Debate House Prices
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If the market doesn't set hosue prices, what does?
Well, I expect a decline in living standards in the UK, and inevitable appreciation of Asian currencies against the dollar/euro/pound to reduce the levels of finished products that we import from abroad, which will improve the balance of trade.
In addition, when we see the effects of the inevitable long term decline in conventional oil production, it will force manufacturing to 'come home' anyway, because the cost of shipping goods across the globe will be wipe out the savings from wage arbitrage - Jeff Rubin is very articulate about this development - http://www.youtube.com/watch?v=wYuLjGQQ-jg
The next government should take measures to utilise alternative fuels, so we import less oil (contributed £700m to trade deficit) and increase our power generating capacity, so we import less electricity.
Obviously encouraging UK exporters is key - in the long term, put more emphasis on practical subjects in the education system, in the short term, measures such as extending insurance against non-payment by overseas buyers, and improving finance/loans for UK manufacturers.
I think the Scots deserve to do OK from the union. If they had still been a separate nation, England, Wales, and Northern Ireland would not have derived any benefit from the oil found off the shores of Scotland (and Norway).
Look Carol. In spite of the way the thread has developed, I do genuinely feel for you that you are currently unable to have one of the things you clearly want badly - a house with mortgage. No that's not sarcasm. I'm for real. If the mortgage rates were much higher, prices might be lower. This would make it easier to raise a deposit and get the loan. But the monthly payments must still be made at the higher interest rates once the intro offer (if any) has expired.
The only reason I've got a mortgage on a property is because I had to settle for a piece of garbage that needed a lot of work doing to it. Owning your own home is not all plain sailing even with low interest rates.
If interest rates do go up appreciably, home owners won't be the only ones who suffer. Everyone will as the cost will be counted in unemployed. No-one will be safe from that. Even my self-employment would be under threat as people won't have me working for them if they have no job.
Can I just ask everyone though that thinks this is a good idea, what else are they raising in price so this can happen? Yeah it sounds good but he's skirted around the issue what will go up.
DD2 Born 29th August 2010
DS1 Born 28th October 2013
Got Married 15th September 2012 :beer: Now Mrs Clark
I agree, this is a response I wrote to carol (and anyone wishing to answer) saying everyone would be better off because of it.
Looks like no one is prepared to say what gets taken off people to support this, so I think I was rightly sceptial about it.
I thought we've been through this. Prices did increase massively, but maybe not be as much, as quick. Not knowing if this is a temporary blip or not, you hold your breathe and wait to see what happens, by which time the situation gets worse not better. If you're then priced out, you are priced out; paritcularly if a flat for a couple is no longer the ideal accommodation, to buy at what you see is overpriced and will only be suitable short term is not ideal.
Hindsight being a wonderful thing, the mistake was not buying before going abroad. The second "mistake", again with hindsight, was not buying in a cheaper area on return.
The problem with the LibDems. They wrote the manifesto in the generally held belief that they wouldn't have to deliver on anything. Now they find themselves in this unique position and will soon realise their policies don't stand up to scrutiny.
come on... no where would it have increased that much in such a short space of time.
50% in 3 months is pure fantasy.
the rest of your post makes perfect sense.
nobody can blame anyone else if this was the reason that they didn't buy at the time.
but the 50% in 3 months comment is just crazy delusional talk.