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Prof

My First Post, An Idea !

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I stumbled upon this site a few days ago, and I have been snooping around, "gathering" information. I must say that most of what I have read backs up everything that I have been thinking over the past few years. There are far too many things that I want to say at this point in time about UK property prices and the economy in general, but I will start with an idea that I had a couple of years ago, when house prices started to look silly.

It is fairly obvious to me (although I am no economist, and only have 4 O levels) that we need two interest rates. There should be an interest rate for business loans and a separate interest rate for mortgages and personal loans. If this where the case, we could have slowed the housing market a couple of years ago, but helped businesses by keeping their debt costs down. Obviously, measures would have to be put in place to prevent abuse of the "twin rate" system.

At this point in time, the BOE are in a tricky position. I`m sure they`d like to slow the housing/personal debt market, but don`t want to damage business. How can they do this when interest rates affect all types of loans ?

OK, please point out flaws in my idea !

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Set up a business that buys houses and rents them to the tenants. Each tenant would be the director of the company that owns their house. Impossible to stop workarounds like this to take advantage of lower business rates.

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Set up a business that buys houses and rents them to the tenants. Each tenant would be the director of the company that owns their house. Impossible to stop workarounds like this to take advantage of lower business rates.

Yes, I thought that this might be a problem with my idea. Surely there could be a way to stop this "fiddle" ?

Anyway, I`m thinking of setting up a business to sell earplugs, because when the house price bubble bursts, it will make a very loud bang ! :lol:

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My plan feel free to pick holes.

People pay into a state pension scheme, compulsory, and employers also make a contribution, compulsory.

These funds are invested by way of lending to FTB'ers on fixed rate mortgages for a period of ten years whereby they are then discharged by way of a commercial mortgage.

The pension funds therefore have a projected profit that is ring fenced, (No more sorry we got it wrong the money is spent or lost on hair brained schemes, or fund managers bonus's)

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I stumbled upon this site a few days ago, and I have been snooping around, "gathering" information. I must say that most of what I have read backs up everything that I have been thinking over the past few years. There are far too many things that I want to say at this point in time about UK property prices and the economy in general, but I will start with an idea that I had a couple of years ago, when house prices started to look silly.

It is fairly obvious to me (although I am no economist, and only have 4 O levels) that we need two interest rates. There should be an interest rate for business loans and a separate interest rate for mortgages and personal loans. If this where the case, we could have slowed the housing market a couple of years ago, but helped businesses by keeping their debt costs down. Obviously, measures would have to be put in place to prevent abuse of the "twin rate" system.

At this point in time, the BOE are in a tricky position. I`m sure they`d like to slow the housing/personal debt market, but don`t want to damage business. How can they do this when interest rates affect all types of loans ?

OK, please point out flaws in my idea !

I pretty much agree with everything you say, but believe that it wont happen. As good an idea it is, since when have us public had a say in the rules to make things better.

I do however think that we need to set up a "PINNED" thread with ideas of how we can make HPC.co.uk recognised. Surely there is a way of spreading the word? If somehow everyone who thought about buying their first home read this site first they would think twice!? (I did!)

SO how can we do this? Surely theres a way?!?!??

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How about this

anyone who enters this country as a immigrant or is born in this country starts off with a compulsory £100K debt. This is the "cost" to you for being a UK citizen. This must be repaid to the goverment, deducted as a percentage of your pay. A minimum must be paid each month, until either you die or it is paid off in full. Once paid off in full you can keep all your earnings tax free, and can claim a state pension if you are over 65.

Great idea huh?! :unsure:

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How about this

anyone who enters this country as a immigrant or is born in this country starts off with a compulsory £100K debt. This is the "cost" to you for being a UK citizen. This must be repaid to the goverment, deducted as a percentage of your pay. A minimum must be paid each month, until either you die or it is paid off in full. Once paid off in full you can keep all your earnings tax free, and can claim a state pension if you are over 65.

Great idea huh?! :unsure:

or just not let them in! :lol:

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I did state that I only had 4 O levels, but I think I see the logic in laurejon`s idea. One thing is for sure, if the property market carries on the way it is, boom and bust will be here forever (despite what G.Brown tells us).

How about this

anyone who enters this country as a immigrant or is born in this country starts off with a compulsory £100K debt. This is the "cost" to you for being a UK citizen. This must be repaid to the goverment, deducted as a percentage of your pay. A minimum must be paid each month, until either you die or it is paid off in full. Once paid off in full you can keep all your earnings tax free, and can claim a state pension if you are over 65.

Great idea huh?! :unsure:

Not bad, but I`d say that an immigrant should bring £100K into the country, to look after themselves for, say, 5 years. Then, they can be treated like you or I (like s**t !).

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I`ve just thought of a fatal flaw in my plan.

Even if business interest rates were 0%, and the mortgage base rate was 9%, no company would want to setup in the UK, and the media would convince the public to invest in property.

I`m sick of the bulls**t.

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The simple solution in the UK is that if you use something then you pay for it, if you dont use it then you dont pay.

The whole problem relates to the current Government that has the idea that those who dont pay should benefit, and those that do pay should pay more, and get nothing at all.

Its called Socialism/Communism, we saw it in the East, now its being imported to the West.

So much for breaking down the walls, New Labour have just rebuilt them around the whole of Europe.

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The simple solution in the UK is that if you use something then you pay for it, if you dont use it then you dont pay.

I like that idea, but I`d modify it, a touch. When it comes to healthcare, I`d share the cost. I would call this system "NHS". What I wouldn`t do, is tinker with it. Everyone over 18 years old, who pays tax and national insurance is entitled to use the NHS, anyone else can either pay for their own healthcare, or die. Simple, but efficient, unlike the current system, complicated and inefficient.

OK, I need to tinker with my idea (even though I said I wouldn`t. Blimey, I`m turning into a politician !). Anyone under 18 can use my "NHS", free of charge. Anyone over 18 that can give a VALID reason why they are not paying tax/NI can also use my "NHS", anyone else, good luck. That`s my system, and I`m sticking to it.

Edited by Prof

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The sole reason the NHS is in crisis is that it is being used by those who have not paid.

Now that in itself is not a reason to Can the NHS as something that doesnt work and sell it out to private business.

It is a reason to tighten up on those who didnt pay and wish to use its services.

Again its down to immigration, and down to an inactive workforce wholly dependent on those that are working.

Address both the above issues and the NHS will work fine.

As a footnote I would also add that we should not aspire to make the NHS a Rolls Royce Service.

It should be for those who are unable or unwilling to pay for a Rolls Royce Service, a dull inhospitable place that does great work for the needy.

Turning the NHS into some kind of themed attractive themed environment detracts from its primary function, saving lives and curing the sick and injured.

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The sole reason the NHS is in crisis is that it is being used by those who have not paid.

Now that in itself is not a reason to Can the NHS as something that doesnt work and sell it out to private business.

It is a reason to tighten up on those who didnt pay and wish to use its services.

Again its down to immigration, and down to an inactive workforce wholly dependent on those that are working.

Address both the above issues and the NHS will work fine.

I think I edited my post, just as you posted this reply, and my "New" NHS meets your requirements (I think).

Job done.

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Guest muttley

It is fairly obvious to me (although I am no economist, and only have 4 O levels) that we need two interest rates. There should be an interest rate for business loans and a separate interest rate for mortgages and personal loans. If this where the case, we could have slowed the housing market a couple of years ago, but helped businesses by keeping their debt costs down. Obviously, measures would have to be put in place to prevent abuse of the "twin rate" system.

There is already a "twin rate" system. Unfortunately, it favours the individual over the business.

If I write a business cheque, I pay a bank charge.

If I put cash into my business account, I pay a charge.

If I put a cheque into my business account, I pay a charge.

If I draw cash out of my business account, I pay a charge.

If I set up a direct debit or a standing order, I pay a charge each and every month.

If I hold cash in a business reserve account, the interest paid is less than that paid in a personal account.

I like your system very much, but the banks could never implement it. Business accounts enable banks to provide a personal banking account that is free (unless you go overdrawn)

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There is already a "twin rate" system. Unfortunately, it favours the individual over the business.

If I write a business cheque, I pay a bank charge.

If I put cash into my business account, I pay a charge.

If I put a cheque into my business account, I pay a charge.

If I draw cash out of my business account, I pay a charge.

If I set up a direct debit or a standing order, I pay a charge each and every month.

If I hold cash in a business reserve account, the interest paid is less than that paid in a personal account.

I like your system very much, but the banks could never implement it. Business accounts enable banks to provide a personal banking account that is free (unless you go overdrawn)

If I made "the rules", I`d stop all this. Surely the government make the rules, and could force banks to implement my idea. I know it won`t happen, as it makes too much sense, but it could be done, I think.

Stable housing market + favourable business environment = good country.

UK <> Stable housing market + (favourable business environment - cheap labour).

I would say that the UK economy currently hinges on a dodgy property market. Once this market goes, it`s not going to be nice.

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I would add to the UK economy the other point that is missed entirely.

This Government have removed millions from the Dole by creating Jobs in public service. Jobs that are superflous to the running of public services.

The funding for these jobs is by Government Borrowing, and future Taxation.

However as we see already with mass layoffs in Hospitals, (yes the real service they deliver to the public gets axed, but the non jobs continue) we are now heading down the slippery slope.,

Mass employment by Government has stimulated the economy, but it has not been enough to spill over into the private sector creating the catalyst for real growth.

The experiment has been completed, deemed a failure its now time for the Lab Tecs to come in and clean up.

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If I made "the rules", I`d stop all this. Surely the government make the rules, and could force banks to implement my idea. I know it won`t happen, as it makes too much sense, but it could be done, I think.

Stable housing market + favourable business environment = good country.

UK <> Stable housing market + (favourable business environment - cheap labour).

I would say that the UK economy currently hinges on a dodgy property market. Once this market goes, it`s not going to be nice.

But the housing market is a business environment.

If a system were set up as you say, then every business would be a bank.

Businesses would borrow on the business rate and lend on the personal rate. I would start doing this immediately. You would probably say you would legislate against it, I doubt it's possible.

What you have described is the current system we use, where banks borrow from the treasuries and lend to the public, what you are talking about is extending the rights of banks to all businesses or simply putting another tier in the system between the banks and the public.

What's the point. It would simply lead to more irresponsible lending, bad debt and written off money.

The current system works, booms and busts are an acceptable part of capitalism, to erradicate them is tantamount to communism.

People are stupid and people get burned, just make sure you're aware of the whole picture and your fine.

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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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