MILLIONS of Young People WANT & NEED Higher House prices!!!

ukcarper

Crashy_Time wrote: »

Why are so many people on I.O loans then?

How many are on interest only loans without a repayment vehicle my mortgage was interest only I paid it off.

TickersPlaysPop

Many people believed they were better of on interest only compared to renting, which if the housing market continues to inflate they will be? But they would need to down size to reap that benefit.

CLAPTON

TickersPlaysPop wrote: »

Many people believed they were better of on interest only compared to renting, which if the housing market continues to inflate they will be? But they would need to down size to reap that benefit.

now, you still haven't told us what percentage of new builds are bought by OO and what are bought by landlords.




to make it a bit easier, and knowing you never look up any real data, give us your best guess


are 0- 25% of new builds bought by landlords
or is it 25-50 %
or 50-75%
or 75 -100%


you don't even need to actually know the figure, just give us your best guess?

TickersPlaysPop

Clapers.... time and time again you drive the conversation off on tangents, towards dead ends, and just when I force it down then path I wish you throw insults at me.

You question is distracting and leading this is the wrong direction, also focusing on a single statistic while disregarding the whole picture.

Do you really think you deserve a response from me after all of the troll behaviour from you? you tried to scare me off when first started, I'm going no where, and will make sure poeple know you like to hide yourself away and not expose your vested interests.

CLAPTON

TickersPlaysPop wrote: »

Clapers.... time and time again you drive the conversation off on tangents, towards dead ends, and just when I force it down then path I wish you throw insults at me.

You question is distracting and leading this is the wrong direction, also focusing on a single statistic while disregarding the whole picture.

Do you really think you deserve a response from me after all of the troll behaviour from you? you tried to scare me off when first started, I'm going no where, and will make sure poeple know you like to hide yourself away and not expose your vested interests.

It's a simple question : you have frequently said that you know that new builds will be bought by landlords and so will not increase supply to OO or reduce the price that houses would have been had these new builds not been built.


You have frequently refused to provide actual numbers so I am inviting you to retain some semblance of integrity and say what your personal belief is:
are
0-25 % of new builds bought by landlords
or 25-50% of new builds
or 50-75%
or 75-100%


One would have thought that a pretentious 38 year old development scientist with a B.Sc. would have the courage to answer as simple question about his own beliefs on an anonymous forum.

the_flying_pig

Clifford_Pope wrote: »

That is exactly the point I was making.
I made a profit moving up from 1st time buyer to 2nd house. I chose to use that profit in order to downsize (actually upsize in space terms, but downsize in money), but that does not alter the argument. I could have stayed in the system and continued to climb upwards.

Voluntarily stepping off the ladder having climbed half-way up doesn't alter the fact that HPI got me there.
It seems so obvious to me that only someone with a brilliant mathematical mind could fail to see it.

Are you seriously saying that if house prices were today exactly the same as they were in 1976, I could have become mortgage-free with a much larger house simply by paying my mortgage from 1976 to 1984?
I was a single junior grade local government admin trainee. Obviously HPI was responsible for my good fortune.

i can't begin to imagine what you are on about.

my last word on the subject is a pretty picture of a housing ladder, where the first rung is a country retreat, second rung a London maisonette, third rung a London house. HPI moves the rungs further apart, makes the ladder more painful to climb & more lucrative to descend. end of story.

the blue arrows show the path that you followed. the red arrows give a couple of examples of how that path might have looked like if HPI hadn't happened. if the 1976-1981 HPI hadn't happened, it'd have been easier for you to upscale to your London house. if the 1981-1984 HPI hadn't happened, your downscaling to the country would have been less lucrative.

HPI in the main helps downscalers & hurts upscalers/FTBs.

HPI makes the housing ladder [other things being equal] harder to climb, by definition. increasing wages makes it [other things being equal] easier to climb, by definition.

[edit - the 1981-84 HPI is incorrectly labelled as 122% rather than 100% but the numbers in the chart are correct]

TickersPlaysPop

CLAPTON wrote: »

One would have thought that a pretentious 38 year old development scientist with a B.Sc. would have the courage to answer as simple question about his own beliefs on an anonymous forum.

..... and .... Who are you? You've repeatedly chosen to not answer my requests to reveal yourself, you won't tell us anything about yourself.... what have you got to hide? Why should we engage with you?

Time to show us your hand matey .... if you don't, you will be ignored by me.

CLAPTON

TickersPlaysPop wrote: »

..... and .... Who are you? You've repeatedly chosen to not answer my requests to reveal yourself, you won't tell us anything about yourself.... what have you got to hide? Why should we engage with you?

Time to show us your hand matey .... if you don't, you will be ignored by me.

simple hand:


I don't believe that most new builds are sold to landlords.


However, whatever the percentage of new builds that are sold to landlords, I believe the increase in supply to both OOs and renters reduces prices over that which they would have been.


I don't think it makes a lot of difference if new build sold to OO or landlords are initially financed by foreign or Uk money.


simple.

TickersPlaysPop

CLAPTON wrote: »

simple hand:

I don't believe that most new builds are sold to landlords.

However, whatever the percentage of new builds that are sold to landlords, I believe the increase in supply to both OOs and renters reduces prices over that which they would have been.

I don't think it makes a lot of difference if new build sold to OO or landlords are initially financed by foreign or Uk money.

simple.

I'm not going to engage with you until you tell us something about yourself, sorry.

JencParker

TickersPlaysPop wrote: »

Thanks to all for clearly explaining HPI and the good /bad dynamics of it.

Also for pointing out why interest in repayment mortgages needs to be front loaded. I still have some ideas about that but won't divert the thread.

So HPI is good for the following people...

Buy to letters
Owner occupiers in their 'peak' property
Mortgage lenders
Housing associations
Estate agents
Chancellor due to more stamp duty
Over seas investors
Local councils that sell off land/ property

Unfortunately the poorest and less fortunate get a worse deal with an increase HPI. They get stuck in properties, and at worst see the bottom rung of the ladder disappear up into the sky.

Why does the government not debate this and have policies in place to keep it in line with wage inflation?

Quite simply because those at the top have no interest in the poorest and less fortunate.