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Randall Herbert

Brown To Help Ftb's - In All The Wrong Ways As Usual

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Liked LB's statement over on the times forum, hits several nails on the head, in fact enough to fasten down the lid of a long box:

"The easiest way for GB to help ftb's and for that matter the long term future of us all, is to stop using house prices to prop up this mirage of an economy and to curb speculation and hype.

No wonder the Banks aren't keen to share ownership. They currently hold minimal real risk for price fluctuations as they securitise the debt and can lend as much as they want already.

Supported, I understand, by the governments willingness to print more and more money to paper over the growing cracks in the financial system. You might ask yourselves why money is being printed at multiples of the official rate of inflation all round the world? To keep the whole shooting match from crashing into the ground perhaps. Excessive money supply was one of the main reasons the ECB raised IR's to head off inflation, much to the annoyance of Finance Ministers, i.e. Politicians, all around Europe.

And indeed as a tax payer why is my money being used to give out free loans to all and sundry at the governments whim to keep GB and this bankrupt government looking rosy?

Its about time we got back to some economic fundamentals instead of constant tinkering to keep the bubble in the air:

We spend as much as we earn, (That includes you Mr Brown); pay down excessive debt (currently over £1.1 Trillion!); and separate pensions from speculation so we all know where we're going.

Speculation is fine in a liquid market but not in one which is heavily influenced by vested interests, government intervention and regulation, for what is a basic need.

When will people wake up and realise that their wealth is more illusory than they think

To paraphrase Mervyn King, Govenor of the Bank of England: House prices are a matter of opinion; debt is real.

Mr Brown, we won't forget what you've done for this country. Not for a long time. "

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Shared ownership seems like a good solution to me, I hope it gets expanded. Part buying and part renting would cussion any ftb from a house price crash and get them onto the ladder.

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Shared ownership seems like a good solution to me, I hope it gets expanded. Part buying and part renting would cussion any ftb from a house price crash and get them onto the ladder.

I'm afraid I don't agree. Why own part of your home and rent the rest?

Surely, paying a mortgage for one part of the house and rent for the other, would be no more affordable that buying the whole of the house/flat?

If HP were allowed to drop downwards naturally, then this would be solved without the use of expensive, tax draining schemes?

EDIT: spelling (again)

Edited by laughing_goat

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G B has no interest in helping first time buyers; G B is only interested in helping himself.

It is obvious that he is desperate to prop up house prices until he gets to move to number 10 and will use public money to do this if he has to.

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I would be cautious about these sorts of schemes. They sound good in theory but if house prices drop, or you need to move for work, or move to a bigger place because you have had kids it can cause real problems - they just are not very flexible.

They are nothing new but they have been around for years, along with many other schemes to help FTB. I seem to remember them being popular just before the last housepricecrash.

IMHO they are a last ditch attempt to artificially sustain an over valued market.

They can be good if prices are rising etc - but when times are good these schemes are not very popular/well funded. It is only when things are at crisis point that these sorts of schemes come on line and IMO by then it is too late.

The only thing these are good for is helping people in Housing Association homes (and who want to stay in them for the long term) to buy them in steps e.g 50% then 75% until they own them outright.

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Part buying and part renting would cussion any ftb from a house price crash

No it wouldn't. The repayments on such schemes are often more than you will pay in rent, and you cannot justify this by saying you pay more for total ownership, because that's not what you're getting. Also, you lose both ways with these schemes, as if house prices rise you have to pay the housing association/RSL the market price of the extra share, so they get the benefit of the capital appreciation (if any), not you.

and get them onto the ladder.

Let's say house prices rise 10%. The share of the property you part-own also rises 10%. How do you realise that gain? Do you have to purchase the whole thing and then sell it on the open market? Can you simply sell your share back to the housing association at the higher market price? Do you have to give the HA first refusal on the property if you do want to sell? The devil is in the detail.

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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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