house prices continue to drop ....

nearlynew

Prices are still dropping.


And yet life goes on.

HAMISH_MCTAVISH

carolt wrote: »

Hamish, stop thanking yourself. It looks weird.

Coming from the sock puppet queen.....

Aberdeenangarse

carolt wrote: »

Hamish, stop thanking yourself. It looks weird.

He enjoys a good mass debate!

gagahouse

MadnessOfHPC wrote: »

Does it? Prices have only stabilised and we've already seen mass unemployment. But this is only the tip of the iceberg to your dreams, everyone elses nightmares.

"mass" unemployment is not 7.8%

try about 20%

des_cartes

HAMISH_MCTAVISH wrote: »

HPI is good for the vast majority of people.

HPI benefits.....

1) The millions of people who are approaching retirement and may wish to, or need to, downsize and release equity to support themselves.

2) The millions of people who have mortgages and who are reliant on achieving a certain LTV to get the best rates.

3) The owners of the two million or so investment properties in the UK.

4) The millions of people who have purchased in the last few years, and who would be in, or close to, negative equity if prices fall, costing them far more at mortgage renewal time.

So the vast majority of people.....

HPC on the other hand, only benefits.....

1) A few hundred thousand potential FTB's, and as soon as they buy they will benefit more from HPI for all the reasons above.

2) Another few hundred thousand potential upsizers.... in theory.... But the reality is that most upsizers in this crash have hardly benefitted at all, because the prices of FTB properties have fallen further than the prices of more expensive properties. So they have seen their flat fall in price by 15% or 20%, but the house they want to buy has only fallen by 10%, as an example. So instead of the rungs narrowing, they have actually become wider apart.

3) A few hundred STR's who may have got it right on the timing. Most will not though.

So HPI benefits many millions of people..... HPC benefits a few hundred thousand people.

No contest really as to which is better for the vast majority of people in society.

The money has run out. No FTB's = no housing market. It happens in all pyramid selling scams.

HAMISH_MCTAVISH

des_cartes wrote: »

The money has run out. No FTB's = no housing market.

I'm tempted to report your post for it's hand-bitingly tedious banality, but I don't suppose Martin considers that sufficient reason for banning, more's the pity.

I do accept that you are probably incapable of having a coherent thought, but I'll try anyway.

We'll start with some basic questions.....

1)When a society has more people than it does houses, where do the extra people live?

2)What happens to average household income when the number of earners per house increases?

3)What percentage of household income can be spent on rent?

4)How does the absolute figure that can be spent on rent change when average household income increases?

5)In the case of revenue yielding assets, what happens to the price when the returns increase?

6)What does liquidity chase?

Now I'm not expecting much, but if you can even get 50% of them right it'll be a start to the ongoing enlightenment of des_cartes.

It happens in all pyramid selling scams.

*sigh*

Oh dear, this is worse than I thought.

We'll have to add another question..... Just for fun we'll make this one for extra credit.

7) Explain the difference between a pyramid and a hosepipe.

des_cartes

HAMISH_MCTAVISH wrote: »

I'm tempted to report your post for it's hand-bitingly tedious banality, but I don't suppose Martin considers that sufficient reason for banning, more's the pity.

I do accept that you are probably incapable of having a coherent thought, but I'll try anyway.

We'll start with some basic questions.....

1)When a society has more people than it does houses, where do the extra people live?

2)What happens to average household income when the number of earners per house increases?

3)What percentage of household income can be spent on rent?

4)How does the absolute figure that can be spent on rent change when average household income increases?

5)In the case of revenue yielding assets, what happens to the price when the returns increase?

6)What does liquidity chase?

Now I'm not expecting much, but if you can even get 50% of them right it'll be a start to the ongoing enlightenment of des_cartes.



*sigh*

Oh dear, this is worse than I thought.

We'll have to add another question..... Just for fun we'll make this one for extra credit.

7) Explain the difference between a pyramid and a hosepipe.

You missed the most important question:

What happens to a nations economy when it becomes a less attractive place to live in than your average 3rd world country.


Answer: it runs out of mugs.

nembot

Install properdeebee Hamish and gives us some numbers

HAMISH_MCTAVISH

des_cartes wrote: »

mugs.

So I take it you're not able to answer the questions?

Or just scared to engage in a discussion that will lead to some uncomfortable truths spoiling your worldview.....

des_cartes

HAMISH_MCTAVISH wrote: »

So I take it you're not able to answer the questions?

Or just scared to engage in a discussion that will lead to some uncomfortable truths spoiling your worldview.....

Not at all. Just pointing out the consequences of your nightmare vision of a future based upon squeezing more and more people into smaller and smaller houses and expecting them to pay more for them. Geese and golden eggs and all that.