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Debate House Prices
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Interest rates 'may hit 8pc' in two years
Comments
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Graham_Devon wrote: »Homeowners are currently being helped at the taxpayers expense for buying a house they couldn't really afford.
People who rent get housing benefit also GD. So unless you think renting and not affording is a lesser evil you should be having a moan about them also.
If you offer it for one you have to offer it to the other, losing a job can cause serious problems if you rent or own.
Do you think owners deserve less support than renters?
But on the op if we get to this situation of 8% we would have to see wage inflation and inflation in other assets etc (so nominal rises in houses etc)
Why do people wanting a crash think inflation is a good thing for them to be able to buy. People owning would usually be seeing wages increase, possible HPI while holding a nominal debt.
If people don't get wage increases the base rate would be falling back again in no time as people could not afford things and would cut back. Thus deflating.0 -
People who rent get housing benefit also GD. So unless you think renting and not affording is a lesser evil you should be having about them also.
Very different.
Hamish was talking about compensation, i.e. making money on savings.
People who own, getting help, are getting their asset paid for, and in many cases under the current scheme, making a profit!0 -
If rents and mortgages were not being propperd up by the state, the price of both would drop to what a true market can afford.0
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But on the op if we get to this situation of 8% we would have to see wage inflation and inflation in other assets etc (so nominal rises in houses etc)
We'd HAVE to?
Explain why we would HAVE to see wage inflation?Why do people wanting a crash think inflation is a good thing for them to be able to buy.
Who has said this?0 -
Graham_Devon wrote: »Very different.
Hamish was talking about compensation, i.e. making money on savings.
People who own, getting help, are getting their asset paid for, and in many cases under the current scheme, making a profit!
No, HB is interest only and can lower other benefits.
It is the same for both it is covering their housing cost, the fact is in monetary terms nominal terms rent would be a lot more with rates so low.
EG rent on three bed £600
IO on three bed £200 or less.0 -
No, HB is interest only and can lower other benefits.
It is the same for both it is covering their housing cost, the fact is in monetary terms nominal terms rent would be a lot more with rates so low.
EG rent on three bed £600
IO on three bed £200 or less.
Really. They pay 6% interest.
Many people are making a profit as their interest rates are lower, therefore getting their capital paid also.
They also get to keep any increase in their asset that they are not paying the interest on, as the taxpayer is paying it for them.
We also have the mortgage rescue scheme that's played a part.
VERY different to housing benefit. Seriously, you are flogging a dead horse with this one.0 -
Graham_Devon wrote: »We'd HAVE to?
Explain why we would HAVE to see wage inflation?
Or you could read instead of exploding.If people don't get wage increases the base rate would be falling back again in no time as people could not afford things and would cut back. Thus deflating.
All inflationary periods have seen wage inflation to quote people when prices were falling "oh yes it will bedifferent this time"
Name a time when we have seen sustained causing a 7%+ while wages have not inflated.0 -
Never understood why the government pay that 6% as opposed to what the actual interest is (possibly with a 6% ceiling) Does anybody know the logic behind it?0
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