Reply to: House prices only go up

[PurpleGorilla]

Ours is invested in.....errr, benefit payments ???

You mean early retirement...

[AtW]

it's worse than that, Norway setup a sovereign fund for a proportion of the oil revenue to be invested because - of course, it won't last forever so future generations should benefit.
This is now one of the largest funds on the planet and makes Norway virtually immune from the global economy and can pay for huge amounts of the central government costs, education etc.
Ours is invested in.....errr, benefit payments ???

Yes that, and if the times get tough again then can send vikings to raid Britain again...

[lukemg]

it's worse than that, Norway setup a sovereign fund for a proportion of the oil revenue to be invested because - of course, it won't last forever so future generations should benefit.
This is now one of the largest funds on the planet and makes Norway virtually immune from the global economy and can pay for huge amounts of the central government costs, education etc.
Ours is invested in.....errr, benefit payments ???

[PurpleGorilla]

In contrast successive UK govts (usually Labour) pissed up the wall the oil and gas profits, and joined the EU in order to restrict our global trade, and saddle us with red tape and costly EU membership fees in return for uncontrolled immigration. Nice one.

There's a lot of truth there DP.

[DimPrawn]

Norway got oil and gas, there will never be any trade barriers to those commodities, so they could stay out of EU and keep all the money, smart move on their part.

In contrast successive UK govts (usually Labour) pissed up the wall the oil and gas profits, and joined the EU in order to restrict our global trade, and saddle us with red tape and costly EU membership fees in return for uncontrolled immigration. Nice one.

[AtW]

If you say so. I can't see why a country that has a relationship with the EU like Norway does (Norway and the European Union) cannot succeed. We then adopt an Australian style immigration policy.

Norway got oil and gas, there will never be any trade barriers to those commodities, so they could stay out of EU and keep all the money, smart move on their part.

[PurpleGorilla]

House prices only go up



http://www.cml.org.uk/news/market-co...february-2015/

[PurpleGorilla]

House prices only go up

you sir are blinkered

I will take that as a compliment.

[MercladUK]

Nonsense. It is a speculative bubble.

Investors from China FFS!

you sir are blinkered

[PurpleGorilla]

House Prices are firmly in the supply and demand process.

House Price were affected in 2007 because access to easy money was stopped, that's the only reason.

Houses now are only for people who can afford them.

Prices are determined by the demand (increasing levels of demand for the foreseeable future)
and Supply (not enough building of new houses to keep up with the increasing demand)

It will require a series of government laws to be introduced and a sustainable government building project for prices to be affected.

Nonsense. It is a speculative bubble.

Investors from China FFS!

[DimPrawn]

House Prices are firmly in the supply and demand process.

House Price were affected in 2007 because access to easy money was stopped, that's the only reason.

Houses now are only for people who can afford them.

Prices are determined by the demand (increasing levels of demand for the foreseeable future)
and Supply (not enough building of new houses to keep up with the increasing demand)

It will require a series of government laws to be introduced and a sustainable government building project for prices to be affected.

And a stop to the population growth, driven by immigration, so none of the above is going to happen.

What will continue to happen is further big increase in immigration, less house building, more laws to protect wealthy land owners and house builders, more money printing and cheaper mortgages, more QE funny money going to BTL lending.

[MercladUK]

House Prices are firmly in the supply and demand process.

House Price were affected in 2007 because access to easy money was stopped, that's the only reason.

Houses now are only for people who can afford them.

Prices are determined by the demand (increasing levels of demand for the foreseeable future)
and Supply (not enough building of new houses to keep up with the increasing demand)

It will require a series of government laws to be introduced and a sustainable government building project for prices to be affected.

[DimPrawn]

It's in your interest for house prices to stay high, but not for me (I do own a house BTW).

.

You say, that but I don't believe you. If house prices fell 50%, would you have negative equity? In other words is your mortgage more than 1/2 the value of your house?

If so, a property crash would be no good to you.

1. You'd have negative equity, lenders will not lend to you, and your deposit has been swallowed up.
2. If property prices fell hard, lenders would withdraw most mortgage products. We'd be back to 40% min deposit and 10% interest rates with £5000 application fees. 99.9% of those looking to buy would be screwed.

Only those with hundreds of thousands of pounds in cash would benefit or those that were renting, but with huge deposits available as cash.

So I don't believe you own a house, I think you are a bitter renter.

[PurpleGorilla]

[PurpleGorilla]

It's in your interest for house prices to stay high, but not for me (I do own a house BTW).

It's funny how high fuel costs are an outrage, but high house prices are absolutely fine.

Do I want a house price crash - you betcha. Not for financial gains (catch another wave), just to have houses as homes, and not asset cash cows.

Personally I would be very happy to see prices fall 50% and then rise by inflation p/a for the next 50 years.