What Makes Someone Cheer On And Support House Price Inflation?

macaque_2

From my experience on here and other vile fora it is clear that there is certain type of individual who cheers on and supports nothing but house price inflation. It appears to be lost on them that house price inflation destroys jobs and forces genuine honest hard-working families into rent/mortgage poverty each and every day, and could ultimately affect them themselves when, hopefully, they themselves lose their job. I say hopefully as I believe this is the only thing that will happen to them to make them wake up one morning and realise just how wrong and selfish they have been for wishing ill on others through wildly inflated prices.

Wookster

It takes a very special person to believe the ponzi/ pyramid schemes can go on indefinitely.

brit1234

macaque wrote: »

What Makes Someone Cheer On And Support House Price Inflation?

Being a buy to let landlord. They got caught up in the frenzy of all trying to be buy to let millionaires over night and took on extreme debt. They took a gamble and then gambled to the max so they are likely to lose an awful lot with house price falls. Especially as I would argue that most took out equity on their own personal property. If prices were allowed to fall to normal values their dreams will be over and be totally wiped out.

Sibley

What a useless thread.
The have nots fight back.lol

Jimmy_31

Sibley wrote: »

What a useless thread.
The have nots fight back.lol

I think you should watch the ill manors vid on youtube as well.

You also wont understand it.

nearlynew

HPI cheerleaders are, by definition, debt-junkies.

They think the more people have to borrow to pay for a house, the wealthier they are.

the_flying_pig

It's fairly simple self-interest in most cases.

People who: (1) own more houses than they have children; & (2) don't expect to ever move somewhere bigger will unambigously be better off as a result of HPI.

wotsthat

Originally Posted by macaqueWhat Makes Someone Cheer On And Support House Price Inflation?

Same reason as people cheer on and support price falls - to win internet arguments.

Big difference is that anyone supporting price falls is not influenced by simple self-interest but considerations for the greater good.

julieq

House price inflation destroys jobs does it?

So what are the relative employment rates in the UK, where there has been housing cost inflation, and Spain, where there has been deflation?

You're going to struggle to find a causal link there I fancy. As a matter of fact, if anything, falling house prices drive deflation in the general economy and destroy jobs.

Anyway, leaving aside bear mutual back slapping about just how much more wonderful the world would be if we suddenly removed the rules of supply and demand from the world and linked arms around cheap houses and sang Kumbaya, HPI is neither good nor bad. There is no moral element to pricing of resources. It happens because we as a society seem determined to allow less homes to be built than are needed.

And it isn't a Ponzi scheme. There is plenty of money generated by 40 or more years of employment. Ponzi schemes are negative sum games, housing isn't. It's paid for by a drawdown against future earnings, and can't become a Ponzi scheme until the sum of future earnings diminishes to less than the value of all houses, which is nowhere near being the case.

There will be upwards pressure on houses UNTIL we build enough of them. Simple as that. You will figure it out eventually.

vivatifosi

macaque wrote: »

From my experience on here and other vile fora

If you think the fora you hang out on are vile, why do you hang out on them?

HAMISH_MCTAVISH

macaque wrote: »

What Makes Someone Cheer On And Support House Price Inflation?

Because the growth of house prices and the growth of the wider economy are inextricably linked.