MSE News: Hung parliament - how will it affect your finances?

Cleaver

carolt wrote: »

The 'market' does not set house prices

If the market doesn't set hosue prices, what does?

carolt

The market implies a free market - we all know it's anything but.

Kohoutek

GDB2222 wrote: »

As the present level of devaluation is clearly not working, I simply repeat the question. How do you propose we pay for the imports?

By the way, I agree with Alan M that the exporters need extra help.

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.

Paulgonnabedebtfree

carolt wrote: »

Gosh, Hamish - what a long post - can Paul not speak for himself?

Bet he'll be thrilled you rushed to his defence with one of your usual gentle posts.

Hamish dear, you seem very hard of understanding, tonight.

By the time my kids go to uni, I'd be v surprised if they were paying less than full fees ie the same as foreign students. The political wind is undoubtedly blowing that way. As we don't live IN SCOTLAND our children actually have to pay for their fees. :mad: Let us not forget that £1500 bonus per head per year that all English people pay towards subsidizing our Scottish cousins, as fellow posters have recently helpfully pointed out.

The 'market' does not set house prices - it is not a free unfettered unaided thing - that's what this whole debate was about, you nana. About specific subsidies that have artificially propped up prices in the run-up to the election. And that everyone - you included - know are both (a) unjustified and (b) about to run out as they are simply not affordable long-term.

Had you read any of my posts, you would realise the priority I have put on buying a home, and how important it is to me. It was a question whilst in the process of buying a house - that mercifully fell through - that first brought me to the housing board back in 2006. I got some great advice from fellow posters then. (You hadn't joined our number at that point, Hamish, having not yet been banned from the other site for trolling. )

Of course we all know that you too, for reasons best known to yourself, derive great satisfaction from laughing at those who don't yet own a house. So I hope you got a wry smile - (or is it a great big belly-laugh?) at your knockabout comments re my housing situation.

I'm glad it brings some joy to your drab, lonely existence.

Anything to oblige.

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.

neneromanova

carolt wrote: »

Hope they form a Lib Dem coalition, as the LDs tax policy would help my wallet nicely.

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.

chucky

carolt wrote: »

to find that houses had gone up 50% in 3 months

what a lovely peice of jackanory

Really2

neneromanova wrote: »

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.

I agree, this is a response I wrote to carol (and anyone wishing to answer) saying everyone would be better off because of it.

Really2 wrote: »

I did not look in to it but how could they afford it? If everyone end up with extra money in their take home the government end up with less tax income. (reason I did not look in to it as I just thought it was a gimmick/hook)

Surely they have to put up taxes elsewhere or make even deeper cuts to make up for the fall in tax incomes.

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.

silvercar

chucky wrote: »

what a lovely peice of jackanory

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.

silvercar

neneromanova wrote: »

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.

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.

chucky

silvercar wrote: »

I thought we've been through this. Prices did increase massively, but maybe not be as much, as quick.

50% in 3 months??

come on... no where would it have increased that much in such a short space of time.
50% in 3 months is pure fantasy.

silvercar wrote: »

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 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.