Comments on: More houses, more debt http://www.johnredwoodsdiary.com/2007/07/11/more-houses-more-debt/ Conservative Party Member of Parliament for Wokingham Mon, 13 Oct 2008 18:24:18 +0000 http://wordpress.org/?v=2.6.2 By: Man in a Shed http://www.johnredwoodsdiary.com/2007/07/11/more-houses-more-debt/#comment-3937 Man in a Shed Thu, 12 Jul 2007 19:36:32 +0000 http://www.johnredwoodsdiary.com/?p=357#comment-3937 Good points, its a shame we don't hear more of them coming from the wider party ! I get the feeling that Gordon Brown knows that nasty crash is coming and is manoeuvring to escape the blame (25 yr fixed rate mortgages etc - Mr Darling was out with that one so fast after greeting into office you have to assume its instructions from Brown himself as part of his master plan.) Good points, its a shame we don’t hear more of them coming from the wider party ! I get the feeling that Gordon Brown knows that nasty crash is coming and is manoeuvring to escape the blame (25 yr fixed rate mortgages etc - Mr Darling was out with that one so fast after greeting into office you have to assume its instructions from Brown himself as part of his master plan.)

]]> By: Steven_L http://www.johnredwoodsdiary.com/2007/07/11/more-houses-more-debt/#comment-3921 Steven_L Wed, 11 Jul 2007 21:31:02 +0000 http://www.johnredwoodsdiary.com/?p=357#comment-3921 I think it's more to do with too much money chasing to few houses than too many people chasing them. I guess, with the likes of Tesco keeping retail prices down, faster technological advance in today's world, global competition and so many of the nations we import from pegged to a weakening dollar the only things that can really inflate are houses. There might be too many people chasing a few exclusive properties in some areas, and the last few years has seen a multi-tude of new-builts sold off-plan to landlords. Up here though it's the same houses in the estate agents windows week in week out asking the same silly money. I still hear people occasionally talking about buying their first house, seemingly convinced it will appreciate at 10% per year forever. I can't see us losing our obsession with homeownership, but I can see hardcore investors jumping ship at more interest rate rises, and first-timers having second thoughts as soon as the mainstream media starts screaming 'crash' at them. An increasing number of people think it's a silly time to buy though. Gordon Brown doesn't have a good record on financial advice really does he? First he helped trash the pensions system, I think you said something about them being told buy assets that went down on his watch a while back, then sold out gold off at rock bottom. Now he's telling young people to buy houses, hmmmm? What should I do? He's managing to get some decent spin around, a rather silly woman at work, who must have been in her forties, proudly annouced to me today in the canteen that 'Our new Prime Minister is pulling out [of the EU] he's going stop all this so no more of them can get in and attack us' (talking about the annoucement on Sky News of the 40 year minimum tariffs. I asked her where she was getting this from as politely as I could but she couldn't really elaborate. I just told her not to believe a word he says and left it at that. I think it’s more to do with too much money chasing to few houses than too many people chasing them. I guess, with the likes of Tesco keeping retail prices down, faster technological advance in today’s world, global competition and so many of the nations we import from pegged to a weakening dollar the only things that can really inflate are houses. There might be too many people chasing a few exclusive properties in some areas, and the last few years has seen a multi-tude of new-builts sold off-plan to landlords. Up here though it’s the same houses in the estate agents windows week in week out asking the same silly money.

I still hear people occasionally talking about buying their first house, seemingly convinced it will appreciate at 10% per year forever. I can’t see us losing our obsession with homeownership, but I can see hardcore investors jumping ship at more interest rate rises, and first-timers having second thoughts as soon as the mainstream media starts screaming ‘crash’ at them.

An increasing number of people think it’s a silly time to buy though. Gordon Brown doesn’t have a good record on financial advice really does he? First he helped trash the pensions system, I think you said something about them being told buy assets that went down on his watch a while back, then sold out gold off at rock bottom. Now he’s telling young people to buy houses, hmmmm? What should I do?

He’s managing to get some decent spin around, a rather silly woman at work, who must have been in her forties, proudly annouced to me today in the canteen that ‘Our new Prime Minister is pulling out [of the EU] he’s going stop all this so no more of them can get in and attack us’ (talking about the annoucement on Sky News of the 40 year minimum tariffs. I asked her where she was getting this from as politely as I could but she couldn’t really elaborate. I just told her not to believe a word he says and left it at that.

]]>