keef Posted June 18, 2013 Share Posted June 18, 2013 Wonder if anyone will listen to them? http://www.bbc.co.uk/news/business-22949429 Building Societies are warning of the danger of a house price bubble, unless the government takes action. The Building Societies Association (BSA) said the government needs to have an exit strategy from its Help to Buy scheme. Without that it said there was a danger of "a seriously distorted housing market, and the very real risk of a future price bubble". Probably not ... Quote Link to comment Share on other sites More sharing options...
winkie Posted June 18, 2013 Share Posted June 18, 2013 When the bubble bursts....who will be left holding the baby? Quote Link to comment Share on other sites More sharing options...
inflating Posted June 18, 2013 Share Posted June 18, 2013 Of course, I could take this and similar warnings at face value and assume they're trying to wake up a dopey chancellor. Or we could see it as being a deliberate or incidental thing that turns into GO's get out of jail free card so that he calls off the scheme, merely to heed the industry experts' warnings. Or it could be that these 'warnings of more HPI' push people to buy sooner or now rather than later as they fear further HPI, whether designed to do that or not I wouldn't know. Feel free to shoot me down, as am simply speculating because experience suggests some cynicism is often called for in this life Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted June 18, 2013 Share Posted June 18, 2013 Of course, I could take this and similar warnings at face value and assume they're trying to wake up a dopey chancellor. Or we could see it as being a deliberate or incidental thing that turns into GO's get out of jail free card so that he calls off the scheme, merely to heed the industry experts' warnings. Or it could be that these 'warnings of more HPI' push people to buy sooner or now rather than later as they fear further HPI, whether designed to do that or not I wouldn't know. Feel free to shoot me down, as am simply speculating because experience suggests some cynicism is often called for in this life More likely, and as most people don`t have the means to buy at peak prices the chances of another bubble is Zero. Building societies are probably so up to their necks in bad property loans that putting about the fantasy of returning property bubbles is all they can do now All I am hearing just now is people desperate to offload property, and not having great success. Quote Link to comment Share on other sites More sharing options...
MrPin Posted June 18, 2013 Share Posted June 18, 2013 More likely, and as most people don`t have the means to buy at peak prices the chances of another bubble is Zero. Building societies are probably so up to their necks in bad property loans that putting about the fantasy of returning property bubbles is all they can do now All I am hearing just now is people desperate to offload property, and not having great success. That sort of adds up the the "news" about "asking prices"! Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted June 18, 2013 Share Posted June 18, 2013 That sort of adds up the the "news" about "asking prices"! Old landlord told me he will be lucky to break even on the 2002 price. Time will tell I suppose, but sentiment has shifted where I am. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted June 18, 2013 Share Posted June 18, 2013 interesting. They want a scheme extension as an exit option? Quote Link to comment Share on other sites More sharing options...
Giordano Bruno Posted June 18, 2013 Share Posted June 18, 2013 Of course, I could take this and similar warnings at face value and assume they're trying to wake up a dopey chancellor. Or we could see it as being a deliberate or incidental thing that turns into GO's get out of jail free card so that he calls off the scheme, merely to heed the industry experts' warnings. Or it could be that these 'warnings of more HPI' push people to buy sooner or now rather than later as they fear further HPI, whether designed to do that or not I wouldn't know. Feel free to shoot me down, as am simply speculating because experience suggests some cynicism is often called for in this life Shoot you down? I think it is a good summary of the possibilities. I favour the third possibility. I believe the whole purpose of the present policies is to stoke up a housing bubble or to rescue the present one which is slowly deflating. Quote Link to comment Share on other sites More sharing options...
easy2012 Posted June 18, 2013 Share Posted June 18, 2013 When the bubble bursts....who will be left holding the baby? The general population through inflation ? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 18, 2013 Share Posted June 18, 2013 THEY WISH !!! Quote Link to comment Share on other sites More sharing options...
21stcenturycentralbankers Posted June 18, 2013 Share Posted June 18, 2013 I usually get shot down in flames on other places for this, but house prices are massively overpriced today. There is only really one winner in all this, the Banks who create money, and loan it out at interest over decades, great if you can get it. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted June 18, 2013 Share Posted June 18, 2013 I usually get shot down in flames on other places for this, but house prices are massively overpriced today. There is only really one winner in all this, the Banks who create money, and loan it out at interest over decades, great if you can get it. ..it's the government which is keeping HPs artificialy high...there are many under water 'assets' around.. Quote Link to comment Share on other sites More sharing options...
21stcenturycentralbankers Posted June 18, 2013 Share Posted June 18, 2013 ..it's the government which is keeping HPs artificialy high...there are many under water 'assets' around.. Exactly, Government keeping them high, Banks make the money. Quote Link to comment Share on other sites More sharing options...
Billy soy Posted June 18, 2013 Share Posted June 18, 2013 ..it's the government which is keeping HPs artificialy high...there are many under water 'assets' around.. Governments, Banks what is the difference any more. Boe is supposed to be politically neutral, we know it is'nt now. Most of the banks rely on the state, the state relies on q.e via boe, the tories rely on bankers donations about 50% right now from the city iirc. Their interests have merged and they have begun to as well. Quote Link to comment Share on other sites More sharing options...
ccc Posted June 18, 2013 Share Posted June 18, 2013 Old landlord told me he will be lucky to break even on the 2002 price. Time will tell I suppose, but sentiment has shifted where I am. Yes. Unless i had a lovely detached house in one of the better school catchment areas, or a snazzy new town flat - i would hate to be trying to sell anything in Edinburgh right not. Very little happening anywhere. Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted June 18, 2013 Share Posted June 18, 2013 Wonder if anyone will listen to them? http://www.bbc.co.uk/news/business-22949429 Building Societies are warning of the danger of a house price bubble, unless the government takes action. The Building Societies Association (BSA) said the government needs to have an exit strategy from its Help to Buy scheme. Without that it said there was a danger of "a seriously distorted housing market, and the very real risk of a future price bubble". Probably not ... I like the danger of "a seriously distorted housing market, and the very real risk of a future price bubble". What's this danger bit? We are already in a seriously distorted housing market and price bubble. Quote Link to comment Share on other sites More sharing options...
21stcenturycentralbankers Posted June 18, 2013 Share Posted June 18, 2013 I like the danger of "a seriously distorted housing market, and the very real risk of a future price bubble". What's this danger bit? We are already in a seriously distorted housing market and price bubble. "What could possibly go wrong"? Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted June 18, 2013 Share Posted June 18, 2013 I usually get shot down in flames on other places for this, but house prices are massively overpriced today. There is only really one winner in all this, the Banks who create money, and loan it out at interest over decades, great if you can get it. There is another winner. If it takes lot of income to buy an house then that means two workers and two lots of income tax for the government. In 1998 it was 3 times main income plus 1 times second income. 3 x 17k plus 1 x 8k = 59k same as the average house price. Now it's 4 times joint income in many cases = 4 x (£25k + £15k) = £160k. In 1998 a decent main income meant the second earner could stay at home and look after the children. Joint income mortgage multiples created more tax revenue for the government. Applying 1998 lending criteria to wages now lending should be 3 x £25k + 1 x £15k = £90k High house prices = debt slavery. An extra £70k debt to pay mortgage interest on. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 19, 2013 Share Posted June 19, 2013 There is another winner. If it takes lot of income to buy an house then that means two workers and two lots of income tax for the government.,,,,,,,,,,,, High house prices = debt slavery. An extra £70k debt to pay mortgage interest on. High house prices = debt slavery. An extra £70k debt to pay mortgage LIAR LOAN interest on. Quote Link to comment Share on other sites More sharing options...
Ologhai Jones Posted June 19, 2013 Share Posted June 19, 2013 This could be a worrying time for the HPC crowd. I know it is for me. Many will have a pot of cash that's a real struggle (if not impossible without substantial risk) to maintain the real terms value of. Up until recent months, the bank interest rates were hovering around the official rate of inflation, and, in any case, house prices were only going sideways (nominally). Both of those 'comforts' no longer seem to apply: real terms value of savings is reducing, and the asset that those dwindling savings are intended to buy in due course is increasing (and looks possible to increase more). It worries me anyway. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted June 19, 2013 Share Posted June 19, 2013 I like the danger of "a seriously distorted housing market, and the very real risk of a future price bubble". What's this danger bit? We are already in a seriously distorted housing market and price bubble. The danger is that people might notice. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted June 19, 2013 Share Posted June 19, 2013 This could be a worrying time for the HPC crowd. I know it is for me. Many will have a pot of cash that's a real struggle (if not impossible without substantial risk) to maintain the real terms value of. Up until recent months, the bank interest rates were hovering around the official rate of inflation, and, in any case, house prices were only going sideways (nominally). Both of those 'comforts' no longer seem to apply: real terms value of savings is reducing, and the asset that those dwindling savings are intended to buy in due course is increasing (and looks possible to increase more). It worries me anyway. Your words chime with me, to a degree. But, Carney will have to be able to keep a bubble inflated in the face of wages which are losing pace with life's essentials at a few percent a year, and already at real levels last seen when the millennium bug was a recent concern. Unless banks/Govt. are literally going to throw money at the housing market, it has only one way to go. It is taking a long time, mind. Quote Link to comment Share on other sites More sharing options...
CrashedOutAndBurned Posted June 19, 2013 Share Posted June 19, 2013 I think the bubble's underway. A few people I know seem to have brought forward house buying plans fearful that these schemes will pump up the market and don't want to have to endure another boom! Self-fulfilling prophesy. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 19, 2013 Share Posted June 19, 2013 Your words chime with me, to a degree. But, Carney will have to be able to keep a bubble inflated in the face of wages which are losing pace with life's essentials at a few percent a year, and already at real levels last seen when the millennium bug was a recent concern. Unless banks/Govt. are literally going to throw money at the housing market, it has only one way to go. It is taking a long time, mind. Do you see the graph turning ? If anything real world price drops accelerating. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted June 19, 2013 Share Posted June 19, 2013 Do you see the graph turning ? If anything real world price drops accelerating. Indeed, and the punchline is that despite the precipitous decline seen by the chart, the simultaneous destruction of wages means it is still a long way from any support base. Quote Link to comment Share on other sites More sharing options...
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