Kwasi economics....

[newfhouse]

Is falling house prices bad news?, I thought the general consensus was that house prices are too high, thus preventing young people from buying one?

Might it be better to make the transition in a controlled or at least predictable way? If prices suddenly crash but mortgage payments double does that make buying a house more or less achievable? Should there be some sort of plan - intention even - to maximise the benefits for the many, not the few?

 

[Ian H]

Is falling house prices bad news?, I thought the general consensus was that house prices are too high, thus preventing young people from buying one?

It might benefit someone with enough spare cash to buy one. But with the economy tanking, wages effectively diminishing, and interest rates rising to who knows what, it's not going to help the people you might want to help.
Then there are those who've just bought a house and see its value going down as repayments go up.

 

[deptfordmarmoset]

Is falling house prices bad news?, I thought the general consensus was that house prices are too high, thus preventing young people from buying one?

Falling house prices itself would not be bad news. The swathe of foreclosures that leads to the fall will be a disaster and will increase debt but not help with homelessness. I'm sure that the suspension of new mortgages will be mostly temporary but any first-time buyers will have to pay more interest - offsetting the fall in purchase price.

The most likely to profit will be those who can buy outright. Buy-to-letters, bankers with bonuses....

 

[BoldonLad]

Might it be better to make the transition in a controlled or at least predictable way? If prices suddenly crash but mortgage payments double does that make buying a house more or less achievable? Should there be some sort of plan - intention even - to maximise the benefits for the many, not the few?

It might benefit someone with enough spare cash to buy one. But with the economy tanking, wages effectively diminishing, and interest rates rising to who knows what, it's not going to help the people you might want to help.
Then there are those who've just bought a house and see its value going down as repayments go up.

Falling house prices itself would not be bad news. The swathe of foreclosures that leads to the fall will be a disaster and will increase debt but not help with homelessness. I'm sure that the suspension of new mortgages will be mostly temporary but any first-time buyers will have to pay more interest - offsetting the fall in purchase price.

The most likely to profit will be those who can buy outright. Buy-to-letters, bankers with bonuses....

So, evolution not revolution is the preferred option, who would have thought it?

 

[newfhouse]

So, evolution not revolution is the preferred option, who would have thought it?

Depends. Who is leading the revolution, and to what ends?

 

[Fab Foodie]

The most likely to profit will be those who can buy outright. Buy-to-letters, bankers with bonuses....

This, under the Tories the wealthy will always prosper at the expense of the poor....

 

[Fab Foodie]

Depends. Who is leading the revolution, and to what ends?

...it will not be televised....

 

[cookiemonster]

...it will not be televised....

....but will be available via the Red Button.

 

[Deleted member 28]

This, under the Tories the wealthy will always prosper at the expense of the poor....

Just imagine buying a brand new house and all of a sudden the prices fall, what a bummer!

On the other hand imagine wanting to buy a house for the first time and find they've come down a tad, might be handy?

 

[Fab Foodie]

....but will be available via the Red Button.

...and presented by Phil and Holly....

 

[newfhouse]

On the other hand imagine wanting to buy a house for the first time and find they've come down a tad, might be handy?

Imagine the mortgage offer you thought you could afford being withdrawn and then doubled in price. Great work.

 

[Deleted member 28]

Imagine the mortgage offer you thought you could afford being withdrawn and then doubled in price. Great work.

And imagine if the amount you wanted to borrow had fallen too?

Whatever happens while the Tories are in power it will be bad so the haters can carry on hating but let's just hope if someone else takes charge all our lives will improve exponentially.

 

[Deleted member 49]

And imagine if the amount you wanted to borrow had fallen too?

Whatever happens while the Tories are in power it will be bad so the haters can carry on hating but let's just hope if someone else takes charge all our lives will improve exponentially.

Wages haven’t gone up in a decade...inflation is at 10% ? Energy bills have gone through the roof...pound is worth a dollar....can't get a ambulance,dentist,doc appointment...shoot flowing into the sea...people are about to lose their life savings.
But houses are cheap lol

 

[Deleted member 28]

Wages haven’t gone up in a decade...inflation is at 10% ? Energy bills have gone through the roof...pound is worth a dollar....can't get a ambulance,dentist,doc appointment...shoot flowing into the sea...people are about to lose their life savings.
But houses are cheap lol

Silver lining and all that, I suffer from all the above (except a dentist as I pay private) and benefit from none but moaning and whinging will get you nowhere.

 

[cookiemonster]

And imagine if the amount you wanted to borrow had fallen too?

Whatever happens while the Tories are in power it will be bad so the haters can carry on hating but let's just hope if someone else takes charge all our lives will improve exponentially.

I take from your posts that you're not too bothered about the impeding collapse of the UK economy?

What about your job? Your son/daughter's jobs?

Pension fund? Six pension funds would have collapsed without the BOE's intervention yesterday. That'll affect you and your missus.

I would be a lot more concerned.

These guys explain it better. They are experts and we know what many of us feel about experts.


View: http://www.youtube.com/watch?v=OjTOMqQFCEw