Debate House Prices


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  • Dribley wrote: »
    You're too rude to be a Mr, but the next five letters seem to sum you up!

    Ouch, that hurt. :)

    Anyway, back on topic....house prices in areas where people actually want to live, with good transport links, decent schools and employment opportunities are either rising or stagnant.
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    The government will do whatever they can do to stop a nominal fall in house prices. They've bailed out the banks to the tune of hundreds of billions in funny money they borrowed from themselves, secured on assets that are probably worth half their paper value.

    A property crash will make the banks look even more insolvent than they already are, which means we'll lose the money they owe us and we won't be able to pay ourselves back the money we created out of nowhere; forcing more decades of austerity on tax payers.

    Meanwhile the elites pay themselves ever higher wages, rob us of our savings with inflation, and probably laugh themselves to sleep each night at the pointless labour of ordinary people, which must look to them rather like servants who are themselves starving piling giant mounds of delicious food in front of a lazy fat king, who warns them that things will get even worse if they stop.

    There will be no tenancy reform, next to no new building, no regulation of letting agents, and no reining in of BTL while this state of affairs continues.
  • neilem
    neilem Posts: 103 Forumite
    Ninth Anniversary 10 Posts Combo Breaker Name Dropper
    If house prices were miraculously half price overnight.... people would immediately be able to borrow/buy one - and then buy furniture, knick knacks, do DIY, order minor and major works, buy building materials, carpets, soft furnishings, garden furniture.... and once settled in the repayments would be low enough for them to afford to go out for meals, holidays, join activities .... thus stimulating the WHOLE economy.
    This. Not sure how anyone can argue against that... unless they have a vested interest in property staying high.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If house prices were miraculously half price overnight.... people would immediately be able to borrow/buy one - and then buy furniture, knick knacks, do DIY, order minor and major works, buy building materials, carpets, soft furnishings, garden furniture.... and once settled in the repayments would be low enough for them to afford to go out for meals, holidays, join activities .... thus stimulating the WHOLE economy.

    If only it was as simple as that.
  • Right i'm in!!

    And so is my wife.

    You never told us you got married again, Foxy.
    Congratulations :D
  • A house price crash would cause huge defaults and banks would lose money etc etc etc those who think houses worth half over night would suddenly allow borrowing and people to buy things in shops are wrong

    We have come to far and there is no going back
  • neilem
    neilem Posts: 103 Forumite
    Ninth Anniversary 10 Posts Combo Breaker Name Dropper
    A house price crash would cause huge defaults and banks would lose money etc etc etc those who think houses worth half over night would suddenly allow borrowing and people to buy things in shops are wrong

    We have come to far and there is no going back
    So your alternative is to keep going as is? People unable to purchase a home with prices being out of reach for many, and when attempting to obtain a mortgage the banks say no because they've finally caught on that they need to actually assess lending risk - thus pushing the demand for rent, in turn sees an increase in cost in that market.

    When people do have the means to get a mortgage, then they are usually pushing close to their limit, so not much free income to splash the cash into other areas of the ecomony (as PasturesNew has already described).

    House price crash is just a scary phrase, I prefer the phrase of house prices getting back to normal.
  • People can afford houses at current rates of they stopped buying iPhones, beer money and sky subs
  • neilem
    neilem Posts: 103 Forumite
    Ninth Anniversary 10 Posts Combo Breaker Name Dropper
    People can afford houses at current rates of they stopped buying iPhones, beer money and sky subs
    So you agree that when you buy a house, your money wont be contributing anywhere else in the ecomony because prices are so high? A house is only a place to live and sleep, it shouldn't be a prison... and personally speaking, I would still like to socialise with my friends for a pint down the local pub every once in a while.
  • Can someone explain this notion that every pound spent on housing is a pound lost to the economy? It's just a pound in different hands.
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