What is wrong with wanting cheaper homes

homelessskilledworker

Those wanting them cannot be to blamed for those who over borrowed and are now panic stricken that a crash is on it's way.

Can someone on here without getting all emotive and agressive, convince me that cheaper affordable housing is not a good thing.

Of course we all know from sites such as this that there are many who prefer high house prices.

Let me remind everyone to what should be classed as the "bleedin obvious". Houses are for keeping the elements from getting to us such as rain sleet and snow and wind, it is where we hold our possessions and bond together as families.

I was about to go into my views on what property is not< but will wait until the thread moves on, if it does move on that is.

HAMISH_MCTAVISH

Houses are an asset like any other asset. Sure, they have some utility value, just as classic cars do, fine wines do, even precious metals do.... But above all else, houses and land are an asset.

And just like every other asset class, it generally benefits the person owning them if prices rise, and benefits the person wanting to own them if prices fall.

Whether rising or falling prices are good for wider society is a different argument, but not as clear cut as either the "bulls" or "bears" like to portray.

Harry_Flashman

Can't disagree with you old chap. I too wish houses (and everything else) were far cheaper.

homelessskilledworker

HAMISH_MCTAVISH wrote: »

Houses are an asset like any other asset. Sure, they have some utility value, just as classic cars do, fine wines do, even precious metals do.... But above all else, houses and land are an asset.

And just like every other asset class, it generally benefits the person owning them if prices rise, and benefits the person wanting to own them if prices fall.

Whether rising or falling prices are good for wider society is a different argument, but not as clear cut as either the "bulls" or "bears" like to portray.

Thanks Hamish, I appreciate that answer from knowing where you stand and I mostly agree with you.
property is still an asset at the end of the day, how can anyone attack someone wanting them to be cheaper.

And from what it is worth I can see the pain that will be caused by a property crash, as I can see the pain that was caused when we abolish anything where money is involved. The Times many years ago had an article which was disgusted and the banning of child chimney sweeps and how they would lose money, today we know the right decision was made.

HAMISH_MCTAVISH

homelessskilledworker wrote: »

Thanks Hamish, I appreciate that answer from knowing where you stand and I mostly agree with you.
property is still an asset at the end of the day, how can anyone attack someone wanting them to be cheaper.

The thing is though, nobody around here attacks people for wanting house prices to be cheaper.

They do, quite rightly, attack people for wanting to see a house price crash, with all the wider economic damage that would cause.

And from what it is worth I can see the pain that will be caused by a property crash, as I can see the pain that was caused when we abolish anything where money is involved.

The devil is in the details though.

There is nothing wrong with wanting to see a large scale house building programme that would provide cheap entry level housing for those who need it.

I'd support that.

However there is a lot that is wrong with wanting to see wealth destruction, economic devastation, mass unemployment, repossessions, and wholesale misery.

Only a lunatic would support that.

worried_jim

I wish they were cheaper when I bought mine, but now I've got it let the prices rocket!

sheffield_lad

It all depends on what you think once you are a home owning skilled worker. How would you feel if after 15yrs the house (your nest egg maybe crashed)? Maybe the crash needed was below the price you paid? Or some guy on a bb was complaining about house prices.

The biggest issue facing housing and the reason why prices especially for 3/4 bed houses has not and will not drop is the shortage of these properties. We need to be building a city the size of Birmingham every 2yrs just to stand still! This won't stop as the population mix changes with more and more children being born this is a problem which is set to continue for some time. What makes it worse is fewer houses have been built during the recession which creates more demand for the ones on the market which unfortunately for you and others not on the housing ladder means the fall won't happen.

Maths really not enough houses and the % reducing while pop goes up = a rise long term in prices.

brit1234

worried_jim wrote: »

I wish they were cheaper when I bought mine, but now I've got it let the prices rocket!

You do realise when house prices rocket it costs far more to upsize, when prices are lower the gap between the next rung of the ladder is so much smaller.

It does matter really, tighter lending will bring larger houses down anyway as well as small.

kissingthepink

Why can't they just rent one?

DervProf

HAMISH_MCTAVISH wrote: »

The devil is in the details though.

There is nothing wrong with wanting to see a large scale house building programme that would provide cheap entry level housing for those who need it.

I'd support that.

However there is a lot that is wrong with wanting to see wealth destruction, economic devastation, mass unemployment, repossessions, and wholesale misery.

Only a lunatic would support that.

Now this is where the debate gets interesting.

I do see why you are saying this Hamish, and no, most of us (even bearish types) don't want to see the misery you mention. Here's the point though, I think that the problem is that we've allowed ourselves (through natural greed) to get to a position where "wealth destruction" needs to take place if we do want to achieve the not unreasonable goal of cheap(er) housing.

Your reply is very revealing - "There is nothing wrong with wanting to see a large scale house building programme that would provide cheap entry level housing for those who need it." I think your next comment might be "but I don't want a house like mine (presumably not "entry level") to fall too much in price.

Too many eggs in one basket. Something needs to give, it is dangerous to continue to rely on property as the key to financial success. It is just as reasonable to desire cheap housing, as it is for cheap food or fuel. The fact that the UK economy has come to rely so much on it's property market is not something to be applauded (unless you have benefited from this increase in reliance). And those that do applaud, seem quite short sighted and selfish as far as I am concerned.

brit1234

MrsRee wrote: »

The only people wanting cheaper homes are those attempting to initiate the economic collapse, the ones who cheer-lead on job redundancies, and rejoice at hard-working families being made homeless. It is these people who can not grasp the basic fundamentals of the way our economy and society in the UK works. Housing is a precious asset and one in which the vast majority invest all their hard earned time and wealth in. It is only fair therefore that these home-owners see a return on their risk and investment. You cannot fail with property especially in the long-term and with prices bottomed out and interest rates at historic lows there has never been a better time to invest.

One word "Cobblers"

How about the majority of this countries youth priced out of the housing market who work hard and want families?

It was a decade irresponsible lending, fraud, and too low interest rates which is bringing us to economic collapse.

There is only so long you can create an artificial boom in growth with nothing tangible holding it up before it bursts. We have suffered from fools economics for too long, don't believe me then check out the Austrian school of economics. The school which is finally now starting to win the economic debate