Daily Boom

[Bagpuss]

If we are facing doom can someone please explain:

1. House prices are higher now than a year ago. If people are on the verge of economic disaster, how come they can afford to spend more on buying houses?

Interest rates and misunderstanding that the crisis is over.

Right now the Bank of England’s artificially low interest rates are easing the burden on overextended borrowers... enabling many owners to keep ticking over. While seducing the buyers who can afford it into taking the plunge.

These super-low rates may have bailed out some property investors for now. But the Bank of England can’t keep rates this low forever. With the cost of living moving ever higher, they’ll have to raise them eventually.

Around 90% of all UK mortgages are variable rather than fixed-rate, says Legal & General, up from 60% in 2007. So when rates do rise, repossessions could skyrocket as thousands fail to meet their monthly payments.

Many over-stretched landlords in the buy-to-let market will be unable to cover the shortfall between the cost of their mortgage and their rental income. Then they’ll be forced to sell for any price they can get.

It all means MORE houses hitting the market when it’ll be least able to absorb them.

[DimPrawn]

If we are facing doom can someone please explain:

1. House prices are higher now than a year ago. If people are on the verge of economic disaster, how come they can afford to spend more on buying houses?

2. Just got back from Centre Parcs. Packed to the rafters (this was the Sherwood one, so oop north ish). All the restaurants packed, people paying £20 for a small steak and £12 for a burger for 5 kids everyday, tripping over themselves spending like it's going out of fashion. Car park full of expensive cars, chalet next to ours had a Bentley Continental.

3. Roads packed at commuter time, car parks full, trains packed, etc.


This doom laden media fest is just a govt conspiracy to move money from the lower earners to the wealthy elite. Good work!

[TimberWolf]

So as long as we keep printing £100 billion a year and keep interest rates at 0.5% houses will only lose about 10%/year in real terms. Boomed. Assuming unemployment and inflation don't kick in big time.

[TheFaQQer]

I would say KUATB, but we posted at the same time

[DimPrawn]

http://www.nationwide.co.uk/hpi/historical/Oct_2011.pdf

• House prices increased by 0.4% in October
• Price of a typical home in October is 0.8%
higher than one year ago.

BBC News - UK economic growth picks up to 0.5%

The UK economy grew by 0.5% in the third quarter of 2011, according to the Office for National Statistics (ONS).


Boomed!

You've never had it so good!

I don't want to hear all this bollox about doom, recession and global economic collapse, la...la..la.la..la.. not listening!