Tories say they'll build lots of houses and sell them at a discount to FTB

allthingsmustpass

CLAPTON wrote: »

the reason that building more houses is a good thing is so people can enjoy a better quality of housing for themselves and their family.

I had hoped for more

New builds are not quality!

Less debt in houses built to last is far better for a family than new builds you drown in debt for.

Case Closed

CLAPTON

allthingsmustpass wrote: »

I had hoped for more

New builds are not quality!

Less debt in houses built to last is far better for a family than new builds you drown in debt for.

Case Closed

You seem to think that we have sufficient houses to provide a decent home for everyone including the extra 250,000 new people that arrive in the UK each year.


That is a view I don't share.

ukcarper

allthingsmustpass wrote: »

I had hoped for more

New builds are not quality!

Less debt in houses built to last is far better for a family than new builds you drown in debt for.

Case Closed

Perhaps you can explain how higher interest rates will cause house prices to fall.

allthingsmustpass

ukcarper wrote: »

Perhaps you can explain how higher interest rates will cause house prices to fall.

Described up thread

CLAPTON wrote: »

if interest rates rise why would prices fall?


well because the same level of mortgage will cost more per month as the interest will be higher


so for any income level, people will only be able to afford a smaller mortgage and hence a property at a lower price.


this will indeed tend to reduce the price of properties

Interest rates are rising next year, most likely after the election.

One must factor in the cost of repayments over more than the short term when taking on a 25 or more year debt. People can buy today and yet be unable to afford it.

I noted an article in todays press that identifies the upcoming problems for some.

http://www.independent.co.uk/money/mortgages/interest-rate-rises-they-are-coming-so-start-preparing-now-9758790.html

Its all rather straight forward.

ukcarper

allthingsmustpass wrote: »

Described up thread

.

.
No you haven't

ukcarper

allthingsmustpass wrote: »

Described up thread




Interest rates are rising next year, most likely after the election.

One must factor in the cost of repayments over more than the short term when taking on a 25 or more year debt. People can buy today and yet be unable to afford it.

I noted an article in todays press that identifies the upcoming problems for some.

http://www.independent.co.uk/money/mortgages/interest-rate-rises-they-are-coming-so-start-preparing-now-9758790.html

Its all rather straight forward.

People are stress tested to 7% now and the vast majority of mortgages are at historic earnings ratios so although a few people will not cope the majority will.

Graham_Devon

Cameron mentioned this in his speech today, but added a key bit of information.

He stated these houses would come with a discount of at least 20%.

Also noted that there are no plans to reduce the money the developer has to pay for things like roads, section agreements etc. So this will simply mean the other houses on the development will pay more for their share.

Already people are asking on the radio, if they buy one can they sell it on within a year to make a quick profit? Plenty of people who already live in a property are still first time buyers. Indeed, anyone who currently rents is. But that doesn;t mean they have never bought a house....

allthingsmustpass

ukcarper wrote: »

.
No you haven't

I quoted the description immediately after I say it is described up thread. Clapton describes it. I quote that piece.

I dont understand why you are so confused, apologies if there is something wrong with you

allthingsmustpass

ukcarper wrote: »

People are stress tested to 7% now and the vast majority of mortgages are at historic earnings ratios so although a few people will not cope the majority will.

If you have data that contradicts the article I suggest you get in touch with the journalist at the independent and state your case to them.

I did actually point out that only a third of households have mortgages anyway, thats why interest rate rises and the subsequent house price falls are a net gain for the economy as a whole.

CLAPTON

allthingsmustpass wrote: »

I quoted the description immediately after I say it is described up thread. Clapton describes it. I quote that piece.

I dont understand why you are so confused, apologies if there is something wrong with you

well, you actually only quoted part of my post and left out some key parts
I don't understand why you are so confused;