quote:

Originally posted by cakehead:
Simulcra, there is no reason to believe property values will increase at the same rate as during the last seven years, that would defy all logic, but they may not drop.

The current price burst in the S.E. is worrying as it flies in the face of conventional wisdom on the cyclic nature of the market. The economy needs a period of slow growth in housing. Having said that other factors come into play. If London is to grow between a seventh and an eighth in the next ten years, where will those people live? If true this will have a knock on effect into adjoining areas and so on.

Britain's economy is doing well compared with much of europe and it may be that high debt is one factor in a popular, growing nation. My instinct (no more than that) is that downturns of various kinds including property are being mitigated by the role of the country as a financial and trading centre. I also fear that some of the criticism of the status quo on this board is politically motivated.

I agree that my love of this government is NON-EXISTENT but I look at it through clear glasses.

I DO NOT like the way this country is truning into a have's and have nots culture. I do not like the fact that housing is going to be beyond the reach of EVERY <25y.o.

I do not like the fact that people from other cities come in and buy all the property that is FTB fodder, increase the prices and then rent to them. It is capitalism at its worst.

I find it staggering that people feel proud of themselves when their house is getting more and more expensive, yet they cant see the wood for the trees when the one they are buying is getting further from their reach.

The country is turning into a rent society where either the BANK or GB is your LANDLORD!

Alls I am saying is, if there is no correction, how are your children going to get housing? How is the population going to continue to grow when people cannot afford their mortgage, let alone the cost of bringing up a child?

The social implications of HPI are DEVASTATING! I just wish people would wake up and smell the coffee!

Sorry for rant - was not aimed at you

On the point of debt. If I got 8 Credit Cards with £5K spending limit on each (40K) does that make me rich?

You make some fair points Simulcra but my fear is that rather than advocate a wholesale change in housing policy along a socialist model, most FTBs simply want a slice of the action. That's certainly my take on HPC.

Like many people, I'm investment rich but cash poor, or relatively so. This trend began under Thatcher's government, not Blair's. If there's a way of getting the genie back in the bottle i'm all for it, just so long as it's achievable and permanent and doesn't simply accomodate the wishes of one set of wannabees to replace those of another.
Where we differ is on the growth of lending. One factor than always separated the have's and have-not's was always access to affordable cash. Politically I feel cheap money should be a birthright and if people choose to spend it on shoes and sportscars, more fool them. It can also be used for entrepreneurship, invention and job creation.

quote:

Originally posted by cakehead:
It can also be used for entrepreneurship, invention and job creation.

Now that I agree with.

When you said earlier in your post "this trend began with Thatcher" what trend? investment rich, cash poor?

quote:

Originally posted by reverand:

quote:

Originally posted by cakehead:
It can also be used for entrepreneurship, invention and job creation.

Now that I agree with.

When you said earlier in your post "this trend began with Thatcher" what trend? investment rich, cash poor?

I meant the tendency to see houses as something more than a home to live in, i.e. a transferable asset that you should be encouraged to cash in and trade up.
The sale of council homes was a classic case of selling off the family silver, a one-off deal from which all house prices, especially FTBs are still feeling the shockwave.
The nation is over-leveraged regarding property but we are a small country and a net importer of people who all want to live in certain places for their attractiveness or proximity to work. Until that ceases, I can't see what you can do about it.

Agree with Simulcra's long(ish) post above. Also agree with Cakehead about the benefits of cheap money but think that taxation should be used to stop people using cheap money to make a large profit from the property market.

I think people will smell the coffee in the end, but possibly too late.

quote:

Originally posted by Sir John ffrench Saunders:
taxation should be used to stop people using cheap money to make a large profit from the property market.

Not going to happen whilst so many MPs & ministers have their snouts in the BTL trough.
Maybe we'll get a socialist government one day...

quote:

Originally posted by Simulcra:

quote:

Originally posted by cakehead:
.

On the point of debt. If I got 8 Credit Cards with £5K spending limit on each (40K) does that make me rich?

The sad thing is that many people today would feel that it does. Credit Cards are ridiculous now! I have a pretty decent credit rating and always settle my credit card bills in full (in fact I only really spend on them in order to get Air Miles) and as a result I get offered silly money. I applied for a new card last month and got accepted, when it came through I had an instant Credit limit of £8,000, interest free for 10 months.

On a similar topic i was watching Deal or No Deal the other day and the female contestant reasoned that £20,000 was not a lot of money because she could apply for three credit cards and get that much!!!!

Says it all really.

Couldn't tell you what my credit limit is. It's as much relevance as saying I could sell a kidney. Zero.
I get offered about three credit cards a week and hardly register they're intended for me to use. Just because some multinational want to pimp me money doesn't mean I have to respond.

quote:

Originally posted by cakehead:
Couldn't tell you what my credit limit is. It's as much relevance as saying I could sell a kidney. Zero.
I get offered about three credit cards a week and hardly register they're intended for me to use. Just because some multinational want to pimp me money doesn't mean I have to respond.

Cakehead, totally agree.

All these people that are struggling with debt have only themselves to blame. Yes there is temptation by lenders but they do not force you to sign along the dotted line.

I just called my credit card company and asked them to reduce my limit from £35000 as I fear someone cloning my card and going ballistic with it.

I haven't used the card for some time, my balance is zero, but they kept increasing my limit. The nice lady said she would remove me from the auto increase system.

I remember many years ago before computers took over being refused a loan for £200 to buy a car when I went to see my Bank Manager. The good old days?