ConservativeHome: We Need House Prices To Go Up

HAMISH_MCTAVISH

First time buyers don’t need lower prices
Of course they’d like them, but the price isn’t the issue (with the exception of those wanting it all). The real issue is banks demanding a large deposit, in some cases as much as 25%. Saving this up whilst paying rent is obviously hard. Banks however are demanding these huge deposits due to fears about the housing market, and falling or stagnant prices will worsen these fears. It's counter-intuitive but rising prices will make it easier to buy property as lenders will have more confidence that the property is still worth what they loaned if they repossess it. Once prices start to rise, over time, competition between lenders for customers will force banks to work with lower deposits.

http://conservativehome.blogs.com/centreright/2010/10/we-need-house-prices-to-go-up.html

It seems there are still some Tories with sense.

Comments section flooded by HPC-ers of course after it was linked this morning, but they've done themselves more harm than good.:beer:

Graham_Devon

Some issues with this...

And secondly, people in the UK in comparison to those elsewhere in the EU do not spend a particularly large proportion of income on housing costs. The Dutch, in particular, spend considerably more of their post-tax income on rent or mortgage payments, but other countries do also. This suggests that if forced to, people will prioritise housing over other consumption. Although the percentage of income spent on housing is near record levels, records set in 2007 I believe, you must take into account the fact other prices have fallen. Clothes, electronics, holidays, cars and everything else have fallen in comparison to our incomes, leaving more income for housing. Property

So basically, if forced to, we will spend more on housing. Thats pretty obvious, we have no choice.

This, however, ignores the rest of the economy. Less spent in the wider economy means job losses. It also means satisfaction in life takes a back seat. It also means the benefits bill increases.

Also, most of the comments on the article disagree with it. Apart from yours, of which, replies to your comment are along the lines of "What complete and utter ill informed tripe".

After these comments, you blame HPC for comments which go against the article.

So basically, theres you and the writer fending off a load of comments disagreeing with it all. And i don't think you can really blame all these comments on HPC as usual, do you?

Wookster

HAMISH_MCTAVISH

Graham_Devon wrote: »

i don't think you can really blame all these comments on HPC as usual, do you?

The article was posted at 10:20.

There were only a handful of comments in the next hour and a half, all fairly neutral.

HPC posted it at 11:54.

Then the board lit up with 190 comments since, almost all arguing for a crash.

OF COURSE it's the hpc crowd. Half of them are even using the same names. You'd have to be thick not to spot it a mile away.

Graham_Devon

HAMISH_MCTAVISH wrote: »

The article was posted at 10:20.

There were only a handful of comments in the next hour and a half, all fairly neutral.

HPC posted it at 11:54.

Then the board lit up with 190 comments since, almost all arguing for a crash.

OF COURSE it's the hpc crowd. Half of them are even using the same names. You'd have to be thick not to spot it a mile away.

:sigh:

There are plenty of comments before it was posted on HPC disagreeing with the article. Infact, all the comments before it was posted on HPC are disagreeing with the article.

It's all up there time stamped, so I don't know why you bother trying to suggest differently.

chucky

HAMISH_MCTAVISH wrote: »

The article was posted at 10:20.

There were only a handful of comments in the next hour and a half, all fairly neutral.

HPC posted it at 11:54.

Then the board lit up with 190 comments since, almost all arguing for a crash.

OF COURSE it's the hpc crowd. Half of them are even using the same names. You'd have to be thick not to spot it a mile away.

i'm not sure why you bother - the guy is a complete moron

brit1234

So basically you are promoting a blog by a student, possibly a second year.:rotfl:Hardly a professor at the London School of economics, no life experience in economics either. Also economics is ranked 3rd in the series of modules he is studying. He is not studying economics

"David T Breaker is studying Politics, Philosophy & Economics at the University of Essex"

http://conservativehome.blogs.com/platform/david_t_breaker/So he has dabbled in a couple of the modules below and may not of finished them. Likely 1-3 modules for a whole degree focussing on other subjects.

BA/BSc Economics
First Year
Introduction to Economics
Introduction to Quantitative
Economics
Methods of Economic
Analysis
One social science option
Second Year
Macroeconomics
Microeconomics
Mathematical Methods in
Economics*
Introduction to Econometric
Methods*
Two half-year modules
Final Year
Research Project
Six half-year modules

Now as the failed keynesianism economics model is now taught as the favoured school what is the chance he even studied this with such few modules he is studying. Let alone the re-insurgence of the Stronger Austrian Economics which rips his argument to shreds.

Hamish this is a failed thread you might of well quoted the discredited Daily Express, at least they will have more economic experience.

HAMISH_MCTAVISH

brit1234 wrote: »

Hamish this is a failed thread you might of well quoted the discredited Daily Express, at least they will have more economic experience.

Talking of discredited, how's that signature working out for you this year Brit?:D

poppycod

HAMISH_MCTAVISH wrote: »

http://conservativehome.blogs.com/centreright/2010/10/we-need-house-prices-to-go-up.html

It seems there are still some Tories with sense.

Comments section flooded by HPC-ers of course after it was linked this morning, but they've done themselves more harm than good.:beer:

more boring propaganda and disinformation.

Why you are tolerated here, I will never know...

Aberdeenangarse

brit1234 wrote: »

"David T Breaker is studying Politics, Philosophy & Economics at the University of Essex"

Has he ever shared a room with William Hauge?

brit1234

HAMISH_MCTAVISH wrote: »

Talking of discredited, how's that signature working out for you this year Brit?:D

Well, US home prices down again, Alt A and Option arms going really tits up.

Low interest rates of 0.5% are holding large amounts of people just above water yet high numbers are still defaulting and the crash has resumed again.

47% of properties sold are now shared ownership/equity. Thats a big increase, and acting to hold high prices ever increasingly artificially high.

We are no where near the property bottom yet for the last one.

So yes predictions are going well.

Low Interest Rates Extending the crash

ALT A Mortgages next time bomb (late 2009-2012) :eek:
SHARED EQUITY/OWNERSHIP scams designed to keep prices high and pay extra costs :mad:
PROPERTY BOTTOM - History tells us that property stagnates for years at the bottom, there will be no rapid rises at the bottom, don't rush.:think:



How about yours that prices will carry on rising? :rotfl: