The Masked Tulip Posted January 2, 2011 Share Posted January 2, 2011 Sky News running a HPC item today. Will post link when one is available. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 2, 2011 Share Posted January 2, 2011 But it only goes up in value doesn't it? Quote Link to comment Share on other sites More sharing options...
winkie Posted January 2, 2011 Share Posted January 2, 2011 But it only goes up in value doesn't it? Funny how people buy a car knowing it will depreciate in value...but get all upset and touchy when their bricks do the same thing.... Quote Link to comment Share on other sites More sharing options...
non frog Posted January 2, 2011 Share Posted January 2, 2011 Property is not an "investment" it is a speculative purchase. For some time now speculation has been the way to get rich. No one gets rich doing anything you make your fortune speculating. It will take some time before this mentality goes away, if ever. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted January 2, 2011 Share Posted January 2, 2011 Sky News running a HPC item today. Will post link when one is available. Ohh sounds exciting can't wait for the link Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted January 2, 2011 Author Share Posted January 2, 2011 Ohh sounds exciting can't wait for the link 'A House Is A Home Not An Investment' http://news.sky.com/skynews/Home/Politics/Housing-Minister-Grant-Shapps-Says-Home-Ownership-Should-Not-Be-A-Long-Term-Investment/Article/201101115877964?lpos=Politics_First_Home_Article_Teaser_Region_3&lid=ARTICLE_15877964_Housing_Minister_Grant_Shapps_Says_Home_Ownership_Should_Not_Be_A_Long-Term_Investment Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted January 2, 2011 Share Posted January 2, 2011 'A House Is A Home Not An Investment' Only when it's going down in price. Same with people working, in the boom they were just people working, but now they are hard-working families. Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 2, 2011 Share Posted January 2, 2011 Beyond the obvious death of runaway HPI, there is very little to take comfort from in this development. SCHAPPS: "I think the answer is house-price stability." LORD OAKESHOTT: "......high house prices were a "curse for the young" and called for greater acceptance of renting............"We must end our unhealthy British obsession with owner occupation for all,". Sounds like a permanently high plateau or real falls of 2% per year for a while at best. And renting for most. Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 2, 2011 Share Posted January 2, 2011 I assume Schapps and Oakeshott both rent or own only one home. Let's see if their actions match the words. Remember Gordon Brown. I think its worse than that. They are explicitly saying that high nominal falls (2007-9) are bad. Real falls + steady yields on rental portfolios are good. HPI is dead, but a substantial nominal HPC will be resisted. A bad day for bears (and 2011 is barely out of its new wrapper). Quote Link to comment Share on other sites More sharing options...
R K Posted January 2, 2011 Share Posted January 2, 2011 (edited) My prediction for 2011:- Schapps will unveil an 'innovative' (he likes that word) mechanism for first time buyers, which the Tories have agreed with the taxpayer funded banksters, involving a short-term subsidy to fund an FTB deposit (and long-term debt instrument, obviously) which the banksters can dress up into some rehashed form of securitisation and sell to the pension funds. Think Thatcher's Right to Buy for council houses but for the private sector. Mark my words (h/t ham) Edited January 2, 2011 by Red Karma Quote Link to comment Share on other sites More sharing options...
R K Posted January 2, 2011 Share Posted January 2, 2011 They need to do something to kick start HPI otherwise they will never win the next election. They will also need to ensure the non-repossession policy continues, so may be SMI 2 as well. It's a carry across from the Tory plan for funding higher education. Shapps claims that houses are overpriced for young people and thus wants to engineer long term 'price stability' i.e. prevent further falls but he has NO qualms whatsoever about plunging the same young people into tens of thousands of new debt to finance Universities' salaries. Applying the Tory solution to education to housing, you end up with a long-term (deferred) debt instrument used to fund an FTB deposit. It's entirely consistent with Tory thinking and policy, whatever words fall from his lips. Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 2, 2011 Share Posted January 2, 2011 My prediction for 2011:- Schapps will unveil an 'innovative' (he likes that word) mechanism for first time buyers, which the Tories have agreed with the taxpayer funded banksters, involving a short-term subsidy to fund an FTB deposit (and long-term debt instrument, obviously) which the banksters can dress up into some rehashed form of securitisation and sell to the pension funds. Think Thatcher's Right to Buy for council houses but for the private sector. Mark my words (h/t ham) Plus SMI2 and house prices included in CPI (guaranteeing lower interest rates for longer). This lot are arguably more dangerous than the last lot. Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 2, 2011 Share Posted January 2, 2011 You do realise that with this plan in place the youth of today will be have massive debts for life and will probably have to 'spend' the majority of their earnings paying interest to the banks. Slavery by the banks without any of the obligations. TPTB will consider this a job well done. Trebles all round. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 2, 2011 Share Posted January 2, 2011 I'm constantly amazed that I ever believed there was anything known as a 'market'. Its a ladder, not a market. Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 2, 2011 Share Posted January 2, 2011 Further evidence of the conspiracy: - Basle II rule changes (increased bank capital) have been kicked into the long grass for 5-8 years - Banking bonus "legislation" (more precisely the lack of any co-ordinated, long-term global solutions with teeth) Bears are in danger of winning the intellectual argument (house prices are too high), but losing the real war (actually buying a cheap house). Like trying to win the Tour de France without doping. All your competitors are juiced up (with the implicit support of the cycling authorities). Either you join them or play another sport (equivalent of leaving the country). Quote Link to comment Share on other sites More sharing options...
juvenal Posted January 2, 2011 Share Posted January 2, 2011 (edited) Has this Observer interview with Schapps actually been published yet? Until we can see what he said in its entirety it's hard to comment. All I can find is references to bits of the interview. Edited January 2, 2011 by juvenal Quote Link to comment Share on other sites More sharing options...
athom Posted January 2, 2011 Share Posted January 2, 2011 'A House Is A Home Not An Investment' http://news.sky.com/skynews/Home/Politics/Housing-Minister-Grant-Shapps-Says-Home-Ownership-Should-Not-Be-A-Long-Term-Investment/Article/201101115877964?lpos=Politics_First_Home_Article_Teaser_Region_3&lid=ARTICLE_15877964_Housing_Minister_Grant_Shapps_Says_Home_Ownership_Should_Not_Be_A_Long-Term_Investment the problem with this idea with prices how they are or prices falling very slowly as the article says is ideal a house can not just be a home when it is also a chronically bad investment. Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 2, 2011 Share Posted January 2, 2011 the problem with this idea with prices how they are or prices falling very slowly as the article says is ideal a house can not just be a home when it is also a chronically bad investment. Looks pretty peachy if you already own one (or 2, or 20). Quote Link to comment Share on other sites More sharing options...
sundance_kid Posted January 2, 2011 Share Posted January 2, 2011 I suspect it's useless looking for answers from a Government that doesn't know what to do. They're attempting to appeal to all in a useless gesture. It has it all. A nod to those young and priced out, appeasements to land lords about greater acceptability to renting and relaxes existing home owners about price stability. The reality is any movement in the housing market is detrimental to the Government now. Down and the banks collapse, up and the mortgage market slows even more. Any additional support becomes a greater burden to the country's finances. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted January 2, 2011 Share Posted January 2, 2011 Beyond the obvious death of runaway HPI, there is very little to take comfort from in this development. SCHAPPS: "I think the answer is house-price stability." LORD OAKESHOTT: "......high house prices were a "curse for the young" and called for greater acceptance of renting............"We must end our unhealthy British obsession with owner occupation for all,". Sounds like a permanently high plateau or real falls of 2% per year for a while at best. And renting for most. Why? Schapps and SureShot don`t have control over this, they are just opening their bums on TV and making noise. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted January 2, 2011 Share Posted January 2, 2011 Further evidence of the conspiracy: - Basle II rule changes (increased bank capital) have been kicked into the long grass for 5-8 years - Banking bonus "legislation" (more precisely the lack of any co-ordinated, long-term global solutions with teeth) Bears are in danger of winning the intellectual argument (house prices are too high), but losing the real war (actually buying a cheap house). Like trying to win the Tour de France without doping. All your competitors are juiced up (with the implicit support of the cycling authorities). Either you join them or play another sport (equivalent of leaving the country). House prices are falling. The media now acknowledges it. Quote Link to comment Share on other sites More sharing options...
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