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And Andy Warhol Thinks He’s Good

Posted by | Posted in Finance, Site News, Society | Posted on 16-10-2008

After posting a random thread on the bestest intertube forum on the (dot)net, I got a whole load of awesome banners to put up on the site. As you probably already noticed, I decided to put them all online and create a banner rotator that will load a banner at random whenever the page is loaded. So a big thanks to Steve, FC, Sammo, and Mikeynma for their efforts!

I read an article today that, while a little out of date (September 2008), still rings true. And mainly because of the government’s inability to do anything drastically useful in a short space of time. The article explains how the recent “solutions” to the housing market problems have not really been solutions at all. At least, not for the people that the government claims to be helping – first time buyers. The general gist of the article is that the government has put many plans “into action” in order to help everyone who’s been suffering from the recent surge (and subsequent fall) of house prices, i.e. first time buyers and those on low incomes, whereas in actual fact all the extra measures have done is help current home-owners feel better about themselves and their failing investment (or, their house prices dropping).

I agree. But then again, I would do, because I fall under the category of “first-time buyer”. At the moment, I’m absolutely loving the idea of house prices dropping. The further they fall, the more affordable they become for me. I read in a newspaper yesterday that the average East Anglian house price will be £122,000 by 2010. I don’t think I can wait that long, but I will if I have to. My general plan of action is basically the same as that outlined in the article – bide my time and save up as much cash as possible until such time as the house prices start to look like they’re rising again, or they drop to the point that I can comfortably afford to buy one. Whichever comes first.

To be honest, I don’t see what all the panic is about. House prices never stay low, even if you’re in the middle of a slump. Given enough time house prices start to rise again, as shown throughout the last 50 or 60 years. So if you think your house is not worth as much as it was when you bought it, the simple answer is not to sell it. Simply wait until the housing market starts to recover, and then you’re laughing. It’s pretty obvious when you think about, so barring people who suddenly find themselves needing to sell up and move in a hurry, it begs the question, “why bother?”.

If you ask me, it’s all about reputation. As most people seem to lose sleep over the “price” of their house (despite most people not even wanting to sell) the government feels as though it’s reputation is on the line, so rather than trying to figure out a way to actually help the people who have genuine issues, it is trying to figure out a way to reassure as many people as it can (and thus secure more votes for them, I imagine) even if a lot of people are worrying over nothing.

If you ask me, they should just let it all unfold by itself. If people are that worried about their house price not being up to scratch, then they should simply not sell until the house prices recover. As far as first-time buyers are concerned, the lower the price the better. And as for the greedy banks who got us all in this pickle in the first place – well, were it not for the fact that if they went bankrupt it would affect millions of innocent people, I’d say let them rot. Their greed and mindless lending to people who couldn’t afford the repayments is what has caused the current crisis. Perhaps this little escapade has opened their eyes somewhat. But then again, if the government uses taxpayer’s money to bail them out every time they bite off more than they can chew, they’ll never learn. And we’ll be the only ones who suffer because of it.

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