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Debate House Prices
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The 3 year anniversary of the 0.5% BOE interest rate.
Comments
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MissMoneypenny wrote: »If you read the mortgages board, benefits board and disability board, you get a clear picture of what is happening to peoples finances.
You get a clear picture of people's finances who post on the mortgages, benefits and disabilities board - doesn't mean it's representative of what's happening in the wider economy.0 -
MissMoneypenny wrote: »If you read the mortgages board, benefits board and disability board, you get a clear picture of what is happening to peoples finances.
Nonsense.
You get a clear picture of what is happening to a tiny self-selecting group of people who have actively searched out online advice for people in financial difficulty.
Extrapolating that everyone is in financial difficulty from reading these forums is like extrapolating that everyone is a football fanatic from reading a Manchester United forum.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Graham_Devon wrote: »Christ. Theres a lot of people on those threads where a 1.5% rise is, in their own words and explanations, pushing them right to the edge, with some suggesting they fear loosing their home.
The key running through most of them is they expected their house value to rise, so they could switch to a better deal with a lower LTV.
The word "trapped" and "fear" comes up frequently.
Even I didn't imagine people would find such small rises so punishing.
Just shows how many people really can't afford their homes. This small rise is costing people £200 and more!
All those people feeling like they are held 'over a barrel' with an SVR of 4% or 4.5% really need to reassess their situation and their expectations. If they can't afford that SVR they would be even more screwed having to pay a typical rent, when yields are at 5%.0 -
HAMISH_MCTAVISH wrote: »Nonsense.
You get a clear picture of what is happening to a tiny self-selecting group of people who have actively searched out online advice for people in financial difficulty.
The last government said that 9 out of 10 families were entitled to welfare payments (mainly Tax Credits). Tax Credits are going to be removed and be part of the new Universal Credit, with lots of new conditions. The financial changes are going to affect a lot more than "a tiny self-selecting group of people".RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
MissMoneypenny wrote: »The last government said that 9 out of 10 families were entitled to welfare payments (mainly Tax Credits). Tax Credits are going to be removed and be part of the new Universal Credit, with lots of new conditions. The financial changes are going to affect a lot more than "a tiny self-selecting group of people".
*yawn*
Look, you can run around these boards doom-mongering your little heart out, but the following three things are now inevitable.
1. House prices will continue to stagnate for another year or two and then rise substantially for the next two decades.
2. Property will continue to consolidate in the hands of an increasingly wealthy but smaller percentage of the population.
3. Rents will continue to increase, and rental regulation will continue to be light touch and poorly enforced.
You had your crash.... You have your mortgage rationing.
And now you get to live with the consequences of both.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »*yawn*
Look, you can run around these boards doom-mongering your little heart out, but the following three things are now inevitable.
1. House prices will continue to stagnate for another year or two and then rise substantially for the next two decades.
2. Property will continue to consolidate in the hands of an increasingly wealthy but smaller percentage of the population.
3. Rents will continue to increase, and rental regulation will continue to be light touch and poorly enforced.
You had your crash....
Now you get to live with the consequences.;)
I own my house, mortgage free; I don't claim any welfare payments and I have a final salary pension in addition to a second private pension, plus I work. I'm not the one with lots of mortgage debts. I'm also not the one who is going around the boards moaning about greedy banks and bankers.
Are you aware that:-
40% of rents are paid by welfare and those rents have been reduced and any future rises are capped at CPI.
With welfare drops too, how will the tenant top up the rent or will landlords being paying their own mortgages on empty properties?
It also looks like landlords will no longer be able to claim tax credits when Universal credit comes in; unless there is a house price drop - oh the irony of it all.
Tax Credits are the only income based welfare payment at the moment that doesn't have capital limits and it looks like that is changing under Universal Credit. Under UC, capital, savings and the equity in houses the claimant doesn't live in, will be calculated. If the total assets are over 6k then the UC payment will be reduced; over 16k and the claimant gets nothing.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
HAMISH_MCTAVISH wrote: »*yawn*
Look, you can run around these boards doom-mongering your little heart out, but the following three things are now inevitable.
1. House prices will continue to stagnate for another year or two and then rise substantially for the next two decades.
2. Property will continue to consolidate in the hands of an increasingly wealthy but smaller percentage of the population.
3. Rents will continue to increase, and rental regulation will continue to be light touch and poorly enforced.
You had your crash.... You have your mortgage rationing.
And now you get to live with the consequences of both.
Cant see anybody having a problem with never being able to buy a house.
No real need to get a job if ALL your future wages will be spent on living expenses.
Should all go off without a hitch i reckon:rotfl:0 -
MissMoneypenny wrote: »I own my house, mortgage free; I don't claim any welfare payments and I have a final salary pension in addition to a second private pension, plus I work.
That's very nice for you.
I own a mortgage free house too.
And another one with nearly 50% of the mortgage paid off in just 4 years. (Thanks, Merv!!!)I'm not the one with lots of mortgage debts.
Me neither.
Now less than 1.5 times income, and reducing rapidly. (Thanks Merv!!!)I'm also not the one who is going around the boards moaning about greedy banks and bankers.
Mea culpa...
I am indeed pointing out that banks are abusing the lack of competition in the market to engage in cartel-like behaviour.
And also that by doing so, they are undermining the economic stimulus that the BOE are trying to achieve and so jeapordising the wider economy.
!!!!!! Turpin would be so proud of you lot....Are you aware that:-
40% of rents are paid by welfare and those rents have been reduced and any future rises are capped at CPI.
If you must insist on boring me with these trite discredited bear memes, do at least try to be accurate.
Only 25% of private renters receive some form of housing benefit, most of them are in the cheapest types of housing, and many of them pay additional amounts on top of the benefits for rent.
It is therefore estimated that less than 10% of the rent paid to landlords in the UK is sourced from housing benefit.With welfare drops too, how will the tenant top up the rent or will landlords being paying their own mortgages on empty properties?
There is a shortage of housing...
Which by definition means there are less houses available than there are people looking to rent them.
The small minority of private renters on benefits will either find the money somewhere else, or be replaced by the growing population of non-claimants.It also looks like landlords will no longer be able to claim tax credits when Universal credit comes in; unless there is a house price drop - oh the irony of it all.
Eh? What kind of garbled nonsense is that?Tax Credits are the only income based welfare payment at the moment that doesn't have capital limits and it looks like that is changing under Universal Credit. Under UC, capital, savings and the equity in houses the claimant doesn't live in, will be calculated. If the total assets are over 6k then the UC payment will be reduced; over 16k and the claimant gets nothing
Wow... You're properly obsessed with benefits, aren't you?
I can't say I'm an expert on the subject, never having claimed a day of them in my life, but the statistics show that those relying on 100% on benefits to pay private rents are an insignificant percentage of a rapidly growing population.
According to the DCLG's 2011 housing statistics, just 6% of private renters are unemployed, versus over 10% of social housing tenants.
Owner occupiers, by the way, have just 1% unemployment.
Hence why housing benefit changes came in for new claimants a year ago, and rents shot up to new record highs anyway.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Hamish
Can you name any business that sells its product at a lower price than it needs to to help the overall economy?0 -
Hamish
Can you name any business that sells its product at a lower price than it needs to to help the overall economy?
ILW
Can you name any other business that was bought by the government because it was vital to the overall economy?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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