30 lenders now participating in FLS

[minestrone]

I wouldn't worry about house prices. Print print print will be the bank of England's policy for the next decade. People who have bought a house will be fine, it is people who have savings that will be shafted.

You do realise that people have savings in their houses?

[Robinho]

You do realise that people have savings in their houses?

A house = asset
Money = savings

[minestrone]

A house = asset
Money = savings

Fookin God man, you are as thick as they say.

If I give a bank x amount and they buy a house for x amount for someone to get a mortgage does that mean the bank has the x savings and an asset of x?

[Robinho]

I'm certainly not thick, just pointing out basic terminology.

Not really sure what the rest of your post is about it doesn't make any sense or have anything to do what is being discussed. Seems like a rather contrived way to make out you weren't suggesting a house constitutes savings.

[escapeUK]

A house with a mortgage is surely a liability? A paid for house would be an asset, however it can be quite illiquid.

Some of the property I have been keeping an eye on has been on the market for 18 months and been reduced by £100k and still on the market.

[minestrone]

I'm certainly not thick, just pointing out basic terminology.

Not really sure what the rest of your post is about it doesn't make any sense or have anything to do what is being discussed. Seems like a rather contrived way to make out you weren't suggesting a house constitutes savings.

I realised that if I presented the basic banking model to you would either make a hash of a return or just refuse to answer.

[barrydidit]

Isn't the point that someone whose assets are in cash is likelier to be disadvantaged by a money printing, high inflation/low interest rate environment when compared with someone who has purchased* an asset and is holding it.

Eg, I have 50k and buy a house for 250k, then the value of money falls due to inflation over ten years versus another 'me' that held onto his 50k whilst the value of money fell. The asset value is irrelevant, the point is that the original 50k won't go as far ten years down the line. The investment in an asset may have been good or bad, but it'll be a fixed amount in a falling currency so in the case of UK house prices, unlikely to be a massive gamble.

If that's not the point the excuse me, I've had a couple and don't really give a Dutch emblem about the argument. Anyone fancy arsenal to win (from 4-2 atm..)?

*-purchased in the sense that they own it, regardless of whether a bank has a change over the asset or not.

[Robinho]

I realised that if I presented the basic banking model to you would either make a hash of a return or just refuse to answer.

Ok let's go over this...

If I give a bank x amount

You don't give the bank money, you deposit money in a bank (account).

and they buy a house for x amount for someone to get a mortgage

Banks don't buy houses, they extend credit (not money) to people to buy houses. They don't need your deposit for that necessarily.

does that mean the bank has the x savings and an asset of x?

The bank has liabilities and financial assets.

[minestrone]

If I own my house and so does my neighbour and we agree to sell our houses to each other but keep the title deeds on the condition that the money gets repaid in one years time. The house prices will fall and rise but both will still sell for the same...

I lose an asset but have savings...

Money in house prices is savings maybe?

[Robinho]

If I own my house and so does my neighbour and we agree to sell our houses to each other but keep the title deeds on the condition that the money gets repaid in one years time. The house prices will fall and rise but both will still sell for the same...

I lose an asset but have savings...

Money in house prices is savings maybe?

I honestly have no clue what you are talking about or what this has to do with anything?