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Debate House Prices
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Grant Shapps, start building homes you ****
Comments
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HAMISH_MCTAVISH wrote: »Except of course, 100% of that wealth will ultimately be redistributed to the younger generations.
Unless you're expecting humanity to overcome this little thing called "death"...
The way we're heading it might not only be the "wealth" that youngsters inherit, they might get a "bonus" of some debt. 50 year mortgage anyone ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
High house prices will stay because:
1, government doesnt care about young people - they care about getting elected which is in the hands of the massive 35-65 generation of people who have massive vested interests in protecting their house prices.
2, Localism Bill (worst bill for young people in history) basically means nothing will ever get built and so house prices will go up. Result = wealth will further be shifted from young people the older generation because they will have a monopoly on the land.
3, Low interest rates = there is no pressure on anyone to sell, so everyone will just be holding out for what they paid. We need people to go broke and have to sell. This wont happen because it will be bad for the government, the banks and the 35-65 generation and so low interest rates will be maintained even in spite of high inflation.
House prices will probably go up this year, as the government and the BoE throw everything into ensuring they protect this bubble from bursting.
I dont see there being a class issue in this contry anymore. I think its simply the older generations trying everything they can to hoard all the wealth in this country whilst taking a dump all over the young people.
Odd the way all these older people managed to do OK for themselves without the vast majority staying at school into their mid twenties. Most just got out there and got on with building up a bit of wealth rather than spending their time whinging on websites. Could there be a message there?0 -
Odd the way all these older people managed to do OK for themselves without the vast majority staying at school into their mid twenties. Most just got out there and got on with building up a bit of wealth rather than spending their time whinging on websites. Could there be a message there?
Yes they did a fantastic job between 2000 and 2007 in building up a bit of wealth. They just decided to make each other rich, and in the end everyone realised what a joke the whole thing was and it all came crashing down.
They got normal jobs, worked resonably hard and bought houses in 1980. Those houses are now worth 10x what they were, and so they have alot of money. That isnt getting on with it and "building wealth", that is simply being part of a racket which helps to inflate a bubble. Then you all do everything you can to economically surpress young people and protect your "wealth".I am not a financial expert, and the post above is merely my opinion.:j0 -
Yes they did a fantastic job between 2000 and 2007 in building up a bit of wealth. They just decided to make each other rich, and in the end everyone realised what a joke the whole thing was and it all came crashing down.
They got normal jobs, worked resonably hard and bought houses in 1980. Those houses are now worth 10x what they were, and so they have alot of money. That isnt getting on with it and "building wealth", that is simply being part of a racket which helps to inflate a bubble. Then you all do everything you can to economically surpress young people and protect your "wealth".
Many bought in say 1990, then the market collapsed and IRs went up to north of 13%. It wasn't all easy.
Just save up a 10-15% deposit and buy a bloody house, like people have always done.0 -
If there is a limited number of properties to go around, you can either generate a borrowing spiral, or carefully control lending criteria to make sure that those who really can afford to buy are the ones that do. Yes, there will be losers, but at least it won't put our financial system at risk, and it won't mean individuals taking large financial risks. It's the lesser of two evils in my opinion.
And all you're doing is advocating that anyone without rich parents, or anyone that has a family and so can't save much, or anyone that lives in an area where mortgages are higher than rent and so can't save much, etc, are locked out of housing.
You've simply replaced one means of rationing the limited supply of houses (high prices) with another and significantly less fair means of rationing the limited supply of houses (high deposits).
Even the hpc-ers are finally starting to get it......
http://www.housepricecrash.co.uk/forum/index.php?showtopic=159819n 1900 owner occupancy rates in Britain were 11%, this peaked at something over 70% in 2005. It's falling now, and I believe it'll keep falling despite cheaper house prices because of tighter credit.
For most people in this country it doesn't really matter how cheap houses become, unless they can get a mortgage they're still unaffordable.
Which is pretty much how it's been for most of history, in the mid 1800's for example houses in rural areas sold for just over 1x average earnings, in urban areas it was just shy of 1.5x average earnings.
Didn't make any difference to 9 out of 10 households, without mortgage credit they were still doomed to rent.
The reality is that more people were able to buy houses thanks to the enabling effect of an expanded supply of credit, and even with higher prices, than were ever able to when prices were cheaper and mortgages were less readily available.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »And all you're doing is advocating that anyone without rich parents, or anyone that has a family and so can't save much, or anyone that lives in an area where mortgages are higher than rent and so can't save much, etc, are locked out of housing.
Errr.
Small point.
But how is this different to at any point in time in history?
Unless you are now advocating anyone, regardless of means of paying it back, should be given however much money they like, whenever they want it (wouldn't surprise me), I really am struggling to see your point here.0 -
Wasn't the "right to buy" in the 80s the main reason for increased ownership during the last 50 years.0
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Aldershot reasonable 2 bed house about £160k
Median full time male salary £39k
10% deposit £16k leaving £144k 3.7x £39k0 -
HAMISH_MCTAVISH wrote: »The reality is that more people were able to buy houses thanks to the enabling effect of an expanded supply of credit, and even with higher prices, than were ever able to when prices were cheaper and mortgages were less readily available.
You've said yourself that there is a shortage of property in the UK, that's why there is HPI.
If there aren't enough houses for everyone who wants one, what is the point of making more money available ?
How can more people buy houses when there is a shortage ? Isn't the majority of property in the UK already owned ? Where are these houses coming from that you want more lending for ?
Let's say an Audi R8 costs £100K. Lots of people want one, I`m sure, but how many can afford one ? Is the problem solved by allowing more people to borrow the money for one ? Might Audi not decide to raise the asking price if there is a queue forming outside their showrooms ? I'm sure Audi would love it if banks started doing special loan deals for prospective R8 purchasers.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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