Phone hacking.

Lot of truth in that mate

Having said that credit isn't the bad thing it's often made out to be so long as its not out of hand.
 
EC - you're wrong on interest rates. Low interest rates have benefited the rich. They tend to have a very small % of their wealth in cash, instead holding other assets like shares and property. Low interest rates (and QE) have driven up the price of these assets and benefited the rich. The people who have been hurt are the lower middle who don't invest but have some savings.

For what it's worth I believe the Bank of England's policy response to the financial crisis has been pretty much spot on.


Sent from my iPhone using Tapatalk
 
clivex said:
As for house prices, look at the weath accrued by those who have bought in the last few decades? And that's a lt of people. Far more than in the 60s . House prices work both ways

There are a fair number of people I know that are easily property millionaires (they don't need to say so and don't do so) and they are not necessarily in high flying roles at all.
Click to expand...

Of course, I think anyone over the age of 50 who had their own house bought in their 20s who isn't now mega must have been doing it all very very badly wrong. I tell my own dad this!

I've just bought my first investment property but had to buy up North, I could barely afford to buy in London for myself and Brighton is pricey enough.

Whilst all these people who have invested in property over the last 40 years have had it spark off, where does it leave an entire generation under 30? Especially in the South-East.
 
Quite simply if not enough people can afford to buy at that age, then prices will drop. It's a market

Fact is that enough still can do so. Often with help from parents who have huge capital now (that was less the case 30 years ago)

It's probably true that the overall housing supply is too small and there should be more building.But either way, the market will always correct itself

In fact there will need to be big time. The uk is expected by some economists to be the biggest Western European country by population in 30 years. Due to the dead hand and continuing economic failure of the Eurozone this is where the growth will be

Have to say though... I couldn't imagine getting started in my area now and I earn ok

But there isn't a lot that anyone could or should do. Intervening just screws things up
 
Last edited:
clivex said:
Quite simply if not enough people can afford to buy at that age, then prices will drop. It's a market

Fact is that enough still can do so. Often with help from parents who have huge capital now (that was less the case 30 years ago)

It's probably true that the overall housing supply is too small and there should be more building.But either way, the market will always correct itself

In fact there will need to be big time. The uk is expected by some economists to be the biggest Western European country by population in 30 years. Due to the dead hand and continuing economic failure of the Eurozone this is where the growth will be

Have to say though... I couldn't imagine getting started in my area now and I earn ok
Click to expand...

Clive, the key part if in your first sentence - 'afford'. I'd argue many in London can't afford it but are still getting mortgages.
 
Hamm said:
Clive, the key part if in your first sentence - 'afford'. I'd argue many in London can't afford it but are still getting mortgages.
Click to expand...

Well in that case repossessions would go through the roof. And there is absolutely no sign of that. Also it's still far more difficult to get a mortgage than when I bought. Far more

So no. That is not correct
 
Indeed, when interest rates go up and prices come back to their true value then there will be trouble.
 
How do you know prices are not true value now? Also interest rate rises are almist certainly going to be very small for the next few years. Thats very much a consensus
 
There is widespread comment that London house prices are in a bubble. I was looking at moving from Hove to Walthamstow last year and I gave up and refused to pay the prices needed. Two bed flats on at 240k going for 290k with people getting in bidding wars and going up to the next stamp duty band.

Even agents I spoke to said it is completely unsustainable.
 
Unsustainable is not the same thing as overpriced.There may be a correction but demand is so strong i think its unlikely with economy going right way. There will almost certainly be a slowing of increases thats all
 
Back
Top