Thursday, Oct 25, 2007
More home truths from Mr Verity
BBC Website: Few cash in on rising house prices
Three in four home owners believe they are better off as a consequence of rising house prices, but in most cases they are wrong.
Posted by bloke111 @ 04:17 PM (529 views) Add Comment
5 Comments
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1. voiceofreason said...
It never ceases to amaze me how little people can actually think for themselves.
Another great example of this is selling of endowment mortgages - it never made sense to me, so I always took out repayment mortgages over the years. But many intelligent people with degrees that I know didn't "do the maths".
Also at my place of work, many people (with degrees) were pursuaded to move from final salary plans to money purchase about 6 years ago.
It is great that the BBC is helping to educate people - but a bit late in the day I think.
2. Grahmoyse said...
This message needs to be spread widely. There is a huge missconception that most people are better off if property prices rise and worse off if they fall. Most people only sell a house to buy a house so falls don't matter. There are a few unfortunate souls who buy at the top of the market, have to sell (eg for a job relocation) and cannot pay off their debts due to negative equity but these are outweighed in number by the number of first time buyers and property ladder aspirants who benefit from house price reductions.
The public needs to know that, for most people, house price falls are a good thing. It is only the perception that it is a bad thing which feeds into lower spending and general economic recession. This perception needs to be challenged. Well done BBC
3. Wilee said...
Hey! Us little people can think just fine, thanks!
4. N said...
Listening to AV reeling off the losses incurred by owners of Leeds apartments was one of those TV moments that will be remembered. Broadcasting to the nation at prime time that people have been hit by losses of up to £85k, in a development which that 'Inside Track' jabroney applauded, felt fantastic. After years of spurious valuations within numerous pwopertee pwogwams by drafted-in local estate agents announcing that their rabbit hutch had doubled in price just by slapping on some emulsion, this part of the show effortlessly revealed to the public how flimsy the growth in UK house prices had actually been. Where I live near Southampton, I'm sure I felt a communal 'gulp' shake the earth at that moment.
At last, it really does feel that the mainstream media have at last been cracked and the undoing of an era of mindless property porn has begun.
5. wiltshire said...
I've always wondered why the great British public see inflation as a bad thing generally but see house price inflation as a good thing. It's so blinkered but sadly the VIs have the expertise to use this to their advantage and so the ridiculous HPI carousel just goes round and round and round. Sadly this time we've over-cooked the goose and house price falls will probably overshoot expectations and we'll go into a recession. If the VIs would could have been happy with HPI at the same level and wage inflation...