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Debate House Prices


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High house prices destroying...

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Comments

  • nearlynew
    nearlynew Posts: 3,800 Forumite
    High and rising house prices are not, as some would argue, the driver of our economy but have actually destroyed the economy due to mis-allocation of capital and the high levels of debt needed to maintain them.

    The additional social damages caused by high prices are obvious for all to see and only an idiot would argue otherwise.
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • Batchy wrote: »
    high house prices are not a problem with low credit interest rates...

    er, but sometimes you need high interest rates to sort out inflation.

    not really ideal to be unable to use this tool.
    FACT.
  • nearlynew wrote: »
    ...The additional social damages caused by high prices are obvious for all to see and only an idiot would argue otherwise.

    Has Hamish posted in the last couple of days?
    FACT.
  • Turnbull2000
    Turnbull2000 Posts: 1,807 Forumite
    Nonsense. You cannot benchmark the cost of housing by price alone. You need to factor in interest rates and household earnings too. And with interest rates being a lot lower than they used to be and two incomes now the norm, housing costs are perfectly affordable in most areas.

    The only issue here is two month eviction notices for families who rent.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    why haven't you bought a house then turnbull?
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • Turnbull2000
    Turnbull2000 Posts: 1,807 Forumite
    edited 5 October 2011 at 2:23PM
    Apparently he lives with his sister :rotfl:

    Do I? News to me. Haven't checked the spare room for a while though, guess I should check if she's secretly lurking about. I live in a nice house mind, so could understand why :beer:
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    I live in a nice house mind,.......


    Yes, but you haven't bought it though despite telling everyone that now is a good time to buy.
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • Batchy
    Batchy Posts: 1,632 Forumite
    er, but sometimes you need high interest rates to sort out inflation.

    not really ideal to be unable to use this tool.

    Inflation cannot be influenced but interest rates, main inflation is energy, it wont stop it going up.

    Most people do not concern themselves with the economy and are not bothered about the effect on savers deposits with low interest rates. Buyers want low rates for a long time, until their savings are higher than their mortgage. At which point they can offset anyway.

    People need homes, they need to often be close to family. At the moment this process is difficult whether it be buying or renting. There is a lot of properties to choose from in the buyers market, but only if your are fortunate enough to have already saved a deposit, but the rental market is at record highs and has 6 people going for each one, putting a lot of pressure on prices going up, and continual increases.

    I think honestly the government should regulate the rental market more, and allow families to take responsibility for their families buy buying a giving them a long term option. Bit of social responsibility.
    Plan
    1) Get most competitive Lifetime Mortgage (Done)
    2) Make healthy savings, spend wisely (Doing)
    3) Ensure healthy pension fund - (Doing)
    4) Ensure house is nice, suitable, safe, and located - (Done)
    5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)
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