Very scary words from Carney

Thrugelmir

C_Mababejive wrote: »

What a lamentable situation we have that we have to pander to a foreigner to come and run the finances of this country. Is there no one in the UK who can take on this role?

Why should he be bothered if it all goes wrong? He will just jet back to Canada Business class of course and leave the mess behind. He has no vested interest in this country.

Extremely well respected man for the way that the finances of Canada have been managed.

The UK is in a financial mess. So a few home truths might shake our ineffective MP's out of their slumbers.

Thrugelmir

pqrdef wrote: »

We're heading back to Victorian levels of class division. Watch out for top hats and tailcoats coming back into fashion.

We already have it. Its called celebraties and non celebraties.

Being paid for zero economic contribution.

grizzly1911

CLAPTON wrote: »

House prices go up because people do in fact actually buy them.

In that sense they can 'afford' to buy because the proof is in the purchase.

The mix of people may change; maybe more landlords and few home owners but if they are 'unaffordable' they either do not sell or the price drops.

More HB to more landlords perhaps. Yet another government subsidy to the housing market.

ILW

pqrdef wrote: »

They're not in the market. The people in the market will have plenty of money, because the gap just keeps getting wider.

We're heading back to Victorian levels of class division. Watch out for top hats and tailcoats coming back into fashion.

Half the Tory party would like to reintroduce the sumptuary laws.

I hate to admit it, but do see it going that way.

I personally know 3 people who have used their vastly reduced mortgage payments to get into BTL. They are unlikely to withdraw.

Does seem the current situation is somehow geared towards moving wealth towards those that already have and away from the have nots. (In housing anyway).

Conrad

grizzly1911 wrote: »

How will people that can't afford to buy houses or raise deposits to even think about buying push up prices (outside of London and the SE).

High inflation will make disposable income even tighter.

I would argue money will slosh into property if people feel prices are rapidly increasing. Seen it several times in my life.
And this stuff about stretched incomes ignores the fact huge numbers of couples have masses of income, as I've said before, and I'm talking ordinary folk such as say a bus driver and an agency nurse easily pulling in £65k between them in the S/E, or 2 agency nurses on £48k eah or a teacher I know on £35k and his wife is a self employed hairdresser taking home £6/700 per week after tax (her taxable income will not reflect this in the income stats you guys read about), so her effective gross employed equivalent would be circa £50k.

The bulk of couples I meet are earning £50 - £100k between them - lots of mortgage enquirers over on the mortgage boards reflect this.

Conrad

ILW wrote: »

Does seem the current situation is somehow geared towards moving wealth towards those that already have and away from the have nots. (In housing anyway).

ILW, you touch on a very significant change underway whereby hoardes of investors are growing ever more proficient at ensnaring 'all' the returns whether in property, shares or elsewhere.

I would class myself as one of this breed that grew up reading things like 'Rich dad poor dad' which set us off down the road of seeing our primary financial purpose of slowly building an income machine. We tend to think about investment much of the time and always see part of our income as an investment subscription rather than something to be spent.

I can imagine the 2 camps becoming ever more distant from one another.

grizzly1911

Conrad wrote: »

I would argue money will slosh into property if people feel prices are rapidly increasing. Seen it several times in my life.
And this stuff about stretched incomes ignores the fact huge numbers of couples have masses of income, as I've said before, and I'm talking ordinary folk such as say a bus driver and an agency nurse easily pulling in £65k between them in the S/E, or 2 agency nurses on £48k eah or a teacher I know on £35k and his wife is a self employed hairdresser taking home £6/700 per week after tax (her taxable income will not reflect this in the income stats you guys read about), so her effective gross employed equivalent would be circa £50k.

The bulk of couples I meet are earning £50 - £100k between them - lots of mortgage enquirers over on the mortgage boards reflect this.

Full dual income dependent.

20/30 years ago 1 - 1.5x would have done the trick.

ILW

Conrad wrote: »

ILW, you touch on a very significant change underway whereby hoardes of investors are growing ever more proficient at ensnaring 'all' the returns whether in property, shares or elsewhere.

I would class myself as one of this breed that grew up reading things like 'Rich dad poor dad' which set us off down the road of seeing our primary financial purpose of slowly building an income machine. We tend to think about investment much of the time and always see part of our income as an investment subscription rather than something to be spent.

I can imagine the 2 camps becoming ever more distant from one another.

I just find it a little sad when one persons investment decisions (and opportunities) affect someone less fortunates chances of something as fundamental as owning a home.

If investors were piling into building housing rather than just accumulating existing stock, I believe it would be better for all.

Conrad

ILW wrote: »

I just find it a little sad when one persons investment decisions (and opportunities) affect someone less fortunates chances of something as fundamental as owning a home.

If investors were piling into building housing rather than just accumulating existing stock, I believe it would be better for all.

Oddly enough I agree with you, so I'm a hypocrite for sure.

I met a lad of 21 the other day who's burning sole ambition with Dads backing is to build a property portfolio. Far too many of us want easy riches and none of that R&D and long view investing so prevalent in Teutonic environs.

I'm a case in point just dreaming and scheming for the day I can live like a locust off the rents of other workers. In a way I wish I had the bottle to start a proper manufacturing business. I have the ideas and the mindset (in terms of being super detailed) but not the bottle to risk what I've manage to cobble together so far.

ILW

Conrad wrote: »

Oddly enough I agree with you, so I'm a hypocrite for sure.

I met a lad of 21 the other day who's burning sole ambition with Dads backing is to build a property portfolio. Far too many of us want easy riches and none of that R&D and long view investing so prevalent in Teutonic environs.

I'm a case in point just dreaming and scheming for the day I can live like a locust off the rents of other workers. In a way I wish I had the bottle to start a proper manufacturing business. I have the ideas and the mindset (in terms of being super detailed) but not the bottle to risk what I've manage to cobble together so far.

Does make you wonder how much capital investment is being drawn away from enterprises that could produce employment and future real wealth.

I find it just a little sad.