We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
A surge in the market come jan 2014
Comments
-
Holy Moly... We've seen about the worst financial disaster in most people's lives, with millions of jobs lost and a double dip recession and what not, all on the back of subprime mortgages, and an overheating house market....
Absolutely false.
The recession, financial crisis, millions of jobs lost, etc, had nothing at all to do with UK residential mortgage lending or UK house prices.
http://www.bbc.co.uk/news/business-17398014But the debt that's caused the problems hasn't been the debt of households.
It really has been down to silly bets by Britain's banks (and other parts of the financial system), which were NOT bets on UK residential property.
Most of them weren't even in the UK.“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 -
0.5% interest rates won't last for ever and with the bond crisis now taking off rates are likely yo start go up sooner than thought..
Oh dear me Brit.....
Let's take a look at your predictions so far....
"50% off by Xmas" :rotfl:
"$500 silver" :rotfl:
And now....
"rates will go up soon":rotfl:
Do you never learn?
Here's what the governor of the BOE said today.
http://www.guardian.co.uk/business/2013/jun/25/interest-rate-rises-markets-mervyn-king"I think people have rather jumped the gun thinking this means an imminent return to normal levels of interest rates. It doesn't," he said.
"Until markets see in place policies to bring about that return to normal economic conditions, there is no prospect for sustainable recovery and without that prospect for sustainable recovery, markets understand that it will not be sensible to return interest rates to normal levels."
Of course, he's leaving to be replaced with an even more monetary activist replacement, but there are others on the MPC....
I wonder what they're thinking?
http://www.citywire.co.uk/money/bank-of-england-negative-rates-remain-an-option/a687692?re=24134&ea=221258&utm_source=BulkEmail_Money_Daily_Summary&utm_medium=BulkEmail_Money_Daily_Summary&utm_campaign=BulkEmail_Money_Daily_SummaryBank of England: negative rates remain an option
Charlie Bean, deputy governor of monetary policy at the Bank of England, said negative rates could still happen as the Bank mulls ways of boosting lending.
Ahhh well.....
Better luck next time.;)“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 -
A good article......About this subject
http://www.mindfulmoney.co.uk/wp/shaun-richards/what-are-the-consequences-of-rising-gilt-yields-for-the-uks-mortgage-and-housing-markets/It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
HAMISH_MCTAVISH wrote: »Absolutely false.
The recession, financial crisis, millions of jobs lost, etc, had nothing at all to do with UK residential mortgage lending or UK house prices.
http://www.bbc.co.uk/news/business-17398014
Right. A quarter of all losses are British investments - I didn't read that in the article, it was a figment of my imagination.
Going by the article, she does not deny that the crisis has been caused by subprime mortgages and an overheating housing market Yes, some of those mortgages were overseas - but I am missing the memo where somehow a British unsustainable housing bubble won't cause another problem, as they undeniably indeed did in the last crisis - causing a !!!!!!!g quarter of all losses.
All that article is saying is that the world as a whole, including the British taxpayer, are paying for American (presumably? but may be also spanish and wherever?) bad mortgages.
Perhaps when we're through with that we can afford another housing crash of our own, all British made and paid for. Perhaps only then we'll learn.
---
And yes, bailing out so many banks to keep the housing market from completely crashing is the reason we have a hole in the budget the size of Mars and a debt the size of Jupiter, and the reason we have austerity, and cuts in spending everywhere that are ruining lives left and right. Landlords with many properties may not be feeling the pinch as rent prices continue to rise and they continue to enjoy this outcome, but rest assured that the nearly 3 millions unemployed are not exactly enjoying their time.0 -
Right. A quarter of all losses are British investments -.
Almost all of which were commercial loans.
Not UK residential mortgages.
Even Northern Rock's bad bank, containing the worst of the worst of UK mortgages, has made over a BILLION pounds profit in the last 2 years alone.
UK residential mortgages did not cause the failure of any UK banks.
And given that UK banks lost £15 on overseas mortgages for every £1 they lost on UK ones, had they just stuck to UK lending they wouldn't have needed a bailout at all!!!“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 -
Well that's the perfect tautological argument because the reason there were not more severe mortgage losses is because the taxpayer shelled out billions to shore up the banks, hence allowing more lending, hence keeping house prices artificially higher.
Of course we, as a nation want more of this brilliant cycle.0 -
Well ... .
Nonsense.
The article is absolutely clear on this point.It really has been down to silly bets by Britain's banks (and other parts of the financial system), which were NOT bets on UK residential property.
Neither UK residential house prices nor UK residential mortgage lending were the cause of UK bank failures or the financial crisis.
It really is that simple.“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: »Oh dear me Brit.....
Let's take a look at your predictions so far....
"50% off by Xmas" :rotfl:
"$500 silver" :rotfl:
And now....
"rates will go up soon":rotfl:
Do you never learn?
It's comical brit!
HAMISH_MCTAVISH wrote: »
"$500 silver" :rotfl:
He meant 'per kilogram' :rotfl:0 -
kindofaverage wrote: »Can I ask what people's opinions are on the following please. Are any future buyers waiting til next January to start looking at the older houses for sale. Currently help is available on the new builds but this is then open to all builds in January 2014. Thanks
Nope, i'm getting in now as quick as I can.
This isn't based on any real knowledge of economics or how the market works at all as I don't really understand it. However I have been hunting around the area i'm going to buy inn since last sept and houses are starting to creep up. Not all of them, but certainly some are (and the type i'm looking at). Some seem to be really sticking, and others have 7 people after them and do get the asking price.
So,i'm wanting to get in now whilst I can afford something a bit bigger if they continue to rise.
I'm not really sure I have understood all the posts on here, but I have thoroughly enjoyed reading it, and it has given me food for thought and had me off googling all sorts.....again...just to confuse matters more for me.Yep...still at it, working out how to retire early.:D....... Going to have to rethink that scenario as have been screwed over by the company. A work in progress.0 -
Prices are still dropping where i live (north west) so unless i see something amazing i will continue to rent for the forseeable future.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.4K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards