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Debate House Prices
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Tories say they'll build lots of houses and sell them at a discount to FTB
Comments
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allthingsmustpass wrote: »Depends on your definition of 'afford'. Buy when rates are low and you are in serious trouble when they inevitably rise.
Buy when rates are higher for similar outlay each month and you're less affected when rates rise.
People buying now and recently can't afford it, they just haven't realised yet. They will when rates rise.
So you think we should wreak the economy in the hope that property prices crash.0 -
allthingsmustpass wrote: »Depends on your definition of 'afford'. Buy when rates are low and you are in serious trouble when they inevitably rise.
Buy when rates are higher for similar outlay each month and you're less affected when rates rise.
People buying now and recently can't afford it, they just haven't realised yet. They will when rates rise.
yes I understand the relationship between rising interest rates and rising monthly mortgage payments for any given loan amount
however the question was : how does increasing the mortgage interest increase the supply of houses?0 -
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yes I understand the relationship between rising interest rates and rising monthly mortgage payments for any given loan amount
however the question was : how does increasing the mortgage interest increase the supply of houses?
The point of increasing housing supply is the result of affordable housing.
Housing is more affordable when rates are higher.
We don't need more housing, we need affordable housing.0 -
allthingsmustpass wrote: »Affordable housing and interest rates at their historic norm is a pre-requisite for any sustainable recovery.
Maybe but the Bank of England don't think we are ready for higher interest rates yet.0 -
allthingsmustpass wrote: »The point of increasing housing supply is the result of affordable housing.
Housing is more affordable when rates are higher.
We don't need more housing, we need affordable housing.
the first sentence makes no sense to me.
your view of the over abundance of housing is different to mine
and your view of the relationship to an abundance of housing and price is different to mine too.0 -
I guess i'm the kind of person this is aimed at - early 30s, good jobs, saving to buy. We live in the SE where prices are very inflated. We have children so are looking for a 3bed house. We will be 'lucky' if we can get one under £250k. Saving is hard tue to rent costs. All they build here are 2bed flats and no housing. When they do build a house it's tiny. Even with 20% discount we would still not be likely to buy one. They would be more likely to get our vote if they get rid of stamp duty again for first time buyers and somehow make more houses available - the last house we looked at had 14 viewings in 1 day and sold same day.£2 Savers club £0/£150
1p a day £/0 -
lindsaygalaxy wrote: »I guess i'm the kind of person this is aimed at - early 30s, good jobs, saving to buy. We live in the SE where prices are very inflated. We have children so are looking for a 3bed house. We will be 'lucky' if we can get one under £250k. Saving is hard tue to rent costs. All they build here are 2bed flats and no housing. When they do build a house it's tiny. Even with 20% discount we would still not be likely to buy one. They would be more likely to get our vote if they get rid of stamp duty again for first time buyers and somehow make more houses available - the last house we looked at had 14 viewings in 1 day and sold same day.
where is the SE?
new builds are poor value for money
what income do two 'good ' jobs bring in ?
what deposit do you have ?0 -
the first sentence makes no sense to me.
your view of the over abundance of housing is different to mine
and your view of the relationship to an abundance of housing and price is different to mine too.
Why is increased supply good? Lower prices.
Why are lower prices good? More affordable, therefore beneficial in relation to social mobility, sustainable competitive wages, more discretionary income available to support the real economy etc etc
How else can property be more affordable? Higher interest rates. If this confuses you read my explanation up thread.
Increased supply is not necessary for more affordable housing. A higher cost of borrowing is necessary.
Other benefits of higher interest rates.. return on savings for the retired, leading to more discretionary spend supporting the real economy.
'Negative' effects of higher interest rates.. some people who live beyond their means on the never never get turfed out of houses they cant really afford.
Most households are mortgage free, and there are many more pensioners with savings than underwater want it all now debtors, increase in interest rates = net gain for economy and for those who didn't get into extreme debt to keep up with the joneses. So encourages correct financial behaviour.
More building will help but a longer term strategy. Rate must raise and indeed will rise soon.
Buying now? good luck.0 -
allthingsmustpass wrote: »Why is increased supply good? Lower prices.
Why are lower prices good? More affordable, therefore beneficial in relation to social mobility, sustainable competitive wages, more discretionary income available to support the real economy etc etc
How else can property be more affordable? Higher interest rates. If this confuses you read my explanation up thread.
Increased supply is not necessary for more affordable housing. A higher cost of borrowing is necessary.
Other benefits of higher interest rates.. return on savings for the retired, leading to more discretionary spend supporting the real economy.
'Negative' effects of higher interest rates.. some people who live beyond their means on the never never get turfed out of houses they cant really afford.
Most households are mortgage free, and there are many more pensioners with savings than underwater want it all now debtors, increase in interest rates = net gain for economy and for those who didn't get into extreme debt to keep up with the joneses. So encourages correct financial behaviour.
More building will help but a longer term strategy. Rate must raise and indeed will rise soon.
Buying now? good luck.
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.0
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