House price rise boosts British wealth

zagubov

At one point the land value of the Japanese Imperial Palace was about the same as the whole of California.

These forms of wealth are notional and unrealisable. We can't export our real estate. Well we could but that would be a disaster.

It's as if we ascribed a monetary value to our internal organs. They're so precious to us we'd all be instant millionaires. As a form of making us rich, it's totally useless.

System

wotsthat wrote: »

No, it's real wealth..

It's wealth to the individual who owns some of it, because it represents an asset that could be converted into money that would be recognised as a means of exchange. Thus if the individual wished, he could command a greater share of some other form of wealth or use it to obtain goods or services.

But in total it isn't national wealth. If house prices were all to double tomorrow then Britain would not suddenly be able to command a greater share of world resources, or fund a bigger navy, or eradicate poverty.

AFF8879

angela_hayes wrote: »

I haven't watched it either but will. I also haven't much of an idea about what you are arguing but hope too if you put it in simpler terms. All I know is this, I have been selling my home (sold in 10 days Birmingham area) and I have to buy another. It has been nothing short of a nightmare. THERE IS A MASSIVELY SHORT SUPPLY of properties. Should my sale go through (and I don't want to jinx it) I am in the fortunate position of being a cash buyer. It isn't like I will be at the bottom end of the market but this situation has just had me in tears. There are over inflated prices for mediocre properties and this is in the West Midlands Birmingham area. My heart goes out to young families and young people trying to get their foot on the ladder. At the current time, I have made appointments for viewings and they are sold before I can get there. This suggests that the guy on here who is trying to say that the government have lied and not built properties to overcome this problem (I think that is what he is saying) could be accurate. I think you all got a bit to high brow for me and I have a lot of house to pack and haven't the time to unpick the argument. All I know is that demand is totally outstripping supply and prices are over inflated hence measure of wealth but the bubble has to burst one day and people who have spent their last dime for a decent home will be the losers. We have been screwed and I don't think Joe Public has caused this scenario. Good luck to us all and go bless.

Having saved for over 5 years in a well paid job to buy my first flat in London believe me, I feel your pain. But what you're saying contradicts itself. Moaning about over inflated prices and sympathy for first time buyers totally contradicts with then saying people who pay these prices will be losers when the bubble supposedly bursts. Because in the first instance you're implying people can't buy a home (ie their home, their security, etc) and then you're saying that buying a home is worthless unless you make huge capital gains.

Majority of people don't buy homes for investment. All the people who did buy years ago at rock bottom prices, the "boomers" as they are known, weren't hoping for a quick buck. They were buying security for their families. That's why it annoys me (even as someone who bought in today's market) when people resent them just because they happened to buy before the property boom.

System

https://homelet.co.uk/homelet-rental-index/infographic

As you can see from the link - Rents are increasing in most regions and the change in tenant income vs last year has decreased for new tenancies.

It could be the same for property prices in relation to people's real income. It's great when your property earns more than your real income.

Conrad

Clifford_Pope wrote: »

It's wealth to the individual who owns some of it, because it represents an asset that could be converted into money that would be recognised as a means of exchange. Thus if the individual wished, he could command a greater share of some other form of wealth or use it to obtain goods or services.

But in total it isn't national wealth. If house prices were all to double tomorrow then Britain would not suddenly be able to command a greater share of world resources, or fund a bigger navy, or eradicate poverty.

Property wealth underpins sentiment and ones sense of security and ability to take risks, thus does feed into enterprise in general. Spanniards, having lost a !!!!!! load of equity are reluctant to spend and invest.

System

Conrad wrote: »

Property wealth underpins sentiment and ones sense of security .

Exactly my point - it's an individual thing.