Jump to content


Photo
- - - - -

Why Should Houses Be Affordable?


  • Please log in to reply
163 replies to this topic

#31 Jesusaves

Jesusaves

    HPC Poster

  • Members
  • PipPip
  • 201 posts

Posted 18 November 2009 - 10:22 PM

sorry, if you wish to make a point, make it clear. your post made no sense. I asked for clarity. you insult and abuse.


Sigh

- now you put on the air of someone grossly offended.

Christians are good at this behaviour. All very controlling.

#32 DeepLurker

DeepLurker

    HPC Senior Veteran

  • Members
  • PipPipPipPipPip
  • 3,651 posts
  • Location:Snorbans ("we are considerably richer than you")

Posted 18 November 2009 - 10:23 PM

Why should houses be Ďaffordableí? Land is a finite resource. As earnings increase so the cost of land needs to go up, because you canít make new land. It's value reflects the wealth of the nation.

If you dismantle a property and sell the components, you will get about 20% of the properties value. But, labour is expensive. 60% of the purchase price is the cost of building. 20% becomes your profit margin.

So why should these houses be easily affordable? To own a piece of land with a dwelling needs to stretch you to breaking point.

Thatís the laws of economics.

We can all wait for ever but it just ainít gonna happen.

So get out there and buy.

Yup, land is a finite resource, and we're desperately short of it in the UK...

Posted Image

Posted Image

Posted Image
Food, shelter; both are basic necessities of life.
If you call out for cheaper food, you are a saint.
If you call out for cheaper shelter, you are ostracised, ridiculed, even your partners and family feel slightly ashamed of you.

#33 Chesnor

Chesnor

    HPC Poster

  • Members
  • PipPip
  • 153 posts

Posted 18 November 2009 - 10:24 PM

To be perfectly frank, the only way to accumulate wealth in this country is through property.

So, go on, be an entrepreneur and create some wealth for yourself.

It's easy being a socialist when you don't own anything.


There is nothing remotely entrepreneurial about the UK housing market, nor has there been for years. Most BTL so-called entrepreneurs are simply destructive rent-seeking over leveraged uber-debtors, leeching an increasing amount of the wages of the productive.

It's easy being socialist (or more accurately accused of being socialist) when you can't actually afford to own anything.

#34 Jesusaves

Jesusaves

    HPC Poster

  • Members
  • PipPip
  • 201 posts

Posted 18 November 2009 - 10:26 PM

http://starsinfashion.com/Prada-handbag-photo.jpg



:lol: :lol: :lol: :lol: :lol:

#35 Si1

Si1

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 18,095 posts
  • Location:leeds

Posted 18 November 2009 - 10:26 PM

what a strange and absurd OP

bit of a pointless argument when low rents don't reflect high purchase prices

but heh when you have vile language and inuendo to back up your non-argument then we can all tell you're an EA...

#36 Fool's Gold

Fool's Gold

    HPC Regular

  • Members
  • PipPipPip
  • 887 posts

Posted 18 November 2009 - 10:28 PM

But, my first house cost 20K. My salary was 4300 pa. Interest rates were at 12% (I think-something like that). I crapped myself as had just got married and had a kiddly on the way. But I got by (just).

Sold the house 4 years later for 22K, banked £2000 and felt really rich. Bought my next house for 32K and sold it for 45K. And so on. I was always close to the edge and worried about paying the mortgage, but managed it. Times were always hard and budgeting difficult. That's why I don't see myself as selfish. And, lets face it, when you die a big chunk goes back to the state anyway.

I didn't grow up in a golden age. BUT - eventually you reach a turning point; somewhere along the line, where your repayments seem to diminish and your assets appreciate.

To be perfectly frank, the only way to accumulate wealth in this country is through property.

So, go on, be an entrepreneur and create some wealth for yourself.

It's easy being a socialist when you don't own anything.


In Capitalism, aren't those that fail are meant to fail ? the power of economics ? It's just that now the situation is being tinkered with so that those that should have failed are going to be bailed out by EVERYONE else, including those that wanted no part of the inflated madness (that includes me).

Capitalism is great, but it's even better if you've got someone altering the rules in your favour.
If YOU signed on the dotted line then YOU pay for it.

#37 dances with sheeple

dances with sheeple

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 10,818 posts

Posted 18 November 2009 - 10:32 PM

Why should houses be 'affordable'? Land is a finite resource. As earnings increase so the cost of land needs to go up, because you can't make new land. It's value reflects the wealth of the nation.

If you dismantle a property and sell the components, you will get about 20% of the properties value. But, labour is expensive. 60% of the purchase price is the cost of building. 20% becomes your profit margin.

So why should these houses be easily affordable? To own a piece of land with a dwelling needs to stretch you to breaking point.

That's the laws of economics.

We can all wait for ever but it just ain't gonna happen.

So get out there and buy.


Not really, I remember buying an ex-council house for 11k in the early 90`s, and here in Edinburgh you could get a city centre flat for 50k as recently as `98. It was only a credit bubble, housing was the chosen casino chip this time around, it was a one off, there will be other bubbles, but housing will never be the chip again. Housing will never change hands for the multiples of salary we have seen recently again in our lifetimes. 2007 was cash out time, anyone not doing so loses, it`s that simple. QE is doing nothing more than making balance sheets look better and pumping stock markets. If the Uk does not make moves soon to get back on track the bond markets, or other countries raising rates, are going to call us out IMO.

#38 Authoritarian

Authoritarian

    A product of the system

  • Members
  • PipPipPipPipPip
  • 4,135 posts

Posted 18 November 2009 - 10:35 PM

Not really, I remember buying an ex-council house for 11k in the early 90`s, and here in Edinburgh you could get a city centre flat for 50k as recently as `98. It was only a credit bubble, housing was the chosen casino chip this time around, it was a one off, there will be other bubbles, but housing will never be the chip again. Housing will never change hands for the multiples of salary we have seen recently again in our lifetimes. 2007 was cash out time, anyone not doing so loses, it`s that simple. QE is doing nothing more than making balance sheets look better and pumping stock markets. If the Uk does not make moves soon to get back on track the bond markets, or other countries raising rates, are going to call us out IMO.




They said that after the housing bubble burst in the early 90's too. As sure as night follows day there will be another property bubble, there are good solid economic reasons as to why this will be the case.

#39 Jesusaves

Jesusaves

    HPC Poster

  • Members
  • PipPip
  • 201 posts

Posted 18 November 2009 - 10:36 PM

what a strange and absurd OP

bit of a pointless argument when low rents don't reflect high purchase prices

but heh when you have vile language and inuendo to back up your non-argument then we can all tell you're an EA...



Vile language? Innuendo?

Kettle pot black and all that!

(Why does an alternate point of view account for someone being an AE?)

#40 dances with sheeple

dances with sheeple

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 10,818 posts

Posted 18 November 2009 - 10:39 PM

They said that after the housing bubble burst in the early 90's too. As sure as night follows day there will be another property bubble, there are good solid economic reasons as to why this will be the case.



What are they?

#41 Patfig

Patfig

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 6,662 posts
  • Location:Kernow

Posted 18 November 2009 - 10:40 PM

Vile language? Innuendo?

Kettle pot black and all that!

(Why does an alternate point of view account for someone being an AE?)

If you are jealous of your brother ( if indeed you have one) then fine, we will all understand. Life isn't fair you know, and no one owes you anyhting, so get over it and progress little lambkin.
Life is like a sh1t sandwich, the more bread the better!

#42 Jesusaves

Jesusaves

    HPC Poster

  • Members
  • PipPip
  • 201 posts

Posted 18 November 2009 - 10:44 PM

Nothing has really changed in society, apart from the expectations of the younger generation. Everything is still Ďup-for-grabsí. However, you just wonít get handed property on a plate. Youíll get everything else - but not property.

Itís all very Darwinian, but thatís how humans like it. We feel most comfortable living under this type of system.

It is flawed but works.


If you really want something - you can get it. If you REALLY want it, that is.

#43 Si1

Si1

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 18,095 posts
  • Location:leeds

Posted 18 November 2009 - 10:44 PM

What are they?



that'll be the baby boom generation of the 10-20 year olds about to enter the housing market with promising careers, low taxes, and no prior debt - er maybe not

#44 Bloo Loo

Bloo Loo

    Ripened on the Diversity Vine

  • Members
  • PipPipPipPipPipPipPip
  • 52,435 posts
  • Location:Essex-the land of Equality
  • About Me:Im Bloo yabba dee yabba die.

Posted 18 November 2009 - 10:47 PM

Nothing has really changed in society, apart from the expectations of the younger generation. Everything is still 'up-for-grabs'. However, you just won't get handed property on a plate. You'll get everything else - but not property.

It's all very Darwinian, but that's how humans like it. We feel most comfortable living under this type of system.

It is flawed but works.


If you really want something - you can get it. If you REALLY want it, that is.


Cant get a 10 times income loan.

oh, and foul language was yours.

Im sorry if asking a question was diversionary, but we need to be clear what our trolls mean.
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#45 miko

miko

    HPC Senior Veteran

  • New Members
  • PipPipPipPipPip
  • 4,840 posts
  • Location:east london

Posted 18 November 2009 - 10:47 PM

They said that after the housing bubble burst in the early 90's too. As sure as night follows day there will be another property bubble, there are good solid economic reasons as to why this will be the case.



Yes , people move on change and forget , the next generations will not understand or listen to the tales of 2007 + .

My niece only this week 22 got good job want's to buy her first place , considering how much prices of small flats here have dropped and she could easily afford it , it is not a bad idea . She stated that the money she get's she either saves so has got a good deposit or buy's more clothes than she needs.
While talking to her I mentioned that she has good bonus coming in March, Yes she said but I don't want to wait that long as they might go up again by then. so the sentiment is still there.

The only difference to this buble and the 90's one is the size , each bubble seems to get bigger.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users