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Jason

Another C4 Bellwether

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Darn right, get away from the property forum to where younger folk hang out and you get a completely different picture. No BTL or stoopid FTB who've just bought crying and stomping their feet about how house prices are fair and shouldn't go down. Just lots of very unhappy people saying how unfair it is, how prices are just daft, even having a go at property "developers" - apart from one bird married to a VI spouting the same old trash.

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it only takes a camera for them to change their mind.

they are playing their game and you can hear them say.

they are looking good for beauty and we will pay.

they push out comsumer products now and then.

for every camera they give the best they can.

i saw them on the cover of a magazine.

now they are a big success, i want to meet them again.

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The early 1990s were a great time for music. Hopefully we'll see the same again as the shit hits the fan this time around.

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well it should.

theres nothing for todays young postrills to get all grumbly and angry about yet.

they are still fasinated by cheap university drinks, ipod madness and showing knickers on top of the pops. (which i taped if anybody wants a pm qt mp3 btw lol).

with a few choice kicks in their young groins should bring out the blues in them.

(i guess that why it ended up being called the blues)

for the moment though, its simon cowell and an endless string of 'sing for your aunty beth' types pumping our screens 24/7 365 wanting to be as dirty as christina auguillairia. with their hot tender bootys and succulent firm fleshy thighs they get my vote everytime. though i have to admit, i like reading all the goss in the daily mirror newspaper. and tringo, wingo bingo-ness.

rubicon its almost over......

cam.gif

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Edited by right_freds_dead

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I thought I'd add my 2p's worth to the thread. The question I answered gave me an opportunity to try and work out for myself where we currently stand in this economic climate. I thought I'd repeat the post below to see if anybody here can/will pick holes in my logic. I'm still getting to grips with this funny old world of economics so I'm open to alternative viewpoints.

Cheston

"How can prices go down when the economy is doing so well?"

FWIW here is my take on it (deep breath!):

The economy has been doing well because it has been fuelled significantly by the wide availability of cheap credit (so much so that, for the first time ever, our debt now exceeds the size of our economy). Evidence of this influence emerged when the Bank of England raised their base rate to 4.75% in a relatively short space of time. Suddenly people started to rein in their spending with retail and manufacturing taking the hit. Since then whatever relief came with the August cut to 4.5% has been easily swallowed up by the sudden jump in living costs. We are now no better off following the cut in rates – this is why we are hearing certain mouthpieces demanding a further cut to give us more spending power.

Despite this knock to consumer spending the economy, as it stands, is ticking over - we are just about coping with our debt and as a result house prices are currently fluctuating, not dropping; insolvencies, bankruptcies and repossession orders are on the up, but they are still pretty low historically. Fine. However with more rises in living costs in the pipeline (helped by the sustained high price of oil) combined with low wage inflation (favoured by the government) there are a growing number of people in the country now living as close to the wire as possible – especially when the current hikes in energy costs begin to take root. This is developing into a dangerous situation - it leaves them (and, indirectly, the UK at large) very susceptible to an economic shock or, more likely, any further rises in interest rates.

So as we look to the near future, one notices that the cheap credit we have all been enjoying the last eight or nine years has now placed the Bank of England in something of a dilemma. They can:

1) Maintain low base rates (i.e. do nothing). We will then see the US base rate rise above ours (likely to be this month, certainly this year). This will result in the devaluation of Sterling (something we can see happening now - the umpteen successive rises in US base rates means the $1.90 we could get last year now gets us just over $1.72). This will be good for exports and will help retain jobs in the UK, but would be bad for inflation as our imports then become dearer - and remember that New Labour is dedicated to maintaining low inflation. Result of inaction: less money in our pockets, leading to less money to help maintain high house prices.

2) Match/exceed the US base rate. This helps keep Sterling roughly where it is and maintains the status quo for the majority of the population who have borrowed sensibly (or, of course, not at all!). Result of raising the base rate: less money in our pockets through higher mortgage repayments, plus those who tightened their purse strings last year will now have an even tougher time to survive.

Either way our ability to spend – the lifeblood of our economy – is about to be further reduced. If unemployment increases through a lack of consumer spending the tax payer may have to foot the bill for the extra benefit being paid out, restricting spending power further. We will have to see how Gordon Brown fixes this hike in his outgoings.

To sum up: when houses are out of most first-time buyer’s reach, when the current models of “affordability over income multiples” favoured by some lenders are severely tested through increased living costs, and when landlords find they are unable to hike up rents through the increasingly stretched budgets of their tenants something will have to give. That something is likely to be house prices. If you want high house prices to stay high, start praying that this miracle economy lives up to its name.

Kind regards

Cheston

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well it should.

theres nothing for todays young postrills to get all grumbly and angry about yet.

they are still fasinated by cheap university drinks, ipod madness and showing knickers on top of the pops. (which i taped if anybody wants a pm qt mp3 btw lol).

..

Only:

Tutition Fees

Top up fees

Overall levels of student debt.

Being told your GCSE / A-Levels / degree is wortheless.

Not being able to afford a pension.

Having all political parties chase after the grey vote / "hard working families", not giving a shit about you (except the libdems).

Err NOT BEING ABLE TO AFFORD A HOUSE...

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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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