Corbynomics: A Dystopia

ukcarper

cells wrote: »

You say house prices are too high. I counter with the fact that in most the country buying a home is cheaper than renting a home off the council. Your counter to that is that some people can't or won't work so for them buying a house is impossible? I feel im talking to a brick wall. Yes but what the hell does that have to do with the fact that buying is cheaper than social housing (for most the country) therefore property isn't unaffordable.

You are aware that your silly argument holds even if house prices fall 80%? There will still be people unable to buy eg a poor 80 year old pensioner so would you conclude post a 80% house price crash that property was still unaffordable?


The more interesting part of this debate is that the governnt should allow those in receipt of housing benefit (most of them are social tenants) to use that sum to buy a property should they wish. So if they are currently getting £500 per month in housing benefits to pay for their 3 bed council flat and the mortgage on a local 3 bed terrace is such that the interest is less than £500 per month (eg £300pm) then that should happen. The state would go from paying out £500pm on housing benefit plus increases as the social landlords always increase rents to paying a foxed £300 a month. The government can take first charge on the Property and recoup costs on sale/death. You have increases ownership and freed up a social house slot and spend less in the process. Win won for all. Of course if you want people to stay poor then you will be against this

You still don't want to address the fact that if you can't get a mortgage large enough the interest on that mortgage is irrelevant. Also you have use a low interest rate which would not be available to some one with a high loan to value mortgage.

Even if the state said they could use housing benefit to pay a mortgage the banks would be reluctant to lend especially the 100% mortgage that would be required.

cells

ukcarper wrote: »

You still don't want to address the fact that if you can't get a mortgage large enough the interest on that mortgage is irrelevant. Also you have use a low interest rate which would not be available to some one with a high loan to value mortgage.

Even if the state said they could use housing benefit to pay a mortgage the banks would be reluctant to lend especially the 100% mortgage that would be required.

OK lets try this another way

Let's say I live in a town maybe let's call it stoke-on-trent. I work a full time job paying well below the median wage for males of say £25,000 and I have managed to save £7,000 over the last 5 years which is enough to buy the 3 bed house I've had my eye on.

I'm currently renting but signed up on the council waiting list.

Today I decide to buy a house for £70,000 but I also by chance receive a letter from the council today saying I have won the council lotto ticket and they will rent me one of their council homes for £450 per month.l should I want it

Should I buy the house for £70k or should I go into the council rental? Clearly you don't think council homes are 'unaffordable'?

So which is the better choice for me long term say 30 years. To buy and pay just £105 per month in interest or to rent and pay the council £450 per month?

cells

ukcarper wrote: »

Even if the state said they could use housing benefit to pay a mortgage the banks would be reluctant to lend especially the 100% mortgage that would be required.

95% mortgages are available at 3.1% interest according to mse comparison site.

For a £100k terrace that's just £5,000 deposit.and just £246 per month in interest. Is that affordable for a couple to save up as a deposit? Is it an affordable monthly payment for housing?

ukcarper

cells wrote: »

95% mortgages are available at 3.1% interest according to mse comparison site.

For a £100k terrace that's just £5,000 deposit.and just £246 per month in interest. Is that affordable for a couple to save up as a deposit? Is it an affordable monthly payment for housing?

Probably not if you are on housing benefit and do you really think a bank is going to give some possibly on minimum wage a £95k mortgage at 3.1% I sometimes wonder what world you live and what about the people in the south east.

ukcarper

cells wrote: »

OK lets try this another way

Let's say I live in a town maybe let's call it stoke-on-trent. I work a full time job paying well below the median wage for males of say £25,000 and I have managed to save £7,000 over the last 5 years which is enough to buy the 3 bed house I've had my eye on.

I'm currently renting but signed up on the council waiting list.

Today I decide to buy a house for £70,000 but I also by chance receive a letter from the council today saying I have won the council lotto ticket and they will rent me one of their council homes for £450 per month.l should I want it

Should I buy the house for £70k or should I go into the council rental? Clearly you don't think council homes are 'unaffordable'?

So which is the better choice for me long term say 30 years. To buy and pay just £105 per month in interest or to rent and pay the council £450 per month?

But you probably wouldn't get a council house on that position. The easiest thing would be for the council to buy those houses and either save the difference or use it to pay down the loan. More social housing but at least you aren't giving people houses while others will have to pay.

westernpromise

Ah, but don't forget that property is in a bubble because of low interest rates. Interest rates in the midlands and the North are higher than in London. That is why London is in a bubble and Stoke on Trent is not.

Also, private landlords cause house prices to rise but they are illegal in Stoke. There are no privately rented properties there.

Places with high house prices are always horrible and because house prices are so high, nobody wants to live there. Everybody wants to live in places where houses are cheap. That's why people are flooding out of the south and moving to Stoke, which is probably the best place in Britain to live.

This won't last long because if lots of people want to move somewhere that proves it's a dump. If the place you live in experiences high house prices and lots of people moving there that means it's a disgusting hell hole and you should leave immediately.

cells

ukcarper wrote: »

Probably not if you are on housing benefit and do you really think a bank is going to give some possibly on minimum wage a £95k mortgage at 3.1% I sometimes wonder what world you live and what about the people in the south east.

I know a couple 30 and 22 who managed to get married and bought a house late last year without any help. Both on or v close to min wage. Why does everything have to be impossible for you?

Maybe affordability has nothing to do with income or prices because it sounds like its more of a mindset problem with you.

CLAPTON

cells wrote: »

I know a couple 30 and 22 who managed to get married and bought a house late last year without any help. Both on or v close to min wage. Why does everything have to be impossible for you?

Maybe affordability has nothing to do with income or prices because it sounds like its more of a mindset problem with you.

of course you did

cells

ukcarper wrote: »

But you probably wouldn't get a council house on that position. The easiest thing would be for the council to buy those houses and either save the difference or use it to pay down the loan.

Why should the council buy the house and pay £105pm in interest and then let it to the couple for £450 a month when the couple can buy directly and pay £105 a month?

You keep crying about people who can't afford at any price. Not at £70k not at £60k not at £50k....not at £10k. While true there are pelnty of people who couldn't afford a house for £10k does that then mean if house prices were £10k the at housing would be unaffordable?

ukcarper

cells wrote: »

I know a couple 30 and 22 who managed to get married and bought a house late last year without any help. Both on or v close to min wage. Why does everything have to be impossible for you?

Maybe affordability has nothing to do with income or prices because it sounds like its more of a mindset problem with you.

In the south east I think not.

Why would it be a mindset problem for me I have a very nice house just I realise in large parts of the country the more heavily populated parts it's impossible for people on low wages to buy.