“Nasty Piece of work” Posted April 18, 2014 Share Posted April 18, 2014 I just winced at the thought. What if, interest rates stay low forever, state intervention in the housing market is indefinite and house prices to rise 20%pa as the population increases via mass immigration by the size of the city of Southampton every year. I am pleased to say it will end in misery for Joe Public. The politicians fed us this Richard sandwich, and it was gobbled down, with demands for seconds. The first casualties will be the half wits that over paid. It will end in tears shortly. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted April 18, 2014 Share Posted April 18, 2014 I can see this going on and on for years. Yes, it might well do. I am fully expecting housing to be difficult to obtain for much or most of my adult life. A problem of this size is not going to go away quickly. People from my generation have and are going to continue to have few economic opportunities compared to those born 20 or 40 years earlier. Unlike those older age groups, if you are an ordinary younger person with an ordinary job making ordinary financial decisions your material standard of living is going to be pretty basic. You're not going to starve, but insecure and low quality housing and insecure employment are both going to be recurring problems throughout much or most of your adult life. Government policy is going to make your material standard of living worse more often that it will make it better. You're going to find it hard to accumulate much capital out of wages, so what little capital you do manage to scrape together you should be very careful with. That probably means not gambling all of your life savings and half of your predicted future earnings on a shared ownership slavebox at the top of an asset price bubble and the bottom of the interest rate cycle. To have any chance at all of living what previous generations would have considered a normal adult life you are going to have to be very smart and very lucky. The free money gifted to dumb investors from previous generations will not be there for yours. Quote Link to comment Share on other sites More sharing options...
Guest TheBlueCat Posted April 18, 2014 Share Posted April 18, 2014 No! Raise interest rates, stop propping up house prices with taxpayers money and watch them all scramble to sell their buy to lets for whatever they can get for them. The badger option was funnier. Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted April 18, 2014 Share Posted April 18, 2014 The free money gifted to dumb investors from previous generations will not be there for yours. +1 Great post Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 18, 2014 Share Posted April 18, 2014 Often thought about that ,but always come up with, can they really be that daft ? or is it just part of a bigger plan yet to unfold or just short term greed fishermen overfish miners dig out mines oilmen frack the last out of every corner farmers overfarm and create dustbowls no wonder bankers overbank. Quote Link to comment Share on other sites More sharing options...
DarkHorseWaits-NoMore Posted April 18, 2014 Share Posted April 18, 2014 ...with an ordinary job making ordinary financial decisions your material standard of living is going to be pretty basic. You're not going to starve, but insecure and low quality housing and insecure employment are both going to be recurring problems throughout much or most of your adult life. ...[pessimistic view enabled] This could be the way we begin to equalise with the 3rd world in this globalisation of labour phase. Think it's impossible for high house prices to remain compared to incomes? Well just look at South Asia (places like Malaysia, corruption), where it's been this way for decades and recently got a lot worse and families still manage to buy a place. Relying on 2 earners and grand parents to look after the kids etc.Lets hope that this situation does not become the norm with ever higher shelter costs here in the west. Other parts of the world have failed to change things, how can we be different? Quote Link to comment Share on other sites More sharing options...
silver surfer Posted April 18, 2014 Share Posted April 18, 2014 Yes, it might well do. I am fully expecting housing to be difficult to obtain for much or most of my adult life. A problem of this size is not going to go away quickly. People from my generation have and are going to continue to have few economic opportunities compared to those born 20 or 40 years earlier. Unlike those older age groups, if you are an ordinary younger person with an ordinary job making ordinary financial decisions your material standard of living is going to be pretty basic. You're not going to starve, but insecure and low quality housing and insecure employment are both going to be recurring problems throughout much or most of your adult life. Government policy is going to make your material standard of living worse more often that it will make it better. You're going to find it hard to accumulate much capital out of wages, so what little capital you do manage to scrape together you should be very careful with. That probably means not gambling all of your life savings and half of your predicted future earnings on a shared ownership slavebox at the top of an asset price bubble and the bottom of the interest rate cycle. To have any chance at all of living what previous generations would have considered a normal adult life you are going to have to be very smart and very lucky. The free money gifted to dumb investors from previous generations will not be there for yours. Yes, that's about the shape of it. If you're not in with a shot at joining the top few percent then surely the smartest strategy for most people is to aim for a state job in an attractive but low housing cost area of the country. Either that or give up completely and go on benefits. Quote Link to comment Share on other sites More sharing options...
AdamoMucci Posted April 18, 2014 Share Posted April 18, 2014 A more fitting punishment might be to strap them in front of a television Clockwork Orange-style and make them watch all 775 episodes of Homes Under the Hammer back-to-back. The title sequence to that show really is disgusting. Houses made out of money. Really just sums up everything so well. Quote Link to comment Share on other sites More sharing options...
Venger Posted April 18, 2014 Share Posted April 18, 2014 Yes, it might well do. I am fully expecting housing to be difficult to obtain for much or most of my adult life. A problem of this size is not going to go away quickly. Going to still cling onto the hope this won't be the outcome, although do accept lower living standards in part, but balanced by opportunity for non-owners/savers, with opportunity with lower house prices. All those homes owned outright, or with high-level equity positions, now bid up to mega-high prices. What use is that to the banks, and I don't accept the argument of equity release profits for banks... as the MSE guy the other day spelled out is expensive. http://www.telegraph.co.uk/finance/personalfinance/10725991/Martin-Lewis-Five-unpleasant-truths.html Banks will want to lend, and will require HPC to do so. After all the buyers they're supposedly grabbing of the street who have no choice but to be forced to buy at crazy-high prices ("you expect them to rent?" as someone said the other day, and who meant it) Still going to hold on to the view there's a massive HPC event coming along to shock home-owners who think their lofty asset values are permanent. More so for those who think even more HPI coming along. It's when most think it's the bubble prices are the new normal when they're most prone to collapse, or so I once read in a finance book. Quote Link to comment Share on other sites More sharing options...
Guest Posted April 18, 2014 Share Posted April 18, 2014 Yes, it might well do. I am fully expecting housing to be difficult to obtain for much or most of my adult life. A problem of this size is not going to go away quickly. Yes, I fear this might be situation. It's dragged on for too long to be just part of a cycle. Since around about the turn of the century - that's a generation. But I for one am not going to sit quietly, shrug my shoulders and accept globalised living standards. We need to be shouting at every opportunity, and make them fight for every inch of public opinion. I will never accept a 'new normal' which means I have to be poorer than my parents and grandparents. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted April 18, 2014 Share Posted April 18, 2014 Yes, I fear this might be situation. It's dragged on for too long to be just part of a cycle. Since around about the turn of the century - that's a generation. But I for one am not going to sit quietly, shrug my shoulders and accept globalised living standards. We need to be shouting at every opportunity, and make them fight for every inch of public opinion. I will never accept a 'new normal' which means I have to be poorer than my parents and grandparents. No, I don't think we should accept it either. Given the physical and human resources at our disposal it should be perfectly possible for everybody in Britain to be decently housed. I will never again vote for a politician offering no meaningful solutions to the UK's land problem. I no longer care about tactical voting or which of the big 3 or 4 parties is the least worst. If they are not offering solutions to the land problem I am not interested, if they are then they will get my vote even if mine is the only one. If nobody on the ballot paper is offering solutions to the land problem I will spoil it. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted April 18, 2014 Share Posted April 18, 2014 I just winced at the thought. What if, interest rates stay low forever, state intervention in the housing market is indefinite and house prices to rise 20%pa as the population increases via mass immigration by the size of the city of Southampton every year. Oh and nobody builds any frakkin houses in numbers enough to house the population? I can see this going on and on for years. It already has done and is being trumpeted as a success all over the media. Renters don't matter, only voting boomers and pensioners aligned with banks and Westminster via BTL and housing equity. We've got years of this IMO. Maybe even a couple of decades. In 10 years time the average of the Boomer generation will be 75, the generation below them will be in high positions and prices out of housing. When the next lot of MP's get in London and find that they cannot afford to live there and they are not making anything as asset prices are not rising policy will change. Markets are rigged to have boom bust cycles so that the people in the know can make a fortune fom them. There has never been an inncident of prices going and staying high, and this time is no different. Quote Link to comment Share on other sites More sharing options...
Corruption Posted April 18, 2014 Share Posted April 18, 2014 In 10 years time the average of the Boomer generation will be 75, the generation below them will be in high positions and prices out of housing. When the next lot of MP's get in London and find that they cannot afford to live there and they are not making anything as asset prices are not rising policy will change. Markets are rigged to have boom bust cycles so that the people in the know can make a fortune fom them. There has never been an inncident of prices going and staying high, and this time is no different. The next generation of Cabinet MPs are the Blairs, Kinnocks, Straws and their school chums. Theyll be a worse crop then the current evil lot. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted April 18, 2014 Share Posted April 18, 2014 The next generation of Cabinet MPs are the Blairs, Kinnocks, Straws and their school chums. Theyll be a worse crop then the current evil lot. Worth quoting. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted April 18, 2014 Share Posted April 18, 2014 Yes, it might well do. I am fully expecting housing to be difficult to obtain for much or most of my adult life. A problem of this size is not going to go away quickly. People from my generation have and are going to continue to have few economic opportunities compared to those born 20 or 40 years earlier. Unlike those older age groups, if you are an ordinary younger person with an ordinary job making ordinary financial decisions your material standard of living is going to be pretty basic. You're not going to starve, but insecure and low quality housing and insecure employment are both going to be recurring problems throughout much or most of your adult life. Government policy is going to make your material standard of living worse more often that it will make it better. You're going to find it hard to accumulate much capital out of wages, so what little capital you do manage to scrape together you should be very careful with. That probably means not gambling all of your life savings and half of your predicted future earnings on a shared ownership slavebox at the top of an asset price bubble and the bottom of the interest rate cycle. To have any chance at all of living what previous generations would have considered a normal adult life you are going to have to be very smart and very lucky. The free money gifted to dumb investors from previous generations will not be there for yours. I'm disappointed now that i didn't take the opportunity to be first to like this. Whatever happens to others, I've peaked, topped out. Its not going to get any better than it is now. And what was it for? Quote Link to comment Share on other sites More sharing options...
pig Posted April 18, 2014 Share Posted April 18, 2014 No, I don't think we should accept it either. Given the physical and human resources at our disposal it should be perfectly possible for everybody in Britain to be decently housed. I will never again vote for a politician offering no meaningful solutions to the UK's land problem. I no longer care about tactical voting or which of the big 3 or 4 parties is the least worst. If they are not offering solutions to the land problem I am not interested, if they are then they will get my vote even if mine is the only one. If nobody on the ballot paper is offering solutions to the land problem I will spoil it. Came to that conclusion a while back. The 'housing/land bubble problem has become so fundamental and amazingly, so neglected, there is little point on voting based on any other issue. QT a week or so ago was interesting. I can't help thinking that before long I may not be one of the few. Quote Link to comment Share on other sites More sharing options...
blobloblob Posted April 18, 2014 Share Posted April 18, 2014 Jonathan Davis will be on Stephen Nolan's show on Five Live tonight talking generation rent. Email questions to nolan@bbc.co.uk or tweet @StephenNolan http://www.bbc.co.uk/programmes/b040lqbg Quote Link to comment Share on other sites More sharing options...
Corruption Posted April 18, 2014 Share Posted April 18, 2014 Came to that conclusion a while back. The 'housing/land bubble problem has become so fundamental and amazingly, so neglected, there is little point on voting based on any other issue. QT a week or so ago was interesting. I can't help thinking that before long I may not be one of the few. I cant see property prices being other then a bit part of the debate at this upcoming election, though the cost of living crisis will be! Maybe in 2020 or 2025 it'll be the main agenda if the bubble is still being inflated. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted April 18, 2014 Share Posted April 18, 2014 (edited) Who wants to rent forever ? ... Edited April 18, 2014 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted April 18, 2014 Share Posted April 18, 2014 The next generation of Cabinet MPs are the Blairs, Kinnocks, Straws and their school chums. Theyll be a worse crop then the current evil lot. +! Quote Link to comment Share on other sites More sharing options...
pig Posted April 18, 2014 Share Posted April 18, 2014 I cant see property prices being other then a bit part of the debate at this upcoming election, though the cost of living crisis will be! Maybe in 2020 or 2025 it'll be the main agenda if the bubble is still being inflated. I thought the same up to a few months ago - people seem to be joining the dots however, is a year too short a time ? Here are a few topical issues 1. Cost of living crisis: Shelter 40%> income and rising, going up at 17% a year ? 2. Inflation is under control: Who cares ? See 1. 3. Economy picking up: Based on a land bubble ? 4. Housing Benefit Cuts: What are you doing pumping house prices then ? 5. Cuts generally - we can't afford the NHS etc: See 1. 6. Education: Lovely cocktail of debt we're creating here. 7. UK competiveness: See 1. 8. Energy Prices: This is not good, but then again look at 1. 9. Home building: Anybody remember how capitalism was supposed to work ? 10. ITs OK The BoE and The Office of Budget Responsibility...: Bring back the Ministry of Silly Walks all is forgiven. 11. Vote UKIP then: Gandalf the Grey would be more useful. 12.. Its the mess we inherited: Lol! And so on. Quote Link to comment Share on other sites More sharing options...
Corruption Posted April 18, 2014 Share Posted April 18, 2014 I thought the same up to a few months ago - people seem to be joining the dots however, is a year too short a time ? Here are a few topical issues 1. Cost of living crisis: Shelter 40%> income and rising, going up at 17% a year ? 2. Inflation is under control: Who cares ? See 1. 3. Economy picking up: Based on a land bubble ? 4. Housing Benefit Cuts: What are you doing pumping house prices then ? 5. Cuts generally - we can't afford the NHS etc: See 1. 6. Education: Lovely cocktail of debt we're creating here. 7. UK competiveness: See 1. 8. Energy Prices: This is not good, but then again look at 1. 9. Home building: Anybody remember how capitalism was supposed to work ? 10. ITs OK The BoE and The Office of Budget Responsibility...: Bring back the Ministry of Silly Walks all is forgiven. 11. Vote UKIP then: Gandalf the Grey would be more useful. 12.. Its the mess we inherited: Lol! And so on. All of that aside, we are talking about EvenNewerLabour and most notably Ed and Ed bringing the debate to the table that house prices are overvalued and millions are priced out whilst trying to pretend they are nothing to do with it despite the fact they were Browns right hand men. To add they'd love a bit of Help to buy if they were in power. Gidiot and Dave now deny a bubble ever existed and are keen for prices to shoot up asap. Clegg is just a moron who doesnt have a clue whats going on in the real world or his own, and Farage/UKIP arent going to go to far from the EU referendum line. Quote Link to comment Share on other sites More sharing options...
Guest Posted April 18, 2014 Share Posted April 18, 2014 All of that aside, we are talking about EvenNewerLabour and most notably Ed and Ed bringing the debate to the table that house prices are overvalued and millions are priced out whilst trying to pretend they are nothing to do with it despite the fact they were Browns right hand men. To add they'd love a bit of Help to buy if they were in power. I have absolutely zero faith that Labour will even go as far as admitting the potential possibility of this being a possible problem. In their minds, property prices rising faster than wages is the sign of a successful economy. They have no clue - they get their houses bought for them on expenses. Quote Link to comment Share on other sites More sharing options...
Corruption Posted April 18, 2014 Share Posted April 18, 2014 I have absolutely zero faith that Labour will even go as far as admitting the potential possibility of this being a possible problem. In their minds, property prices rising faster than wages is the sign of a successful economy. They have no clue - they get their houses bought for them on expenses. It really is an odd bunch of misfits who control us. I wouldnt have even bullied these freaks at school as they are that weird i'd have been fearful of them bringing an axe in the next day to do me! Quote Link to comment Share on other sites More sharing options...
Venger Posted April 19, 2014 Share Posted April 19, 2014 Who wants to rent forever ? ... Quote Link to comment Share on other sites More sharing options...
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