What is wrong with wanting cheaper homes

homelessskilledworker

HAMISH_MCTAVISH wrote: »

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.



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.

I am on record on this site saying that I also do not want a severe crash, it would hammer the economy.
But I personally think over priced property is now holding the UK economy back, a 20% reduction what get the ball rolling again, BUT would leave casualties.

nickj_2

MrRee wrote: »

Sadly, you showed your complete ignorance rigth there ... so, this could never move on above the very low level you set it at - but, I shall try .....

1. Houses will NEVER drop below the price which would return a 7% yield to an investor - therefore a floor is set and no crash will happen.

2. Those who cannot play the game will rent from those who can play.

3. For some, renting will be their way through life - for others, buying their own place will be their reward for being a winner.

4. There is to be no crash.

5 There is to be no crash.

6 There is to be no crash.

7 There is to be no crash.

8 There is to be no crash.

9 There is to be no crash.

AND

10. There is to be no crash.

they will rent whilst they can afford it , but surely once people retire in another 20 -30 years time and they then have to find £1k or whatever the rent is then from their £120 per week pension if they have one ,then the we will be in another disaster situation

homelessskilledworker

howee wrote: »

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.

I care more about everyone getting good quality decent housing than you losing your equity.

I honestly do not mean to be rude or offensive, thats the postion I have taken.

CLAPTON

A._Badger wrote: »

It depends what you mean by 'small' doesn't it?

Have you seen Ashford in Kent?

how can you comment if you don't know what percentage of the land is already built on?

homelessskilledworker

Generali wrote: »

To me it makes most sense to let builders build more houses If that's what they want to do and let the market sort things out.

If people want to build houses and others want to buy them it seems dumb to stop them.

This is probably the best post I have read on this forum to date, and it shows how blinkered we have become as a nation without realising.
If we live in a free market, stop tampering with the property market and let builders build unto they want to stop

CLAPTON

No-one sensible really wants totally uncontrolled building development but the current situation is madness.

We have poor housing anyway, a growing population and growing expectations and we actually have a lot of land.

But he planning regulations and of course some difficulties with the banking sector are in the way.

ukcarper

CLAPTON wrote: »

how can you comment if you don't know what percentage of the land is already built on?

The South East is a large area could you indicate where you think would be suitable for major development particularly inside the m25.

CLAPTON

ukcarper wrote: »

The South East is a large area could you indicate where you think would be suitable for major development particularly inside the m25.

there are large areas of London with derelect buildings (often owned by local authorities)
in the outer areas just look on google earth and see for yourself

in any event the SE isn't restricted to inside the M25

and of course there area many other areas with a housing shortage

yertiz_2

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.

If 'land is an asset,' why not have a land tax?

HAMISH_MCTAVISH

yertiz wrote: »

If 'land is an asset,' why not have a land tax?

Beyond the obvious point that land taxes would make the cost of both ownership and renting more expensive, and the last thing this country needs is more taxes....

The same capital gains taxes apply to investment properties as do to shares or other assets.

And similar tax exemptions happen for primary residences as savers get through ISA's, etc.

Council tax or business rates are applied to all developed land.

So I can only suggest you are talking about undeveloped land, which would be counterproductive. As while it would reduce land banking it would also reduce the ability of the market to rapidly increase supply when conditions become more favorable to building more.