Most are finding life far worse, so what do we need, higher house prices!!

The_Fox_3

So then...

1. unemployment is going up

2. interest rates will soon be on the rise

3. Spending cuts soon to start kicking in

3. Some nasty worldwide events recently(will they have a negative effect around the globe?)

4. wage freeze

5. inflation well above target

6. consumer confidence low

7. Fuel prices rocketing

etc etc etc


So you open a newspaper, turn on the news and you fid out what the UK needs to help solve our problems

HIGHER HOUSE PRICES.

Now somebody please explain the logic to me of why house prices reducing in value is bad for a consumer that is being kicked in the teeth as it as. How can it in anyway give anyone any hope looking for a home one day knowing that work is becoming harder to find, prices are going up, and wages are lower, of course markets don't work like that as we are now finding out...

Rinoa

The_Fox wrote: »

Now somebody please explain the logic to me of why house prices reducing in value is bad for a consumer that is being kicked in the teeth

70% of consumers own their own homes.

You really think they would be happier if their home lost 20/30% of its value?

Loughton_Monkey

Which newspaper was that, then?

purch

Most are finding life far worse

It's always a good idea to open your thread with a totally unsubstantiated and made up assertion.

Adds a huge amount of credibility.

dunstonh

Most are finding life far worse, so what do we need, higher house prices!!

I don't buy that. I would say most are not far worse off. With mortgages far lower in cost than ever, despite rising prices, most people have more money in their hands. If you have got any sense, they will be overpaying their mortgages or clearing down short term debt before interest rates start to rise.

Shupufski

Rinoa wrote: »

70% of consumers own their own homes.

You really think they would be happier if their home lost 20/30% of its value?

As you are fond of stats can you please split that 70% between those that actually hold the deeds to their property and those that have a mortgage? Those that have a mortgage do not own their property outright.

Cleaver

Shupufski wrote: »

As you are fond of stats can you please split that 70% between those that actually hold the deeds to their property and those that have a mortgage? Those that have a mortgage do not own their property outright.

I remember reading somewhere that 40% of all housing stock is owned outright, whether it's rented out of lived in by the owner. Hamish will be along soon with a link I'm sure.

ILW

Rinoa wrote: »

70% of consumers own their own homes.

You really think they would be happier if their home lost 20/30% of its value?

No they don't.
They just live in owner occupied properties, totally different.

The_Fox_3

I see the boards die hard property bull rampers are sat at the ready this morning.:)

Do you guys honestly believe(and i am sure you don't) that there is anything but harder times this year for most people, can't some of you even be honest with yourselves.

And my question is HOW are property prices getting more expensive in anyway good for the real economy, apart from those living in a bubble and with fragile self worth issues, what is the good that ramptant property inflation does.

Please don't come out with "it makes the homeowner more confident", because that is a problem in my eyes not a plus.

DervProf

Rinoa wrote: »

70% of consumers own their own homes.

You really think they would be happier if their home lost 20/30% of its value?

Apart from a few HPI worshipers on this forum, you might find that more people than you think would not be too fussed about lower house prices. In fact, many parents (who are already homeowners) might welcome lower prices.

Rinoa

Shupufski wrote: »

As you are fond of stats can you please split that 70% between those that actually hold the deeds to their property and those that have a mortgage? Those that have a mortgage do not own their property outright.

Totally irrelevant.

They'll still lose the value of their home if prices fall whether it's mortgaged or not.