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Fairies Wear Boots

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Everything posted by Fairies Wear Boots

  1. I had an unemployed friend in London who reckoned he needed to get a job paying 30K to be as well off as not working. He was only getting 65£ a week in the hand.
  2. I thought spring bounce would last three months, so I look at it that I used to be quite optimistic, and now I'm having to admit it's not going as fast as I would have liked. As for CPI rising and wages staying stagnant, it doesn't really seem to be having much of an effect. Repossesions haven't been going up. Weren't they less last quarter than the quarter before? GDP is flat, only slightly rising. People are paying their mortgage, buying less stuff. Pity the governments plans rely on growth, maybe they should re-assess their plans, and take an axe to housing benefit. There is a shed load of a saving to be had there. The base rate being where it is means houses don't look too overvalued, BTLers survive, repos haven't been having much of an effect.
  3. That's exactly how I feel. I'm starting to lose hope of a rate rise. But I think it's in for a penny, in for a pound. It just seems impossible for house prices to properly rise so no worries about buying, but this Mexican Standoff, and lack of forced sellers could go on for years.
  4. Farout. I just did the maths (went to a mortgage calculator). Interest only at 3.5% is cheaper than rent! And if I took 10 percent off what I guesstimated the place is worth, renting would be 7 pounds dearer. But I guess when you meant cheaper by what you will have saved.
  5. Ooof. It seems to me that most people know what the problem is, but most in power decide that taking our medicine now is not the best option. Damned if we do, damned if we don't. But at least by not pressing the 'pay back' button, you won't be blamed for bringing the economy to a juddering halt.
  6. Well given that the North East went down ten percent and London managed to rise over the last year, I guess so. I'm afraid I believe the undersupply theory. We don't have a decent housing stock and lots of people have been forced to live at home, and cram in. Which they will still do when the market comes down in price because of the lack of a credit bubble. The only thing is ours is coming down at a very slow pace and places like America and Ireland where you can see rows of new build empty houses it's obvious to everyone which way the market is going.
  7. It doesn't balance out does it? People who don't care to downsize have spare rooms going to waste. Meanwhile developers take nice sized houses, chop them into flats and people pay shedloads for a small poky flat, when a while back they would have bought the whole house. As for Reckless lending is the only answer, I'd really like to be able to put people who say this up against a wall and shoot them. I can understand the housing market being cyclical, and people getting caught up in bubble mania not believing there isn't going to be another bust. Those that flatly deny the possibility of another bust, like Krusty AllSlop, really annoy me. But those who want to get another bubble going before we've finished the bust cycle really take the biscuit.
  8. Yes. But there are people in this country who are turning 16, don't work, aren't going to work and their Mum lives in a council house and is on benefits. Maybe they shouldn't move out, but then there are other examples,the disabled etc. I was mainly talking about those who wouldn't have the nous to get off their bums and build a log cabin if it were economically viable. Totally agree with building land should be cheap. Though I'd rather go for a one in one out policy on immigration. Not that it would be easy to implement. As for Gaddaffi, I think people want the right to choose. They see an authoritarian regime telling them what to do. And for the bits they don't like, they dislike the regime for. The whole idea with communism was for the people. It's just implementing it that is the hard part. Especially when the educated think they should be able to sell their skill set for what they can get for it.
  9. Reasonably. I think they should have social housing, instead of paying the private sector housing benefits. Land rationing shouldn't be allowed. If they're going to let 300,000 more people enter the country than leave per year, then they should damn well build some more houses. I think one thing that your statement ignores is that some people will be so poor as to not be able to afford a house. Therefore you are going to need the state to sort them out with one.
  10. So because an extra 44K have been put in social HOUSING, homelessness could spread to the middle class. Why doesn't it say something like... and they're going to run out of social housing? It says housing benefit cuts have been savage. Then goes on to say those classed as homeless have been put into bedsits. So does this mean if you can't get a place for housing benefit money you will go into a bedsit, costing the tax payer more? It seems like the rise of rough sleeping is mainly down to recession putting migrants who don't qualify for housing benefit on the street. I'm guessing these migrants aren't middle class. Damn good reporting though. Makes a lot of sense.
  11. Ha. That's funny. They jumped on the ladder, probably lied about how much they earnt too. Thought they'd grab themselves a slice of that HPI pie. Now the banks are ringing them up and telling them they should be eating baked beans on toast. Maybe Northern Rock should put out pamphlet, 101 things to make with Baked Beans.
  12. I totally disagree. People expect that when they go down a retail bank in this country and deposit their money, that they are going to get their money back. And I think that is fair enough. When you and Purple slug talk about the banks taking it on the chin, if they go bankrupt, it's not. It's the savers and/or the savers protection fund that takes a hit. Sure the banksters are out of a job, but if they can gamble with other peoples money to make a fortune then they are going to do that in order to get some big bonuses.
  13. It'd be a lot more funny if we had some rate rises. The servicing of the mortgage from the paltry rent they receive. House prices dropping two percent a month again. Damn you bank of England, you spoil all my fun.
  14. Yeah, but I don't believe it. If they were stupid enough to go through another round of queasing, it will become apparent to all that Zimbabweism and starvation is the road we are going down.
  15. From the original article... When interest rates return to sane levels, as they’ll have to if the Bank is to cope with runaway inflation, people are suddenly going to start finding that their mortgage burden becomes rapidly insupportable. All this at a time of high inflation, high fuel prices, high food costs. But somehow there is this view on here that Britain can get away with another round of Queasing. A base rate of 0.5 percent for the next ten years, while inflation stays at 5 percent and no wage rises. Our economy is already suffering from queasing. We have high inflation. Peoples living standards are falling. And surprise surprise there is no growth in the economy. We still have to implement austerity measures.
  16. Printy printy. The nuclear option. As you rightly say, inflation tears everybody up. If they do another round, the pound will drop and it will soon become evident that this 'cure', is worse than the symptoms. Sanity has to prevail at some stage.
  17. this is probably why growth is aneamic. Those who spend all of their salary, suddenly can afford five percent less. The degradation of peoples living standards isn't going to help GDP. And then the pound will start sliding. Inflation will rise even higher. And suddenly we'll need rate rises so we can buy stuff from overseas. I quite agree with the first part. They are hoping for growth, but the rising cost of living is scuppering that. Print some more money, worsens the rising price of living. They may attempt another round of money printing. But if it worsens inflation, growth remains sluggish, and the pounds slides, the markets have to take notice sometime.
  18. Things can't go on like this without consequences. If we have a lower standard of living, and GDP falls, then our gilts will start to look bad. Our currency will lose even more value.
  19. Sorry, that just seems quite wrong to me and ignores lots of things. For a start, we only seem to have CPI inflation of 5 percent. Not wages. So, if it carries on like this, people are going to be able to buy less and less (stuff in the shops) and our economy is going to take another knock, and we won't be hitting growth figures. Their ability to buy a house isn't really going to go up, because their wages hasn't. Secondly if our inflation figure keeps on at five percent per year, then interest rates will have to rise or something. We have the BofE saying it's OK having five percent inflation because it hasn't transferred through to wages. If inflation keeps up like this it will start to transfer through to wages. Then we'll be having the rate rises our housing market couldn't take.
  20. I caught up with an old workmate who knows I am a HPCer. He put the family home up in Melbourne, Australia up for auction, and it received no bids from the public. He reckon it's finally going down over there.
  21. 4 percent for ten years? I wonder whether the base rate will still be at 0.5 in ten years time? I'm starting to think it will.
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