Hekp to buy HAS pushed up house prices

Graham_Devon

HAMISH_MCTAVISH wrote: »

We already know Graham supports mortgage rationing, he spent the last few years cheering it on, as for some strange reason he seems to think it's better to prevent hundreds of thousands of people from buying houses than to allow house prices to rise.

Playing the man instead of the ball so early on!? This is usually reserved for at last page 2!

What I actually believe is that it is rather absurd to deal with high house prices ..... by giving people taxpayer support. Especially when that taxpayer support then pushes house prices even higher.

You end up in a never ending circle of needing more taxpayer support to keep up with the higher prices the taxpayer support is helping to spur on.

I'm not against lending, as you consistently point out. I am just against this sort of lending. I'm against 100%+ lending. All this sort of lending does is create a bigger problem.

The point of this thread is that you, and many others suggested this WOULDN'T increase prices, as more houses would be built as a result.

Many of us found this suggestion absurd. It seems now we have the first crumbs of evidence that house prices HAVE been pushed up by government stimulus.....stimulus which apparently is supposed to help people deal with higher house prices.

Graham_Devon

wotsthat wrote: »

If I had a £1000 government gift to buy a BMW I wouldn't immediately offer £23k (or more) for a car that was £22k yesterday. Would you?

It doesn't matter what you or I would do. It matters what the country would do.

For your analogy we can simply look at the car scrappage scheme and there is ample evidence to suggest everything you are finding difficult to accept was done.

If they thought their car worth £500 was now worth 2k, they would now sign up to a brand new car they wouldn't otherwise have bought, taking on loans they otherwise wouldn't have taken. 10's of thousands of people did this.

The cars being bought WERE 3k cheaper the month before the scrappage scheme. There is real evidence out there for this. As soon as the scrappage scheme was announced, all the deals were pulled. The window price increased by sometimes 2-3k. This is widely known. I remember the Vauxhall Insignia. You could buy it for £14,995 brand new for this certain model. However, a month later, it was £17,495 due to the scrappage scheme.

So the evidence doesn't really support the argument you are trying to make.

wotsthat

CLAPTON wrote: »

presumably that's the same principle as £10 of £100 product never leads to people spending £90

I've never seen Tesco run a buy two pay for three promotion with any success.

CLAPTON

wotsthat wrote: »

I've never seen Tesco run a buy two pay for three promotion with any success.

maybe maybe not : certainly seen plenty of instants where the price per kg is dearer for a large packet compared to a small one.

the essential point is that emotions and momentum, as well as cash play a part in people's buying decisions

lisyloo

I've never seen Tesco run a buy two pay for three promotion with any success.

Sometimes the ones on "offer" ARE more expensive, but people assume they are cheaper because they are on offer.
People like you are I would check the price per 100ml and reject the con, most people would get conned.

wotsthat

Graham_Devon wrote: »

It doesn't matter what you or I would do. It matters what the country would do.

Wouldn't you start by thinking about how you'd react if you'd been given £1000 towards a BMW purchase before guessing how the country might react? Would you buy the same £22k car, would you treat yourself to the £23k version or would you expect the £22k car to simply increase in price by more than £1k overnight making you even worse off?

Your commentator suggested everyone in North-West Leicestershire opted for the latter - nonsense.

Graham_Devon wrote: »

For your analogy we can simply look at the car scrappage scheme and there is ample evidence to suggest everything you are saying people wouldn't do, was actually done. In HUGE numbers.

Did the price of cars increase by more than the money the government put in the scheme?

Graham_Devon

wotsthat wrote: »

I've never seen Tesco run a buy two pay for three promotion with any success.

You are undermining your own argument now.

The buy two get one free is an absolute classic case where people will pay over the odds in order to secure the "free" item.

Graham_Devon

wotsthat wrote: »

Your commentator suggested everyone in North-West Leicestershire opted for the latter - nonsense.

It's clearly not nonsense.

The car scrappage scheme is all the evidence you will ever require for this.

wotsthat

Graham_Devon wrote: »

You are undermining your own argument now.

The buy two get one free is an absolute classic case where people will pay over the odds in order to secure the "free" item.

Turn on the irony meter and try reading what I actually wrote

wotsthat

Graham_Devon wrote: »

The car scrappage scheme is all the evidence you will ever require for this.

Did the price of cars increase by more than the money the government put in the scheme?