Author Topic: why rent when you can be pwned


« Reply #1 on: July 18, 2009 »
From VacantPossession over at the House Price Crash forum, responding to what passes for news at the BBC:

As usual, all these reports are entirely confused as to what they mean by "upturn" in the market. Do they mean that houses are more affordable and accessible? No they do not. There is always a half hearted mention of "freeing" up borrowing - but this is not so houses become more available, and cheaper. This freeing up is of course meant to be a signal that the recovery, as always, implies property can resume its previous habit of inflating beyond affordability, so that those already stupid enough to have bought at a ridiculous price, can be comforted that they made the right decision after all.

In no other area of commerce is a "recovering" market solely gauged upon price. A healthy market is one where there is plentiful supply and plentiful demand, but where there is sufficient competition and affordability to keep a cap on spiralling prices. A good market for any commodity is one where there is sustained activity and both buyer and seller are content.

But housing somehow changes the fundamental rules as far as the media are concerned. It gets so tiresome and tedious that what the BBC and nearly every other news organisation means by recovery, is in fact anything BUT recovery. What it means is that they think we can continue regarding property as a speculative vehicle again.


The Phil & Kirsty Show
« Reply #2 on: August 13, 2009 »

As Marwood says of dealer Danny in Withnail and I..."Will we never be free?"

HPC won a place in my heart back in 2004/5/6 for being a sanctuary from the house price inflation madness all around. Like anywhere else, you have to filter the crap out (including generous helpings of misogyny), and you shouldn't expect a balanced debate - the clue is in the name - but it's been a reliable source of mirth, a decent clipping service if a bit heavy on the Daily Mail, and merciless at examining the flaws in the gems we get from mainstream media.


not waving but drowning
« Reply #4 on: October 05, 2009 »

Ad which appeared in my local rag this weekend

First time buyers pleased that they didn't miss the boat


affordability check
« Reply #5 on: October 07, 2009 »
It doesn't get much blunter:

People are stupid. That is obvious. The question for those waiting in the wings for a sensible time to enter the market is this, should I buy now? If we take 'people are stupid' as a given, it is reasonable to assume that they will continue buying houses for as long as they can 'afford' the monthly payments. And by 'afford' I don't mean afford in the way that you or I might mean afford, I mean 'afford' in the way all the stupid people think. They will think they can afford a house if they can afford the monthly payment next month. That's it. That is their affordability check. And at the moment, with IRs as low as they are, they can *just* about 'afford' it. So they are buying.

What the more thoughtful people should do is wait for higher interest rates. It is only at the point when the stupid can't afford to pay the next months repayment on their new purchase that they will stop buying and prices will resume their decline to their natural level.

So don't buy yet.