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House Price Crash Forum


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About Sumsio

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    HPC Newbie
  1. Bit harsh I have read some absolute drivel spouted by some of you losers on here........ End of the day as much as you fantasise about what the government or the large multi-national companies may do.....one simple fact will never change and that is you will helpless to change any of it...............get on with your life and enjoys the good things that the world has to offer I made a couple of points on here and you call me dumb and retarded.......when I have seen such stupidity written by some of you lot! 99% of the world populations' lives are governed by emotions, whether it 's the feeling you want to eat, feeliing you want to feel healthier, feeling you want a better life...governments prey on this emotion........... All I was saying was debt is a necessary factor of life......we all need debt as it creates productivity i.e. the man with the fishing rod who lent his fish to his other inhabitants so they to could make their own fishing rod.... The thing about inflation & debt is that it works in our economic favour as we can make purchases now that are paid of more easily as our wages rise, without debt that would not be possible. We have more disposable income, with gives us greater consumption, better health facilities etc etc...what was a good thing we let run out of control but I think the method is the correct and debt is necessary........as look at today's lifestyles compared to those 50 years ago
  2. Debt and inflation together works in our benefit though as assets we purchased in previous years gets paid off quicker......i.e. houses I mean wage inflation but with wage inflation you also get asset inflation...is wage inflation necessary? I would say so, because no one would like to work on the same money for their whole life...it's a motivator that increases productivity and part of the sociological environment we live in....inflation is necessary for productivity (wage inflation) and therefore debt could be a good thing as it would erode faster and would be more beneficial to the economy as whole instead of deferred consumption where the asset cost is higher................
  3. Sorry but thinking about this more logicaly Barry is correct. 25% of people may stimulate the economy by drinking, smoking and buying luxury plasma TVs etc... but then another 25% will be saving their hard earned pennys for a deposit and not buying the rubbish aforementioned - hence the reason the UK will be entering a recession, despite the fact the everyone's disposable income wiil have sky-rocketed due to a reduction in mortgage payment (but suppose that is taking into account in GDP)!
  4. So is Europe heading the same way as Japan? If so I understand from a website that house prices slightly crashed between 87-89 (akin to 2007-2009 crash) following a few years of stable prices (akin to our 2009-2011 period) and then boom free-fall crash in property prices 92--95 - is this where we are heading and NIRP will do nothing to prevent it?
  5. http://www.telegraph.co.uk/finance/china-business/8870677/US-and-Britain-avert-currency-war-by-securing-agreement-with-China-to-let-yuan-rise-in-value.html What are your thoughts?
  6. So I assume if you pay an employee in your own created currency, no income tax is taken on that income by the Govt. Then if that employee uses the created money to buy goods in the town where they are accepted, no VAT is taken from the Govt. and so on and that would go! Or even you could part-pay in the sovereign currency and part in your own created currency, where you only need to pay tax on the proportion of sovereign currency (which you maybe accept from outside traders and can be used to purchase goods outside of the town) but for the swapping of the goods and services in that town - no tax is paid! - surely there must be a law to prevent this!
  7. I'm not sure what you're saying? Is it that as cost of living rises, demand for property falls and therefore property prices will fall anyway? As renting or buying your cost of living will be the same as you pay for your electric, gas, food etc in both situations. I once read somewhere that as the value of the money you hold decreases you're better having your money in asset because at least that will always be worth something to someone.
  8. If all is this is true then surely the best option for a first time buyer is buying in the next few months and getting the best tracker mortgage available? If you find a house that you like and the mortgage interest works out to be less than what you are paying in rent to your landlord then surely buying would be a better option than renting now. This is of course taking into account that you will not be earning interest on your deposit, paying building insurance etc. and settting aside funds for any maintenance issues that may arise with your new home. The downfall in this plan is if the BOE raise interest rates, which would then make your mortgage interest payments greater than what you would be paying in rent. But with the economy in this current mess, could you reasonably foresee the BOE raising the interest rate anything about 1% over the next 5 years. Households have taken on so much debt that any interest rate above this would surely mean that many households would not be able to afford their mortgage repayments leading to them defaulting on their loans and causing another financial crisis for the banks / economy. After 5 years you could then have paid a sufficient amount off your capital to afford your mortgage repayments if interest rates exceeded 1%. In the meantime you could also expect your salary to have risen somewhat and this compensating for the additional repayments. It is also worth considering that your rental rates would also rise over this 5 year period anyway but you would also be earning more interest on any deposit you have in the bank. This article and thread really has got me thinking that buying now is a good idea. I have previously been telling my parents and my girlfriends parents that the low rate is just seducing young first time buyers into buying as they can actually afford the repayments at today's interest rates but if they were to rise...then we would be in trouble (i.e falling house prices and higher repayments). What I would really like to know is whether there are any strong reasons why the Bank of England may raise interest rates over the next couple of years? I'm getting more and more confused everyday!
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