Let people borrow from their pensions

ruggedtoast

Cleaver wrote: »

When you have a society, governent and instutions that seem hell bent on ensuring prices don't fall you'll see people invent wonderful and 'innovative' products to enable people to buy. This is just 125% mortgages in a different format.

We need people to realise that house prices falling will enable more people to buy and the housing market to work again. The people in charge will never let this happen. That's why I think we won't see house price falls and why we'll continue to have a dysfunctional, stagnant housing market for years and years to come.

The government is running out of money to do this though. Labour chucked billions around trying to ensure banks kept lending and people kept borrowing.

They spent more money still on effectively paying people's mortgages for them.

The sensible thing to have done would have been to have spent a fraction of this on simply building more property. The house price correction would have been over by now, they could still have bailed put the banks and people wouldnt be laying awake at night worrying about the rent / mortgage.

Cleaver

ruggedtoast wrote: »

The government is running out of money to do this though. Labour chucked billions around trying to ensure banks kept lending and people kept borrowing.

They spent more money still on effectively paying people's mortgages for them.

The sensible thing to have done would have been to have spent a fraction of this on simply building more property. The house price correction would have been over by now, they could still have bailed put the banks and people wouldnt be laying awake at night worrying about the rent / mortgage.

I've never known a sensible goverment that thinks long term and does things in a common sense way. This forum was full of people saying, "wait til the tories get in, they'll stop that, they'll stop this, house prices will fall." Rubbish. Tory MPs own houses just like Labour MPs and they know that 70% of the the population own houses (and a much higher percentage of voters probably own houses), so they do lots of weird and wonderful things to keep prices high.

I don't like any of that one bit, but it was always quite clear that no one, aside from a minority, wants house prices to fall. Hence all the schemes like "be a pr*ck and borrow from a pension you don't even have to buy a house you can't even afford" schemes.

Graham_Devon

RenovationMan wrote: »

The flaw in the plan is that FTBers are probably unlikely to have large pension pots anyway.

Probably a bit of a none issue.

Afterall, in the minds of these quite doo-lally VI's, who believe the economy is based on selling houses to each other and keeping mortgage payments high, you will have a valuable asset.

Don't have a pension at all? No problem. Start one today, and borrow from it today. Pay for it in the future.

Afterall you can sell this asset, and pay off your pension (how bizzare), pay off any outstanding mortgage and pay off any probable (if this insane route was followed) negative equity.

You may not have anywhere to live or a pension when you retire, but hey, at that point, these people will have made thousands and won't be their problem.

How anyone can stay as the director of the CBI after announcing such an absurd, and irresponsible "plan of action" is beyond me.

Graham_Devon

There must be ways we can tap into our childrens future earnings too?

Maybe the CML could come up with this one?

Percy1983

Graham_Devon wrote: »

There must be ways we can tap into our childrens future earnings too?

Maybe the CML could come up with this one?

Thought HPI did a good job of that.