Here`s the thing......

DervProf

the.ciscokid wrote: »

One final question, why is HPI good?

I`ll have a go.

Because the UK economy has become increasingly reliant upon HPI, if house prices crash, the economy crashes.

If we were building houses, sticking them on the back of a ship, and flogging `em to the Americans, Germans, Chinese etc, then I`d say that HPI was a good thing for our economy.

I like to think in simple terms (go on, I`m making it easy for you Hamish etc), and to me, it appears that a house is somewhere for the population to live in. If you can provide cheap housing, and have an economy that relies on other things, such as food production, manufacturing, financial services etc, then you`re going to have a nation of truly wealthy people. If you allow property prices to rise (due to either cheap credit and/or property shortage), you`ll end up with a lot of debt and/or a fair few miserable people. You`ll also make your population want higher salaries to buy/rent property, so your country becomes less competitive in the global market. The country`s banks also have to invest more of their capital in property, which can lead to serious financial problems.

High property prices simply draw money from other parts of the economy, and lead to a larger divide between the haves and the have nots.

My house ? As good as paid for. The value of my house ? Am I bovvered ? Do I look bovvered ? I`m more interested in people being able to afford to move house. When people move house it has a positive effect on the wider economy. If property was cheaper, people would find it easier to move between properties, and that can`t be a bad thing.

OK, that`s my ideal world. It isn`t the world we live in, I know. The problem is that those that are on, or think they're on the winning side of higher property prices will probably agree that my world would be a better place to live in for most people, but while they`re sitting on a fat wedge of equity, the ideal world is the one we`re in now. Greed takes over, I`m afraid.

ukcarper

the.ciscokid wrote: »

Not interested in the anti-boomer thing, but the point you make is important from a health of the economy point of view. If all this money is tied up in a house, and people who do buy have to take out so much debt to pay it, then everything else in the economy suffers as people have no spare cash to buy stuff.

The UK economy was starting to become a one trick pony in this sense, everything revolving around debt/ dodgy financial products, and selling houses to each other.

Fair enough but who pushed the price of property up between 2000 and 2007 the people like me who just lived in our houses and paid our mortgages or the people who bought the properties. I get fed up with people like Percy blaming everything on boomers when in fact I have lived in my house for 25 years and I can’t think of any of my boomer friends who have sold or bought in the last 10 years.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Mr Muddly

Gosh Graham, you and the other bears do seem to be disappearing a lot from threads in the last couple of days when a challenge is made to your assertions.

I do hope you don't make a habit of it.....

That's how rumours start.

Percy1983

ukcarper wrote: »

Fair enough but who pushed the price of property up between 2000 and 2007 the people like me who just lived in our houses and paid our mortgages or the people who bought the properties. I get fed up with people like Percy blaming everything on boomers when in fact I have lived in my house for 25 years and I can’t think of any of my boomer friends who have sold or bought in the last 10 years.

Didn't blame them, just said there the main ones to gain from HPI

Graham_Devon

HAMISH_MCTAVISH wrote: »

Gosh Graham, you and the other bears do seem to be disappearing a lot from threads in the last couple of days when a challenge is made to your assertions.

I do hope you don't make a habit of it.....

That's how rumours start.

Well you started talking about something else again. Who mentioned house prices? No one.

You haven't challeneged any assertions. You've avoided all I said about natural wastage since I said it.

DervProf

Graham_Devon wrote: »

Well you started talking about something else again. Who mentioned house prices? No one.

You haven't challeneged any assertions. You've avoided all I said about natural wastage since I said it.

Just leave it Graham, he ain`t worth it. Go and watch that LED TV, it`s got a lovely picture.

doire_2

HAMISH_MCTAVISH wrote: »

Gosh Graham, you and the other bears do seem to be disappearing a lot from threads in the last couple of days when a challenge is made to your assertions.

I do hope you don't make a habit of it.....

That's how rumours start.

See post #106