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keeps people renting for longer. That's perfectly compatible with moving a lot. A lot, This has nothing to do with renting vs owning, or even with second

by mafribe 10y ago

keeps people renting for longer. That's perfectly compatible with moving a lot. A lot, This has nothing to do with renting vs owning, or even with second mortgages, but is primarily because supply of dwellings did not keep up with demand. The UK, especially the greater London area, has seen a lot of immigration, and on top of that there is the ongoing reduction in family size. So more and more dwellings are needed, but supply has not kept up. Restriction of mortgage is not "doctoring the symptoms" Yes it is, because it neither reduces demand for, nor increases supply of dwellings.

Nursie 10y ago
>> That's perfectly compatible with moving a lot. So what? People who don't want to move a lot find they must keep paying someone else's mortgage as they can't get their own. >> Yes it is, because it neither reduces demand for, nor increases supply of dwellings. If buying up housing is made, by whatever means, financially less attractive to those who already own homes then of course this tackles demand for purchases and allows more people who are forced into renting the ability to buy their own home.
- mafribe 10y ago
  as they can't get their own. As I said, it's important that not everybody who might be able to afford monthly rates gets a mortgage, for otherwise you'd get too many defaults, leading to financial instability. And very few tenants rent for the whole duration (typically 25-30 years) of a mortgage. Finally nobody needs to own their dwelling -- renting is fine. I rented most of my life, and so did German chancellor Merkel. someone else's mortgage As I've pointed in previous posts, that's fine, for they provide a valuable service, that can be summarised as a "risk transfer". That needs compensation. Finally you seem to think that there is a difference between a first and second mortgage: the first being given by magic first-mortgage-fairies out of the goodness of the lender's heart and the second out of sheer greed to oppress people like you. Well, I recommend a quick calculation how much you overpay on the property if you get a first mortgage, vis-a-vis a cash purchase. forced into renting the ability For some bizarre reason you (like many others I have discussed this subject with) are unwilling to admit that the price of dwellings whether paid by rent or mortgage repayment, is primarily (indeed almost exclusively) determined by supply/demand; the solution to high prices is to build more. It's almost like there is some deep-seated investment in the status-quo that is needed to stabilise your world-view. I recommend to let go of your deep seated resentment and instead learn about the social function of credit.

by mafribe 10y ago

Nursie 10y ago

>> That's perfectly compatible with moving a lot. So what? People who don't want to move a lot find they must keep paying someone else's mortgage as they can't get their own. >> Yes it is, because it neither reduces demand for, nor increases supply of dwellings. If buying up housing is made, by whatever means, financially less attractive to those who already own homes then of course this tackles demand for purchases and allows more people who are forced into renting the ability to buy their own home.

mafribe 10y ago
as they can't get their own. As I said, it's important that not everybody who might be able to afford monthly rates gets a mortgage, for otherwise you'd get too many defaults, leading to financial instability. And very few tenants rent for the whole duration (typically 25-30 years) of a mortgage. Finally nobody needs to own their dwelling -- renting is fine. I rented most of my life, and so did German chancellor Merkel. someone else's mortgage As I've pointed in previous posts, that's fine, for they provide a valuable service, that can be summarised as a "risk transfer". That needs compensation. Finally you seem to think that there is a difference between a first and second mortgage: the first being given by magic first-mortgage-fairies out of the goodness of the lender's heart and the second out of sheer greed to oppress people like you. Well, I recommend a quick calculation how much you overpay on the property if you get a first mortgage, vis-a-vis a cash purchase. forced into renting the ability For some bizarre reason you (like many others I have discussed this subject with) are unwilling to admit that the price of dwellings whether paid by rent or mortgage repayment, is primarily (indeed almost exclusively) determined by supply/demand; the solution to high prices is to build more. It's almost like there is some deep-seated investment in the status-quo that is needed to stabilise your world-view. I recommend to let go of your deep seated resentment and instead learn about the social function of credit.