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Realistbear

Sky: A House Is A Home, Not An Investment--Grantley Schnapps

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http://uk.finance.yahoo.com/news/-A-House-Is-A-Home-Not-An-skynews-1645095998.html?x=0

'A House Is A Home Not An Investment'
Sky News
2011, 7:16, Sunday 2 January 2011
Home ownership should no longer be seen as a long-term financial investment, according to Housing Minister Grant Shapps.
Calling for a new era of stability, he said it was "horrendous" that house price growth had so outstripped earnings since the 1990s.
In an interview with The Observer, he suggested the Government could help to limit further price rises by encouraging the building of more homes.
He also apparently spoke of a "rational" market in which house prices fell in real terms, by increasing by less than earnings.../
Liberal Democrat peer Lord Ponce-Fergit Oakeshott said 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
the prolls," he said.

Lord Oakeshot needs to call for cheaper houses not cheaper rent--misses point 100%. Let them eat cake........................

Perhaps they are waking up and smelling the sh*t they have caused by allowing HPI to go rampant for so many years.

Money where mouth is Mr. Schnapps:

1. Hike CGT to top rate of tax

2. Double council tax for multiple homes

3. BTL tax and rent controls

4. yes--do encourage more building.

Edited by Realistbear

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http://uk.finance.yahoo.com/news/-A-House-Is-A-Home-Not-An-skynews-1645095998.html?x=0

'A House Is A Home Not An Investment'
Sky News
2011, 7:16, Sunday 2 January 2011
Lord Oakeshot needs to call for cheaper houses not cheaper rent--misses point 100%. Let them eat cake........................
Perhaps they are waking up and smelling the sh*t they have caused by allowing HPI to go rampant for so many years.
Money where mouth is Mr. Schnapps:
1. Hike CGT to top rate of tax
2. Double council tax for multiple homes
3. BTL tax and rent controls
4. yes--do encourage more building.
All that needs to happen is the following:
1. The FSA bring in all the controls they currently intend - No IO mortgages, sensible enforced multiples of earnings, no self cert AND NO REMORTGAGING FOR CONSUMPTION - ONLY EXTENSIONS AND LOFTS ETC. Possibly a property tax for over £1.5m homes on a sliding scale upwards, starting at £5k pa up to max 50k pa for the mega expensive homes in London.
2. Interest rates need to be brought back to 5-6% more or less immediately, with savers getting just returns for suffereing inflation of 4.6%RPI. At present the banks are having an unnecessary ball with the largest margins in history.
3. The above will assist a fairly quick adjustment in prices of about 25-40% lower over 18 months. Hey presto, the FTB will be back, so long as they can prove an income. Prices will then remain stable so long as lending criteria are retained. THERE WILL BE ALOT OF MOENS FROM HOME OWNERS AND A WAVE OF REPO'S. But when it's over, the market will run properly again. People who work and save a 5-10% deposit will buy homes in their late 20's early 30's and trade up a few times thereafter. But massive unwarranted equity gains will cease.
What Grant Schnapps needs to remember is that home owners of the last 15 years never expected to have their homes increase by 4 times and wages by once. The fact is high house prices/booms and bust has been a major factor in the decline of Britain as a competitive manufacturing nation. If he needs that explaining to him, then God help us all. Both Labour and the tories are guilty of allowing runaway house price inflation over the last 50 years, and then claiming wew were having a worthy boom and increase in living standards. It has failed. Germany shows you that. They export high quality goods around the world and are not obsessed by homes as investment vehicles. their living standards far exceed ours. Their post war achievement needs to be understood. Sadly, it could have been us aswell
Edited by plummet expert

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http://uk.finance.yahoo.com/news/-A-House-Is-A-Home-Not-An-skynews-1645095998.html?x=0

'A House Is A Home Not An Investment'
Sky News
2011, 7:16, Sunday 2 January 2011
Home ownership should no longer be seen as a long-term financial investment, according to Housing Minister Grant Shapps.
Calling for a new era of stability, he said it was "horrendous" that house price growth had so outstripped earnings since the 1990s.
In an interview with The Observer, he suggested the Government could help to limit further price rises by encouraging the building of more homes.
He also apparently spoke of a "rational" market in which house prices fell in real terms, by increasing by less than earnings.../
Liberal Democrat peer Lord Ponce-Fergit Oakeshott said 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
the prolls," he said.

Lord Oakeshot needs to call for cheaper houses not cheaper rent--misses point 100%. Let them eat cake........................

Perhaps they are waking up and smelling the sh*t they have caused by allowing HPI to go rampant for so many years.

Money where mouth is Mr. Schnapps:

1. Hike CGT to top rate of tax

2. Double council tax for multiple homes

3. BTL tax and rent controls

4. yes--do encourage more building.

BTL will get their comupance once IR go up. Lower house prices means lower rents and a higher deficit to find on their mortgage repayments.

I predict BTL insolvancies to be sky high in the coming years anyway.

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The government are free market ideologues and will do nothing to interfere with the housing market. This "announcement" is significant only in that it suggests the government will not try to prop up the market, assuming of course anyone is stupid enough to believe anything they say. Non story #1 of 2011.

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Taxation will not solve any of this.

I'd be more interested in Schapps if he delivered a consistent message about house building.

He can't deliver a consistent message about house building. He's a minister of the central government. Local communities are now in charge of building houses. His boss said so.

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BTL will get their comupance once IR go up. Lower house prices means lower rents and a higher deficit to find on their mortgage repayments.

I predict BTL insolvancies to be sky high in the coming years anyway.

+1

I really can't stomach the concept of B(orrow)TL as opposed to B(uy)TL. It just seems a perverse concept to me. Buying a property to let with money that is already earned and yours is one thing, and lets face it, we really do need a decent rental market in the UK despite the occasional landlord bashing, we can't all be owner occupiers. But borrowing the money to buy a property (if is not a bona fide letting business) to let just sticks in the throat with me.

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+1

I really can't stomach the concept of B(orrow)TL as opposed to B(uy)TL. It just seems a perverse concept to me. Buying a property to let with money that is already earned and yours is one thing, and lets face it, we really do need a decent rental market in the UK despite the occasional landlord bashing, we can't all be owner occupiers. But borrowing the money to buy a property (if is not a bona fide letting business) to let just sticks in the throat with me.

There is of course career landlords and those who jumped on the bandwagon with a view to makes loads of money in a short space of time will indeed be wiped out. Mainly because they jumped on too late and rode the wave of hype up to the peak.

There are, for some strange reason, people out there who are still B-T-L.

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1. Hike CGT to top rate of tax

2. Double council tax for multiple homes

3. BTL tax and rent controls

4. yes--do encourage more building.

So raise someone elses taxes and add more regulation is your great solution. Hmm, sounds rather familiar Realist Bear. I can see we'll have to keep an eye on you :)

Hi all.

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He can't deliver a consistent message about house building. He's a minister of the central government. Local communities are now in charge of building houses. His boss said so.

Marvellous and long overdue.

Now wait and watch all the nasty little District Councillors suddenly sign up for their Parish Councils so they can try to dictate and control.

The power base is at long last going back to the man on the street.

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Marvellous and long overdue.

Now wait and watch all the nasty little District Councillors suddenly sign up for their Parish Councils so they can try to dictate and control.

The power base is at long last going back to the man on the street.

And how many houses do you think the man in the street is going to want built in his, er, street?

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  • 317 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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