Soldato
he's saying are people arriving faster than housing is being built, implying they are, and that's probably true.
implying it's impossible to let them all stay unless the housing exists.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
implying it's impossible to let them all stay unless the housing exists.
People love to complain about things. The point is simply that it's probably unlikely he's ****** (as someone previously suggested).
Almost certainly he was in a better position before, but there will likely be other people harder hit than someone in their 60s, who has likely benefited from the disproportionately increasing property values over many years.
You're conflating two very different things here.
1) Putting your (spare) money where it will give you the best returns.
2) Having readily available savings for things like an emergency boiler fix.
If you overpay the mortgage and don't have funds available to pay an emergency boiler fix, then you (potentially) made the wrong decision.
Welcome back to you and your team.
Don't moan about house prices when this constant stream of mouthbreathers arrive with nothing to offer.
I would be more upset about this than rates going up, it's the main reason prices are so high, there is not enough housing stock.
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Caporegime
Isn't a lot of the manual labour in construction done by migrant workers? Maybe migration is the solution to the housing problem rather than the cause.
Lol. Really?
Associate
Lol.
It's worrying the number of economic illiterate people who are posting on this thread, and the amount of time they waste trying to convince others that they are right and everyone else is wrong.
The Bank of England don't expect interest rates to have to increase as much as markets anticipate. That is because inflation will start to fall rapidly later on next year because there will be a large number of people not able to spend due to job loss. That is kind of what happens during a recession, and anyone who can't see how unemployment will surge clearly has difficulty understanding basic concepts. The method chosen to reduce inflation is precisely mass job losses. Both the BOE and government wins here. BOE gets inflation under control and governments can service their debt due to interest rates not having to rise too high. There's quite a few sheep about to become sacrificed.
Excellent post, and absolutely nailed it.
What you've described is demand destruction due to people's inability to spend. This is exactly how inflation drops. Neat. Very neat.
No, because not raising rates will lead to currency collapse and imported inflation. So back to the drawing board with that one. People will take any job going to save their house and vacancies are not just in care and fruit picking they are across the entire economy.
I thought @purplesky thought we were led by the fed, what's changed? As we see in the US, demand destruction doesn't happen with rates at 4%.
I thought @purplesky thought we were led by the fed, what's changed? As we see in the US, demand destruction doesn't happen with rates at 4%.
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Soldato
This is the really pressing issue, it is caused by qe and low rates supporting essentially a fake economy based on ever increasing debt and not much else.
Just give it up will you. You're completely out of your depth.
Last month your team told us we had to follow the fed, so I'll ask again, what has changed?
Soldato
Lol
Yep essentially, and those fake jobs can go with it.
Very well said. Even if brutal!
Soldato
Essentially though they appear to have no choice, the mini budget just highlighted that.
I wonder how many homeowners are in a position where they don't have like 2-3 months worth of salary saved to be able to survive a residency or job loss and find another within that space of time.
I understand not everyone is fortunate enough to be in that position, however I'd feel vulnerable if not.
I understand not everyone is fortunate enough to be in that position, however I'd feel vulnerable if not.