Coalition Government want lower house prices

HAMISH_MCTAVISH

Housebear51 wrote: »

In real terms house prices will be crashing.

As will the value of mortgage debt.

Whilst rents keep on rising.

chucky

Housebear51 wrote: »

This is the key `real terms`.

I can see the prices we see on right move not going down that much next few years. But inflation will be going up a lot.

In real terms house prices will be crashing.

that doesn't help FTBs one bit and that's without mentioning the risk of mortgage rates going up (because if we have inflation rates will go up (apparently))

house prices staying the same or rising slightly
inflation - less ability to raise a deposit due to higher spending and higher rents...

when you look at home owners think about fixed rate mortgages not being affected by inflation (whatever that Devon bloke says to the contrary).

Graham_Devon

HAMISH_MCTAVISH wrote: »

As will the value of mortgage debt.

Whilst rents keep on rising.

The government can put massive pressure on rents, considering a lot of tennants rent is paid for via the taxpayer.

Rents won't just keep going up. They can't. It's like fuel...it has a ceiling where it implodes on itself. Oh...like house prices...

chucky

Graham_Devon wrote: »

The government can put massive pressure on rents, considering a lot of tennants rent is paid for via the taxpayer.

Rents won't just keep going up. They can't. It's like fuel...it has a ceiling where it implodes on itself. Oh...like house prices...

you have a high level of expectation from this government, good luck with that.

so when rents 'implode' - where are all these people going to live... no wait...

Graham_Devon

chucky wrote: »

that doesn't help FTBs one bit and that's without mentioning the risk of mortgage rates going up (because if we have inflation rates will go up (apparently))

house prices staying the same or rising slightly
inflation - less ability to raise a deposit due to higher spending and higher rents...

when you look at home owners think about fixed rate mortgages not being affected by inflation (whatever that Devon bloke says to the contrary).

Devon bloke says you are going to quite some lengths there to try and suggest real terms falls don't help FTB's.

Point is, real terms falls don't put the FTB's a step backwards either, do they.

Your war against the FTB is clouding your viewpoint.

Stagnant, or falling prices help the FTB. Stagnant helps less. But it doesn't make them worse off. Only rises do that, if we are talking solely about the ticket price of the house.

Graham_Devon

chucky wrote: »

so when rents 'implode' - where are all these people going to live... no wait...

That, right there, is the exact reason rents cannot simply rise and rise.

Think outside the box, for once.

chucky

Graham_Devon wrote: »

Devon bloke says you are going to quite some lengths there to try and suggest real terms falls don't help FTB's.

Point is, real terms falls don't put the FTB's a step backwards either, do they.

Your war against the FTB is clouding your viewpoint.

Stagnant, or falling prices help the FTB. Stagnant helps less. But it doesn't make them worse off. Only rises do that, if we are talking solely about the ticket price of the house.

which war? the one in your head... just stating the facts which obviously don't suit the bitter "have not" that you are...

you still haven't grasped what notional and real mean have you...

He spoke of a "rational" market in which house prices fell in real terms, by increasing by less than earnings.

notional house price rises do not help FTBs which ever way you'd like to spin it. fact

chucky

Graham_Devon wrote: »

That, right there, is the exact reason rents cannot simply rise and rise.

Think outside the box, for once.

of course they can go up and down (unlikely with an increasing population though).

but that's not what you said

The government can put massive pressure on rents, considering a lot of tennants rent is paid for via the taxpayer.

the goal posts have officially been moved by the Professor of Devonian Economic theory who doesn't understand that real house price drops can have notional house price rises.

cue the "i never said that" but it's in the post above...

Graham_Devon

chucky wrote: »

cue the "i never said that" but it's in the post above...

Ahh, see you've started running around your circle...trying to cover yourself as you know full well that wasn't said. Nice work.

Don't mind me if I bow out now though, as this is obviously going to go nowhere, other than playground slang.

chucky

Graham_Devon wrote: »

Ahh, see you've started running around your circle...trying to cover yourself as you know full well that wasn't said. Nice work.

Don't mind me if I bow out now though, as this is obviously going to go nowhere, other than playground slang.

i don;t need to cover anything but as expected you do a runner.

it's not my fault you don't understand that real house price drops can have notional rises that do not help FTB's one bit.btw it's not my fault you're slow...