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Hopeful FTB

Why Are Rising House Prices A Good Thing?

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Please can someone explain to me why rising house prices are always reported as a good thing? It something I have never really understood! :blink:

Is it purely the feel good factor - people feel richer- ir is there another reason that I have missed somewhere along the line?! While I understand the VI spin- who is this now serving in a positive way when all other factors (astronomical levels of debt, rising gas, electric, council tax, water, unemployment blah blah) are pointing towards a rather large economic meltdown.

Idiots guide please!

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Its a good thing because it traps people. It forces them to go to work and ensures that they will always be there as tax payers because the higher the price the less chance of ever paying off their mortgage.

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I found this article quite useful (suprising, I know, as it's from the BBC)

Simple & concise

www.news.bbc.co.uk/1/hi/business/3701070.stm

My Webpage

hope the link works!

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Bingo.

In the past i can honestly say i have never met anyone who thought rising house prices was a good thing. I remember watching my chidren play in the street with other children and chatting to my neigbours about rising house prices in the past and we did not like it. We knew this was, and has incedently going to make it more expensive to move into a bigger home and our children were going to have to pay more when its their turn to buy..My neigbours and myself were flabergasted and could not understand where the money was coming from for this practice. However 15 years down the line and the evidence is begining to emerge as more and more people have had the extra money to put into houses with dreadful consequenses as far as i am concerned. The first wave benefited, after that it is a matter of finding extra just to stay still. I wil have a little money in the not to distant future and i refuse to invest it and fuel this fire!

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Please can someone explain to me why rising house prices are always reported as a good thing? It something I have never really understood! :blink:

It's because the Lending Institutions tell you via the press that its a good thing.

;)

Would you like to live in a country where houses are 100 30k quid?.

Absolutely!

:D

Edited by A Fool & His Borrowed Money

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The Uk is an island, and highly developed and highly populated.

Therefore you should refer to the Diamond Water theory of economics.

I applaud house prices rising, so long as I have one.

To be even franker, I dont give a rats ar*e that people cannot afford them. Thats just life, go and rent!!!.

Nothing is fair in this world, travel a bit and you will see that.

Maybe if people realised how tough it is in the real world, they might think twice about voting in socialists who's only mission in life is to lower living standards and create a "Dog eat Dog Society".

Many of you invest in markets as opposed to Housing, in the hope that your cash will grow and you will at the right time invest in property. Good Luck to you all, you are taking the initiative to make provision for yourself and your family as you too have identified that the Socialists wont be doing it for you.

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Would you like to live in a country where houses are 100 quid?.

If so go ahead and live in New Deli and report back after a year

I bet I could get a good potato wada in New Deli. Haven't found one yet in Leicester.

Billy Shears

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The Uk is an island, and highly developed and highly populated.

Therefore you should refer to the Diamond Water theory of economics.

I applaud house prices rising, so long as I have one.

To be even franker, I dont give a rats ar*e that people cannot afford them. Thats just life, go and rent!!!.

Nothing is fair in this world, travel a bit and you will see that.

Maybe if people realised how tough it is in the real world, they might think twice about voting in socialists who's only mission in life is to lower living standards and create a "Dog eat Dog Society".

Many of you invest in markets as opposed to Housing, in the hope that your cash will grow and you will at the right time invest in property. Good Luck to you all, you are taking the initiative to make provision for yourself and your family as you too have identified that the Socialists wont be doing it for you.

You're all heart.

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Would you like to live in a country where houses are 100 quid?.

If so go ahead and live in New Deli and report back after a year

New Delhi's incredibly expensive - Indian cities are some of the most 'bubbled' real estate markets in the world!

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New Delhi's incredibly expensive - Indian cities are some of the most 'bubbled' real estate markets in the world!

Most people I know who want a house in an Indian city seem to get land near the city and self-build. Seems to be easier to get planning permission (not sure what the regulations are though). These would be very high earners that do this though. Lots of others living in rented flats and the like.

Edited by CaptainClamp

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The Uk is an island, and highly developed and highly populated.

Therefore you should refer to the Diamond Water theory of economics.

I applaud house prices rising, so long as I have one.

To be even franker, I dont give a rats ar*e that people cannot afford them. Thats just life, go and rent!!!.

Nothing is fair in this world, travel a bit and you will see that.

Maybe if people realised how tough it is in the real world, they might think twice about voting in socialists who's only mission in life is to lower living standards and create a "Dog eat Dog Society".

Many of you invest in markets as opposed to Housing, in the hope that your cash will grow and you will at the right time invest in property. Good Luck to you all, you are taking the initiative to make provision for yourself and your family as you too have identified that the Socialists wont be doing it for you.

Poor man! they can afford one..Just can't buy one...YET!!! :lol:

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To be even franker, I dont give a rats ar*e that people cannot afford them. Thats just life, go and rent!!!.

...

Maybe if people realised how tough it is in the real world, they might think twice about voting in socialists who's only mission in life is to ... create a "Dog eat Dog Society".

That'll be the dog-eat-dog society you seem to applaud two sentences earlier then. Are you a socialist? Maybe *you* should travel more... the further and longer the better.

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Most people I know who want a house in an Indian city seem to get land near the city and self-build. Seems to be easier to get planning permission (not sure what the regulations are though). These would be very high earners that do this though. Lots of others living in rented flats and the like.

I noticed lots of selfbuilds around the outer suburbs of Delhi too.

990225_n0530_delhi_yamuna-river-slums.jpg

Perhaps FTBers should stop moaning and take heed of the Indian example.

:lol:

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The fact that it is seen as a good thing suggests that the average person does not understand economics.

My thoughts are as follows:

High house prices are a tangible sign that ones economy is robust, in a similar way to the fact that the stock market represents the health of the global economy. Even though we don't like to admit it we often like to judge a book by its cover, rather than delving into the details.

The fact is that assets can leave touch with fundamentals due to speculation. When this occurs we perceive wealth and prosperity, when in fact none exists. When the realisation comes that not all is well or the bubble sucks up so much money that it can no longer be sustained it collapses and directly impacts the core economy. In extreme cases, as many countries are currently suffering, it will have such a negative impact on GDP that deflation is the only possible outcome.

In conclusion, rising house prices are fine (as long as they are in line with economic fundamentals). However, they should never be allowed to move too far from fundamentals or the economy is put at risk.

Edited by karhu

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The Uk is an island, and highly developed and highly populated.

Therefore you should refer to the Diamond Water theory of economics.

I applaud house prices rising, so long as I have one.

To be even franker, I dont give a rats ar*e that people cannot afford them. Thats just life, go and rent!!!.

Nothing is fair in this world, travel a bit and you will see that.

Maybe if people realised how tough it is in the real world, they might think twice about voting in socialists who's only mission in life is to lower living standards and create a "Dog eat Dog Society".

Many of you invest in markets as opposed to Housing, in the hope that your cash will grow and you will at the right time invest in property. Good Luck to you all, you are taking the initiative to make provision for yourself and your family as you too have identified that the Socialists wont be doing it for you.

You are right, its just a market..

and if people can't afford to buy, then they can't cover the rent either.. and that might explain why there are so many empty rentals near me..

1: its a speculative market..

2: There is an oversupply of housing

:)

You have a house.. just don't ever rely on its value.. its the most obvious cyclical market to those with the ability to step back, look at it and grin..

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Generally rising prices are

Good, if you own as big a house as you ever intend to, and plan to move to a smaller one.

Good, if you own more than one house, and so hold some as "stock".

Bad if you own a house but want to move to a bigger one.

Bad if you don't own a house at all and want to.

Not important if you don't own a house and are happy to rent.

Not important if you own a house and don't intend to move or sell.

The most interesting thing to me is the number of people I know (because of my age) who are in the "own a house but want to move to a bigger one", who also think rising prices are good for them. When they get all excited and chatty about it, I always say "So you're happy to live in that house for the rest of your life then, or possibly trade down to a lower priced one?". When they disagree and say they are going to move up, I lead them slowly by the hand through the simple logic, and boy, does it spoil their day. We really do live in a land of unquestioning simpletons.

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Generally rising prices are

Good, if you own as big a house as you ever intend to, and plan to move to a smaller one.

Good, if you own more than one house, and so hold some as "stock".

Bad if you own a house but want to move to a bigger one.

Bad if you don't own a house at all and want to.

Not important if you don't own a house and are happy to rent.

Not important if you own a house and don't intend to move or sell.

The most interesting thing to me is the number of people I know (because of my age) who are in the "own a house but want to move to a bigger one", who also think rising prices are good for them. When they get all excited and chatty about it, I always say "So you're happy to live in that house for the rest of your life then, or possibly trade down to a lower priced one?". When they disagree and say they are going to move up, I lead them slowly by the hand through the simple logic, and boy, does it spoil their day. We really do live in a land of unquestioning simpletons.

Too stupid to recognise a cyclical market, too stupid to realise that being better of has somehow put them much further into debt, too stupid to realise that they are trapped..

generally stupid..

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60% income tax or a deliberate Government policy of house price Inflation. Either one was needed to solve the baby boomer pension crisis.

HPI, like VAT is to an extent ( though only a very small extent ) a voluntary tax.

In a chain the only people benefitting from HPI are those retiring and downsizing. The fact that today an annuity is yielding a pension approx. 1/4 of what is would have 7 years ago has been offset by rapid HPI which has enabled grey Mewing.

I'll say it again, HPI is a stealth tax on the young. And a wealth transfer mechansim to the old.

The fact that so many young people seem so delighted by the house price tax makes it all the better as a political solution than a 60% base rate of income tax.

Edited by timmy_30

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BABY BOOMER Pension Crisis :P:P:P

How about the free for all immigration policy that has unbalanced the economics of the UK.

Allowing 350,000 Eastern Europeans to come to the UK in a single year!!!!!

I dont think it takes an Einstein to work out that immigration is sapping our services.

That'll be the dog-eat-dog society you seem to applaud two sentences earlier then. Are you a socialist? Maybe *you* should travel more... the further and longer the better.

Ididnt create the Dog eat Dog society, but I sure as hell will now adopt its principles. To otherwise would be fooolish, the majority want it and live by it, I will respect that make hay whilst the sun shines. It wont last forever I can tell you that. Someone will have to pay for the immigrations disaster, and hopefully by then I will be out of it, cos I sure as hell wont be paying for it.

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I'll say it again, HPI is a stealth tax on the young. And a wealth transfer mechansim to the old.

..And finally wealth transfer mechanism to the government, when the old die and large amounts are taken in inheritance tax...

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Guest Charlie The Tramp

I'll say it again, HPI is a stealth tax on the young. And a wealth transfer mechansim to the old.

I know a case of early generation Baby Boomers who withdrew 50k of equity from their home as not to be a burden on the State. Sadly they both died within a year of each other and with the interest 75k had to be repaid by the executors to the lender. This only left 300k to be shared among their two children after death duties had been paid who complained to me how unfair that they lost 75k of their inheritance. I must say I was speechless. I posted a thread awhile back where a young man inherited from his grandmother and bought a block of seven flats to ensure his financial future. With death wealth is handed down to the generation below as the old saying, you cant take it with you.

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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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