What is wrong with wanting cheaper homes

RenovationMan

DervProf wrote: »

Doesn't sound ridiculous to me.

Shares, precious metals, fine wines etc., all things that many people can enjoy a reasonable lifestyle without having. A house is something that most people/families do require, just like food and fuel. It's a fairly basic "asset" (if you want to call it that) that most of us want to own, or live in. It's the mentality of treating property as an asset that leads to things like credit crunches.

A house is something that most people/families require, but you don't have to own it. It's the mentality of having to physically own something rather than rent that has been driving up house prices since Thatchers vision of a 'home-owning democracy'. Plenty of people in Europe and the US are happy to rent for life. We just need more social housing and longer security of tenure.

CLAPTON

RenovationMan wrote: »

A house is something that most people/families require, but you don't have to own it. It's the mentality of having to physically own something rather than rent that has been driving up house prices since Thatchers vision of a 'home-owning democracy'. Plenty of people in Europe and the US are happy to rent for life. We just need more social housing and longer security of tenure.

I'm sure there is much evidence that people in Europe and US are happy to rent for life.
I would guess it's a combination of high property prices, rent control and different security of tenture:

Many people like the idea of not paying rent in retirement

RenovationMan

CLAPTON wrote: »

Many people like the idea of not paying rent in retirement

Logically though, all they have done is invest a large amount of money and the return is a roof over their heads. You could do the same with shares and use the investment return to pay the rent. Plus you have the advantage that any maintenance is carried out by the landlord, a bonus when you're elderly.

CLAPTON

RenovationMan wrote: »

Logically though, all they have done is invest a large amount of money and the return is a roof over their heads. You could do the same with shares and use the investment return to pay the rent. Plus you have the advantage that any maintenance is carried out by the landlord, a bonus when you're elderly.

if renting is significantly cheaper than owning then maybe investing in S&S would be equivalent

however maybe I'll try to do the maths one day but I doubt it in many cases

Graham_Devon

Most people buy simply because of security. Being settled is one of the most important thing to all of us, especially those with a family.

Many renters in Europe have this security. However, it simply doesn't exist in the UK. If it did, I believe rental prices AND house prices would fall.

FTBFun

Graham_Devon wrote: »

Most people buy simply because of security. Being settled is one of the most important thing to all of us, especially those with a family.

Many renters in Europe have this security. However, it simply doesn't exist in the UK. If it did, I believe rental prices AND house prices would fall.

I would think it is one or the other surely? As there is no change to supply so the only adjustment has to be to demand. I would expect house prices to fall in such a circumstance.

Jimmy_31

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.

You got me.

I am attempting to initiate a total economic collapse by looking in the estate agents window and saying to myself, like f**k im paying that.

Homeless families
Homeless families
Homeless families
Homeless families
Homeless families
Homeless families
Homeless families
Homeless families
Homeless families.


Single people no longer apply.

One day you will wake up to the fact that the economy is running exactly the way it is designed to run. It is supposed to be a complete !!!! up.

When i buy a house i hope when i come to sell it, it is worth a lot less than i paid for it, this way i will save an absolute fortune.

wotsthat

Graham_Devon wrote: »

Most people buy simply because of security. Being settled is one of the most important thing to all of us, especially those with a family.

Many renters in Europe have this security. However, it simply doesn't exist in the UK. If it did, I believe rental prices AND house prices would fall.

There are so many disadvantages to renting that I'm amazed that buying is so cheap - I'd be willing to pay a surcharge. Given the advantages of buying and the fact it's nearly always cheaper who'd want to rent?

It's not just security - it's plain common sense.

The grass is greener syndrome means that people hail the rent controls but don't realise that the German government actively discourage owner occupation via taxation. Home ownership must be concentrated among the rich even more than the UK.

Linda_D_2

RenovationMan wrote: »

This stance is taken by many 'home owning bears' on this forum. Unsurprisingly this rare breed is almost exclusively populated by people who bought pre-boom and have seen 300% HPI. They can be very generous with this free money, safe in the knowledge that they'll never be in negative equity.

What's a bear?
How can I ever be in negative equity when I've paid off all my mortgage and totally own my home?

I want house prices to go down so others get the chance to be homeowners.

Graham_Devon

FTBFun wrote: »

I would think it is one or the other surely? As there is no change to supply so the only adjustment has to be to demand. I would expect house prices to fall in such a circumstance.

A lot of investors would sell. Therefore increasing supply.