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dothemaths

Home Ownership: How The Property Dream Turned Into A Nightmare

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+1 very good from Faisal Islam. B)

Might even buy his book.

I think this thread got truncated... thanks, sorry there are 2 similar threads.

Edited by DarkHorseWaits

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Good Article, Ladder Street is a good way of presenting the issues.

I do wonder why all the media focus is on house prices (not just in this article)? Why is there so little broader discussion about house quality?The quality of housing stock is an issue too.

On ladder street i imagine 5 of those properties might be too small to swing a cat, 5 more would be in the badlands, and 10 might be well over 100 years old and in need of some serious refurbishment. 5 more might be buy to let...

There might be 27m houses in the uk. But few are of truly saleable quality. This has the effect of pushing prices of good quality homes ever higher... And poor quality homes lower. Overall it could be pushing the average price of all homes slightly higher.

What do you think?

Thames

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Good to see it becoming less of a fringe concern.

It did get me thinking about how much of a political influence BTL is becoming. Although they are a minority of voters, they probably are becoming a material concern to politicians, indeed many politicians may now be landlords themselves. 30% of the people I regularly associate with have a property they are renting out - non of them making any cash out of it, they're hoping for HPI to provide a return.

If we do see a 2015/16 correction, I do wonder if they won't get some special treatment because of this. Like the banks have. Re-nationalisation of housing stock?

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In the other Faisal Islam thread, it is quoted how btl loans worth btl mortgage companies have been supported by the taxpayer

They should have gone to the wall in 2007 but Gordon Bailout er bailed them out, enormously

What an evil man

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Big article in the Sunday Times about housing too today. Behind the paywall but the gist is that where a few years ago they would be unashamedly promoting HPI as a good thing, this article is much more nuanced - words like "crazy" and "bubble", showing the wide regional differences, stating that the Bank of Mum and Dad is now spent out, and describing H2B as a political bribe pumping up another bubble.

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Big article in the Sunday Times about housing too today. Behind the paywall but the gist is that where a few years ago they would be unashamedly promoting HPI as a good thing, this article is much more nuanced - words like "crazy" and "bubble", showing the wide regional differences, stating that the Bank of Mum and Dad is now spent out, and describing H2B as a political bribe pumping up another bubble.

Yes but there's a surrogate bank of mum and dad they are called HTB ,but I have been told they start to abuse the children after five years

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Except, of course, this simple model is entirely misleading. The housing market is not really a market for houses. The housing market is driven principally by the availability of finance, mainly mortgage debt, but sometimes bonuses, inheritances, or hot money from abroad – London in particular has become the preferred residence of the world's wealthiest people, from Russian oligarchs to Arab oil sheikhs.

This obvious reality is almost never mentioned in the MSM- always the narrative is that of 'supply and demand'- a view that implicitly supports HPI since it paints it as an inevitable side effect of fair market, rather than the consequence of an out of control financial sector.

The fact that the Government is now stepping in to ensure that the out of control lending of the past can now be continued using a taxpayer funded subsidy is a measure of how truly morally bankrupt our politicians have become- they will seek to win at any cost- even at the cost of dragging millions more into unsustainable debt.

With interest rates at a 300 year low anyone who partakes of the 'help to buy' cool aid will not have to wait too long to learn the folly of their decision.

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Was looking for a link to his book, it's out at the end of the month £14.99, but I noticed that the ebook version (for those with Kindles etc) is less than £7. Quite tempted as it sounds like there is a feast of bear food in it.

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Was looking for a link to his book, it's out at the end of the month £14.99, but I noticed that the ebook version (for those with Kindles etc) is less than £7. Quite tempted as it sounds like there is a feast of bear food in it.

I wonder, assuming the book is well argued, whether it would be worth posting a copy to my local MP. Or indeed all MPs

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Is that the one with the 2 Page thread on here?

To be fair to the OP the tittle of Eric's thread doesn't make clear it refers to Faisal Islam's article, nor mentions The Observer. I think that's why we had 3 or 4 other threads popping up.

.

Edited by Tired of Waiting

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I wonder, assuming the book is well argued, whether it would be worth posting a copy to my local MP. Or indeed all MPs

Too late now, it is nearly popcorn time (again) far too many negative forces working now (Middle east, India, etc. etc.) for there to be a happy ending to the debt "crisis", people will just have to learn as real world events unfold now IMO.

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