NewBuy Guarantee Scheme

daveyjp

shortchanged wrote: »

I'll tell you what julieq. If they marketed these new build properties at reasonable prices, instead of top book prices I guarantee you they will sell. The same as all the properties I see that are sensibly priced, they sell.
I remember 10 years ago you could buy a new build 4 bed house for around £125,000. The same type of new build house now costs around £250,000 to buy. Now I'm assuming builders were making profits back 10 years ago, so are houses actually that much more to build these days?

10 years ago land was cheaper as they were buying it knowing the house would sell for £125,000. Now they sell for £250,000 the land prices have increased.

Jimmy_31

shortchanged wrote: »

I'll tell you what julieq. If they marketed these new build properties at reasonable prices, instead of top book prices I guarantee you they will sell. The same as all the properties I see that are sensibly priced, they sell.
I remember 10 years ago you could buy a new build 4 bed house for around £125,000. The same type of new build house now costs around £250,000 to buy. Now I'm assuming builders were making profits back 10 years ago, so are houses actually that much more to build these days?

I could go and build a 4 bed detached house on a piece of derelict waste ground around here for well under 50k.

I could build even more for cheaper if i was buying my materials in bulk.

Cant do it though because the queen owns that piece of the planet, and i cant afford to buy it because she picked a number out of thin air and said thats how much that bit of planet earth costs.

Anybody who wants to look at the moon must give me a tenner:)

And some people say there is no conspiracy:rotfl:

Jimmy_31

poppy10 wrote: »

Working link:
http://www.guardian.co.uk/commentisfree/2012/mar/12/newbuy-scheme-housing-market

See also from The Telegraph: Hopes of lower house prices may be dashed by new government scheme


Interesting that there has been such a hostile reaction from the print media that usually falls over itself to beat the HPI drum.

The media will now start changing their tune about house prices as the government can do nothing more to prop them up.

The powers that be have told the media to put a negative spin on it, so at some point in the future the government can take a step back and say we are doing more harm than good by inventing new schemes when things get even worse.

These schemes have been around for years and the media thought they were brilliant, but now they dont;).

CRASH_BANG_WALLOP

“The government’s NewBuy guarantee scheme, like many such schemes over the years, smacks of desperation,” said Jonathan Samuels, CEO of Dragonfly Property Finance.
“The concern is that NewBuy is intrinsically leveraged, and we know where leveraging got us in the past,” Samuels added – referring to housing market crises such as the sub-prime market in the US, which led to the global credit crunch.

.....................

Jimmy_31

MrsReee wrote: »

I find it hilarious that we have FTBs bleating on and need their hand held with schemes such as this just for them to get the balls to buy. At the end I the day you can either afford to buy a house or not. It you can't then tough titties. Rent forever and pay someone else's mortgage for them as you haven't the right to own.

Will do....