Quote:
Originally Posted by mertle
Osem one problem with that that is EXPENSIVE britain. At current we would never compete even if we cut our national spending to the bone.
The land and property prices so grossely inflated beyond any reasonable sense.
The government got options devalue it might not be popular but we got to consider driving those prices down. London and the south been huge culprit with it commuter belt pricing. So wages have to follow in line sp people not just afford morgages but even just to rent property around place of work. To cap it companies end up paying over the odds too.
Blame successes of governments to not keep the housing market and estate agents in line. Some will say aha its only the value that people willing pay but it seems all its done shove wages higher estate agents see more milking and it keeps spiralling out of control.
The rest of the country now see also prices starting get silly even in predominant poorer areas. I saw terraced house where usually it was 50k I am now seeing 100k and one in not brilliant area 160k  . You would be bananas to buy terraced 160k when you get semi or detached or bungalow similar priced better location.
It just crazy greed. |
There's little doubt property prices are too high but given the large proportion of debt linked directly to them, driving prices lower will result in negative equity. Furthermore, many people have scrimped and saved over the years to own their houses as some form of security and asset for their old age - they won't be too happy about that asset being significantly and deliberately devalued. Stock market uncertainty, low interest rates and doubts about the security and value of personal/private pensions all add up to make property a more appealing long term investment and I know plenty of people who've ploughed money into property to provide what amounts to a pension or security blanket in the event of redundancy.