Economy slowly improving

[El Cid]

not bad for a security guard

 

Many people lives are poor because of bad choices. That might mean a love of alcohol, or another mans wife

[I1L2T3]

I dont think we are at odds, I fully agree that people should not over borrow, but as I understand it, the scheme that Osborne has outlined the government fund would only need to be paid back when he property was sold

 

What if prices fall? How do they pay back the government?

 

Your support for this seems to be based on the idea that house prices will continue to rise. In fact they need to rise to prevent these schemes becoming a disaster.

 

The problem is that houses are already massively overpriced and need to fall. Our economy cannot recover until they do.

 

---------- Post added 22-03-2013 at 19:42 ----------

 

You seem to have overlooked a bit in I1L2T3's post:

By the sounds of it, you bought and traded up over time, sufficiently carefully not to over-expose yourself - which is entirely commendable.

 

And I doubt I1L2T3 would have any problem with buyers who follow that approach (although I'm sure he will correct me, if not).

 

The issue is with buyers who aspire "too much too soon", and would sooner be up there with the Joneses at any price (e.g. a 100% mortgage obtained on the basis of made-up income level and a real income multiple (in terms of repayments) well above e.g. 5) and to hell with financial common sense, "I've got my bricks-&-mortar ATM to change the Audi and go on holidays overseas every year".

 

There were plenty of these on the run up to '08, and plenty have since been feeling the pinch more than they should because of it.

 

Indeed. Absolutely no problem with people working hard and trading up as they establish themselves.

 

Used to be a saying that people bought their best house in their forties. These days people get to 40 and some don't even have their first home. Others have lied basically committed fraud to get on the housing ladder.

[Anna Glypta]

I don't know how old you are but a little lesson in life for you. It's a lesson I will be teaching my kids.

 

Taking on masses of debt to purchase a property you still cannot realistically afford does not equal social mobility. It equals crass stupidity.

 

 

So a bit like the last government did with their borrowing that we cannot afford to repay.

[ricgem2002]

So a bit like the last government did with their borrowing that we cannot afford to repay.

so why are they taking the same route ?

[Anna Glypta]

not bad for a security guard

 

Many folk from low wage professions bought houses. Many got on the housing ladder by purchasing their council house.

It is a lifestyle choice that probably requires sacrifice. But if you are prepared to give up fags, booze, dining out, takeaways and foreign holidays, the pennies mount up.

 

---------- Post added 22-03-2013 at 20:10 ----------

 

so why are they taking the same route ?

 

why is who taking the same route?

[I1L2T3]

So a bit like the last government did with their borrowing that we cannot afford to repay.

 

The debt is growing rapidly under this government too.

 

---------- Post added 22-03-2013 at 20:24 ----------

 

Many folk from low wage professions bought houses. Many got on the housing ladder by purchasing their council house.

It is a lifestyle choice that probably requires sacrifice. But if you are prepared to give up fags, booze, dining out, takeaways and foreign holidays

 

It's not an option for many people on low wages now.

[Anna Glypta]

The debt is growing rapidly under this government too.

 

.

 

This is perfectly true. No government can turn off the taps straight away. The last government set on around 1 million extra public sector workers who's wages the country cannot afford. They also allowed the banks to indulge in practices that are now having to be paid for and their tax contribution is no longer available.

At the time of the election the deficit was running at £175 billion per year.

In the circumstances it is pretty remarkable that that deficit was been cut by 25%.

 

---------- Post added 22-03-2013 at 20:53 ----------

 

 

It's not an option for many people on low wages now.

 

It never has been an option for folk who couldn't afford it. But even folk on fairly low income can still find properties for purchase at a repayment rate not too dissimilar from their current rent.

Anyone wanting to get onto the housing ladder must be prepared to cut out luxuries if that's what it takes to make the first step.

 

If folk are buying properties on a buy to let mortgage, they must be getting a greater return from rent and capital gain than they are paying for a mortgage or there isn't much point.

[I1L2T3]

This is perfectly true. No government can turn off the taps straight away. The last government set on around 1 million extra public sector workers who's wages the country cannot afford. They also allowed the banks to indulge in practices that are now having to be paid for and their tax contribution is no longer available.

At the time of the election the deficit was running at £175 billion per year.

In the circumstances it is pretty remarkable that that deficit was been cut by 25%.

 

---------- Post added 22-03-2013 at 20:53 ----------

 

 

It never has been an option for folk who couldn't afford it. But even folk on fairly low income can still find properties for purchase at a repayment rate not too dissimilar from their current rent.

Anyone wanting to get onto the housing ladder must be prepared to cut out luxuries if that's what it takes to make the first step.

 

If folk are buying properties on a buy to let mortgage, they must be getting a greater return from rent and capital gain than they are paying for a mortgage or there isn't much point.

 

Osborne was supposed to reduce the deficit. He's failed. His failure is just as disastrous for us as what happened under the last government.

 

It absolutely has been possible for people to buy houses they couldn't afford. And that is a major cause of our problems now. The process was simple - lie about income on a self-cert mortgage, take the mortgage on interest only terms and a low waged worker could have a 250k house. Want some money to do it up? Simple - get a credit card. If the house goes up in value then withdraw some equity and get a new car. It's that kind of madness that has driven the economy. I'm surprised so many people are so blind to it.

[Anna Glypta]

Osborne was supposed to reduce the deficit. He's failed. His failure is just as disastrous for us as what happened under the last government.

 

.

 

It is far easier to crash a train than it is to straighten it out afterwards. Osbourne has reduced the deficit by 25%. In these difficult times we are doing a good deal better than the Eurozone. Countries like Greece and Cyprus are showing what happens when you try to borrow your way out of debt.

 

 

It absolutely has been possible for people to buy houses they couldn't afford. And that is a major cause of our problems now. The process was simple - lie about income on a self-cert mortgage, take the mortgage on interest only terms and a low waged worker could have a 250k house. Want some money to do it up? Simple - get a credit card. If the house goes up in value then withdraw some equity and get a new car. It's that kind of madness that has driven the economy. I'm surprised so many people are so blind to it.

 

I'm not going to get too upset about folk who lie to get a mortgage. That's hadly a fault of the system.

[I1L2T3]

It is far easier to crash a train than it is to straighten it out afterwards. Osbourne has reduced the deficit by 25%. In these difficult times we are doing a good deal better than the Eurozone. Countries like Greece and Cyprus are showing what happens when you try to borrow your way out of debt.

 

 

 

I'm not going to get too upset about folk who lie to get a mortgage. That's hadly a fault of the system.

 

The deficit has only been reduced because of one-off fiscal boosts that can't be repeated. Taking Royal Mail pension assets for example. It's forecast to increase again and the structural deficit remains. Our deficit is still over 10% of GDP and our government debt is going to accelerate beyond 100% of GDP - worse than Greece.

 

It's a really horrendous failure. The only thing I can think is that Osborne knows the next election is lost and that he's laying traps for Labour. If so he is destroying

peoples' lives to do it as part of a silly ideological game. As bad as the Labour party before him. The time for such idiocy is gone.