Pluto Posted July 31, 2007 Share Posted July 31, 2007 This is disgusting. Instead of reigning in house price inflation, the 97th sexiest man alive and un-elected prime minister is trying all sorts of ways to enable first time buyers to borrow more and more money. His claims of no more boom and bust are based on not having a free market in housing. Reed and weep. http://observer.guardian.co.uk/cash/story/0,,2136913,00.html Quote Link to comment Share on other sites More sharing options...
cells Posted July 31, 2007 Share Posted July 31, 2007 Already posted by someone But yes it is ludicrous, tax payers are subsidising HPI. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted July 31, 2007 Share Posted July 31, 2007 Under the new version of the scheme the government will provide an interest-free loan worth up to 17.5 per cent of the value of a property a first-time buyer would like to buy, with the purchaser taking out a mortgage on the rest. The government will lend up to £50,000 on each property, which means eligible first-time buyers will be able to look at properties worth up to £286,000. The maximum household income, joint or single, of eligible applicants is £60,000 . Brown's future hinges on keeping his legacy of HPI-MEW-BTL alive. He will stop at nothing to try to keep Great Crash 2 at bay. He must keep inflation stoked up with free government money to subsidise over-priced houses. He stopped the correction in 2005 by forcing through an ill-advidsed IR cut against the better judgment of Merv King. Now he is using public money to achieve the same objective. "I will not allow house prices to drop and if I have to increasse taxes and print money to achieve this objective it will be done." Will he succeed? Can you beat the market? All Brown will achieve is a larger bill for luncheon. He is determined to try though with immigration and now public money subsidies. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted July 31, 2007 Share Posted July 31, 2007 Gordon and his pals at the BOE are going for the big one, driving the economy to extreme levels of debt combined with maximum demand from immigration and maximum deflationary wage effects from migrant workers. It will end in an absolutely huge bust. The BOE experiment is going to be a huge failure, possibly the biggest in history. Not only are they failing to crimp mortgage debt, personal debt inclduing credit card debt is growing again. Not only that but the savings balance is being spiked in the process, oh boy, what an insane situation (see linked article). Whilst Gordon is busily importing his new working and voting class applications for visas are apparently rising rapidly, people have had enough, if this si the way that the country is going to be run then those alrady with skills/equity who do not want to participate in this game will find the to the exits - more real money and real skills leving the country, toether with the £100m's siphoned off back home via migrant working. All the time the burden on local and state services and taxation grows and grows - get ready for swinging cuts inthe level of services or swinging increaes in the level of taxation. http://www.mirror.co.uk/news/money/city/20...89520-19545753/ The amount invested in long-term savings schemes, such as unit trusts, plunged 40 per cent last month while borrowing jumped at the fastest rate since February. Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted July 31, 2007 Share Posted July 31, 2007 Under the new version of the scheme the government will provide an interest-free loan worth up to 17.5 per cent of the value of a property a first-time buyer would like to buy, with the purchaser taking out a mortgage on the rest. The government will lend up to £50,000 on each property, which means eligible first-time buyers will be able to look at properties worth up to £286,000. The maximum household income, joint or single, of eligible applicants is £60,000 . Great news, I should be able to buy a 5-bed detached with an acre for £286K post-crash, subsided by GB. Put down £236K cash and invest GB's £50K. VMR. Quote Link to comment Share on other sites More sharing options...
Ted D. Bear Posted July 31, 2007 Share Posted July 31, 2007 The maximum household income, joint or single, of eligible applicants is £60,000 Sucks for those on £61k then! This kind of thing should be tapered. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted July 31, 2007 Share Posted July 31, 2007 Gordon and his pals at the BOE are going for the big one, driving the economy to extreme levels of debt combined with maximum demand from immigration and maximum deflationary wage effects from migrant workers. It will end in an absolutely huge bust.The BOE experiment is going to be a huge failure, possibly the biggest in history. Not only are they failing to crimp mortgage debt, personal debt inclduing credit card debt is growing again. Not only that but the savings balance is being spiked in the process, oh boy, what an insane situation (see linked article). Whilst Gordon is busily importing his new working and voting class applications for visas are apparently rising rapidly, people have had enough, if this si the way that the country is going to be run then those alrady with skills/equity who do not want to participate in this game will find the to the exits - more real money and real skills leving the country, toether with the £100m's siphoned off back home via migrant working. All the time the burden on local and state services and taxation grows and grows - get ready for swinging cuts inthe level of services or swinging increaes in the level of taxation. http://www.mirror.co.uk/news/money/city/20...89520-19545753/ The amount invested in long-term savings schemes, such as unit trusts, plunged 40 per cent last month while borrowing jumped at the fastest rate since February. For any poltician to take such a course of action to protect their legacy of "no more boom AND bust" you wonder what kind of psychological profile is at play here. In a generation gone by, a poltician might have done the honourable thing and admitted a ****-up and resigned. They would have seen that HPI-MEW-BTL was forcing even more ludicrous policies at the cost of the nation's future and social integrity. Brown should recognise that INFLATION is a bad thing. It is not good and it should not be fed with immigration and money printing policies. For heaven's sake Gordon let it go. You know it makes sense. Or do you? Quote Link to comment Share on other sites More sharing options...
RandomWalk Posted July 31, 2007 Share Posted July 31, 2007 Sucks for those on £61k then! This kind of thing should be tapered. Don't you think Gordy's given us enough means testing? Quote Link to comment Share on other sites More sharing options...
needle Posted July 31, 2007 Share Posted July 31, 2007 This is disgusting. Instead of reigning in house price inflation, the 97th sexiest man alive and un-elected prime minister is trying all sorts of ways to enable first time buyers to borrow more and more money. His claims of no more boom and bust are based on not having a free market in housing. Reed and weep. http://observer.guardian.co.uk/cash/story/0,,2136913,00.html So Gordons solution to the credit bubble is to loan money to people...how does that work? Quote Link to comment Share on other sites More sharing options...
hankdd Posted July 31, 2007 Share Posted July 31, 2007 This is disgusting. Instead of reigning in house price inflation, the 97th sexiest man alive and un-elected prime minister is trying all sorts of ways to enable first time buyers to borrow more and more money. His claims of no more boom and bust are based on not having a free market in housing. Reed and weep. http://observer.guardian.co.uk/cash/story/0,,2136913,00.html So supply is not the problem then ? Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted July 31, 2007 Share Posted July 31, 2007 So each buyer gets a loan of £50,000? That's the cost of 10 hip operations, isn't it? Quote Link to comment Share on other sites More sharing options...
0q0 Posted July 31, 2007 Share Posted July 31, 2007 (edited) I think Gawdon is doing this to try to bring about a "soft-landing" or moderate price stagnation instead of price collapse, rather than to help FTBs solely. People I know in NY USA who don't even know I read HPC have emailed to say they had to take US$100K less to sell their house, from what I can gather that's about a 1/4 discount. Gawdon is scared if that happens here throughout the UK, not just in some places as is perhaps occurring already, that he'll have no chance of remaining as PM. Not that Cameron nor Campbell's such hot opposition, of course! Edited July 31, 2007 by The Last Bear Quote Link to comment Share on other sites More sharing options...
steve99 Posted July 31, 2007 Share Posted July 31, 2007 I would like to know the percentage of the population that is negativly affected by HPI, we know this includes first time buyers, but what about all the FTB' property that is not avaliable because second time buyers cant move up? I think the unfortunate thing about the second home buyers is that they (as per conversations with friends) do not see the connection between the increase in their house price and quatum leap in price to move up the ladder, ie they want to keep their current home price but see a drop in price in the next rung, in other words they would vote out whoever (in scapegoat terms) caused the price of their property to go down, and be so stupid as not to see the oportunity to move up. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted July 31, 2007 Share Posted July 31, 2007 I think the fact that despite having a £60k income, the government still needs to subsidise FTB's speaks volumes. Why aren't the Tories capitalising on this? F@#king useless to$$ers. :angry: Quote Link to comment Share on other sites More sharing options...
Smash It Up Posted July 31, 2007 Share Posted July 31, 2007 Have I got this right? If I earn under £60k and cannot reasonably afford to buy a property in the area where I live, the gubberment will give me an interest free loan of up to £50k to help me buy a place? And I only have to pay the loan back if I sell the property? Have I missed anything? It sounds like a pretty good deal to me (except for the taxpayers obviously). Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted July 31, 2007 Share Posted July 31, 2007 Have I got this right? If I earn under £60k and cannot reasonably afford to buy a property in the area where I live, the gubberment will give me an interest free loan of up to £50k to help me buy a place? And I only have to pay the loan back if I sell the property? Have I missed anything? It sounds like a pretty good deal to me (except for the taxpayers obviously). Yes, but you will have to fit in with the 'key worker' criteria eligibility. Now, that really gets my goat!!!!! Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted July 31, 2007 Share Posted July 31, 2007 I would like to know the percentage of the population that is negativly affected by HPI, we know this includes first time buyers, but what about all the FTB' property that is not avaliable because second time buyers cant move up? I think the unfortunate thing about the second home buyers is that they (as per conversations with friends) do not see the connection between the increase in their house price and quatum leap in price to move up the ladder, ie they want to keep their current home price but see a drop in price in the next rung, in other words they would vote out whoever (in scapegoat terms) caused the price of their property to go down, and be so stupid as not to see the oportunity to move up. Spot on, sir! This is absolutely key and yet never gets reported on. Everyone I mention it to is totally ignorant of it. This issue has got to be publicised - rising prices cost almost everybody extra money. If you imagine a chain of 5 people (1 FTB, 3 trading up, 1 trading down), rising prices make 4 of them worse off. Quote Link to comment Share on other sites More sharing options...
zoomraker Posted July 31, 2007 Share Posted July 31, 2007 Will he succeed? Can you beat the market? Ask Norman Lamont, black wednesday anyone. Quote Link to comment Share on other sites More sharing options...
Selling up Posted July 31, 2007 Share Posted July 31, 2007 Happily*, Brown just won't be able to afford to do it for any but a handful of people. It will be an empty gesture and the volume of cash involved will not succeed in propping up prices. I think he just wants to look like he's doing something. *In case it's not clear, I say "happily" because this scheme is a bad idea. You do not make an overpriced asset affordable by handing out taxpayers money. You make it affordable by letting the market bring the price down. Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted July 31, 2007 Share Posted July 31, 2007 This is disgusting. Instead of reigning in house price inflation, the 97th sexiest man alive and un-elected prime minister is trying all sorts of ways to enable first time buyers to borrow more and more money. His claims of no more boom and bust are based on not having a free market in housing. Reed and weep. http://observer.guardian.co.uk/cash/story/0,,2136913,00.html I have to admit, nice try at keeping the ball up in the air. Completely ******* and morally bankrupt however. "Not on my watch" Quote Link to comment Share on other sites More sharing options...
redgenieuk Posted July 31, 2007 Share Posted July 31, 2007 Sucks for those on £61k then! This kind of thing should be tapered. Just ask your boss for a temporary pay cut. Interest @ 6% on 50K = 3K. So if you take 1001 quids off your salary you will be OK. Once you have borrowed it ask them to put it up again! Quote Link to comment Share on other sites More sharing options...
nohpc Posted July 31, 2007 Share Posted July 31, 2007 Happily*, Brown just won't be able to afford to do it for any but a handful of people.It will be an empty gesture and the volume of cash involved will not succeed in propping up prices. I think he just wants to look like he's doing something. *In case it's not clear, I say "happily" because this scheme is a bad idea. You do not make an overpriced asset affordable by handing out taxpayers money. You make it affordable by letting the market bring the price down. Not sure he won't be able to afford it. There is no way the government would come out with a huge scheme like this and let it fall flat on its face. They will pump money into it like there is no tomorrow just to save face. No matter how bad an idea they come up with they always do this to try and turn it around. It will also fall into Brown's old borrow only to invest mindset as they will get back a lot more than they pay out eventually. I also think it is a very bad idea. There are many obvious other motives behind this move (like keeping the market afloat) but the timing is terrible. If there is a market crash then people could see the 17.5% wiped out over night. It does make the government seem confident about there not being a crash though. Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted July 31, 2007 Share Posted July 31, 2007 Just ask your boss for a temporary pay cut.Interest @ 6% on 50K = 3K. So if you take 1001 quids off your salary you will be OK. Once you have borrowed it ask them to put it up again! I've just set up a web commerce site. "Payslip too generous? Let us provide you with a new one" www.lalalalalatherewillnotbeeconomiccatastropheonmywatch.com Quote Link to comment Share on other sites More sharing options...
gfromls Posted July 31, 2007 Share Posted July 31, 2007 Spot on, sir! This is absolutely key and yet never gets reported on. Everyone I mention it to is totally ignorant of it.This issue has got to be publicised - rising prices cost almost everybody extra money. If you imagine a chain of 5 people (1 FTB, 3 trading up, 1 trading down), rising prices make 4 of them worse off. but they all get to spend the ftb's windfall! Quote Link to comment Share on other sites More sharing options...
cells Posted July 31, 2007 Share Posted July 31, 2007 Why aren't the Tories capitalising on this? F@#king useless to$$ers. :angry: vote blue go green global warming is the new thing, the thing that will win them the election. Only no one really cares about global warming and many know it is a scam Quote Link to comment Share on other sites More sharing options...
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