Quote:
Originally Posted by Stuart
I am not sure how to phrase this, but I've always thought that artificially high house prices are a bit of a lie. They make you think you are wealthier than you are.
The problem is that while it may be true that (for example) you bought your house for £60,000 and it's worth £260,000 now, so on paper you are £200,000 better off, if you actually move, you'll probably find that other houses have increased by a similar amount (unless you move to a cheaper area), so you've actually made little or no profit, or even a loss after you take into account solicitor's fees.
The only time you might actually be generally better off if is if you actually buy another house. That way, you actually can capitalise on rising house prices because you don't have to buy another to replace it if you should sell it.
How many people can afford to do that though? Not that many thanks the high house prices.
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You hit nail on the head there its false economy its likes to make you believe that your 200k home is money in the bank. The only people to get benefit is those who down size ie 4 bedroom house to 2 or 1 as family grown up fled the nest.
I think its all been driven by few who shown by buying and selling property they become millionaires. I read somewhere a couple had done 26 moves to go up the ladder to make the million tag but its rare.
So question is how much impact would devaluation do would the benefits outway the negativies. Problem is the perception that we all would lose money but the fact those moves would be cheaper as house prices take a hit.
Yes Osem the economy is on mortgage lending not sure its right way either. There needs to be balance which makes the country as whole less expensive. Maybe people do use it to fund pensions.
Problem is we dont address it do nothing where will the country be in 20 years. Wages will have to spirral to compete with the upturn of mortages but the problem is rental occomodation tends to follow as either private landlords or council/housing assoc try recoup there outlay.
In reality people got into mortgage lending when theyre income levels dont support it but who created the moto every one should own there home.
I think this legacy also pushed the market beyond breaking point something goto give for sure.
Ignitionnet not ignoring you sorry that link maybe they did get figures wrong but net result is they still had to chase them for money owed.
Its about time business paid there way how many small firms go to the wall because big business fail to pay. Those who dont go bust they end up trying to goto small claims courts. Big businesses have horrendious atitudes when it comes to paying up its debt. They also know governments/businesses can be reluctant to take them to court and end up settling out of it. Again it still dont make it morally right.
The other example on Green not good one just because he used clever accountants to negate his tax obligations abusing loopholes dont make it right.
There too many loopholes to cheat and many if not all need shutting.