To think no one has a right to make money off their house

[Laughingstock1991]

The general consensus among financial commentators this week has been that the housing market has turned. Interest rates are still going up and are unlikely to come down for a few years. The low interest rate financial experiment that has been in place since 2008 has ended and it’s unwinding is going to be painful. The housing boom was based on cheap credit.

My mortgage is likely to go up about 400 a month. Lots of commentators reckon we are in for a big fall in house prices. Good thread here:
https://twitter.com/EdConwaySky/status/1668987423643119623

What pisses me off is the absolute assumption made by some people (like my friend today) that the government should use public money to bail out mortgage holders. Most people were stress tested on their mortgage- I was- and yes it’s going to be tough but do I think public Money (renters money) should be used to bail out mortgage holders- fuck no! The Lib Dems have raised this also today.

House equity is unearned wealth. There are no guarantees. We have been through a boom and now it’s going bust. Hopefully sanity will return & housing will be seen as a home again- not an investment. Its not a ‘market’.

And I say all of this as a homeowner who is going to have to pay a lot more. I want everyone to be able to afford a decent home- not just those with money.

I don’t think that’s unreasonable!

Not sure how you can find a way to blame the Labour Party. Thatcher gave the right to
buy to council tenants then failed to replace the houses that were purchased. John Major then followed Thatcher. We have since then had a Tory party in power since 2010 why have they not built social housing or is that like the imaginary 40 hospitals that Johnson said they would build… Pie in the sky.

We bought our house in 2019 for 200,000 pounds and we're now selling it at 244,000 pounds. So 22 % increase and we're happy with that.

However, our next house is more expensive, so that's not actually money that's available in cash to us.

Of course it's not anyone's "right" to make money off their house, but very often it does happen and over time real estate has proven to increase in value even if there are short term dips.

We see our house primarily as a home for our children and not as an investment.

It's an investment like another.
Do you have a pension do not have a right to that too?

Got no. I have had a house since 1989 and at one stage the interest rates were 17% which was 70% of our income and I had to have 4 jobs at the time to pay my mortgage. I would never expect anybody else’s taxes to pay for me.

Such a complex question cannot have a YANBU OR YABU answer!
Firstly the British economy is propped up by the housing market. I believe this is kept artificially high so that when the babyboomers (luckiest generation in history) need carehomes, equity can be extracted from their homes which they probably paid £20k for in the 80s to pay for it. Once the majority of this generation is gone the gov will allow the housing market to crash. When Nothern rock went bust i thought my mortgage would evaporate as it should if the company who i owe money to dies. No such luck- apparently you can buy debt I discovered. The amounts made are disproportionate but house appreciation should be controlled. Set by gov at inflation rate. Rent should be set and parity should be achieved nationally. But all this is wishful thinking. In the meantime we have to accept the status quo. And accept that our kids will be the unluckiest generation of all time (financially). Once the financial pyramid stabilises it can start all over again. Remember when central banks create money a greater debt is simultaneously created ie mortgages. We are Gerbils on a wheel struggling to pay a fabricated debt that creates inflation. The entire system is complete madness. Oh and when you die you pay tax before your kids get the proceeds. But this in turn creates higher demand and pushes up house prices. Oh and to top it all off, you will probably never see this extortionate amount of money you made on your home unless you opt out of this elaborate Ponzi scheme. Lunacy complete lunacy.

Lol but you did, you had MIRA’s 🤣🤣

Who was bailed out we weren't we had to continue paying our mortgage. Was you bailed out by the tax payer?

Obviously I don’t want to see people lose their homes
So what do people do when they literally can’t afford their mortgage payments? You rather contradict yourself.
If people are homeless the state has to step in to help them. Do you believe that MPs are entitled to all the expenses and subsidies they get?

No it’s not. Thatcher selling them all off at knock down prices to buy votes for the Tories is the main reason.

This idea that the owner makes this magical money from buying a house is not true.

Yes, it is.

First many had to work your ass off saving for the deposit, cutting back wherever they could. Married couples living in flat shares and working full time or even multiple jobs - you read about it all the time.

I had a 100% mortgage. 🤷‍♀️
They invested time and money into bank and legal appointments, house viewings, getting messed around in chains etc.
They took on the risk of home ownership, the mortgage, crazy neighbors, the lot. Can’t make a complaint to the council if you don’t want to risk your equity. No landlord to call if your boiler breaks or you start getting damp.
And then there’s people like us, we’ve invested around 100k updating our home to make it fit to live in. And we’re crammed as a family of four into something too small because actually we are in an area where it’s cheaper to rent than buy.
The main people buy is it’s an investment, so it should eventually pay off. If people make money from their homes, we’ll that’s the whole point in the first place isn’t it?

They invested time and money into bank and legal appointments, house viewings, getting messed around in chains etc.

About as much time and money as getting a rental property.

They took on the risk of home ownership, the mortgage, crazy neighbors, the lot. Can’t make a complaint to the council if you don’t want to risk your equity. No landlord to call if your boiler breaks or you start getting damp.

Not much risk long term as it turns out.

And then there’s people like us, we’ve invested around 100k updating our home to make it fit to live in. And we’re crammed as a family of four into something too small because actually we are in an area where it’s cheaper to rent than buy.

Why did you buy it if it wasn’t fit to live in and renting was cheaper?

The main people buy is it’s an investment, so it should eventually pay off. If people make money from their homes, we’ll that’s the whole point in the first place isn’t it?

The main reason people buy is to put a secure roof over their heads, that’s the whole point. Or should be.

@QueenMegan not exactly sure what you mean. Having a pension Is slightly different to using public money to bail out homeowners who can’t afford their mortgage that they were stress tested for. If I default on a car loan, no one is going to bail me out are they?

The main people buy is it’s an investment, so it should eventually pay off. If people make money from their homes, we’ll that’s the whole point in the first place isn’t it?

Er, no that's not why people buy houses surely?!

Lol but you did, you had MIRA’s

Always forgotten about!

I believe this is kept artificially high so that when the babyboomers (luckiest generation in history) need carehomes, equity can be extracted from their homes which they probably paid £20k for in the 80s to pay for it.

Someone else said this to me, it's another transfer of wealth from the many to the few. I thought they were deeply cynical but now I think they may be right! They said that care in the home would have to be paid for & healthcare. It would happen by default as there would be a lack of carers do people would go private & NHS waiting lists would be super long.

Literally, there’s this absolutely no way that the market can crash, 30%, even 20% would mean less money can be spent on keeping 95-year-olds sat dribbling in their chairs for a few more years before their assets, disappear completely into the pockets of you know who.

Additionally, if prices dropped by 30% that might mean one parent salary isn’t required to buy a house and then who is going to fund Rishi ‘s wife’s new childcare business ? None of this stuff happens in isolation and none of it is accidental.

I suggest everyone screaming at me about how clueless I am read this-houses will become cheaper because people can’t borrow as much because interest rates are hitting affordability/ the housing boom was built entirely on cheap credit and that era has ended https://www.resolutionfoundation.org/publications/the-mortgage-crunch/

And as I have said, there is no way a government can prioritise people with mortgages over the rest of the economy.

Yeah, they said that about the credit crunch in 2008, and yet here we are

Wishful thinking - they have to prioritise getting inflation under control. More QE will create inflation so they are fucked.

We’re all fucked well, that seems like a great note to leave the thread on. You’re all doomed. 🤣

Like I said before, read this excellent thread -https://twitter.com/TimPitt11/status/1669340369094578177

and yes, I do think the housing market is fucked but in the long term, I hope it brings proper social change! Because it can’t continue the way it is- its 12+ times average salary where I am to buy a house- It was never going to end well!

And frankly, why the fuck should anyone bail out idiots like this ://twitter.com/HenryPryor/status/1670319672825094144

I’ve never been worried about house value going up or down because it is always relative. If I want to buy another house and sell mine the new home will be cheaper. Nothing really changes except the pain of getting on the ladder in the first place.
It would be folly to buy now, save the money get some better interest on it and wait. I don’t think however anyone knows when a house is overpriced or underpriced the market isn’t based on reality. It is not a win win. It’s a gamble.

A three bed semi with garden. 25,000 it cost. Now you cannot buy one for less then 470k. ???

 You could always move to a cheaper area.

3 bed semis can be bought for £180,000.
Where i live which is lovely you would be able to buy a 4 bed detached for less than £470.