Tuesday, May 31, 2011

Contrarian perspective: It’s all good

Britain to become a nation of renters

A generation of young British adults is close to giving up hope of ever owning their own place to live. A startling new survey reveals that while the great majority of young Britons from "Generation Rent" would like to become homeowners, most believe they will be unable to raise the mortgage they require to get on to the property ladder.

Posted by quiet guy @ 02:06 AM (1055 views)
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12 thoughts on “Contrarian perspective: It’s all good

  • ‘A generation of young British adults is close to giving up hope’

    Let’s be succinct.

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  • Debt slavery is increasing it’s grip with every passing generation.

    ~ Why make things worth money when you can cut the middle man out and make money from things.

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  • Should house prices not drop if people aren’t buying?

    Perhaps the low interest rates are just helping the property speculators and no-one else.

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  • mark wadsworth says:

    It’s all good, provided that Generation Rent realises that is is on the receiving end of a massive great scam AND if there is a buyer’s strike AND some sort of political action to back it up. (highly unlikely, I admit)

    Home-Owner-Ism as a political system needs electoral support, so to sustain itself, the number of homeowners can’t be allowed to fall below 50%, and probably not even 60%, depending on how many homeowners are bright enough and honest enough to realise and admit that the whole thing is a huge great scam.

    But as an economic system, Home-Owner-Ism depends on not too many people being homeowners (like any crime, there have to be victims for there to be thieves, we can’t all be thieves so there have to be victims). And NIMBYism, as an offshoot of Home-Owner-Ism militates against too many people becoming actual homeowners.

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  • 2. mark wadsworth said…'(like any crime, there have to be victims for there to be thieves,’

    ~ The beauty of this scam Mark, is that if you look beyond Home-Owner-Ism, the banks have made us ‘all’ victims and the government

    have been only too happy to oblige. It is looking like a mass pickpocketing trap, where many haven’t checked all their pockets just yet.

    Through government compliance, they have even dipped into the pockets of the marks (excuse me) that will never get to walk that

    backstreet in their life times. Well, let’s hope not, but it’s not looking good down Tin Pan Alley when there’s a bloody wealthy orchestra

    there. I would prefer to see and hear a bit of Bird, or something a tad more authentic.

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  • righttoleech says:

    Superb analysis Mark. I love your thieves and victims analogy.

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  • This story was discussed on BBC Radio 4’s Today programme this morning, with Mark Griffiths of thinktank IPPR going in to bat for first time buyers against homeownerist CMLs Mike Cooghan. The piece starts at 2 hrs 31 minutes 45 seconds:

    http://www.bbc.co.uk/iplayer/episode/b011j8z0/Today_31_05_2011/

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  • Generation Rent. Brilliant title!

    @1. Unfortunately only if owners are forced to sell. Anyway high inflation is set to make sure they never do.

    Anyway micro economics only works with liquid assets. Houses aren’t being traded so all the home owners can continue in their delusion about their investment. And then their political masters can devalue the country to save them from never having to face up to it. It’s practically Orwellian.

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  • 4. greenmind

    The homeownerist are the First Time Buyers. What a little riddle the Last Time Buyers have.

    ~ I do hope they work it out.

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  • mark wadsworth says:

    RTL, thanks.

    GM, that is incredible. They kick of talking about 300,000 people switching to interest only an Coogan says that “only” two-thirds of those are existing borrowers who are struggling and 100,000 FTBs. Wot? They are still handing out IO mortgages? And Griffiths points out that the only reason that banks offered IO mortgages was to try and maximise the amount of debts which people will take out. Coogan is then asked whether the IPPR are right and mortgages should be restricted to ‘only’ 90% and Coogan says certainly not.

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  • 2. mark wadsworth said…Home-Owner-Ism as a political system needs electoral support, so to sustain itself, the number of homeowners can’t be allowed to fall below 50%, and probably not even 60%,

    ~ Carry on increasing your BTL portfolios is what I say. Power to the people. Simples! Well, it should be.

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  • I’m past the point of incredulity – nothing surprises me anymore, these are warped times.

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