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House Price Crash Forum


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Everything posted by ingermany

  1. I was listening into this on R4 today as the employment minister justified why households already earning £150k a year need taxpayer funded benefits of £600 per month to cover childcare costs. I suspect the answer lies in housing costs and mortgage affordability rules. A 600 quid gift is equivalent to a £1000 per month pay rise to a higher rate taxpayer. It means they can afford a bigger mortgage when they need a bigger place and it will pay a fair chunk of the interest. Poor people don't buy houses, so will not be in need of such taxpayer largesse in the form of benefits. Just another example of the benefits system being geared to support the property pyramid. The whole machinery of government is devoted to producing increasing house prices.
  2. And IO mortgages that were created to rescue the over-indebted. Debts where there is an implicit acceptance of non-repayment but a lifetime of servitude. This does seem to be gaining traction. It offers a bleak future, unless you have parents who own a house and are in poor health.
  3. That will be why they are about to abolish inheritance tax on "the family home" making it different from cash and other investments. The special status of a house is practically enshrined in the constitution.
  4. Most welfare is no longer welfare as usually understood. It's going to those who can afford a mortgage and have 20k in savings for a deposit. And to landlords who want to increase btl portfolios. And to those who overstretch their finances to buy a bigger house. And to companies who employ staff in the south east to subsidise the wages of staff who can't afford housing. And of course to keep RBS lending to those who can't repay. Welfare has been redefined.
  5. Problem with cutting tax credits is that government is already lending money to homebuyers based on this "income". The benefits are leveraged to subsidise house prices. Also housing benefit is basically a HPI prop. Boris Johnson sqealled a lot last time they tried to cut it. Whatever they save in welfare, it will be dwarfed by the extra needed to keep the NHS afloat. The only growth is coming from the heavily subsidised, mostly nationalised housing market. I Don't see how they can cut the deficit.
  6. Yes......reluctantly I agree. I never let the facts get in the way of a rigidly held opinion. Cameron and Clegg are still sh1th0les though. I am hoping for a SNP government to sort out England and Wales. Should certainly hasten the HPC. I might then relocate back there.
  7. Tax or not a tax. OK I get that kids with poorer parents get a bursary, kids with rich parents get a 50k cheque from mummy and daddy to pay the fees, kids whose parents have property in Scotland are exempt. The point is, imagine yourself aged 55. Your rate of tax rate relative to your colleagues is being determined by the wealth and residence status of your parents 37 years ago. Does anyone not think this is an unfair tax? (apart from David Cameron, Nick Clegg and all the mainstream press?) It is also undemocratic because it was fashioned and voted in by LibDems like Danny Alexander whose seed will be exempt for the tax for the next umpteenth generations. As are all his constituents' children. When Dave talks about the constitutional threat from the SNP, he is forgetting that he created the current constitutional debacle.
  8. PER CAPITA GDP has fallen since 2010. The "boom" is all down to Dave's "no ifs, no buts" immigration policy.
  9. Interesting Andrew Neil on Politics show pointing out that per capita GDP has fallen since 2010. All the growth is down to immigration, so we have Gadaffi, Al Bagdaddi, and Assad to thank for the economic miracle of the Tories. One wonder whether the Jihadist chaos has been organised for their benefit?
  10. Was it signed by someone just called "Bill"? Because he also backed Ed Balls' economic plan.
  11. what happens with HTB? Instead of the home owner being liable for the 20% (non-existent) deposit, David Cameron has guaranteed it from the taxpayer. So you, I and every taxpayer (well not me actually, but the rest of you lot), are placed in the same position as the MN OP. We all owe the banks the non-existent deposits advanced to the feckless wannabe purchasers who can't afford to buy an overpriced home, but will anyway because they've been brainwashed. The pyramid has been nationalised.
  12. I wish people would stop calling it a tax. It's a tax that children whose parents have a house in Scotland get a lifetime exemption to: No wonder Vince Cable and Danny Alexander supported it.
  13. It was Gordon Brown in the midst of the so called credit crunch who gave a speech say his priority and focus of all his efforts was 'to get house prices moving again'. And he didn't mean downwards.
  14. Government of the Wilsons by the Wilsons for the Wilsons
  15. It's a bit like the 1970s when we had British Leyland, where a few thousand workers were paid by the state. We now have millions of workers being paid by the state if we include all the large banks and all the businesses (not just supermarkets) whose wage costs are subsidized by government. Such policies used to be the preserve of Militant Tendency and the Socialist Workers Party. They are now mainstream Tory orthodoxy.
  16. Exactly. The difference between all parties amount to a debate about how to rearrange of deckchairs on a ship heading for an iceberg. Nobody is suggesting a change of course. The Tories have arguably extended the welfare state to protect people who never before needed protection: investors, landlords, people in 1 million pound homes. I don't think Aneurin Bevan could have envisaged this outcome. Welfare spending going on doctors and teachers to assist them with buying homes for over 1/2 a million and to contribute to BTL portfolios.
  17. Not just supermarket workers: but nurses, physiotherapists, teachers, hotel managers, chefs, mechanics etc. As a qualified GP 15 years ago, I was earning an amount that would now, with 2 children, put me line for help from the state to house and feed my family. The welfare net has been cast wider and deeper than anyone could have imagined. And with housing assistance now going to folks buying £600k houses it is pretty obvious that government is financially supporting tiers of society that would have been deemed self sufficient 15 years ago. This has increased under the Tories, but all parties seem to have the same model to work to. And if house prices have to rise relative to pay (which is a OBR assumption) then more and more people will be relying on state subsidies. There is no such thing as "private sector". A supermarket worker is as much reliant on the state for income as is a NHS porter.
  18. The dichotomy in how houses are viewed in UK. As a financial asset when calculating net wealth, bragging at a dinner party or applying for a loan. A trinket of purely and intensely sentimental value when you're calculating tax liability, fall behind on loan repayments or go into residential care. Why should a house be any different to a vault full of gold to someone who is dead?
  19. The main interest in this is the LibDems pointing out that you can convert spending into assets by calling it a loan. So if you have government spending of £20bn, you can wipe this out and add 20bn to the assets by reclassifying spending as a loan. The deficit can be eliminated if they just call everything a loan. Health loans must be just around the corner. Obviously the BIG gain in the last 5 years is the fiscal miracle of wiping out higher education spending and adding a fictitious windfall of student finance to the positive side of the balance sheet. I can spend £100 on groceries and my net wealth increases by exactly £100. Magic.
  20. Once government decided to prop up the pyramid it became essential to attract new members. They can only do this by lending people the money to join the scam and offering to underwrite the first 20%. Dangerous game because it has to escalate indefinitely for it to work. It's like doubling the poker stakes when you have a pair of 4s. More schemes, bigger schemes, easier to enter schemes, no deposit schemes, indefinite interest free loans schemes, compulsory schemes. If they stop they lose. If they lose the banks lose. When the banks lose it is Armageddon.
  21. Prospect of the Ed and Alex show starting a 5 year run in Downing Street.
  22. Calling it a gifted deposit just obscures the purpose of the transaction. This is really a government payment of £30k that can be claimed by any homeowner who wants to sell and move up a rung on the housing ladder. Like all scams, finding the person who benefits is not always obvious and is almost never who the scammer tells you it is. In this case you must already own at least one property to claim your free gift.
  23. It does annoy me that people call it a tax, when children whose parents have Scottish property gain a lifetime exemption, irrespective of wealth, location, earnings. If it is a tax, it is unfairest tax imaginable. One hears all sorts of "unfair" accusations about mansion tax, but I've never heard a single politician say that it's unfair for a millionaire living in a mansion in St Andrews to be entitled to grant his children an effective 10% UK tax rebate for life, whilst the children of a hospital porter in a council house in Newcastle will pay an extra 10% until they're 55. I just don't get the fact that no politician from any of the main parties understands the disparity and the basic injustice of it.
  24. To be announced by Cameron today. Homes at 20% below market value, built on Brownfield sites with government subsidies. Only for under 40s FTBs. Quote from Eric Pickles: " the 2008 housing crash blocked millions of hard working creditworthy people from becoming home owners", confirms that in government's mind falling prices make it more difficult to buy a house and therefore the more prices rise, the easier it is for people to buy a home. They don't apply the same logic to fuel prices of course. The statement does make sense of the government's deliberate strategy to pump up house prices. Link on Sky News.
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