Reply to: Simple way to stop runaway house prices

[shaunbhoy]

He means "funny peculiar" as opposed to "funny ha ha".

HTH

[AtW]

It is quite funny hearing him say 'dude'.

You said I'm funny.

You mean, let me understand this cause, ya know maybe it's me, I'm a little ****ed up maybe, but I'm funny how, I mean funny like I'm a clown, I amuse you? I make you laugh, I'm here to ******' amuse you?

How the **** am I funny, what the **** is so funny about me? Tell me, tell me what's funny!

[Tarquin Farquhar]

Whenever I read your posts, Alexei, I hear them in my head being spoken by a meerkat with a Russian accent.

It is quite funny hearing him say 'dude'.

FTFY

[Xenophon]

Whenever I read your posts, Alexei, I hear them in my head being spoken by a man with a Russian accent.

It is quite funny hearing him say 'dude'.

[AtW]

I think you're deliberately mixing it up to promote your high interest agenda, so I'm not playing anymore.

Dude, you think 0.5% base rate with 3.5% inflation is ok thing? Yes, I am not in debt so yes you can say I have got "high interest" agenda, ffs - 5% interest rate has never been high - it's only high for people who want to pay 0. If you can't afford 5% interest - don't effing borrow.

[mr_woo]

"What is a standard variable rate mortgage?

Every mortgage lender has a standard variable rate, or SVR, of interest on which it bases all its mortgage deals.

The standard variable rate is, in turn, based on the Bank of England's base lending rate and this is decided at monthly meetings of the Bank's monetary policy committee, or MPC."

http://www.mortgagesorter.co.uk/type...able_rate.html

No it isn't! It is based on whatever they think they can charge in the market. If Base rate was 5% a STV mortgage may be about 8%. At 0.5 % around 6% seems the norm. Ie not a lot of difference.

[Mich the Tester]

The benefit of doing this rather than renting is you don't have some gobtulipe landlord telling you what you can and cannot do with your home and you don't worry about getting a notice to quit letter from your landlord.

You don't have a landlord hiking the rent up at whim.

And at the end of it, house prices having risen 100000000000% means you become a billionaire at the end of the 20 year mortgage, where as the renter has nothing.

Because, of course, house prices always go up?

Some people might be disappointed by this theory.

[Julius Caesar]

The benefit of doing this rather than renting is you don't have some gobtulipe landlord telling you what you can and cannot do with your home and you don't worry about getting a notice to quit letter from your landlord.

You don't have a landlord hiking the rent up at whim.

you don't get that in other countries with renting either, because a tenant's place is rightly seen as their home. It's only in the UK where this ridiculous no-security AST had to be brought in or landlords wouldn't rent out, IMO because they have too high expectations of how much money can be made how easily out of letting. Same as ever in the UK, houses are seen as giant ATMs.

[DimPrawn]

But they’re not buying a house. They’re renting a house from the bank.

The benefit of doing this rather than renting is you don't have some gobtulipe landlord telling you what you can and cannot do with your home and you don't worry about getting a notice to quit letter from your landlord.

You don't have a landlord hiking the rent up at whim.

And at the end of it, house prices having risen 100000000000% means you become a billionaire at the end of the 20 year mortgage, where as the renter has nothing.

[Mich the Tester]

Otherwise they could not afford to buy a house!!!

But they’re not buying a house. They’re renting a house from the bank.

[Julius Caesar]

At the moment, your primary residence (and all other properties if you are an MP) is not subject to CGT.

Change the rule, so that CGT is charged after indexation against inflation is taken off.

So if for example, you buy at £500K and after a few years you sell at £1M, and £500K after adding inflation is then worth £700K, you owe CGT on the £300K difference.

This would tend to stop all housing rising above inflation as everyone would be shelling out CGT and so the price rises would tend to follow inflation.


Simples.

And charge the notional rent saved by living in your own house as a taxable benefit. That'd cut down on the relentless drive to "be on the housing ladder".

[Moscow Mule]

Surely one does not need a degree in Finance & Credit (like myself) to understand these basics?

I think you're deliberately mixing it up to promote your high interest agenda, so I'm not playing anymore.

Where's my Millennium Falcon, I'm going home.

[ThomasSoerensen]

Nationalize all houses - Gordon can be your landlord.
No more selling and buying of houses.
Prices become a hypothetical number with no meaning.
Simples.

[Scary]

wtf is the point of that? Isn't that just paying lots of money to delay being homeless until you're too old and decrepit to do anything about it?

Otherwise the banks wouldn't get any money, then they'd have to repossess the houses of people who overstretched themselves and at some point sell it at a loss and this would push down prices and make houses affordable for the prudent and the banks would lose money and couldn't pay out big bonuses.

Not an option.

[TimberWolf]

The theory is that by the time you have to repay the loan the amount you need to repay is equivalent to perhaps 2 weeks salary rather than 3 years.

Sounds like a good theory: Hyperinflation + low interest rates = house paid for.