Merryn Somerset Webb and Kirstie Allsop on R4

joguest

nollag2006 wrote: »

Why shucks ! Very nice of you



Kirsty's key point on house ownership was that it ensures that pensioners would not be obliged to pay rent well into their old age.

A very valid point, and one not often picked up here.

As you have correctly pointed out MSW had no valid response

They'll be paying their rent for longer into old age if they bought a house 12 months ago rather than today, given that the Land Registry shows prices falling 3.2% in the last 12 months. If house prices continue falling at the same rate then they'll continue to be better off over the long-term by delaying purchasing.

Besides, with CPI now down to below 3% on an annualised 6-month comparison basis (down from ~7% within the last year) many saving products now protect cash from losing value, whereas house prices are falling. If the current disinflation and house price deflation continue, then you're better off keeping your cash. However, this doesn't apply if you're thinking of buying a house - what is important is the comparison of the value of cash vs houses and over the last year, cash is clearly the winner.

If it's discretionary purchase (2nd home, etc) then the valid comparison is that house prices are down 8% compared to CPI (at ~5% 12month-on-12-month) whereas cash under the mattress is down 5% compared to CPI. If you own a house, it's losing value faster than cash.

So, even before we take into account the lost money in interest payments on a mortgage, cash is better.

ruggedtoast

Honestly, it really doesn't matter what Kirstie Allsopp thinks about anything. The woman is a member of the privileged elite. She has never had to worry about money in her life, nor is she probably even on speaking terms with anyone who has. She has not even the vaguest clue what it might be like to worry about retirement or not be able to pay a bill, or what leveraged property ownership over 25 years might mean to a person who actually has to work for a living.

She dropped out of A levels in her exclusive private school because she was too thick to do them and couldn't see the point anyway, a fact she has occasionally joked about on TV, without any apparent irony.

Due to her connections, plummy voice and reasonably pleasing visage she landed a selection of media jobs and ended up on TV plugging property, as at some point two synapses in her brain had overcome their genetic torpor and evolved to connect together with the understanding that in a rising housing market, making a house a bit nicer makes it worth more.

That as far as I am concerned is the sum total of her knowledge in economics. She just doesnt have the wit or the brain power to defeat Merryn, either in the arena of political debate, or in my putative mud wrestling contest.

lisyloo

And pensioners would live off love and fresh air and free housing?

Who said you don't need a pension?
Of course you need an income as well.
But having rent free housing for decades is an enormous advantage.

Conrad

These proposed new mortgage rules are already fully implemented by lenders apart from the grey area of fast tracking whereby most large lenders still do not request income proof from a large proportion of borrowers, but they do not calss this as self cert. The FSA are blissfuly still largely unaware that fast tracking goes on unabated.

Affordability is already assessed by all lenders, future interest rate considerations are already allowed for, multiples are fairly prudent in the main, interest only is pretty much a no go for most lenders (unless large ISA already being funded for example).

You can trust the regulator not to know what's going on in the trenches of reality.

nearlynew

Owning your own home outright is, without doubt, a major step towards financial security.


But what makes me laugh about the "property is my pension" brigade is that whenever there are stories about old people having to sell their house to pay for care they think it is outrageous.

You can't have it both ways.

Idiots.

homelessskilledworker

She is such a fake this woman, I always remember when she made a point on air that she could not stand women who wear jeans, that "it was so un lady like". Of course it was nothing to do with the massive ar se that she has.

ruggedtoast

homelessskilledworker wrote: »

She is such a fake this woman, I always remember when she made a point on air that she could not stand women who wear jeans, that "it was so un lady like". Of course it was nothing to do with the massive ar se that she has.

Yes, Merryn has to watch that. It would be game over if she were to become pinioned under those substantial twin orbs. Add a half nelson and she would have no chance.

Fortunately she is wiggly like an eel, and can get out of most situations like that before Allsopp could put a full lock on.

homelessskilledworker

ruggedtoast wrote: »

Honestly, it really doesn't matter what Kirstie Allsopp thinks about anything. The woman is a member of the privileged elite. She has never had to worry about money in her life, nor is she probably even on speaking terms with anyone who has. She has not even the vaguest clue what it might be like to worry about retirement or not be able to pay a bill, or what leveraged property ownership over 25 years might mean to a person who actually has to work for a living.

She dropped out of A levels in her exclusive private school because she was too thick to do them and couldn't see the point anyway, a fact she has occasionally joked about on TV, without any apparent irony.

Due to her connections, plummy voice and reasonably pleasing visage she landed a selection of media jobs and ended up on TV plugging property, as at some point two synapses in her brain had overcome their genetic torpor and evolved to connect together with the understanding that in a rising housing market, making a house a bit nicer makes it worth more.

That as far as I am concerned is the sum total of her knowledge in economics. She just doesnt have the wit or the brain power to defeat Merryn, either in the arena of political debate, or in my putative mud wrestling contest.

Good post...

For some reason though Kirstie has become the figure head of what will be know as the great housing bubble. The biggest culprits which are probably the lenders and Government will be too smart to broadcast the fact that they ramped property so much.

If you remember the 80's YUPPIE era it was always portrayed with the same TV clip of chinless wonders inside a city wine bar drinking champagne acting in a obnoxious way followed by a clip of a porshe showroom, thats the part Kirstie is playing today.

When they one day make documentries about the property crash Kirstie will play leading roll, fair or unfair.

Dan:_4

Wookster wrote: »

Nice to see the usual high quality of comments from nollag.

Kirsty's suggestion of a property being your pension is just plain ignorant, so was her call for more HPI. Her positions just don't add up... she's very concerned about the rise in the ages of FTBs yet she wants more HPI. Just doesn't really make much sense.

Similarly MSW didn't exactly offer sage investment insight.

Hiya Wookie.

In regard to your post: Kirsty's suggestion was not about property being your pension but that for a couple to be mortgage free for retirement was the best move anyone can make. I mean, who wants to worry about mortgage or rental payments in retirement?

Hope things are cleared up for you.

wotsthat

homelessskilledworker wrote: »

When they one day make documentries about the property crash Kirstie will play leading roll, fair or unfair.

I very much doubt it.

She's just a UK TV presenter. Until I came here I hadn't heard of property p0rn and didn't realise that some people thought the aim of these TV shows was to ramp house prices.

As far as I'm concerned these TV shows are a way to have a nosey around other peoples houses without the risk of getting caught staring through their front room windows.