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

Le_Chuck

Rinoa wrote: »

Like most bears you're putting the cart before the horse.

On Tuesday's HUTH there was a very sound stone fronted terrace house in Burnley. In many parts of the SE it could easily sell for £300k. In Burnley ~ £19k. Developer bought it, spent £10k and it looked great.

The reason for the low price is too much supply in a town where there is little demand.

House prices won't come down until either fewer people want them or they build lots more in areas where they are needed.

And that's not going to happen anytime soon.

The reason for lack of demand is the unemployment levels in the north are higher than the SE. Once the public sector cuts set in & if Daves private sector job fairy fails to materialise, we'll see prices dropping further.

ILW

RenovationMan wrote: »

If I saved up the whole amount for my first home instead of getting a mortgage, I would be a 40odd year old bloke still living at my mum and dads house. I doubt that I would have a wife and kids if I was still at Mum n Dads so my life would not be as good, though at least I would have had 'control'.

Is that what your doing?


p.s. by saying 'saving money to buy stuff' you have just admitted that I am right - spending boosts the economy and saving wrecks it.

Until the state ends up having to bail out all those that have no savings. Thereby raising taxes and leaving less money for people to spend.

Graham_Devon

The british economy is seen as one of the next in line after Greece and Spain precisely because of over spending.

I get both sides. Spending keeps people in jobs. Saving doesn't make jobs.

However, we are at a point now where we can't spend anymore. We weren't spending our own cash by our own means. We were spending credit, and wracking up a debt mountain (hence debt figures increased year on year).

People can't spend, if they don't have the means to do so.

Also, if people are told to get the best product they have to save a bigger despoit etc, you can't at the same time, have a pop at them for saving.

Spending din't get us into this mess. It was a worldwide problem. But spending did make our problem a hell of a lot worse. Were only still functioning because we have our own currency.

ILW

RenovationMan wrote: »

I'd happily compare my financial security against yours and see how they stack up.

I am sure yours are fine, but there are many that if they lost just one or two months salary would be getting all sorts of benefits from the taxpayer.

DervProf

RenovationMan wrote: »

If I saved up the whole amount for my first home instead of getting a mortgage, I would be a 40odd year old bloke still living at my mum and dads house. I doubt that I would have a wife and kids if I was still at Mum n Dads so my life would not be as good, though at least I would have had 'control'.

Is that what your doing?


p.s. by saying 'saving money to buy stuff' you have just admitted that I am right - spending boosts the economy and saving wrecks it.

I'm not suggesting that money shouldn't be borrowed to buy a house, just all the non-essential items such as holidays, conservatories, TVs etc (which it appears that a lot of people have been doing).

And no, I`m not living with my parents, and I do have a mortgage.

Oh, and saving up to buy stuff is arguably better for the economy than borrowing for the same stuff. By saving, it means that I'm not paying interest on the purchase, which allows me to buy more in the long run (assuming that inflation isn't higher than borrowing rates). There are also benefits from not risking having to be "bailed out" if the debt can't be repaid.

ILW

DervProf wrote: »

I'm not suggesting that money shouldn't be borrowed to buy a house, just all the non-essential items such as holidays, conservatories, TVs etc (which it appears that a lot of people have been doing).

And no, I`m not living with my parents, and I do have a mortgage.

That is a major part of the problem, buying a car which will last a few years, or a holiday which will last a few weeks and paying for it over 20 years is just plain stupid.
To quote Ocean Finance, "take out second mortgage with us, pay off your debts and also have a holiday and a new car with just one easy monthy payment".

StevieJ

Graham_Devon wrote: »

Stop being stupid stevie.

People have problems with those who have mortgages themselves to the hilt, and then claim SMI payments, from taxpayers.

Over half of the total people in receipt of SMI, were over 50.

There is going to be an element of remortgaging and remortgaging that has got these people in trouble, and now claim from the taxpayer.

.

Wait a minute, sammyjammy reckons not.

Original purchase only.

ETA you can claim for additional borrowing if you can prove via receipts etc it was spent on necessary repairs to house such as new roof etc.

Talking out of your rear again Dev?

https://forums.moneysavingexpert.com/discussion/3122490

chucknorris

ILW wrote: »

That is a major part of the problem, buying a car which will last a few years, or a holiday which will last a few weeks and paying for it over 20 years is just plain stupid.
To quote Ocean Finance, "take out second mortgage with us, pay off your debts and also have a holiday and a new car with just one easy monthy payment".

Are you sure? The advert sounds so convincing when it says, what's that phase again:

'Consolidating all your loans into one manageable loan (I love the bit when they say there was even enough left to pay for the holiday (or it might have been a kitchen)'

ILW

chucknorris wrote: »

Are you sure? The advert sounds so convincing when it says, what's that phase again:

'Consolidating all your loans into one manageable loan (I love the bit when they say there was even enough left to pay for the holiday (or it might have been a kitchen)'

My quote may not have been word for word, but I think the meaning is correct.

Graham_Devon

StevieJ wrote: »

Wait a minute, sammyjammy reckons not.


Talking out of your rear again Dev?

https://forums.moneysavingexpert.com/discussion/3122490

Nope.

You get SMI for the amount of your mortgage, up to a certain amount, at time of taking the SMI.

What the above means is:

However, if you got your mortgage after you started claiming benefits, you may not be eligible. If you already had your mortgage, but increased it after you started claiming, you will only get interest payments on the amount you originally borrowed.

Does not mean the amount you originally borrowed when you bought the house.

You can also get help with any loans you took out to provide mandatory repairs. I.e. personal loans which you can prove went on essential maintanance.

Thank you for your concern though.