Why do many people on here seem to think that rising house prices are good?

leftieM

mikael wrote:

However, most people are equipped with a brain and if they realise they are spending more than they earn, they should do something about it.

I genuinely think that takes a decision to opt out of debt culture. I would assume that most of the people on this board have 'seen the light' but the vast majority haven't. It suits our current economic system to buy on credit if necessary and that is what is seen as acceptable and normal.

nogginthenog

mikael wrote:

However, most people are equipped with a brain and if they realise they are spending more than they earn, they should do something about it.

Because when people are seduced and brain washed by our puppet masters they are made to believe they are doing the right thing at the time. It is then often too late to do anything about it.when they finaly realize their mistake.
And back to the OP high...ish interest rates and leading to low house prices! i believe is the best equation

Alan_M_2

mikael wrote:

You are right, but can suit many debtors who have bought goods and services that have little residual value, such as holidays, clothes and booze. I could imagine that many people in the UK have spent lots of borrowed money with nothing to show for it. These people have nothing to loose from the IVA route.

The bottom line is, it isn't worth entering an IVA unless it's for a substantial amount of money. The minimum amount is £30K, but the IP's fees will run into thousands so anything saved by the IVA will generally be lost on fees.

I do think it should be restricted to what it was designed for though -business reasons, retail therapy isn't a valid reason.

Snow_Dog

Alan_M wrote:

One of the most pleasant customers I have is also the wealthiest person I know, by a long margin, worth 10's of millions..yet you wouldn't know it if you saw him.

The people I've come across who are genuinely wealthy seem very comfortable with themselves and have no reason to put on a show of wealth. On the grounds that most of them genuinely don't care what other people think, would they?

It often seems to be the grasping classes up to their eyeballs in leveraged lending that seem to want to show you how much money they have, or appear to have, as the case may be.

I dont care what people think of me, does that make me rich?:D

Alan_M_2

That all depends on what you determine as Rich, people automatically assume it means money........

Martinslovechild

mikael wrote:

I realise this is a sarcastic post, but I think many people do really feel richer because the paper value of theur house has increased. However I'm amazed how few can see than remortgaging to buy consumer items is not really any different to just getting a secured loan at a fairly low rate. These days the banks seem so lax with their lending that you could probably borrow just as much even if you were not able to remortgage.

Debt on a mortgage still has to be paid back too. I just don't get how taking on more debt makes a person richer.

It's a fallacy - people spend (i.e. borrow) more because they 'feel' richer. I'm currently reading a recently released book on the subject (Maxed-Out) which covers debt in grim detail and how, as a nation, we got ourselves into this sticky situation. Excellent reading it is too!

For 'Bank Manager', read 'Sales Manager'.

Alan_M_2

Martinslovechild wrote:

It's a fallacy - people spend (i.e. borrow) more because they 'feel' richer. I'm currently reading a recently released book on the subject (Maxed-Out) which covers debt in grim detail and how, as a nation, we got ourselves into this sticky situation. Excellent reading it is too!

For 'Bank Manager', read 'Sales Manager'.

You highlight a point which is one of my pet hates, my bank manager is on a never ending quest to refer me to every possible department of RBS/NatWest group of companies.

Given the chance, they would sell me an endless list of policies/insurance/asset finance regardless of whether I could afford it or not (or even need it), yet the very credit line your asking for (for business) is scrutinised to a ridiculously high level.

roswell

Alan_M wrote:

That all depends on what you determine as Rich, people automatically assume it means money........

I think thats the best post I have seen on these boards, many people feel rich not because they haven money or lots of it, for each individual richness will be at different levels of finance or infact may have nothing to do with money.

EG Bob can feel rich because he has money left in the bank the day before pay day, it could be he has £20 in the bank ... or he could have 20 million. Its also a fact that many people who have millions have the biggest fear of loosing there milliions and as such they are never rich in there own minds because they feel they need more money to make sure they arent short of money.

nogginthenog

Some of these latter posts are spot on! to most people in the world being rich is having fresh drinking water and indoor plumbing!

Mrs_Optimist

I am rich in love, family and friends. I can also comfortably afford to live but do not spend excessively. I am poor financially compared to some of my friends who have the latest gadgets/cars/holidays/clothes but I am rich because everything we have is bought and paid for - with CASH, not PLASTIC. I have two lovely children and have (touch wood) never had any major mishap in my life. I also have a lovely husband who until recently didn't earn very much money at all, but when I compare him with previous boyfriends who were loaded with money, I know I married for love, not money. Thats what gives me a glowing feeling, not what I have financially but the family and love I have around me. That is success.