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House Price Crash Forum


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Everything posted by Biggus

  1. OK, maybe there could be some extreme uses, like heavy industry or a skyscraper. But yes, in general, if you own land you should be able to do as you please with it. Otherwise how can you claim to own it? Going off on a bit of a tangent I've noticed a massive number of trailer park type residences springing up all over the UK. People are paying thousands to lease a small section of a field with a caravan in it, like in USA. That would be OK, if the farmer was not then charging a couple of thousand pounds per year rent, on top and then making a pile from selling expensive utilities, like water and electricity. Anyone buying a trailer park home wants their head examining.
  2. It is his land, he should be able to do as he pleases with it. The NIMBYs should either compensate him or buy the land if they want to restrict how he uses his own property. The backwards view that the NIMBYs should control all land withing 20 miles of their own home is ridiculous.
  3. Some genius at the BOE decided that getting everyone to spend all their money on imported crap would 'get the economy going!'. It might be true that there is a small uptick in gdp as people buy the new TV or ipod or other plastic consumer item, then the money leaves the country and is invested in something productive in China or Germany. This very small uptick in GDP, reason the sages at the BOE, will make us all rich. While investing in productive assets is for fools. Don't try to understand it. It's insane. After five years of this nonsense we are in the worst depression since the black death. And I am being serious, this depression is literally the worst in hundreds of years. I think we can say with some degree of certainty, then, that the policy is a failure. But that will not stop them. We are now at the point where a change in policy will be an admission of the complete and total stupidity of the MPC. So the same old garbage, will be churned out indefinitely. So you expect more of the same in perpetuity. Zero percent interest rates, to force all capital abroad, bailouts for banks, the state being larger than the productive economy and so on. They will not stop voluntarily. Indeed, I'm not sure they even understand they are doing something wrong, in spite of the economic disaster that surrounds us. In the mean time you get to live in a country where saving and investment is not sensible, where nobody can afford to buy a house, where there is massive inflation and where there is no job security.
  4. The public sector is the only sector of the economy where unions have any real power. The entire Labour party is a paid lobby group for public sector unions. That's why they get fantastic pay deals and pensions. Traditionally public service paid less than industry but was secure, steady work. But these days a government job is a golden ticket. I've no particular animosity to public sector employees. They are just doing the best they can in the circumstances they find themselves. But I am against a system where you either work for the state, a bank or a shop or you are unemployed. My feeling is that it would be better to have a smaller state and a more balanced economy.
  5. 'To retire at 65 on £30,000 a year requires a pension pot of £600,000' That's got to be one of the worst 'investments' it is possible to make. If you kept the cash under your mattress you could spend 30k per year until you were 85. If you bought random stocks with your money you would probably come close to 30k in dividends and you would still have the shares. Pensions are a rip off, plain and simple.
  6. This must what it was like to live in Rome at the time Caligula made his horse a senator. All one can do is face-palm the abject stupidity of the Bank. There is no reasoning with them. They are insane.
  7. The most interesting quote from that article is this. ‘The costs of evicting a non-payer can be horrendous. You might lose £3,000 in rent but add to that £6,000 in solicitor’s costs to get them out and £10,000 to refurbish the property when it’s finally empty. Think how long it would take to make that sort of money back.’ Sounds like the voice of experience. The geniuses who are snapping up low end rentals in the expectation of incredible wealth would do well to take note. The risks of huge losses are all too real. A loss of 16k would push many into bankruptcy.
  8. Where would you invest money in modern Britain? Seems to me your options are pretty limited. It's the Bank of England's policy to prevent people saving or investing in productive enterprise. That only leaves trying to preserve your wealth with commodities or assets of a fairly fixed value (not price). Not being able to invest in a productive enterprise and increase your investment is a symptom of the failed policies the worthless Bank of England.
  9. Yes, I can see why you would think that. But I disagree with factoring in every possible circumstance. People should be given a flat living wage and that's that. It could be paid automatically by the inland revenue, as a negative income tax, with very little admin and very little fuss. The payments could taper so that people who work are always better off. That way money is saved, there is an incentive to work, people are not degraded by jobsworths at the dole office and there is a safety net for all. Milton Friedman described the system in a video you can find on YouTube. That is the system I thought UC was going to be. It would be fair, it would cut out fraud, it would be simple and it would be cheap. But instead UC is an administrator's dream. It will be expensive and will simply punish the poor for being poor. Admin will probably costs as much as the payments themselves. The system is a nonsense.
  10. I lived in a bedsit when I was a student. It was an awful experience. Then again, you can guarantee some mug will work out the maximum amount of money they can repay each month, if they live on beans on toast and never go out, and offer the biggest loan they can find for a rubbishy one room cell.
  11. UC seems to have been designed by bureaucrats to make work for themselves. Instead of making the system as simple as possible every possible 'but what if...' has been factored into a set of incredibly complicated rules. UC will probably end up costing more than the current system, due to all the extra admin that needs to be done. So the poor will lose, which seems to be Duncan Smith's main aim and the taxpayer will lose. The only winners will be jobsworths working for the state. The whole thing reeks of incompetence.
  12. When the Universal Credit was first announced I was quite optimistic. It sounded like the system was going to be simplified and a bunch of admin taken out, kind of like the negative income tax system described by Milton Friedman in Free to Choose. How wrong I was. Instead Universal Credit is a crusade against the poor. That despicable oaf Ian Duncan Smith, who is behind this confirmed this is the case. 'This is not about saving money.' He said it clearly. This is plain and simple a nasty little man with a chip on his shoulder, driven by bizarre self righteous ideology, attacking the unfortunate. If there was full employment I would understand cutting benefits back. But this is the worst economic depression for centuries. What an awful man.
  13. Half a million pounds would buy a mansion in Provence and enough securities to live comfortably for the rest of your life. How can a terraced house in an area of the country famous for being a crap heap possibly be worth so much? Weren't there riots in Brixton in the 80s? I seem to remember it being a no go area. The London bubble is astonishing.
  14. A while back I read a book called The Great Crash about the Wall St crash of 1929. The book describe massive falls of two or three percent in a day, as though this was some kind of incredible phenomenon. These days falls of two percent in a day, followed by an inevitable rise of a similar amount in the next day's trading are the norm. The market turmoil of 'the great crash' would not seem unusual these days. The only difference is that central banks manipulate the price of stocks back up again immediately, as stock prices are an economic indicator. (In before tin foil hat.)
  15. There's a great chart in that BBC article that shows this depression is much worse than the so-called 'great depression'. And there is a long way to go before this one is over. Even when there appears to be some glimmer of a recovery increasing interest rates by thousands of percent, just to get back to the mean, is going to start a new cycle of mal-investment liquidation. The alternative is eternal stagnation. Mervyn King being appointed governor of the BOE has got to rank up with the worst economic disasters in the whole of history. His policies have had a much worse effect than the 1970s stagflation and the great depression and he has done more damage than either world war Right now he ranks alongside the South Sea bubble and the mini ice age in terms of GDP loss. By the time his policies are unwound I guess he maybe third in the worst economic calamities in British history, the Black Death and the withdrawal of Rome being the two that were (possibly) worse. So far his crackpot zero percent interest rates and printed money being given for free money to bankrupt institutions have dragged us down into poverty for more than five years. It has done nothing to improve the economy and a huge, painful correction is still needed. There is no exit strategy and no plan to ever increase interest rates in the future. Given his way Mervyn will keep interest rates at zero percent for two years, five years, ten years and a hundred years. The depression will never end. People could be starving in the streets and he will argue that things would be worse if he wasn't printing money to drag out the pain forever.
  16. At what point do central banks admit that forcing down interest rates is not beneficial for the economy? It's been five years of crippling economic depression so far. Year after year after year of misery. But policies that clearly haven't worked for the best part of a decade are just repeated forever. We are in the worst depression for centuries. This level of incompetence is quite astonishing. Einstein said that doing the same thing over and over and expecting different results is insanity. For about 20 quarters the MPC has forced down interest rates, encouraging debt, stealing from savers, rewarding the incompetent and bailing out the foolish. The entirely predictable and expected result has been 5 years of economic depression. So what do they prescribe? More of the same, of course! If it hasn't worked for half a decade, that just means we need to keep doing the same thing! They are quite mad.
  17. Be glad the bubble was in housing and not food. I feel sure Mervyn King would have half the country starve to death before he allowed a single bank to go bust. As it is he has utterly ruined the lives of tens of millions, casting much better people than him,into poverty. He is a despicable weasel of a man.
  18. That is shocking. In normal times, when the world is not being run by gibbering morons, you get 6% compound for just leaving your cash in the bank. What's that, about 300 pounds per month on 50k? No agents fees, no voids, no insurance costs and no risk. You get interest on the interest and your money doubles every 7 years or so. In those circumstances buy to let is a ridiculous proposition. People are chasing awful yields on depreciating assets because of the Bank's life destroying policies. The lowest interest rates in the whole of history. It is crackers.
  19. It's easy to make a loss on low end houses. Nobody who has any choice will to live there, so you are stuck with the worst possible tenants. Housing benefit, which they will definitely be on, is paid direct to the tenant. You can be assured they will keep it and spend it on smack. You will need to pay a fortune in legal fees to have them evicted. By that time the heating, wiring and plumbing will have been ripped out and sold for scrap. By the sounds of it they burn the place down for a laugh. If you want to actually live there you need to be prepared to deal with gangs of idiots hanging around all night, attempted burglarys and so on. There is a reason slum housing is cheap. Be assured, 'canny' investors have already attempted to use them as a get rich quick scheme. I expect a few more suckers will need to get fleeced on this type of house before this starts to sink in, though.
  20. Rightmove asking prices do not reflect current market conditions. For the most part houses just sit there indefinitely, never being sold. If you do put in an offer you will be messed about by delusional agents, inventing phantom bidders and so on. People who advertise on Rightmove do not really want to sell and will just waste your time. The only real market is the auction room. You will typically get a much lower price than from an estate agent and there is no messing about, playing dickish estate agent games. You just buy and you are done. If you want to know what a house is worth look at the sold price in auction catalogs.
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