id/1295957683

Gibberish.

FATBALLZ

chucky wrote: »

the majority of property is owner occupied - nearly 70%

if the majority is owner occupied why would politicians do something to antagonise the majority of the electorate to gain the vote of a minortity (non-home owners).

why is this 'political suicide' comment a surprise?

It isn't a surprise, I didn't say it was. You are of course right that the reason it is political suicide is because of the large number of people it would financially hurt in the short term. It's just dissapointing that so many don't see/care about the big picture and long term.

Kohoutek

StevieJ wrote: »

Gibberish.

Lol. I don't know how you draw that conclusion if you've actually watched it. What was wrong with his explanation of the mechanics of the property market?

StevieJ

Kohoutek wrote: »

Lol. I don't know how you draw that conclusion if you've actually watched it. What was wrong with his explanation of the mechanics of the property market?

EG he explained how a house was now for sale for $2.5 million that would now cost $10 million to build - reason the area was now not desirable ( so why will it now cost 10 million to build?). He also seemed to imply that if you don't receive an income then no investment exists, tell that to the commodity buffs. In addition I can't agree with the buy a house live in it = no investment, buy a house rent it out = investment !!!!!! so if I buy a house and rent it out, but in addition I rent somewhere else for myself, I am an investor.

StevieJ

Looks like the Schiffster has a lot in common with a few of the bears on here maybe those videos are a bit out of date. It is what I say not what I do that matters :eek:

Peter Schiff who recently became a home owner instead of a renter ( He admits that he over paid it ) Peter explains in details where he sees the housing market going , the real estate market is crashing and will continue to decline , do not buy now expecting to make money out of your property ,

ILW

nollag2006 wrote: »

Very disturbing that bears take such pleasure in seeing others lose their life savings, just so they can hold onto the vain hope that they can buy a house cheaply in the next few years.

Let me let you in on a secret ... it aint going to happen

I would suggest that it may not seem so great when you still have 2 or 3 of your kids still living with you in their 40s because they cannot afford to buy.

DaddyBear

ILW wrote: »

I would suggest that it may not seem so great when you still have 2 or 3 of your kids still living with you in their 40s because they cannot afford to buy.

You're assuming that this idiot can find something to mate with.

Kohoutek

StevieJ wrote: »

EG he explained how a house was now for sale for $2.5 million that would now cost $10 million to build - reason the area was now not desirable ( so why will it now cost 10 million to build?). He also seemed to imply that if you don't receive an income then no investment exists, tell that to the commodity buffs. In addition I can't agree with the buy a house live in it = no investment, buy a house rent it out = investment !!!!!! so if I buy a house and rent it out, but in addition I rent somewhere else for myself, I am an investor.

Whatever the 'commodity buffs' says, surely you know that commodity 'investing' is just betting on what the price of wheat, gold, oil etc is in the future, i.e. speculation? If you believe in capitalism, the best way to 'invest' is to buy companies that generate those commodities whose competent management adds value to simply owning the commodity itself, and pay dividends.

Maybe if you substantially improve the quality of your house by extensions, redecoration etc you can add value to it, but if you just buy a house to live in and hope the price to go up, how is that an investment?

Benjamin Graham, Warren Buffet's biggest influence, said:

An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.