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Htb3 Is Needed

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A recent comment from one of the smarter MSE-ers (banker or accountant or something).

Same here imo - during the bubble... and helped in 2007-2010 by the hpc victim hunters pointing to those who had gone crazy-deep on mortgages to buy as being victims who just wanted a home, utterly loaded up with debt to pay peak price for their entitled superiority ---- rescue policies locking in trillions of boomer HPI 'wealth' .

Now all repeated again, victims same old reasons (too few houses, population growth, London is world-no.1, means forever hpi) - crazier new peaks that make 2007 look cheap.

Was it ever in doubt?

This is the endgame.

The two traditional (ie market) based drivers of HPI have been exhausted.

Wage growth is not happening.

Interest rates cannot fall.

So, unorthodox methods must be employed.

First the government 'gifts' buyers 20% of the house price...house prices rise 20% (shocker). However, the former two factor's have not been rectified...so, the government must gift people 40% to ensure the ponzi is continued. This will happen until the HtB gift goes over 100%, effectively paying people to buy a house.

If the madman osborne is not removed from his position immediately, this lunacy will continue. The man has been driven insane by power, he absolutely must be stopped.

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" the high demand for new homes generated by the launch of the Government's Help to Buy scheme in 2013 has, this summer, reverted to a more normal level of activity"

Says it all. :lol::lol::lol:

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Long predicted on this site - Dave and Gidiot inflated things just a little too early, as the next six months will show.

Long predicted by everyone except Gidiot and Dave. Unfortunatley theyre the 2 who matter.

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Osborne gave a fixed date .... it is PERMANENT.

HTB 1 is permanent HTB 2 is meant to end eventually i believe.

It was to be looked at by CArney and he did so in September when he said it hasnt caused prices to rise.

I hate this man almost as much as Gidiot i really do.

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If the Government gave a fixed end date for HTB (just after election) would that have the same effect as the withdrawal of double MIRAS in the late 1980's to wring the last drops out of the boom?

It wasnt the withdrawal of double miras that inflated the boom in GC1.

It was loose credit..

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I do remember a rush of otherwise sane people (including some friends of mine) desperately trying to get in before the deadline and buying places they were then lumbered with for years afterwards. I'm pretty sure it did tip a few people over the edge into buying who might otherwise have waited things out........

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HTB 1, 2, 3 ad infinitum.

No government is going to crash the market when the can keep it inflated with stuff like this. The Tories or Labour.

Neither are going to raise interest rates.

The only thing that will crash the market is them having to take urgent action based on external market forces outside the UK. This could be nearer though than most people think.

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I do remember a rush of otherwise sane people (including some friends of mine) desperately trying to get in before the deadline and buying places they were then lumbered with for years afterwards. I'm pretty sure it did tip a few people over the edge into buying who might otherwise have waited things out........

yes, there was a rush and a lot of BS about the amount of money you saved.

However, it was the loosening of lending criteria in the 1980s that led to the boom...IFAs started to pushout IO loans backed by pensions, Endowments, Lo-cost endowments, Shares based, whatever they could base it on.

i ended up with a 6 times salary mortgage....only my salary didnt stay at that level..so i went from solvent to insolvent in months.

There was little forebearance then.

And they added penalty interest and charged £20 per letter to remind you you were in arrears.

MIRAS made little difference at the end of the day..

But, Politicians and other marketeers say MIRAS was major factor. It certainly was in the blurb.

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HTB 1, 2, 3 ad infinitum.

No government is going to crash the market when the can keep it inflated with stuff like this. The Tories or Labour.

Neither are going to raise interest rates.

The only thing that will crash the market is them having to take urgent action based on external market forces outside the UK. This could be nearer though than most people think.

Too Big to Fail have new rules....that should raise rates.

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I must say that I don't disagree with HTB1 as it is creating more new housing. HTB 2 is evil and should have never been introduced.

If people want to sign themselves up for a lifetime of debt slavery to buy a new box with no garden or parking then let them do that. Many of which would otherwise face a lifetime of renting.

HTB1 = More supply = lower prices eventually. And i'm not forgetting the effect loose credit have on prices either, because if there is an oversupply of housing people aren't going to keep hoarding them as they are in plentiful supply. Much of the loose credit is only going to meet demand from the property hoarders.

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I must say that I don't disagree with HTB1 as it is creating more new housing. HTB 2 is evil and should have never been introduced.

If people want to sign themselves up for a lifetime of debt slavery to buy a new box with no garden or parking then let them do that. Many of which would otherwise face a lifetime of renting.

HTB1 = More supply = lower prices eventually. And i'm not forgetting the effect loose credit have on prices either, because if there is an oversupply of housing people aren't going to keep hoarding them as they are in plentiful supply. Much of the loose credit is only going to meet demand from the property hoarders.

And fewer competitors - into a HPC - trying to outbid us - hopefully.

More of our competitors having voluntarily and often very happily locked themselves into a premium price newbuild purchase.

For example, and him a smart guy, with a background of working at upper end of banking - new housing built - although as yet not much slippage with the asking price for units still available.

http://metro.co.uk/2014/06/27/property-were-moving-into-our-new-place-six-days-after-our-wedding-4776925/

Inside Housing .co.uk

Housebuilders 'look to PRS' as sales market cools

5 November 2014

Major house builders are exploring private rented sector [PRS] opportunities to ‘de-risk’ large schemes as the sales market cools, an institutional investor has said.

Speaking at a round table event yesterday, Alex Greaves, residential fund manager at M&G Investments said interested from ‘premier league house builders’ had spiked in recent months. ‘In the last quarter I’ve looked at more [PRS] schemes with the premier league developers than I have in the preceding 12 months,’ he said.

‘The market is pausing for breath which is good news and as a result they’re wanting to make sure… they are derisking schemes by having this type of asset. It is very important to them and much more important than it has been.’

[..]‘There’s a sentiment change in the house price sector where people have got a probably got a view on interest rates, and the general election, and as a result where four properties were being sold per month before, now it might be two and a half or three. I think the housebuilders are thinking what their exits are from some of these large scale schemes,’ he said.

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HTB 1, 2, 3 ad infinitum.

No government is going to crash the market when the can keep it inflated with stuff like this. The Tories or Labour.

Neither are going to raise interest rates.

The only thing that will crash the market is them having to take urgent action based on external market forces outside the UK. This could be nearer though than most people think.

Exactly no govt is going to destroy this wealth that has been given to the people. It has to be propped up at all costs. Total lunacy.

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Exactly no govt is going to destroy this wealth that has been given to the people. It has to be propped up at all costs. Total lunacy.

Why is it lunacy ?

You are in government. Your job is to get re-elected for the next 5 years. Your choice is a) throw a couple of billion at propping the market up until the election takes place to help you get re-elected or B) letting the whole thing go t*ts up, ensuring that you and a significant proportion of your mates are out of a job.

From camerons perspective, it would be lunacy not to do it.

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Why is it lunacy ?

You are in government. Your job is to get re-elected for the next 5 years. Your choice is a) throw a couple of billion at propping the market up until the election takes place to help you get re-elected or B) letting the whole thing go t*ts up, ensuring that you and a significant proportion of your mates are out of a job.

From camerons perspective, it would be lunacy not to do it.

Next election will be won or lost on policy about how we leave/reform the EZ, housing is not the main issue this time. The young can`t even get a job, let alone bid up bubble prices for property, many trying to sell property have not yet grasped this though.....

Edited by dances with sheeple

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Next election will be won or lost on policy about how we leave/reform the EZ, housing is not the main issue this time. The young can`t even get a job, let alone bid up bubble prices for property, many trying to sell property have not yet grasped this though.....

I think you are right to a degree. Housing forms part of the greater EU debate though. I think that any issue that annoys a significant proportion of the general population enough is going to be an election issue.

There is also the argument that the number of people getting hacked off by high house prices is rising every day. This will continue while house price growth>wage growth.

At some point the non householder group will be big enough to exert political pressure.

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