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Debate House Prices
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FTBs, make your voice heard. Would YOU prefer lower prices/rates/laxer mortgage rules
Comments
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A return to lax mortgage lending?To which I can only say that if you don't state what you want clearly, how can you expect to get it?
That's what this thread is for, so that no-one can be under any illusions about what FTBs actually want most in house-buying terms - lower prices matter more than lower interest rates or easier lending criteria.
Surely what potential FTBers want is to be able to buy a property.
Price is just one factor and that alone may not provide the desired outcome.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
people forget that when house prices fall or are at their lowest levels in the house price cycle less people are able to buy.
not only because many can't afford to because they've lost their job or are on reduced hours but because the banks won't lend them money.
take any HPC you like to prove it...
Could this be because our economy has become so dependant upon the property market ?
We should be trying to reduce the dependancy, not encourage it, otherwise we`ll never be able to compete in the global economy (unless our competitors follow the same path).30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
A return to lax mortgage lending?I know what you mean, but the problem comes after that manouver is made. There will be calls for another manouver when the new lending conditions have be "used up".
In a country where property is in limited supply, the loosening of credit is a dangerous path to take. There needs to be a controlling factor.
I can understand this.
Can people understand and accept that tightening credit only reduce owner occupancy percentages?
Do you want to go back 50 or 100 years ago when lending was far tighter and home ownership was for only a few?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »Surely what potential FTBers want is to be able to buy a property.
Price is just one factor and that alone may not provide the desired outcome.
Yes, I expect FTBers want to be able to buy property. I expect that isn`t their only "want". I would think most want not to have to borrow too large an amount of money, especially in these uncertain times.
I might want to buy a Porsche on my credit card. Indeed, my credit card limit may allow me to do so, but it might be a foolish thing to do (depending on my financial circumstances).30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Cheaper house prices
maybe it is the case now - but even going back to the early 1980s or even 1990s HPC, the same applied, so can't 100% agree with you but it is defiantly a big factor.Could this be because our economy has become so dependant upon the property market ?
We should be trying to reduce the dependancy, not encourage it, otherwise we`ll never be able to compete in the global economy (unless our competitors follow the same path).0 -
IveSeenTheLight wrote: »Do you want to go back 50 or 100 years ago when lending was far tighter and home ownership was for only a few?
No. And at the same time, with property in short supply, I don`t want cheap and easy credit being used to help those who otherwise wouldn`t be able to afford a property to buy one. That is just adding to the propblem. More people after less property. Tighter lending conditions will make sure that only those who can truly afford it can buy a property. It might not seem very fair, but it`s better than enabling anyone to buy property. Look where that got the U.S (and they didn`t have a property shortgage, as far as I`m aware).30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
A return to lax mortgage lending?Yes, I expect FTBers want to be able to buy property. I expect that isn`t their only "want". I would think most want not to have to borrow too large an amount of money, especially in these uncertain times.
I might want to buy a Porsche on my credit card. Indeed, my credit card limit may allow me to do so, but it might be a foolish thing to do (depending on my financial circumstances).
Indeed, not all that "want" can afford.
The price of the Porche could drop 50% and your credit card may still not be able to authorise the transaction.
Your indeed confirming that despite the price, credit availability is the key to becoming an owner.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »Indeed, not all that "want" can afford.
The price of the Porche could drop 50% and your credit card may still not be able to authorise the transaction.
Your indeed confirming that despite the price, credit availability is the key to becoming an owner.
And it`s also the key to some people getting into financial difficulties, or even banks getting into financial difficulties.
Tight credit conditions are not welcome where there is a surplus of sellers, but not enough buyers.
Tight(er) credit conditions are welcome where we`ve just had a massive financial crisis (caused largely by loose credit conditions) and there is a shortgage of sellers.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
A return to lax mortgage lending?No. And at the same time, with property in short supply, I don`t want cheap and easy credit being used to help those who otherwise wouldn`t be able to afford a property to buy one. That is just adding to the propblem. More people after less property. Tighter lending conditions will make sure that only those who can truly afford it can buy a property. It might not seem very fair, but it`s better than enabling anyone to buy property. Look where that got the U.S (and they didn`t have a property shortgage, as far as I`m aware).
So what's the realist outcome?
Seems to me: -- less owners (only higher earners able to buy)
- more renters (because they can't own)
- more investors (to meet the rental demand which is increasing)
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
maybe it is the case now - but even going back to the early 1980s or even 1990s HPC, the same applied, so can't 100% agree with you but it is defiantly a big factor.
I haven`t got the facts or figures, but I`m under the impression that today, more than any time in my lifetime, more personal wealth is tied up in property than ever. There are probably more landlords with more money tied up in property than ever before. I have also never know interest rates to be so low, and to be kept so low for so long. This is gradually making the UK economy rely more on low interest rates. I admit I`m no economic expert (cue "that`s obvious" comments
), but it appears to me that we are not leaving ourselves with many options. We still refuse to take the medicine that will make us healthier. 30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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