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Loui

HPC and the MSM

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http://www.telegraph.co.uk/personal-banking/mortgages/first-time-buyers-beware-now-worst-time-buy-first-home-since/

How much do people think that the MSM will influence a HPC? Increasingly (and more than at any point in the last 20 years) I read articles that would definitely put me off from buying if I was about to. Frustratingly, at the same time I read many other articles which only talk of house prices going up. I just wonder how much influence the MSM have and if there is a tipping point. Are articles like the one above seriously trying to warn people off from buying houses at this point in time? Do articles like this have a part to play in kick starting a crash? Or do they just realise that the game is up and they want to be able to say "we told you so" a year down the line?

 

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26 minutes ago, Loui said:

http://www.telegraph.co.uk/personal-banking/mortgages/first-time-buyers-beware-now-worst-time-buy-first-home-since/

How much do people think that the MSM will influence a HPC? Increasingly (and more than at any point in the last 20 years) I read articles that would definitely put me off from buying if I was about to. Frustratingly, at the same time I read many other articles which only talk of house prices going up. I just wonder how much influence the MSM have and if there is a tipping point. Are articles like the one above seriously trying to warn people off from buying houses at this point in time? Do articles like this have a part to play in kick starting a crash? Or do they just realise that the game is up and they want to be able to say "we told you so" a year down the line?

 

I think they have a big part to play. I believe a big part of people becoming selfish, greedy landlords with buy to let is because they read in their newspapers that they could make money from it. If it came from a newspaper, they believe it's advice. Most people in btl know much less about the housing market than us on hpc. Once newspapers talk about price reductions, it'll get people worried and they'll begin selling. After this happens, there will be further articles and further selling. Sentiment is everything 

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Most house price reporting by MSM journalists is Ctrl+V from PR copy or key statistical releases. It is almost all ad hoc nonsense.

Facts lead. The MSM merely distribute knowledge of public domain facts. 'Sentiment' is dawning public awareness of facts.

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8 hours ago, UnconventionalWisdom said:

I think they have a big part to play. I believe a big part of people becoming selfish, greedy landlords with buy to let is because they read in their newspapers that they could make money from it. If it came from a newspaper, they believe it's advice. Most people in btl know much less about the housing market than us on hpc. Once newspapers talk about price reductions, it'll get people worried and they'll begin selling. After this happens, there will be further articles and further selling. Sentiment is everything 

Totally agree. Sentiment works every bit as well in reverse. Yes, it's been a while since we've had falling prices but look what was starting to happen in 2008/2009 till interest rates were slashed to virtually zero. That is not an option this time.

Hold on tight :-)

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But then watch them pump out an opposing article days down the line. Is it a deliberate tactic to leave everyone mentally toasted and unable to comprehend the situation in a rational way? Just but a house, innit.

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Ignore all of it.......only buy I you can afford to pay the repayments interest and principal, could take a 1% interest rate rise and still live ie: pay all attached costs of owning, food and transport...have a reasonably secure career or transferable in demand skills.....if two people required to buy, in strong relationship, consider a drop in joint income and that affect on affordability........most importantly buy what will be suitable for many years in a suitable place.......giving time to ride out any negative equity or other destabilisation........If can service debt and costs a home is worth nothing of any value whilst living in it, it only costs money to live in it.;)

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A few articles in the media does not change the story that has been built up over 20 years - that house prices only ever go up and that you can't go wrong with bricks and mortar. Death, taxes and HPI are the only things that most hips as true and inevitable. 

But this can be reversed, but the media will only follow the market and will not be able change sentiment with a few articles alone. 

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23 minutes ago, winkie said:

Ignore all of it.......only buy I you can afford to pay the repayments interest and principal, could take a 1% interest rate rise and still live ie: pay all attached costs of owning, food and transport...have a reasonably secure career or transferable in demand skills.....if two people required to buy, in strong relationship, consider a drop in joint income and that affect on affordability........most importantly buy what will be suitable for many years in a suitable place.......giving time to ride out any negative equity or other destabilisation........If can service debt and costs a home is worth nothing of any value whilst living in it, it only costs money to live in it.;)

IMHO this is excellent advice. 

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10 minutes ago, Ah-so said:

A few articles in the media does not change the story that has been built up over 20 years - that house prices only ever go up and that you can't go wrong with bricks and mortar. Death, taxes and HPI are the only things that most hips as true and inevitable. 

But this can be reversed, but the media will only follow the market and will not be able change sentiment with a few articles alone. 

I did actually wonder this years ago..... if HPI forever continued there would at some point be a situation where all the hacks at the MSM were renting and wanting to buy and therefore would not see HPI forever as a good thing. I think we see this increasingly in articles - though there's a fair share in other lower quality rags championing HPI for the people.

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The media played a huge role in normalising landlording, even making it seem aspirational. 

As recently as the 90s, landlording was an extremely low status variation of loan sharking or debt collecting.

It underwent a massive rebranding exercise in the early 21st century, and I don't believe that is insignificant.

A key reason people hoard homes rather than investing, is because TV taught them how to hoard, it does not teach them how to invest. 

Edited by BuyToLeech

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4 hours ago, adarmo said:

IMHO this is excellent advice. 

What sort of job might someonody have these days that satisfies these criteria?

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3 hours ago, btd1981 said:

Direct Line:

"It's just my wife's old flat"

"LANDLORDS...need protection from your subhuman scum tenant?"

I found that direct Line series of adverts really offensive.  Boycott Direct Line anyone?

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12 minutes ago, dougless said:

I found that direct Line series of adverts really offensive.  Boycott Direct Line anyone?

There was another one - tenant lost their job - insurance will cover the lost rent until you can throw them onto the street. 

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7 hours ago, adarmo said:

I did actually wonder this years ago..... if HPI forever continued there would at some point be a situation where all the hacks at the MSM were renting and wanting to buy and therefore would not see HPI forever as a good thing. I think we see this increasingly in articles - though there's a fair share in other lower quality rags championing HPI for the people.

So it's just that they feel left out and are in a huff?

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1 hour ago, Thorn said:

So it's just that they feel left out and are in a huff?

Tell me, do you honestly think that was my point? How many other journos write about stuff just because they're feeling left out and in a huff? 

Or maybe that people who write for newspapers will start to see two decades of HPI for what it really is and better yet actually do some good reporting on the issue. 

How did you get on with googling jobs?

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36 minutes ago, Barnsey said:

Debt collector?

Exactly.

or bookie.

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5 hours ago, Ah-so said:

There was another one - tenant lost their job - insurance will cover the lost rent until you can throw them onto the street. 

Was that on tv?

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They pop up on the LBC property hour. Now there's a show that would inspire a person to go out there and buy.

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20 hours ago, adarmo said:

Tell me, do you honestly think that was my point? How many other journos write about stuff just because they're feeling left out and in a huff? 

Or maybe that people who write for newspapers will start to see two decades of HPI for what it really is and better yet actually do some good reporting on the issue. 

How did you get on with googling jobs?

Found nun.

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The media mainly follows the money. Someone willing to get themselves into debt to buy a house, holidays and loads of other stuff is a more attractive proposition to advertisers than the dispossessed or the frugal. Channel four in particular have moved from being an outsider/edgy channel to being "aspirational", and property shows along with their cousin the cookery show is the main part of that. The other obvious reason is the british have an obsession with property and the media are just giving the people what they want. Why wouldnt they when it is easy, low risk content to produce. 

When property is going up i think the media is mainly reflecting what is going on. However, if there is a crash, that is when the propaganda will  become essential to justify using billions of public money for bailing out the indebted homeowners. You wont see greedy landlords like fergus wilson,  with dozens of properties on the news, it will be a "hardworking family" with kids who are about to lose their home. 

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  • 407 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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