Jason Posted August 1, 2006 Share Posted August 1, 2006 I have many conversations about house prices at work, they just love to talk about the increase in house prices. Each time, when they try to persuade me to buy, I explain why I'm not... in that I think house prices will fall. I also explain how they will benefit as the next rung will be nearer, but each and every time they fail to go through the psychological pain barrier, in that they perceive they would lose out if prices fell. Things have changed in that one person wants to move to a detached house. This person realised they can't afford it (boo hoo). After the best part of an hour going through all the mumbo jumbo, a conclusion was eventually reached in that she would benefit if prices fell. Lordy lord. I also went though all the tools for housing on the internet. This person was a little shocked to realise you can find out what people paid, and that her neighbour had been lying about what they sold for. -------- I was asked a question the other day: "Are you good with money?", and a whole discussion centred around debt and debt management. A lot was said how people only look at the monthly payments rather than the capital. One person made a big issue how some very intelligent people can't see the wood for the trees when it comes to personal finance and interest charges. What shocked me the most, is not how everyone agreed that people were stupid with money and that there is far too much debt in this country, not how this person previously had said she wants to buy a house so it will go up in value (despite saying the rent being cheaper), but how they reject any possibility of the debt bubble popping. Whenever the word 'recession' is mentioned, everyone seems to think that it cannot happen. It totally baffles me. It's like agreeing of the dangers of playing on the railway line, but denying any possibility that an accident could happen. Is this just brain washing on a massive scale? I put it that they can't see the wood for the trees. Quote Link to comment Share on other sites More sharing options...
RichB Posted August 2, 2006 Share Posted August 2, 2006 Cognitive dissonance perhaps? Quote Link to comment Share on other sites More sharing options...
Dr Doom Posted August 2, 2006 Share Posted August 2, 2006 (edited) Is this just brain washing on a massive scale? Yes it is. I was speaking to my cousin at the weekend. She bought a house last year, nothing special but she was telling me to get a mortgage she had to have proof of two incomes, and also a parental guarantee. And added that it felt like she was "signing her life away". I asked what the problem with renting was, and she rolled out the old "renting is just dead money" adage. To which I mentioned that interest on a mortgage is also "dead-money". This she actually agreed with, she said she had sat down and worked out that every £1 she was borrowing was going to cost her £2.80 or thereabouts. She then mentioned that it was a good idea to buy sooner rather than later, because house prices will continue going up and up. Conversation ended at that point and I resisted the temptation to mention my HPC theories, probably wouldn't go down that well. What can you do? Edited August 2, 2006 by Dr Doom Quote Link to comment Share on other sites More sharing options...
BandWagon Posted August 2, 2006 Share Posted August 2, 2006 Conversation ended at that point and I resisted the temptation to mention my HPC theories, probably wouldn't go down that well. What can you do? You could try explaining to a person that the housing market is cyclical. But then you have to decide if the friendship's more important... Quote Link to comment Share on other sites More sharing options...
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