If there were no mortgages

taximike

taximike

taximike

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Joined
25 Dec 2009
Posts
615
If there were no mortgages - correct me if I'm wrong - but at the lower end of the scale we'd all be able to afford roughly the same but we just wouldn't spend our life in debt to the bank - correct?

Property prices are based on the availability of credit. If you increase credit (like they did in the 90s where the salary-based mortgage calculations were scrapped) then you get a boom in prices. If there's no credit - prices become extremely low.

Our quality of life is getting pretty rubbish these days if we have to spend most of our salary on buying a house.
 
So you suggest what exactly?

I pay the old owner £700 a month, he then pays the old owner of his house £700 a month?
 
the rich people would probably buy up all the houses so the rich would just get richer. its just how we are in england, buying a house is everything in life
 
anticonscience said:
So you suggest what exactly?
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Well you can't really scrap the mortgages now because otherwise property would crash and put everyone in negative equity. However if people start to realise this and credit gets slowly tightened to stop any more price booms it will be beneficial to us all.
 
anticonscience said:
How so? People wouldn't be able to afford to buy houses without a mortgage.



O'RLY!
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Yes that's my whole point. If there are no mortgages property becomes really really cheap because the average price will be determined by what the average person can save not what the average person can borrow.
 
Before mortgages all the property was owned by the wealthy few landowners and most people had no choice but to rent off them. The amount of labour and materials that go into building a house means it will be prohibitively expensive to buy outright without credit for most people.
 
Should just make it 3x wage maximum so it isn't a competition to see who can get the most in debt. They can still compete on deposits and interest rates etc.

Land prices, materials and labour aren't exactly cheap either these days.

Cameron will sort it all out when he makes half the public sector redundant. Gonna be buy me one of their houses.
 
taximike said:
Yes that's my whole point. If there are no mortgages property becomes really really cheap because the average price will be determined by what the average person can save not what the average person can borrow.
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Overly simplistic approach. To build any new house costs massively more than 20k in materials and labour alone.
 
Beerbaron said:
its just how we are in england, buying a house is everything in life
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We do seem, as a culture, to be utterly obsessed with it often to the detriment of anything else that might get in the way.

Curiously in other countries around the world the attitude is completely different.
 
I bet none of these "houses" is worth more than 20k, so yes you can build a house for less than 5k even if you wanted to. It's just not really a UK standard, is it?

slums.jpg



EDIT:

check this one, I bet it cost nothing but labour to get it build, all materials are recycled :D

slumsjakartaindymedia09.jpg
 
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[TW]Fox;16662593 said:
We do seem, as a culture, to be utterly obsessed with it often to the detriment of anything else that might get in the way.

Curiously in other countries around the world the attitude is completely different.
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I wonder if entire TV channels showing nothing but 24hr repeats and re-runs of property shows "oh i must climb the property ladder / make as much money as possible / makeover a house to sell at a fat profit" have anything to do with this?

Can't stand such drivel myself, g/f watches them - I like seeing bits where people fail badly, and spend way more than they can afford. Maybe im evil :o
 
[TW]Fox;16662593 said:
We do seem, as a culture, to be utterly obsessed with it often to the detriment of anything else that might get in the way.

Curiously in other countries around the world the attitude is completely different.
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Such as where? Just asking mate :).
 
i'm building small flats and houses for circa £100k each in london, add land cost plus legal fees, how would anyone be able to buy without a loan that's all without adding contractor and developer profit and at the moment the sub contractors working for turnover very little profit
 
[TW]Fox;16662593 said:
We do seem, as a culture, to be utterly obsessed with it often to the detriment of anything else that might get in the way.

Curiously in other countries around the world the attitude is completely different.
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Germany was a famous rent only country with buying being the exception, this is changing with buying on the up and this seems to be a trend in Europe where renting was the main way.
 
[TW]Fox;16662593 said:
We do seem, as a culture, to be utterly obsessed with it often to the detriment of anything else that might get in the way.

Curiously in other countries around the world the attitude is completely different.
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this, personally I'll forever aim to rent a room in a shared house for 250-280 a month tops, mayb rent a house with partner oneday at most.
 
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