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Debate House Prices
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Budget 2013 live....
Comments
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Slightly tongue in cheek but it's the lesser of two evils, what do you see the economy being based around. It would be nice to see our manufacturing resurrected but I can't see that happening
How on earth do we create an economy buying and selling houses to each other at ever higher prices? Remember, this economy would even be sidestepping the banks!0 -
Graham_Devon wrote: »How on earth do we create an economy buying and selling houses to each other at ever higher prices? Remember, this economy would even be sidestepping the banks!
How do we make an economy of selling goods made in the far east to each other at least if it's houses we are selling to each other most of the money stays in UK.0 -
I... can't.... even....
Sorry Carper, I can't for one second believe you are being remotely serious. Not falling for this wind up!
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Graham_Devon wrote: »How on earth do we create an economy buying and selling houses to each other at ever higher prices?
Why do you come up with such silly statements?
Housing is an asset like any other asset such as stocks, shares, bonds, etc.
Asset prices are a function of supply and demand, nothing else.
So far, we've managed to suppress house prices for the last 5 years, despite the shortage, by preventing well over a million people from buying. So rents have soared to new record highs instead.
But only an idiot thinks it's a remotely good idea to keep artificially repressing price growth by preventing millions of people from buying via mortgage rationing.“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 -
Graham_Devon wrote: »I... can't.... even....
Sorry Carper, I can't for one second believe you are being remotely serious. Not falling for this wind up!
You obviously can't built an economy on either it's not a wind just pointing that neither will work but we seem to be trying to do both.
Or do you beleive we can built an economy on selling foreign goods.0 -
That clears it up it is share equity you will owe 20% of the future value of house (that applies if value falls)
The fee is 1.5% in year 6 and that increases by RPI + 1% each year (that's is the 1.5% increases by RPI + 1%( ie with 5% RPI the fee increases to 1.86% then 1.97% and so on). This fee will have to be paid and not rolled over.
You can repay at any time but the minimum about you can pay is 10% of the value of the house.
Seems a good deal even taking into account if RPI was 5% every year fee would be about 5.6% in the final year. But to get real benefit you would need to make an efort to repay early.
The interest rate is a great deal but the sting in the tail is that they get to keep 20% of any HPI. It is therefore very expensive finance unless house prices remain fairly stagnant. I would only draw it down if it was the only way I could afford to buy and then I would be looking to pay it back pronto. Certainty this is not the sort of finance you would ever want to hold for a long time. If you held it for 25 years the implicit interest rate would be astronomical by the end because the share of HPI would ensure that the financing charge isn't inflated away.0 -
Graham_Devon wrote: »It's getting worse and worse. Seemingly a hotch potch of information mashed together to describe something massive.
It's not emerged that lenders will have to pay a fee to the government if they want the government to guarantee the borrower. The problem is, the fee hasn't been disclosed yet and no one knows how much it is. However, it's already being stated this will be passed directly on to the homebuyer, pushing up the cost of the loan.
What lenders are suggesting is that this will result in (possibly) large fees for the buyer attached to the mortgage or a higher interest rate. So in effect, taking on this "easy" route actually makes it more expensive. But at least you'll be able to live the dream.The telegraph is running a story stating the name should be changed from "Help to buy" to "Help to developers".
I have made this point a couple of times since the news broke yesterday.
This finance will come at a premium. The house builders are already increasing prices according to the ARICS. Government will see Stamp Duty inflows and potentially a nice earner from year 5 onwards too.
MIGs or their substitutes are always expensive for the punter just depends how desperate they are.
You really have get to question who this is being done for the benefit of."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 -
You obviously can't built an economy on either it's not a wind just pointing that neither will work but we seem to be trying to do both.
Or do you beleive we can built an economy on selling foreign goods.
You are right if we aren't generating real income into the economy then we can't afford either and selling either will just create a need for debt somewhere, that in turn we can't afford to repay.
Nice to know retail sales were up last month - tablet sales apparently being a big factor. More useless carp to feed the consumer frenzy."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: »And on the budget in general....
Little hidden gem that the IFS has now calculated.
There will be 18%....yes, thats eighteen percent spending cuts in 2017 to pay for the lack of cuts so far. This budget has increased the cuts required in 2017, and that's not even including the liabilities.
This is a result of calculations being continuously wrong. 3 years ago we were supposed to have 7% growth by now. We've had 0.6% growth over that period, and spending just continues.
Not just cuts Graham, tax increases are inevitable, who knows even bank deposit haircuts."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 -
Quite aside from the fact that this gibberish in no way relates to the Graham text that you quote - what a load of nonsense.HAMISH_MCTAVISH wrote: »Why do you come up with such silly statements?
Housing is an asset like any other asset such as stocks, shares, bonds, etc.
Asset prices are a function of supply and demand, nothing else.
So far, we've managed to suppress house prices for the last 5 years, despite the shortage, by preventing well over a million people from buying. So rents have soared to new record highs instead.
But only an idiot thinks it's a remotely good idea to keep artificially repressing price growth by preventing millions of people from buying via mortgage rationing.FACT.0
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