House Price Crash!

Pennywise

MattLG wrote:

You REALLY need an economics lesson if you believe that :-p

MattLG

More importantly, money has no intrinsic value of itself. It is simply a measure of relative wealth. Unless there is an inflow or outflow of money from the planet Earth to another planet, all that happens is a flow and ebb of wealth from one country to another and one person to another. If someone's wealth has increased by £57k, then there is a corresponding reduction somewhere else. Of course, it all gets very complicated with exchange rate fluctuations, valuations used instead of real transactions, artificial transactions such as futures etc, large scale frauds and errors, etc. That is why the politician's vision of "everyone" being better off will never materialise - of course they know that but daren't say it as it would be political suicide.

meanmachine_2

Indeed.

That 57K will now be pushed up the ladder which, in turn, lifts the bottom rung further from the floor.

All that happens is that the next generation end up being impoverished.

The unfortunate thing for those smug types already on the ladder is that these are the people who have to pay the pensions, shop on the high street and so on.

If house prices don't return to their long term average, Britain will be much the poorer in 5-10 years' time as so much of our "wealth" will be tied up in bricks.

So we either have a correction now, or a full blown recession later.

nelly_2

meanmachine wrote:

Indeed.


If house prices don't return to their long term average, Britain will be much the poorer in 5-10 years' time as so much of our "wealth" will be tied up in bricks.

Thats the part I really dont get, why people are happy to commit so much of their income on simply owning a house. There really is soooo much more to life and its a short life, flying by, faster and faster it feels each day.

We ( as I have stated before) have as many holidays as we can, and her being a teacher they are expensive, but this is a bl00dy big world with a lot to see and experience, and our lives are richer for it too. Some one said memories fade fast, well thats simply not true at all. Have as much fun as you can I say because its gonna end soon anyway.

If a house was mega cheap, then yeah, I'll have one, but otherwise pass me a globe a blindfold and a pin

Woby_Tide

dammit, why didn't anyone tell me I need to have loads of holidays to lead a rich, experience filled life.I feel so cheap and disillusioned that I've missed the only way to achieve this.

Remember folks houses and holidays are mutually exclusive, you wonder why the building society wants your passport when you go for the mortgage to comply with money laundering, it's all just a front, you'll never see the passport again.

:rolleyes:

Ian_W

As George Best said, he spent millions on women and booze ,,, the rest he just frittered away!

Me I'm happy sitting at home counting the bricks I own, knowing they're mine, ALL mine!! Helps, of course, that I'm secure in my underground nuclear shelter with my chemical/biological suit, stockpiles of water, candles, clockwork radio & and bird-flu vaccine.

Still each to their own I say. If some people want to fritter away their money jetting off around the world destroying the ozone layer, who am I to critise?

Ember999

I'd rather own my own home ( I have 2) than waste my money having meaningless over-priced holidays too! I enjoy spending my time in Scotland walking, climbing, fishing and enjoying the outdoors. Why spend thousands going places abroad when I have everything I need right on my doorstep for free in Scotland? people who have loads of holidays are silly, waste all their money and have nothing to show for it! Seems a bit of bragging is needed to make them feel better that they don't own their own home too

meanmachine_2

Surely those who bought before the recent insane dose of property inflation have more money to spend than those who are renting.

Isn't the ave mortgage something tiny like 350quid?

It's those who have bought in the last 18 months, or have to buy from now on that are denied the chance of a normal life.

That's what is so depressing.

ag359

Ember999 wrote:

I'd rather own my own home ( I have 2) than waste my money having meaningless over-priced holidays too! I enjoy spending my time in Scotland walking, climbing, fishing and enjoying the outdoors. Why spend thousands going places abroad when I have everything I need right on my doorstep for free in Scotland? people who have loads of holidays are silly, waste all their money and have nothing to show for it! Seems a bit of bragging is needed to make them feel better that they don't own their own home too

Now, I'm not getting into a silly debate over whether it's better to spend your money on houses or holidays, as I hope to be fortunate enough to have both.

However, that post has to be the most narrow-minded ever! Yes, scotland is beautiful and a lovely place to spend time, but that doesn't mean there is no point going anywhere else. The reason for 'spending thousands going places aborad', as you put it, can be summed up in one word: 'culture' - there are very many fascinating places to visit (I'm not talking about 2 weeks on a beach in Lanzarote, here btw) and by doing so you can broaden your horizons no end. As they say, variety is the spice of life, so how can you hope to live life to the full when you only experience a tiny tiny fraction of the diversity that the world has to offer? And travelling gives you plenty to show for it, because it will make you a much more interesting person to talk to.

And why do you suggest that holidays are over-priced?Do you even know how much a holiday costs? And what, in fact, do you mean by 'holiday'? I spent almost a month travelling around Africa for the princely sum of £600. hardly 'overpriced'. Having said that, I would never spend £5000 on a couple of weeks in the Carribean, as some people are inclined to do.

Almost_Redundant

Ember999 wrote:

I'd rather own my own home ( I have 2) than waste my money having meaningless over-priced holidays too! I enjoy spending my time in Scotland walking, climbing, fishing and enjoying the outdoors. Why spend thousands going places abroad when I have everything I need right on my doorstep for free in Scotland? people who have loads of holidays are silly, waste all their money and have nothing to show for it! Seems a bit of bragging is needed to make them feel better that they don't own their own home too

Seems a bit rich Ember to acuse others of bragging after your own admission of owning 2 houses. Do you actually OWN them or just rent them from the building society/bank? I think that the notion of globe/blindfold and pin is spot on. The world is a huge place, which takes a lifetime to travel and explore (including Scotland). Why tie yourself to one (or two) place for the rest of your life? A house at todays prices is like a millstone around your neck. Cast it off and see the world!! Then you can come back to Scotland which shouldn't have changed much and should still represent value for money - win win. You only live once.

Roll on the crash!

Ian_W

ag359 wrote: I'm not talking about 2 weeks on a beach in Lanzarote, here btw

What's wrong with 2 weeks on a beach in Lanzarote? Some people are just sooooooooo snobby when it comes to travel? :mad:

"Done the Cape Verde Island's yet, darling?" - "Oh, yes a few years ago before they became too touristy" ... blah, blah!!

If I wasn't far too busy counting me bricks, a fortnight somewhere warm with good english food and beer would do my just fine, thank you. :beer: