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By anonimouse (Wed Mar 06, 2013 at 10:11:25 AM EST) (all tags)
Just found out the house I grew up in is on the market for...


£695,000 ($1,050,000).


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Hmm | 15 comments (15 topical, 0 hidden) | Trackback
It's informative by dmg (4.00 / 1) #1 Wed Mar 06, 2013 at 11:15:06 AM EST
To calculate the implied inflation factor and then wage/salary-adjust it.

The UK government deliberately does not build enough houses, to support the illusion of wealth that high nominal house prices provide. (It's near open-door immigration policy also supports this).

High house prices are a sure sign that the supply/demand mechanism is being tampered with. In this case, the demand is being deliberately increased (via unlimited immigration) and the the supply is being artificially restricted via insane planning regulations.

The bizarre notion that high house prices are a 'good thing' seems to be prevalent amongst a large number of the UK population, so I don't see this situation changing any time soon. Indeed with the complete mismanagement of the economy with Osborne building upon the incompetency of Brown, it will probably get much much worse, as the GBP continues it's slide to oblivion.
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dmg - HuSi's most dimwitted overprivileged user.

(Comment Deleted) by ObviousTroll (2.00 / 0) #2 Wed Mar 06, 2013 at 02:16:36 PM EST

This comment has been deleted by ObviousTroll



[ Parent ]
Bad phrasing by ObviousTroll (2.00 / 0) #3 Wed Mar 06, 2013 at 02:19:13 PM EST
I'd forgotten that HUSI doesn't let you edit posts.

Saying that the UK deliberately does not build enough houses startled me a bit. In the US, the government is usually quite ineffective at slowing down development.


An Angry and Flatulent Pig, Trying to Tie Balloon Animals
[ Parent ]
Lack of land by jump the ladder (2.00 / 0) #4 Wed Mar 06, 2013 at 06:48:05 PM EST
And very strict planning laws. The current govt would like to change  the laws but there would be a huge outcry by the sort of people that vote Conservative in areas surrounding London where the most of the development would take place.

[ Parent ]
I don't believe they want change. by dmg (2.00 / 0) #7 Wed Mar 06, 2013 at 08:10:57 PM EST
I think there is a deliberate policy of 'high house prices' because it suits some political/economic agenda.
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dmg - HuSi's most dimwitted overprivileged user.
[ Parent ]
in line with JtL by bobdole (2.00 / 0) #5 Wed Mar 06, 2013 at 07:12:54 PM EST
the uk has 7-8 times the population density of the us

Granted most Americans live in (sub)urban areas, but still...
-- The revolution will not be televised.

[ Parent ]
high house prices are a "good thing" by jimgon (2.00 / 0) #6 Wed Mar 06, 2013 at 07:45:56 PM EST

I'm in the US, but as a mortgage debtor I would be in favor of high house prices.  Especially since my house is now worth considerably less than my note.






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Technician - "We can't even get decent physical health care. Mental health is like witchcraft here."
[ Parent ]
In nominal terms it may well be. by dmg (2.00 / 0) #8 Wed Mar 06, 2013 at 08:12:10 PM EST
And even in real terms.

But is it a good thing for society in general?
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dmg - HuSi's most dimwitted overprivileged user.

[ Parent ]
not necessarily a good thing for the individual by bobdole (4.00 / 1) #9 Thu Mar 07, 2013 at 02:39:08 AM EST
high prices (and the implication that they are also constantly rising) doesn't really benefit the individual. Most people tend to buy and sell in the same market. So yes, you will get a good price for your house, but you will have to pay an arm and a leg for your next house, too.

The only institutions that benefit are the banks/lenders and what ever taxes your local government can scrape from the deal.
-- The revolution will not be televised.

[ Parent ]
Renting is better by jimgon (2.00 / 0) #10 Thu Mar 07, 2013 at 06:35:59 AM EST
You don't get the savings aspect of home ownership, but you don't have the maintenance costs or the taxes. And it's only an investment when the prices are rising since investment would indicate a return and not simply using a piece of a payment to increase equity that would be returned in a sale (assuming the sale price is higher than the note payoff value).  In the long term real estate may be an investment, but in the long term we're all dead. 




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Technician - "We can't even get decent physical health care. Mental health is like witchcraft here."
[ Parent ]
I suppose it depends on local taxation by bobdole (2.00 / 0) #11 Thu Mar 07, 2013 at 10:30:12 AM EST
Where I live, there are also tax deductions for various home-related expenses (most notably interest paid), the debt I owe to the bank for the apartment also makes sure my net worth is negative (and hence saves me more in taxes).

The net result is that for me the cost of renting something similar to what I'm now paying the bank for is pretty much equivalent in terms of monthly costs (after taxes).

In the long term maintenance and taxes are likely to increase - but for now I would be losing money if I rented (assuming I can sell it for roughly equal to what I paid). The last place I rented charged pretty much the same as what I pay on my mortgage now.
-- The revolution will not be televised.

[ Parent ]
It also depends on by dmg (2.00 / 0) #12 Thu Mar 07, 2013 at 07:58:51 PM EST
What kind of controls exist.

In the UK the market is fairly unregulated, with all the benefits and disadvantages that implies.
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dmg - HuSi's most dimwitted overprivileged user.

[ Parent ]
Renting means beige walls & carpet by ambrosen (2.00 / 0) #13 Fri Mar 08, 2013 at 12:00:44 PM EST
and no security.

[ Parent ]
Security by jimgon (4.00 / 1) #14 Fri Mar 08, 2013 at 05:02:34 PM EST
No such thing in the 21st century for anyone without wealth.




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Technician - "We can't even get decent physical health care. Mental health is like witchcraft here."
[ Parent ]
If indeed there ever was. by dmg (2.00 / 0) #15 Fri Mar 08, 2013 at 07:22:32 PM EST
The real crime is perpetuated by the banksters in conjunction with the socialists to devalue the currency.
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dmg - HuSi's most dimwitted overprivileged user.
[ Parent ]
Hmm | 15 comments (15 topical, 0 hidden) | Trackback