Good news on the economy

[reggie]

House prices continue to fall creating more good news for first time buyers and reducing inflation.

The good news keeps on coming:

1 Greater appreciation and awareness of the actual place we live in and not just its value.

2 Good news for those who want to pass a property to their children due to reduced inheritance tax liability.

3 Greater reliance on finding useful paid employment thus making our economy more competitive.

4 Cheaper properties reduce the need for borrowing easing the credit crunch and giving the consumer more cash in their pocket.

The Suburban Pirate

[ratty]

Errrrr yes.

Apart from the fact that I can no longer afford milk and bread I guess this is all fantastic news!

[Strawbs]

Besides obviously petrol and a few odds and sodds to be honest I dont think things are going up.. Possibly vegetables and fruit etc but my shopping bills and spending money each month is remaining the same.. Obviously the housing market is affected but that is separate to the price of groceries..

If we continue to talk as if the sky is falling I think it literally will fall in and we will have a recession but I dont think we are in one!

[*Bob*]

Macroban?! This is your cue.. get in here and start banging some heads together.

[Ted Max]

Macroban is round at Reggie's now, giving a full .ppt presentation on how optimistic naivety is the classic fifth stage of the Greenberg-Meerstad theory of recessionary behaviour.

And telling him his tomatoes will never grow in that potting mix as well.

[macroban]

5. East Dulwich could become less like a short-term transit camp and could build a more stable long-term community.

6. Local state schools could improve.

[reggie]

ted max

I would say that pessimism is just as naive as optimism.

On the tomatoes front.... a few years ago an unplanted tomato plant grew up between the cracks in our patio and unwatered produced a whole bucket of green tomatoes. True story.The Suburban Pirate

[????]

Thousands of Estate Agents on the dole

[????]

but to return to the bad news

1) yes, very true, but also many will lose theirs altogether so not quite as spiffing as it sounds

2)Er, if your property was above the inheritance tax threshold and then falls in value below it, you've got less than you had to leave them than before NO GAIN and probably a loss

3)Unless you happen to work in property,,,,,,

4)Property prices aren't indexed into RPI (inflation)...so it won't fall if they do, plus mortgage payments on overinflated houses won't go down just because their value falls (see negative equity)

Finally, there's a CREDIT CRUNCH...lenders aren't lending to anyone unless they have significant savings for a deposit and a good track record in servicing their debts (HINT...this is generally not First Time buyers)

[will dex]

reply to ????

im an a++ rated borrower and (apologies re repeatin my post in "is anything selling") its taken me 4 MONTHS to remortgage due to the hoops lenders are making peoplejump through.

their latest trick is how legal is the "a" on the number of my my flat adrress??

I wonder how any first time buyer could possibly run and complete this gauntlet when i have had a PHD in lendind for a simple remortgage????

Will

[reggie]

Hey ????

You missed my point about inheritance tax methinks. If you want to pass your property on, you want it to have a low value otherwise the taxman wades in. Hence falling property prices helps to keep a property from having to be sold.

The credit crunch began with house price inflation so surely the opposite must be a good thing...in parts.

I thought first time buyers underpinned the housing market and they having been waiting a long time for prices to get more real.

I notice you agree that people are paying on houses that are overinflated....I rest my case.

I genuinely believe we are wrong to think it is bad news.

The Suburban Pirate

[????]

I couldn't be arsed to explain that the credit crunch is largely about banks inability to lend much especially to first time buyers yet again...so ijust cut and pasted this from the BBC

Tough times for first-time buyers

The availability of mortgages will remain subdued, lenders say

A first-time buyer couple on low incomes must save a year's worth of their take-home pay to buy their first home, say surveyors.

A couple in the bottom quarter of earners in the UK needs ?27,738 to pay the up-front fees, says the Royal Institution of Chartered Surveyors.

Affordability has improved for those able to get onto the housing ladder, the group says.

But the credit crunch has made it more difficult to climb onto the first rung.

"Access to the housing market has deteriorated as the credit crunch has taken hold of the mortgage lender sector," said Rics' senior economist David Stubbs.

"With mortgage approvals declining, the picture does not look like improving in the latter part of 2008 and first-time buyers will find their path to home ownership increasingly blocked."

[reggie]

????

You are right to say that the credit crunch was caused by first time buyers getting into trouble, thats why I think its good news about falling house prices..its a cure for the cause of the problem.

Was it 'good news' when house price rises brought disaster closer and closer?

As Oasis once said 'its a caaaraaazzzy situaaaashunnnn' when we think the only way is up when we all know thats not true.

The Suburban Pirate

[HonaloochieB]

reggie Wrote:

-------------------------------------------------------

> As Oasis once said 'its a caaaraaazzzy

> situaaaashunnnn'

At last an Oasis reference, finally this thread makes sense to me.

Thanks.

[Marmora Man]

Is the length of the W Rose queue a measure of economic gloom? It was at its shortest I've seen it today at 9.15, which is when I usually start to shop on LL on a Saturday. In and out with 10 minutes - an all comers record.

Good news therefore - shorter queues at W Rose and the value for money remains great - good quality at fair prices.

[Peckhamgatecrasher]

Sorry to disappoint MM, it's the start of the school hols, they've probably all gone to Cornwall.

[reggie]

Marmora Man

Yes thats it...by jove I think I'm starting to get through.

By the way Ratty can you really not afford to buy bread and milk?

As bread and milk are two of the basics in a person's food budget the world over I assume that the following luxuries are now completely unaffordable for you:

mobile phone, television,computer, holidays, booze, fags,broadband, take-aways, CDs,DVDs,clothes without the primark label.

I am hoping you can afford these things...I was just curious.

Suburban Pirate...middle class warrior

[Marmora Man]

Peckhamgatecrasher Wrote:

-------------------------------------------------------

> Sorry to disappoint MM, it's the start of the

> school hols, they've probably all gone to

> Cornwall.

Oh well - back to queuing in September.

BTW - I holiday in Cornwall but have been doing so since 1957, not trendy therefore, just unadventurous.

[Peckhamgatecrasher]

A trend setter MM!

[macroban]

Domino's are doing well. So far.

[macroban]

White Stuff seem to be doing quite well too.

Whilst always cautious about company statements, this seems to be a creditable result.

If this pattern is being replicated by our other local clothes stores there may be some local resilience.

[macroban]

Butlins is doing well.

You can get sushi there too.