Road to recovery starts with rising house prices

Graham_Devon

Loughton_Monkey wrote: »

What the hell......

Is this the Devonian School of Economics again?

Stop crying.

You said HPI increase wealth. I took you to task on that. Having read your response, I can see you meant HPI increase YOUR wealth.

Well great. Obvious point if ever there was one.

Loughton_Monkey

Graham_Devon wrote: »

Stop crying.

You said HPI increase wealth. I took you to task on that. Having read your response, I can see you meant HPI increase YOUR wealth.

Well great. Obvious point if ever there was one.

I only cry when I read your ridiculous "shoot yourself in the foot" statements.

Now listen very carefully. I shall say this only once. HPI means House Price Inflation. HPI>0 means that the value of a house goes up. If the value of every house goes up, so does the wealth of every house owner. Not just my house, but your house as well.

Since you like to argue about the bleedin obvious, let me put up another one for you to disagree with. The Pope is of the Catholic persuation.

wotsthat

Graham_Devon wrote: »

Well, we should be around 200% more wealthy than we were in 1998 then.

Right?

Good luck explaining that one!

You missed the point.

If I bought a house in 1998 and it's gone up by 200% then my net worth has increased. I might or might not care if 'we' are better off as a result - I certainly care much more about my net worth than 'ours'. For a start my own net worth is under my control - can't do much about yours.

Graham_Devon

Loughton_Monkey wrote: »

Now listen very carefully. I shall say this only once. HPI means House Price Inflation. HPI>0 means that the value of a house goes up. If the value of every house goes up, so does the wealth of every house owner. Not just my house, but your house as well.

Still crying.

The flaw in your post was simple. I've already acknowledged what you were saying, but you simply refuse to let it go and try and ridicule instead....again.

"HPI increase wealth" is a false statement.

"HPI increases wealth of homeowners"...fair do's.

Here, have a tissue....

Emy1501

wotsthat wrote: »

You missed the point.

If I bought a house in 1998 and it's gone up by 200% then my net worth has increased. I might or might not care if 'we' are better off as a result - I certainly care much more about my net worth than 'ours'. For a start my own net worth is under my control - can't do much about yours.

Confusion probably comes from fact that personal wealth isn't really relevant to the thread discussion.

No doubt there are winners from HPI. Question is what actual benefits are there to whole economy of HPI especially HPI above wage inflation

wotsthat

Emy1501 wrote: »

No doubt there are winners from HPI. Question is what actual benefits are there to whole economy of HPI especially HPI above wage inflation

If my house goes up in value by £50k then my net worth goes up by the same amount. As an individual it's easy to see and understand that benefit.

Does every homeowner seeing their net worth increase by £50k benefit the whole economy? Who knows?

If there's real evidence that rising house prices are detrimental to the economy then the government should try and align the incentives of individuals with that of the whole economy. The economy is driven by individuals trying to improve their own circumstances.

Emy1501

wotsthat wrote: »

If my house goes up in value by £50k then my net worth goes up by the same amount. As an individual it's easy to see and understand that benefit.

Apart from maybe a slightly cheaper rate I cant really see the benefit of my house rising by 50k. Like most people I don't own more than one home and will always need somewhere to live.

Reality is most people will never have any real access to their HPI

Does every homeowner seeing their net worth increase by £50k benefit the whole economy? Who knows?

Outside of Central London I suspect that for prices to rise you need people at the bottom to take on extra debt which means they have less money to spend in the economy.

If there's real evidence that rising house prices are detrimental to the economy then the government should try and align the incentives of individuals with that of the whole economy. The economy is driven by individuals trying to improve their own circumstances.

The housing minister has previously suggested that high HPI is not good for the economy and in an ideal world HPI would run at half of wage inflation. Wage inflation is about 2% and prices are falling at the moment so no real need at the moment.

homelessskilledworker

Emy1501 wrote: »

Confusion probably comes from fact that personal wealth isn't really relevant to the thread discussion.

No doubt there are winners from HPI. Question is what actual benefits are there to whole economy of HPI especially HPI above wage inflation

You could write a book(and it would be interesting) on the pschology of house price inflation in the UK, and the many reasons why people love/hate it.
Reasons ranging from pure and simple social standing and the "I have a small ****" esteem issues to people who exploit the phenomenon and make money(and thats cool).

To me the biggest reason why a certain very vocal group(and angry) out there want to see the continuing of high property prices is the fact that as long as their property value remains high then all the debt we/they have taken on in the last decade makes sense.

There is at least a good story or potential study on the pschology of it all, I wish someone would take it on.

CLAPTON

homelessskilledworker wrote: »

You could write a book(and it would be interesting) on the pschology of house price inflation in the UK, and the many reasons why people love/hate it.
Reasons ranging from pure and simple social standing and the "I have a small ****" esteem issues to people who exploit the phenomenon and make money(and thats cool).

To me the biggest reason why a certain very vocal group(and angry) out there want to see the continuing of high property prices is the fact that as long as their property value remains high then all the debt we/they have taken on in the last decade makes sense.

There is at least a good story or potential study on the pschology of it all, I wish someone would take it on.

I would suggest that for a young lady who has a property in negative equity and wants to move house, the size of her **** is probably not her major concern.

wotsthat

homelessskilledworker wrote: »

To me the biggest reason why a certain very vocal group(and angry) out there want to see the continuing of high property prices is the fact that as long as their property value remains high then all the debt we/they have taken on in the last decade makes sense.

There is at least a good story or potential study on the pschology of it all, I wish someone would take it on.

Not sure that we need a psychiatrist to explain this to be honest. When someone buys a house it's likely the biggest purchase they'll make in their life. If it goes down in value they'll have less wealth.