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Debate House Prices
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Graham_Devon wrote: »Well it's a biazzare question.
Everyone who is now..
Well that's almost nobody.
And why would they pay three times as much for the privilege?
Are you not seeing the connection yet as to why savings rates are at virtually zero?
When you only lend to "zero risk" borrowers, they can demand "zero risk" rates.“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: »Graham didn't ask a question in post 4.
He just tried to muddle the issue.
This thread isn't about BTL, it was never mentioned in the OP at all.
Why would I need to have a BTL to celebrate the fact that rising asset prices are good for the economy, good for the majority of people, and good for society as a whole?
For that matter, why would I need to have a BTL to note the inevitable results that a housing shortage and rising population will eventually have on prices?
Or indeed to note that mortgage rationing is preventing more people form homeownership than high prices ever did?
All of these things would be obvious to me whether I owned one property, ten properties, or no property at all.
ok point taken.. agree with youEx HPC fool0 -
HAMISH_MCTAVISH wrote: »Well that's almost nobody.
Eh!? Almost nobody. Come on.
Three times as much as what? I believe it's you who is going around stating mortgage payments are now the lowest ever. I believe it's you linking to brilliantly cheap (infact, cheapest in known history) mortgage products at extended fixes.And why would they pay three times as much for the privilege?
How can you state both things without being contradictory?
Yes. QE and FFL has removed some of the need for banks to secure money from savers. They can tap into the BOE at a reduced cost.Are you not seeing the connection yet as to why savings rates are at virtually zero?
That may be. But no one is only lending to zero risk borrowers. By definition thats impossible, especially consider the amount of 90% mortgages.When you only lend to "zero risk" borrowers, they can demand "zero risk" rates.0 -
Graham_Devon wrote: »Eh!? Almost nobody. Come on.
Three times as much as what? I believe it's you who is going around stating mortgage payments are now the lowest ever. I believe it's you linking to brilliantly cheap (infact, cheapest in known history) mortgage products at extended fixes.
How can you state both things without being contradictory?
Yes. QE and FFL has removed some of the need for banks to secure money from savers. They can tap into the BOE at a reduced cost.
That may be. But no one is only lending to zero risk borrowers. By definition thats impossible, especially consider the amount of 90% mortgages.
Do you not believe all the news about small businesses being refused credit or credit being withdraw.
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Do you not believe all the news about small businesses being refused credit or credit being withdraw.
I never said credit hasn't been withrawn. That in itself doesn't make it wrong though.
If no one is stepping up to offer credit, then surely soemthing is amiss. Other business is getting credit.
It's not always the lenders at fault. We can't simply assume that because a business wants something it get's it or is somehow entitled to it.0 -
HAMISH_MCTAVISH wrote: »Well that's almost nobody.
And why would they pay three times as much for the privilege?
Are you not seeing the connection yet as to why savings rates are at virtually zero?
When you only lend to "zero risk" borrowers, they can demand "zero risk" rates.
When the government has pumped in QE, which we are all suffering for and FFL at sub 1% has nothing to do with it?
There is a difference between zero risk and managed risk."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »I never said credit hasn't been withrawn. That in itself doesn't make it wrong though.
If no one is stepping up to offer credit, then surely soemthing is amiss. Other business is getting credit.
It's not always the lenders at fault. We can't simply assume that because a business wants something it get's it or is somehow entitled to it.
Responsible lending is one thing but the pendulum has swung to far and perfectly viable businesses are finding it hard to get credit and that is having a bad effect on the economy.
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Graham_Devon wrote: »How do you know these business's are perfectly viable for lending?
I'm sure some of them aren't but I'm sure a large number are.0 -
Do you not believe all the news about small businesses being refused credit or credit being withdraw.
The news isn't news.
Small businesses have always been refused credit and had it withdrawn. Small businesses often have ideas above their ability to service and repay with ill thought out propositions or inability to manage and control deteriorating positions.
Do you expect everyone who applies for a loan/overdraft to be granted one?
Customers do tend to be optimistic and a degree of realism from the Bank at the outset may prove more valuable than agreement to the requested advance.. More weight should be given to facts and evidence than to estimates and opinion...The Source of repayment must be clear from the outset and we must establish the degree of certainty that the promised funds will be received.
I leave it to you to decide where those pearls of wisdom originated from.
It is better to turn unsatisfactory requests aside for all parties concerned. Core bank lending is just that, lending to be repaid, it isn't equity risk funding."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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