Why, Ozzy?

Apparently, if the UK leaves the EU, house prices will fall and mortgages will be more expensive. Ozzy, the Chancer of the Exchequer, and his tax minions have declared it so. We must believe without question.

House prices around here are insane. A perfectly ordinary semi-detached house with no garage will set you back a quarter of a million pounds. On that basis, a fall in house prices is not necessarily a bad thing.

Oh sure, homeowners want their houses to be as valuable as possible but consider – when the time comes to retire and downsize to a little bungalow, how many people can afford your three bedroomed semi-detached for the price you want? There is a limited pool of people who can get a mortgage that big and that pool gets smaller with every new tax.

It has to be someone on a very good income, in a job they can be sure won’t vanish in the near future, and who wants to live where you live now. There won’t be many buyers in most cases and they are going to offer less than you want because they know they have little competition.

So maybe you won’t get as much for your house but then the one you’re moving to will cost less too. In the end, your profit margin is likely to be much the same.

But… is it even true? Will house prices go down? Will mortgages get more expensive? Or is it just a scare tactic to make those homeowners think they might not get as much as they hope?

There’s one crucial question nobody in the news seems to be asking when faced with these doom-laden Brexit scenarios. They simply accept the declared ‘losses’ and don’t question the reasoning or calculations that have led to these conclusions.

Nobody is asking ‘why?’

Why is that?

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17 thoughts on “Why, Ozzy?

  1. “So maybe you won’t get as much for your house but then the one you’re moving to will cost less too. In the end, your profit margin is likely to be much the same.”

    Nope. You’ll be hurt. Why? Simply because, as you point out, the house prices will be outstripping the market and thus there’ll be extra competition for the low end. The house you’re selling will have had its price somewhat lowered because of financial pressures, but the smaller house you’re buying will have had its price escalated because of the crush of people trying to buy a cheaper place to live!

    – MJM, Realtor to the Stars!

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  2. The principle of “Supply and Demnad” always finds the right price, unless Authorities interfere.
    Houses are too expensive because building new ones to match the demand, is bogged down with arbitrary regulations.

    Converted shipping containers. That would ease the pressure at entry level.
    Easy to move to chase jobs. Easy to expand. Part-ex instead of redecorating, if you’re lazy.

    It won’t happen, of course. it would ease the pressure and bring house prices down, and those who have already got one won’t tolerate that. The same applies to any solution.

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    • I think Mark Wadsworth had a particularly apt name for those people who want their houses priced high and sod the rest of us. Can’t remember what it was…

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  3. And now there will be war, WAR I tells ya!

    You won’t worry about your house price because we’ll be at WAR!

    According to that lying treacherous cunt Cameron anyway….

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  4. So prices will fall -> you need to borrow less to buy.
    Interest rates rise -> you pay more interest on a lower borrowing.

    Roughly, they cancel out?

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  5. What is also not mentioned at all, ever is that things are not at all rosy over in Euroland. Greece is still a backward, bankrupt shit-hole with a huge array of weird and idiotic taxes and assorted fiddles and closed shops. France would be bankrupt if the rules on bankruptcy for countries hadn’t been quietly fudged. Italy is nearly bankrupt and has a banking sector that dwarfs that of Greece (although to be honest, most countries dwarf Greece).

    Any one of these disasters coming even partly true will cause massed strain and mayhem for the Euroland. Since there seems to be no great rush to fix any of the endemic problems that are causing these ailments, then all of these dire problems will eventually come partly true.

    Mostly, this will hurt the little people in each country. The people who earn small wages, and who are going to see their jobs vanish towards black market immigrant workers who’ll work for even less. As these immigrants are being foisted on the Euroland people by the EU its self, and as the people getting hurt by this know who is to blame, I reckon we’re going to see a hell of a lot more parties like UKIP and Alternatif fur Deutschland.

    Put simply, the inherent problems in the Euroland are likely to start piling up and coming true, one after another. Best we were out of it, while the great and the good in these countries get their heads round what is happening and why.

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