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House Price Crash Forum

AAA

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Everything posted by AAA

  1. I don't understand why government uses our taxes to pay wages of waitresses or cleaners!!! Are it these viable jobs? What will be a problem if they apply for unemployment benefits instead, and couple of pubs go bankrupt? This is total madness and it will not end up very well.
  2. As long as there is demand for this sort of housing there is nothing to be moaning about. It is better to concentrate on other issues such as why there is demand for low quality housing and why people are ready to pay outrageous prices for it.
  3. If we consider that 25% of UK workforce were sitting at home on furlough with salary paid by the government for 7 months, the idea of total debt forgiveness starts looking not so illogical. These sort of expectations were created by the government's policies that are rewarding moral hazard. The goverment is determined to keep bubble inflated so their rich mates can become richer. It doesn't matter how much it will cost in terms of public debt, or currency or even the whole economy - they are ready to trash everything for their personal benefits.
  4. I doubt that many UK investors have large portfolios of US or German stocks that are indeed going very strong. UK stock market was very weak for a while, most people are sitting on large paper losses and will unlikely realize these losses to shift their money to property.
  5. So what is the problem? Houses are places to live. Their morgage will still be less than the rents.
  6. Only rich homeowners and rich landlords can afford to pay more raxes in the current situation. However, most of our goverment officials and MPs are rich homeowners and/or rich landlords. Will they raise taxes for themselves? I really doubt they will.
  7. 1. Implement capital gain tax on both primary residence and second homes 2. Abolish Help to Buy 3. Reduce Housing Benefit 4. Remove caps on council tax 5. Introduce Land Value tax
  8. The asylum system needs to be reformed completely from scratch. The current rules are obsolete, do not reflect realities of modern society, and have too many loopholes. The asylum needs to become exceptional grant rather than systematic. As a rule it should be only available for application through embassies overseas where it is possible to confirm both identity of the applicant and circumstances of the application. If applicant came via third country which is regarded as save, he/she should be reffered back to this country for application. Asylum is intended to provide protection to weak and vulnerable people, however, it is abused by economic migrants who are wealthy in their society with ability to pay expensive smuggling fees. Also it is used mostly by young men while senior people, women and children are left behind.
  9. The whole UK economy is based on either the house speculation, or parasiting on working people by charging outrageous rent on their basic need for a shelter. The government policies are directed only towards keeping house prices and rents absurdly high. As a result UK doesn't have much other industry left. Even housebulding activity cannot grow as the government wants to reduce supply. Huge banking sector suffers from low profitability as interest rates are kept artificially low. Everyone wants to become either a landlord or a house flipper. Why would you try to innovate or take risks if it is much easier to participate in government induced housing bubble. It is very unlikely that we will have successful technology sector while most of the resourses are directed to speculators and rentiers.
  10. I agree that some people may loose but doubt there will be millions on streets as rents will fall to more affordable level. Despite spending £25bn a year on housing benefits we still have plenty of homeless people and the government seems to be quite comfortable about it. At the same time each successful claimant gets on average £5500 of rent subsidy. Doesn't seems to be a fair system to anyone except rich landlords.
  11. My understanding is that UBI will be introduced as a replacement of all other benefits. Rents will not increase if we get rid of housing benefit which is in essence a subsidy for rich landlords and the main driver for outrageous level of rents. I expect the rent will become more affordable as many people will decide to move away from the expensive areas and poor quality houses.
  12. Also, government finances are in much better shape in Germany with government debt to GDP ratio at about 60% vs almost 90% in the UK. In addition Germany has strong export industry so they don't have problems how to finance huge trade deficits. At the same time it seems that German furlough scheme costs much less to their taxpayers. According to the article 12 months extension will cost thrm only 10bn euros. UK government pribably spends about same amount to run their scheme every month.
  13. If UBI is not enough to cover rents in London then people can suppliment UBI with other income. Or they can move out of London and let the rents fall. Housing benefit is a corrupt system to subsidise rich landlords at taxpayers expense and squeeze all money from the working people. It needs to be abolished asap.
  14. Furlough is a scam run by rich elites to protect and increase their wealth at taxpayers' expense. Instead of subsidizing up to £3000 per employee to companies, the government could just improve access and size of unemployment benefits. This would provide better support to unemployed for a fraction of costs.
  15. FED does not have tools to directly control rate of inflation as they cannot purchase goods and services. In the past they could change interest rates and hope that inflation will move in desirable direction. Now, as interest rates are fixed at zero, they cannot use this tool anymore. At the moment the only tool they are left with are asset purchases, which they actively use now to create asset bubbles for the joy of rich elites. However, the markets are becoming disconnected with the reality and increasing share of assets are held by governmental institution, which start resembling a communist economy.
  16. Property crash has been just postponed by corrupt government's policies to protect their personal wealth and wealth of their rich relatives and mates at taxpayers' expense.
  17. Most people don't need to invest in shares. Even if you have spare money there are vast number of other choices available such as bank deposits, bonds, commodities etc. However, a house is a basic necessity for anyone. You need to live somewhere so there is no a choice. The government's policies to prop up the property market is a genocide of poor renter minorities for the benefit of rich homeowner/landlord majorities.
  18. I don't believe there will be house prices crash. Elites is too committed to keep asset prices inflated and protect their own wealth regardless of the cost of such policies. Rather I think we now have an increasing probability of a full scale currency crisis within the next few years.
  19. They probably wouldn't because they are millionaires and billionaires with lots of wealth in a housing market. Their relatives and mates will be unhappy too if they are required to pay tax on their wealth. It is a corrupt system existing for the benefit of riches.
  20. All this furlough nonsense was done mainly to prevent house prices from falling. So taxing capital gain on houses would be a fair way to repay furlough costs.
  21. The capital gain tax on primary residence should have been introduced long time ago. However why they are proposing tax at just 10% if capital gain tax on other assets is 28%? Primary residency should be taxed at the same rate as any other asset. Plus, we need to review concil tax and remove any caps applicable to it as it benefits only riches at the moment.
  22. We can only blame stupid and corrupt government that in the past few years was focused on inflating housing bubble to protect and increase their personal wealth. Economy and currency was trashed, interest rates kept too low for too long so there wasn't ant cushion left to absorb the negative effect of corona crisis. Even now billions of taxpayers money are funneled to protect rich landlords, business owners and banks instead of supporting real economy.
  23. I suspect that in many cases mum and dad would borrow money from a bank and lend it to their child for their house's deposit. So the deposit is in fact another loan which is not disclosed on the child's mortgage application.
  24. Help to Buy is a criminal system. It makes everyone to lose. Housebuyers are paying inflated prices. Banks are giving loans that will soon go underwater. Government loans money that are unlikely to be ever repaid. The real beneficiaries are rich landlords, and construction company shareholders/directors who parasite on taxpayers money and the working class.
  25. Planning system is an instrument to sqeeze money from the working people while keeping riches richer and happier.
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