The economy, the housing market, and the truth

[Anna B]

Bet most Chinese workers work harder for less wages than people have got used to here!..............we might have to think again if we want to compete in the global economy.

 

Oh goody, the great race to the bottom argument again. When we are all competing for a bowl of rice people might want to think again.

 

---------- Post added 27-08-2013 at 20:07 ----------

 

But surely if easy borrowing and availability of money sends up house prices, then rents that folk can't afford must surely lead to empty rental properties thus driving rents down.

 

---------- Post added 27-08-2013 at 19:52 ----------

 

 

With yet more eastern European countries joining the EU we certainly will. The EU requires free trade between all EU member states. Therefore there is nothing to stop a UK manufacture shifting production to Rumania where the minimum wage is 157.26 Euros a month as the UK where it is somewhat higher.

Indeed it has a lot going for it as you can then export to virtually every EU country without using ships, planes or the Channel Tunnel. The unions stock answer to this is to go on strike, which will only help UK companies make the decision to move production away from the UK.

 

For comparison. Minimum wage..

 

 

Poland 376.58 EUR per month

Hungary 340.55 EUR per month

United Kingdom 1,264.25 EUR per month

 

 

 

You'd think so wouldn't you, but landlords seem to prefer leaving properties empty, rather than reducing the rents to an affordable level. So much for free market economics. Never seem to work in favour of the little man, do they?

[I1L2T3]

Bet most Chinese workers work harder for less wages than people have got used to here!..............we might have to think again if we want to compete in the global economy.

 

If you pay people less wages then do you think property prices will fall? It doesn't seem to be playing out like that. Declining real wages are now locked in but we're on the cusp of another house price boom, and presumably a rise in rents too.

 

The only way to make up the difference is for government to step in and make up the shortfall for a lot of people. It's the most terrible, inefficent way of spending taxes. The money pours from the economy into property, money that could otherwise be spent in the wider economy.

 

House prices need to come down. More houses need to be built. It's as simple as that.

[Staunton]

She's suggesting that you are implying that they donate money to the party that is currently in power in order to enable them to maintain low levels of house building.

And suggesting that it isn't true since they were building even fewer houses under the previous government to whom they presumably hadn't donated any money.

 

Perhaps you would like to offer an explanation for the half million donations to tory funds by the tract housing developers?

[chem1st]

Bet most Chinese workers work harder for less wages than people have got used to here!..............we might have to think again if we want to compete in the global economy.

 

Reduce rents and the cost of living then.

 

The problem is rents relative to wages.

 

Bring the business and economic activity back.

[Cyclone]

Rents aren't controlled by some central agency that can reduce them.

 

---------- Post added 28-08-2013 at 07:36 ----------

 

Perhaps you would like to offer an explanation for the half million donations to tory funds by the tract housing developers?

 

They wanted the Tory's to win the election perhaps... That's pretty obvious. What you then go on to imply hasn't happened though has it, house building is actually up.

 

---------- Post added 28-08-2013 at 07:37 ----------

 

Oh goody, the great race to the bottom argument again. When we are all competing for a bowl of rice people might want to think again.

 

---------- Post added 27-08-2013 at 20:07 ----------

 

 

 

 

You'd think so wouldn't you, but landlords seem to prefer leaving properties empty, rather than reducing the rents to an affordable level. So much for free market economics. Never seem to work in favour of the little man, do they?

 

That's simply not true, do a poll of the landlords on SF, they'd rather take a reduced rent than no rent at all.

[deaf andy]

Bet most Chinese workers work harder for less wages than people have got used to here!..............we might have to think again if we want to compete in the global economy.

 

harder? maybe. less wages? probably, but the tax rate in china is only 17% of gdp, rather than the 39% of gdp in britain.

 

if we weren't being taxed to pieces, and the cost of living(existing) was lower, then we'd all be happy earning less

[Staunton]

 

They wanted the Tory's to win the election perhaps... That's pretty obvious.

 

It is obvious isn't it Cyclone?

 

The interesting point is why they wanted such a circumstance? Perhaps you would like to explain?

[Anna B]

Rents aren't controlled by some central agency that can reduce them.

 

---------- Post added 28-08-2013 at 07:36 ----------

 

 

They wanted the Tory's to win the election perhaps... That's pretty obvious. What you then go on to imply hasn't happened though has it, house building is actually up.

 

---------- Post added 28-08-2013 at 07:37 ----------

 

 

That's simply not true, do a poll of the landlords on SF, they'd rather take a reduced rent than no rent at all.

 

 

Why are hundreds, if not thousands, standing empty then?

 

And the government can impose rent controls on privately owned rental properties, and have done in the past.

[Obelix]

You'd think so wouldn't you, but landlords seem to prefer leaving properties empty, rather than reducing the rents to an affordable level. So much for free market economics. Never seem to work in favour of the little man, do they?

 

Sorry but that's utter rubbish. Any landlord actively renting property out will place rental prices such that voids are minimised. I don't know anyone that will hold out for a high priced rent and risk weeks and weeks of no earning for the hope of making 10% more, it's just not going to happen.

[Mecky]

Sorry but that's utter rubbish. Any landlord actively renting property out will place rental prices such that voids are minimised. I don't know anyone that will hold out for a high priced rent and risk weeks and weeks of no earning for the hope of making 10% more, it's just not going to happen.

 

Do you use Secret Escapes, Trivargo or Hotwire to advertise your properties then?