12-05-2021, 12:58 PM
32
Re: house prices jump
Originally Posted by The Artful Todger
->
GDP is simply the economic activity within a country and only of real interest to international financiers. In effect it's an indication of how secure loans to a country are. It's commonly used as a measure of the financial health of a nations economy but such is not the reality. It's the balance of trade that shows that. Britain is on very dangerous ground in this respect because of the health of the balance of trade being so biased into the finance sector.
But, another question if l may ?
I believe our banks are privately owned but are regulated by the BOE
When the government borrows, who do they borrow from !
The BOE, ? the banks? or the stock exchange?
I doubt it is the stock exchange has the interest would be too high?
So who lends the government all these trillions of £s ??At such
short notice ??
Donkeyman! 🤔🤔
12-05-2021, 01:26 PM
33
Re: house prices jump
Originally Posted by Donkeyman
->
My thoughts entirely Todgy !!But, another question if l may ?
I believe our banks are privately owned but are regulated by the BOE
When the government borrows, who do they borrow from !
The BOE, ? the banks? or the stock exchange?
I doubt it is the stock exchange has the interest would be too high?
So who lends the government all these trillions of £s ??At such
short notice ??
Donkeyman! 🤔🤔
It's been somewhat cleaned up since the Gordon Brown total cock up that was the root cause of the UK financial collapse.
12-05-2021, 01:43 PM
35
Re: house prices jump
Originally Posted by Donkeyman
->
Ah so it's based on image then dOOd, and not REAL at all ?I think Todgy explained it that way too ?
So what is your judgement of where UK stands in the health of its
economy when possibly 50% of its population cannot access
. housing or has no savings due to low interest rates which are maintained to keep the "economy" going , and also keep government
borrowing high ??
Donkeyman! 🤔🤔
Real GDP means means the figure is adjusted for inflation. Real GDP is sometimes used when referring to simply GDP and not GDP Per Capita.
12-05-2021, 03:02 PM
36
Re: house prices jump
Originally Posted by Bruce
->
Unless I am reading it wrongly your property is actually appreciating far less than it did before you bought it, that's only 40% over 7 years whereas it improved 134% in the previous 14 years which included the GFC. Perhaps your area is more affordable than you thought - that might be good news for first home buyers surely?
The average salary in the UK is possibly around £36,000, before deductions, which are probably around 25% of that so what remains has to pay for renting / living expenses and saving that rather large deposit. Not easy by any means when it's considered most first time buyers are also just starting out in life too so earnings may not be that good yet.
12-05-2021, 03:04 PM
37
Re: house prices jump
Originally Posted by Baz46
->
Good news for first time buyers that house prices may not be increasing at the rate they did a few years ago. However, on speaking to one of those potential first time buyers, a family member, it's the deposit required that often prevents buying. When the prices are at say an average of £250,000 and that's not expensive in some areas, there's a 10% minimum required which on £250,000 is £25,000, a lot of saving to do for anyone on average earnings. First time buyers may have the number of years in which to pay over on their side but that deposit is a minimum which, for most young people will take a lot of saving.The average salary in the UK is possibly around £36,000, before deductions, which are probably around 25% of that so what remains has to pay for renting / living expenses and saving that rather large deposit. Not easy by any means when it's considered most first time buyers are also just starting out in life too so earnings may not be that good yet.
12-05-2021, 04:31 PM
38
Re: house prices jump
Originally Posted by realspeed
->
bit off topic from house price rises
And being able to save for a deposit seems to be a major problem
for prospective buyers for some reason ??
It could be their own fault for being unwilling to make sacrifices
whilst saving ?
It could be the almost negative interest rates offered by banks
and government policies which don't encourage saving, but rather
the opposite ??
I must say that since being back in UK it seems that the majority
of youngsters do seem to spend money as soon as they get it ?
With eating out more than once a week, new mercedes or BMW cars
every three years and more than one overseas holiday every year ?
Ordinary people living in my area all seem to be living like this
and are blocking the pavements with their BMW's and land rovers
etc, which are often parked there all day ??
I suspect most of them are renting too ?
Donkeyman! 🤔🤔
12-05-2021, 05:08 PM
39
Re: house prices jump
Originally Posted by Donkeyman
->
Maybe RS, But you can't buy a house without money ?And being able to save for a deposit seems to be a major problem
for prospective buyers for some reason ??
It could be their own fault for being unwilling to make sacrifices
whilst saving ?
It could be the almost negative interest rates offered by banks
and government policies which don't encourage saving, but rather
the opposite ??
I must say that since being back in UK it seems that the majority
of youngsters do seem to spend money as soon as they get it ?
With eating out more than once a week, new mercedes or BMW cars
every three years and more than one overseas holiday every year ?
Ordinary people living in my area all seem to be living like this
and are blocking the pavements with their BMW's and land rovers
etc, which are often parked there all day ??
I suspect most of them are renting too ?
Donkeyman! 🤔🤔
Graduates have a much bigger problem getting on the housing ladder than apprentices.
Blair created a housing crisis by creating a culture where anything other than a university education was failure.
An apprentice leaving school at 16 can easily save a deposit of £25K over 3 or 4 years by saving round 40% of their salary. By the time the student has graduated with a degree in lesbian dance technology, the apprentice is already starting to pay off their mortgage.
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