The cult of home ownership is dangerous and damaging

ft.com/cms/s/0/00bf5968-f518 … abdc0.html

iie.com/publications/opeds/o … rchID=2446

Google headline if you hit paywall

Hidden behind a pay wall thingy.

Google the headline

google.com/search?q=The+cul … e&ie=UTF-8

Try here:

iie.com/publications/opeds/o … rchID=2446

On that note how many government property incentives still exits?

Off the top of my head:
MIR is gone
Section 23 is gone
There’s the capital gains tax relief for properties held for more than 7 years which runs out this December
Rent supplement perhaps
Could you count the 1% stamp duty?

CGT relief on PPR remains?

Even normally pro market types here got very cross at the some wonks in the ICB suggesting it be removed
viewtopic.php?f=19&t=59754

Thanks, I had meant investment properties but didn’t explain myself right.

How could I forget NAMA too and their LTEV.

Home ownership ties plebs into the status quo, places them in debt to the system and forces them to work to make mortgage repayments over an extended period.

It affectively deprives them of their liberty.

Easy to see the attraction of that to those that matter…

I remember reading years ago that western governments were encouraging home ownership. The thinking was that this made for ‘good citizens’.

So the alternative is to have property ownership in the hands of a few landlords. Previous generations fought long and hard to oust the landlord class.

When reading any of these types of articles we must be wary of the vested interests. It’s in the interest of large corporations to be the new landlords.

True, but it’s generally in the interests of everyone to have corporations rather than individuals be landlords. The CT left us with every halfwit in the country acting as a small-time landlord. At least the current shakeout is bringing some professionalism to the process.

I agree that people should be able to buy if it makes sense for them but the current sense of entitlement to own a big house even if you can’t afford it is just nuts. Ireland is still far, far on the “OMG you have to buy” side of the pendulum.

I have a dream of the perfect home just the way I want it

then I think about how much cheaper and easier it is to rent a house, and move area whenever I need to, and that dream suddenly becomes a lot less appealing.

+1
Much prefer to rent from an insurance company or pension fund than from a private individual doing this as a side-line. If the private individual is a saint, it’s great, but if they’re an asshole, it’s hell; plus even the nice ones have circumstances that can change. The corporate interface is just a bit more stable and predictable (mediocre/satisfactory is fine in this regard).

Yes and rising house prices made people feel wealthy which is good for re-elections

blogs.independent.co.uk/2012/08/ … expensive/

Home ownership isn`t the problem. The cost of home ownership is the problem.

In 1952, the average UK salary was £589; in 2012 £27,000, an increase of 4484%, so relative to incomes, house prices have slightly less than doubled. They’re certainly more expensive, but not quite as much so as a simplistic reading of that article would suggest.
What really stands out, is that the trend in the cost of housing is in the opposite direction to that for almost all other things. That is, in terms of pay-hours, food is between a half and a quarter of the price it was in 1952, while houses are twice the price.

moneywise.co.uk/cut-your-costs/family-life/jubilee-1952-or-2012-which-era-was-better (second hand data, I know, but it tallies with what I remember reading elsewhere).

Good addition, I`d still say the main problem is the cost of housing is the problem rather than the desire to own is.

The reason for the spiral in property prices is primarily two-fold, but from the same source - mortgages.

Interest rates are at historical lows, thus enabling a borrower to take out a larger principal (thereby pushing up prices) whilst maintaining a similar percentage payment of their monthly salary.

Also, I&C only turned to I-only.
The ability to pay off the loan got replaced by affordability.
The difference is that affordability only looks into your ability to pay the interest because, you know, property prices always rise so the capital repayment takes care of itself. :angry:

Another major factor is women in the workforce. Prices have expanded to require two incomes.

two incomes have driven house prices…! what was the point?