What Makes Someone Cheer On And Support House Price Inflation?

wotsthat

Jimmy_31 wrote: »

Well if the banks have no money to lend, house prices are only going to go one way, and it aint your way:)

As housebuilding hasn't kept up with population growth and is unlikely to in the future there'll be more people per house.

Rich people will spot the opportunity. More people per house gives more support for rents. Rich people buy houses to rent out and get poorer people to pay for them. Increasing rents will support prices. The really great news for rich people is that lending to normal people has been suppressed so they don't have to compete with people who want to buy houses to live in.

This will continue for years and housing wealth will continue to concentrate amongst the rich. In a few years arguments about wage multiples and LTV's will become irrelevant as more people become renters.

So we've had a price crash of sorts but it's been to the benefit of the rich. I think it's called the bear paradox.

pineapple

HAMISH_MCTAVISH wrote: »

There's an election coming, and another 3 years of a dysfunctional housing market will not be tolerable for a party seeking re-election.

But what is 'dysfunctional'? Other countries in Europe do not have the same house buying culture (rents are more reasonable though).
Maybe 'The Times They are a Changin'.
I think all bets are off as to what will happen with both the UK and the global financial system.

Jimmy_31

wotsthat wrote: »

As housebuilding hasn't kept up with population growth and is unlikely to in the future there'll be more people per house.

Rich people will spot the opportunity. More people per house gives more support for rents. Rich people buy houses to rent out and get poorer people to pay for them. Increasing rents will support prices. The really great news for rich people is that lending to normal people has been suppressed so they don't have to compete with people who want to buy houses to live in.

This will continue for years and housing wealth will continue to concentrate amongst the rich. In a few years arguments about wage multiples and LTV's will become irrelevant as more people become renters.

So we've had a price crash of sorts but it's been to the benefit of the rich. I think it's called the bear paradox.

Lets hope the poor accept increasingly lower wages for increasingly higher rents on a shoebox eh.

wotsthat

Jimmy_31 wrote: »

Lets hope the poor accept increasingly lower wages for increasingly higher rents on a shoebox eh.

I don't hope for that - just trying to demonstrate where (I think) we're headed.

I hope there's increased housebuilding, I hope the government works on reducing UK reliance on the south-east for wealth generation and I hope we can get long term benefit claimants to compete against economic migrants.

I actually think there's little chance of any of those things happening.

FTBFun

nearlynew wrote: »

You are a debt-junkie.

And no matter how you dress up your (long) posts to give a veneer of economic wisdom, nobody is going to take your views seriously.

Your persistent supply and demand argument betrays your lack of insight and renders your argument meaningless.

How the hell does this bunch of BS get 9 people thanking it?

You haven't even bothered attempting an argument, just throwing ridiculous buzzwords like "debt junkie". The title of this forum is "Debate House Prices and the Economy", not "Point Score Like A Child".

nearlynew

FTBFun wrote: »

How the hell does this bunch of BS get 9 people thanking it?

You haven't even bothered attempting an argument, just throwing ridiculous buzzwords like "debt junkie". The title of this forum is "Debate House Prices and the Economy", not "Point Score Like A Child".

I take it you're a debt-junkie as well then?

ess0two

nearlynew wrote: »

I take it you're a debt-junkie as well then?

What is a debt junkie........

nearlynew

ess0two wrote: »

What is a debt junkie........

Err.... a junkie that is addicted to debt?


Just off the top of my head, like.

RenovationMan

nearlynew wrote: »

Err.... a junkie that is addicted to debt?


Just off the top of my head, like.

I was just wondering how someone gets addicted to debt? Do you mean people who keep borrowing until they end up owing thousands on credit cards, store cards, loans and suchlike until they reach the point that they can no longer service the debt and have to get a DMP/IVA or go bankrupt?

ess0two

nearlynew wrote: »

Err.... a junkie that is addicted to debt?


Just off the top of my head, like.

Right so anybody that has debt?

Must account for 99% of people in the UK.

I'd love to be able to afford to buy a house outright,unfortunately it involves gettting mortgage=debt.