Jump to content
House Price Crash Forum
Sign in to follow this  
ONLYBONE

Government Report & Housebuilders Today

Recommended Posts

If I had the time I would look into the board of directors of housebuilders, lenders and MP's because you can bet your ass there is some collusion at some level. Isn't it amazing that yet again the government pushes out the crap about shortage of houses.

No one ever mentions that it is to do with the ridiculous planning restrictions imposed by the council, so they get big backhanders from developers to get planning permission, or the isane level of lending that has been doled out to SPECULATE on housing. You are not allowed to borrow money to buy shares, so why can you do it for housing - utter madness. Anyway, the ******** pack of lies issued by the government and the rise in housebuilder shares today does not take a genius to work out there is endemic corruption throughout the housing system. I just hope a quality journo picks up on this sooner rather than later. I'm afriad it is going to take a serious shock to rumble this cosy little club, beginning to think it isn't going to happen.

Share this post


Link to post
Share on other sites

If I had the time I would look into the board of directors of housebuilders, lenders and MP's because you can bet your ass there is some collusion at some level. Isn't it amazing that yet again the government pushes out the crap about shortage of houses.

No one ever mentions that it is to do with the ridiculous planning restrictions imposed by the council, so they get big backhanders from developers to get planning permission, or the isane level of lending that has been doled out to SPECULATE on housing. You are not allowed to borrow money to buy shares, so why can you do it for housing - utter madness. Anyway, the ******** pack of lies issued by the government and the rise in housebuilder shares today does not take a genius to work out there is endemic corruption throughout the housing system. I just hope a quality journo picks up on this sooner rather than later. I'm afriad it is going to take a serious shock to rumble this cosy little club, beginning to think it isn't going to happen.

Fatty Soames seems to appear in Private Eye quite a bit with reference to planning and housing interest conflicts. His bluster does show some neck (surprising given his many chins), and he appears to show no need to spin (maybe it would alter our orbit around the sun).

Right, there's one for the Tory Boys. Any for Nu Lab / Lib Dem?

btp

Share this post


Link to post
Share on other sites

I have never heard of this. I think you're mistaken.

Well, you can borrow money to buy what you like with, up to a certain level. But you can't borrow 5 x income at a low rate under the express purpose of buying shares. Why? because there is a fair chance that the shares may go down in value.

The question is, how does this differ from the housing market? Both houses and stocks have increased their nominal values by large multiples over the past 100 years. Both have had periods of nominal rises and nominal losses. Both are assets which carry a degree of risk. Why is borrowing for one encouraged and the other discouraged?

Is it perhaps the case that the banks want to lend us money so they can profit, and housing has been the most obvious vehicle to do this with because we need somewhere to live? This allows them to package the debt concept as being socially acceptable.

If they only lent e.g. 1x salary for a house purchase, then house prices would be much lower. But if they did this, they wouldn't make as much profit. It would be much more difficult for them to lend us 5x salary to buy shares, as most people would not be prepared to take this risk.

We are forced to take this risk with housing debt because we NEED somewhere to live. Hence rational decision making doesn't enter into the equation. Most people are not prepared to reject the debt and live on the streets. Hence we developed a culture of borrowing vast sums of money to put a roof over our heads, when in reality if the debt wasn't available to the same degree we would still be able to afford the same place to live (as it would be much, much cheaper).

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.