Housing Boom

[BlasterBates]

oh dear

[Old Greg]

oh dear

Who'd have thought that a boom based largely on speculation might bust one day?

[Numptycorner]

http://forums.contractoruk.com/thread19131.html

[DimPrawn]

New Lie to concrete over the whole UK

Stalin Brown (aka Gordon) is shortly going to allow the whole of the UK greenbelt to be built on to supply "affordable housing".

Expect Soviet style grey concrete tower blocks to spring up everywhere, with tax payers footing the bill, and "key workers" getting tax funded subsidies.

All part of his "5 year plan" (where have I heard that before )

Oh Dear comrade.

[milanbenes]

a few quotes from the article...

The Bank of England raised rates a quarter of one per cent to a six-year high of 5.75 per cent on Thursday, leaving someone with a £200,000 repayment mortgage having to find £165 more a month than last summer.


>>>>>>>> shouldn't someone with a 200k mortgage have planned to be able to deal with an extra outgoing of 165gbp per month ???


Each time the Bank of England increases rates by a quarter point - which it did in August and November last year and in January, May and July this year - £33 a month is added to a £200,000 repayment mortgage.


>>>>>>>> as above, is 33gbp per month really a financial killer for people ???


The Consumer Credit Counselling Service said high earners were spending far more of their income on housing costs, up from 33 per cent in 2003 to 44 per cent in the first four months of 2007.


>>>>>>>> welcome to the real world



surely the old economic rule of if you haven't got the money you can't afford it apply ?

it's hard to have sympathy for people who put themselves in these positions through bad financial planning

Milan.

[Hiram King Of Tyre]

Bring it on!

[Troll]

I thought St Tony & Brown had done away with the boom/bust cycle

[gingerjedi]

Its hardly the bloodbath of the early 90's when rates peaked at 15% but houses were a lot cheaper then, small rate increases are magnified by the fact that houses cost 4 times as much as they did back then.

I feel sorry for any first time buyers who have bought in the last couple of years and didn't fix the rate but it’s a gamble and they are losing, I doubt if they complained about paying a little less than those that fixed over the previous couple of years.

[milanbenes]

whatever happened to living within your means ?

Milan.

[Sockpuppet]

whatever happened to living within your means ?

That went out of fashion when the avg house price went north of £150,000.

These people would be living in thier means if house prices were the same as when they were 10 years ago.

Not that I am worried. All set to make cash offers on people houses when they and little timmy are kicked out onto the street.

Edit: they reported yesterday that consumer spending was up 3% in June. Seems like the BoE are going to add another .25%. Que more retailers pleading poverty, yet releasing reports that consumer spending is up 3%.

Ding bats.