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apom

Interesting Question For The Government

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Remember the only people who have made money from property are ones who have now sold..

the ones that have percieved equity are now loosing money.

and remember also..

If we all bought at these prices then the economy would collapse as we were all too much in debt..

We, and our earning powers are all that stands between the UK and certain demise financially..

I may draft an E-mail to the Labour party and ask

"If House prices stay where they are and all First time Buyers took up mortgages to the current cost, could the economy support the extra debt required?

Essentially can current prices be sustained in housing within the greater Economy? I only ask as I am interested in buying.. Please do not avoid the question. Simply answer. With long term average numbers of First Time Buyers buying at todays prices, can the current economy support the current house prices?

Please note that if you refuse to answer or skirt the question I will presume that it can't. If it was possible to support these prices it would be an answer you would love to give, if you do not answer it is because you are not wanting to say that current house prices are unsustainable"

Might be interesting.

or funny...

here was the e-mail to the labour party

I am considering entering the housing market. I am concerend by the current cost of housing and the impact that the debt burden required to maintain these costs might have on the Economy.

I will need this question answered.

Remember, you are the elected government here to serve me. I respect that, but I will insist that you answer the below question accuratly.

You can understand that I need to know the answer to the below.

If House prices stay where they are and all First time Buyers took up mortgages to the current cost, could the economy support the extra debt required?

Essentially can current prices be sustained in housing within the greater Economy? I only ask as I am interested in buying.. Please do not avoid the question. Simply answer. With long term average numbers of First Time Buyers buying at todays prices, can the current economy support the current house prices?

Please note that if you refuse to answer or skirt the question I will presume that it can't. If it was possible to support these prices it would be an answer you would love to give, if you do not answer it is because you are not wanting to say that current house prices are unsustainable

Thank you for your prompt reply

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Whilst I have nothing but contempt for Nu Labour, they cannot be held responsible for house price inflation. It is a result of the actions of millions of individuals.

Would you hold them accountable if general inflation had trebled? What's the difference, other than the fact they chose to exclude this element from the inflation indices?

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they will send you an impressive home office notepaper response by a typist at number 16.

it wont say anything other than. thanks for your letter ect. you may as well write to jim i'll fix it.

best to email your local MP.

or write to the conservatives and ask why they changed lending laws in 1996 so that BTL investors could lend in chains. this is what made the whole boom possible. a case then of awaiting favourable IRs. 2001.+

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"If House prices stay where they are and all First time Buyers took up mortgages to the current cost, could the economy support the extra debt required?

That question is not drafted terribly well. FTBs who buy indeed take up mortgages as required by current costs. It means the average FTB is in mid 30s, has a good job and more than a year's net salary saved up. The economy is doing well enough for FTBs to repay their loans but only because the poor cannot afford to buy. It would make little sense to rephrase the question along the lines of "if everybody who wants to buy did at current prices, could they afford it?"

Essentially can current prices be sustained in housing within the greater Economy? I only ask as I am interested in buying.. Please do not avoid the question. Simply answer. With long term average numbers of First Time Buyers buying at todays prices, can the current economy support the current house prices?

Please note that if you refuse to answer or skirt the question I will presume that it can't. If it was possible to support these prices it would be an answer you would love to give, if you do not answer it is because you are not wanting to say that current house prices are unsustainable"

They might well say "No, it cannot. So what?". Crash Gordon has already admitted there is a bubble. There are all sorts of things you can criticise the governement for but it is a fact that bubbles in various assets regularly happen worldwide. It may not be in the power of any democratic governent to prevent bubbles from happening. Not encouraging bubbles is a different matter entirely, and one that the current lot could be justifiably criticised for.

I will need this question answered.

Remember, you are the elected government here to serve me. I respect that, but I will insist that you answer the below question accuratly.

You must have ideas well above your station if you think the government is here to serve you personally. Maybe it will catch on. Let me try insist the governent do something I want and see how far that gets me.

Thanks,

MoD

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That question is not drafted terribly well. FTBs who buy indeed take up mortgages as required by current costs. It means the average FTB is in mid 30s, has a good job and more than a year's net salary saved up. The economy is doing well enough for FTBs to repay their loans but only because the poor cannot afford to buy. It would make little sense to rephrase the question along the lines of "if everybody who wants to buy did at current prices, could they afford it?"

They might well say "No, it cannot. So what?". Crash Gordon has already admitted there is a bubble. There are all sorts of things you can criticise the governement for but it is a fact that bubbles in various assets regularly happen worldwide. It may not be in the power of any democratic governent to prevent bubbles from happening. Not encouraging bubbles is a different matter entirely, and one that the current lot could be justifiably criticised for.

You must have ideas well above your station if you think the government is here to serve you personally. Maybe it will catch on. Let me try insist the governent do something I want and see how far that gets me.

Thanks,

MoD

The Question was not if people can afford it.. Its if the Economy can afford it..

And if they are not here to serve me personally.. Well, they can feel free to ignore me..

and with a years salary saved and what good job..?

lol.. I have a good job... But I live in Devon..

its about debt levels... and the economy.. not debt levels and the individual.

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Perhaps if they could have put a stop to massive mortgage fraud we would also not be in this situation

Go look over on C4 forums regarding the topic 'Remortgaging with a new lender' - makes me sick!

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The Question was not if people can afford it.. Its if the Economy can afford it..

Can you explain that a bit better? If you do not mean the question was whether the economy could provide house buyers with opportunities to earn money for loan repayments then what do you mean?

and with a years salary saved and what good job..?

lol.. I have a good job... But I live in Devon..

There are places where house prices are more out of touch with local incomes than in others. I believe that professional FTBs can still afford to buy somewhere livable in most parts of the country, provided they can save up around a year's gross income for the deposit. I am not commenting on their ability to also have a life, kids, or to trade up in the future. Neither am I commenting on the prospects of the rest of the population.

What is your point apart from "I don't like this"? It is always more convincing if you blame the government for something specific, especially given how much they happily provide us with to choose from.

its about debt levels... and the economy.. not debt levels and the individual.

If you are going to send questions to the government and *insist* that they answer then it would be better if the questions were clearly phrased. What debt levels are you talking about? Consumer, government, or company? You really need to explain this carefully if you expect them to take you seriously. I would be worried if they took lessons on macroeconomic management from everyone who writes in.

Thanks,

MoD

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The Question was not if people can afford it.. Its if the Economy can afford it..

And if they are not here to serve me personally.. Well, they can feel free to ignore me..

and with a years salary saved and what good job..?

lol.. I have a good job... But I live in Devon..

its about debt levels... and the economy.. not debt levels and the individual.

Apom - do yourself a favour and ignore MongerofDoom. He is simply a troll who believes he "wins" a discussion by typing vast quantities of drivel. He doesn't realise that people simply want to discuss things, and insists on throwing down a few thousands words and demanding that you refute them.

If you let him make the rules, you have to play his game.

Ignore, ignore, ignore. <_<

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Whilst I have nothing but contempt for Nu Labour, they cannot be held responsible for house price inflation. It is a result of the actions of millions of individuals.

It was Gordon Brown's £5 billion a year tax raid on pensions that dealt the final death blow to people's confidence in pensions in this country, and caused them to turn to property as an alternative.

No doubt Nu Labour's answer to your question, Apom, would be "Of course, the economy can support unlimited amounts of debt without any deleterious effects on growth for an infinite amount of time. Debt is no problem! Borrow, my son, and be a good Labour debtor."

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  • 301 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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