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Debate House Prices
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How can house prices be so high it's so unfair on the young stars
Comments
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Seems very confused to me.
You say there are 10 houses. Are 2 of them empty? If they are, in your mini world there is no shortage of supply anyway as there are 8 people in 10 houses. If they arent, you have 2 sellers looking for somewhere to live.
No, all occupied. And yes, in order for there to be supply, they're both wanting to sell. They want to switch houses.
The first lady, Sally, is older, in the family home. Her children have left, her husband, Derek, sadly passed away recently. She wants something smaller and easier to maintain.
The second are a young couple, Andy and Sandy, in a 2 bed flat, expecting their second child. They're looking for a family home so their family can grow in space.
The three other people who want to buy but are currently renting are a mixed bunch. One fancies the flat, whilst the other two are all about the nice family home.
Bidding wars break out for both properties, due to the limited supply.
As it happens, Sally is unwilling to pay as much as Fred, a professional footballer looking to rent somewhere closer to his training centre. So Fred gets the flat and Sally, unwilling to buy, moves into rental and spends her equity on Mediterranean cruises and participating in salsa dancing championships.
Andy and Sandy do rather better. They've saved good money owning their own flat, not paying the ridiculous rents I charge the other 8 people, so they're able to stretch themselves and outbid Nigel the milkman and Tracey, an apprentice cooper. They move in to Sallys old gaf.
Of course, if I put more properties on the market, odds on neither Fred nor Andy and Sandy would have paid nearly so much.0 -
Idiophreak wrote: »No, all occupied. And yes, in order for there to be supply, they're both wanting to sell. They want to switch houses.
The first lady, Sally, is older, in the family home. Her children have left, her husband, Derek, sadly passed away recently. She wants something smaller and easier to maintain.
The second are a young couple, Andy and Sandy, in a 2 bed flat, expecting their second child. They're looking for a family home so their family can grow in space.
The three other people who want to buy but are currently renting are a mixed bunch. One fancies the flat, whilst the other two are all about the nice family home.
Bidding wars break out for both properties, due to the limited supply.
As it happens, Sally is unwilling to pay as much as Fred, a professional footballer looking to rent somewhere closer to his training centre. So Fred gets the flat and Sally, unwilling to buy, moves into rental and spends her equity on Mediterranean cruises and participating in salsa dancing championships.
Andy and Sandy do rather better. They've saved good money owning their own flat, not paying the ridiculous rents I charge the other 8 people, so they're able to stretch themselves and outbid Nigel the milkman and Tracey, an apprentice cooper. They move in to Sallys old gaf.
Of course, if I put more properties on the market, odds on neither Fred nor Andy and Sandy would have paid nearly so much.
fascinating stuff but absolutely nothing to do with the UK housing market
It may or may not tell us a little about how one monopoly supplier of housing may or may not behave but nothing about the UK situation, which is characterised by many suppliers and many consumers with a lot of government interference.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
Building more will barely make a ripple in the ocean. More migrants will be attracted to new resources, the effect of more supply will be vanishingly small.
We live in a popular densely populated island, high prices are just a function of this, accept it and know once your on the ladder you too will tend to benefit in the way millions of us have.
About 1 million households have benefitted.
Around 8 million households have lost to a varying degree
about 19 million households have not much benefitted or lost.
The build more = more immigrants argument is just plain stupid.
The uk has build near 2m homes a decade for the last 3 decades yet immigration has varied quite a lot suggesting build ratea have nowt to do with immigration0 -
Idiophreak wrote: »As it happens, Sally is unwilling to pay as much as Fred, a professional footballer looking to rent somewhere closer to his training centre. So Fred gets the flat and Sally, unwilling to buy, moves into rental and spends her equity on Mediterranean cruises and participating in salsa dancing championships.
Where is this house? I thought there were only 10 and you owned 8 of them?
Fred's come in (was he camping before?) and Sally is homeless.0 -
Germany and France have more homes per capita.
We would need 2.5 million more homes this instance to have the same per capita as France or 4.5 million more homes this instance to have the same as Germany
so our shortage is somewhere between 2.5-4.5 million homes
that is tragic in itself but worse yet is thay while we build 130k homes a year dye to restrictive planning laws...France a demographically very similar bation is building 400k a year.
Not only does that mean we have a shortage that is getting worse vs France but that the missing 270k or so homes a year is costing the uk about 0.8m jobs.
so expensive homes and 0.8m more unemployed is what our government has chosen0 -
Where is this house? I thought there were only 10 and you owned 8 of them?
Fred's come in (was he camping before?) and Sally is homeless.
...Sally now lives in Fred's old house. He had an older flat in the suburbs before. It didn't suit his rock-n-roll life style, but is perfect for Sally's needs.0 -
fascinating stuff but absolutely nothing to do with the UK housing market
It may or may not tell us a little about how one monopoly supplier of housing may or may not behave but nothing about the UK situation, which is characterised by many suppliers and many consumers with a lot of government interference.
...but it proves the basic principal, which is that if the ratio of renter:owner shifts towards ownership, house prices come down.
The fact that a "monopoly" owned the 8 houses is neither here nor there. If the 8 houses were owned by 8 different landlords and 3 of them decided to sell, the net result would have been the same - Andy, Sandy and Fred would have paid less.0 -
Idiophreak wrote: »...but it proves the basic principal, which is that if the ratio of renter:owner shifts towards ownership, house prices come down.
The fact that a "monopoly" owned the 8 houses is neither here nor there. If the 8 houses were owned by 8 different landlords and 3 of them decided to sell, the net result would have been the same - Andy, Sandy and Fred would have paid less.
It certainly proves nothing of the sort.
Monopoly can decide its own price: take it or leave it.
Anyone can decide not to sell at a low price.
Your example is total nonsense.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
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Idiophreak wrote: »Making sense you are not.
Elaborate you must.
you have made up a complete load of nonsense about what fictional individuals will sell at: you can make up anything you like with imaginary people to illustrate anything at all but it has no bearing on the UK housing market.
to even suggest that monopoly and non monopoly makes no difference shows a woeful ignorance of how the market works.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0
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