Tax credits cost £171Bn over 7 years

[scenario8]

I wasn't really arguing, merely trying to show that many who are "benefitting" from low rates do so not from a position of any real choice. House price inflation possibly could have been much reduced had credit availability not been so free during the "good" years, but it happened and a good number are having to live with that consequence without having really benefitted. A rather large smack in the face to be stuck with huge levels of endebtedness resultant from "essential" asset values having soared to the benefit of others when rates are raised to punish the excessive consumers.

From my perspective the transfer of wealth from savers to spenders is heavily outwieighed by the transfer of wealth from the young to the old, much of whose wealth is tied up in their domestic property (in very loose, black and white, unqualified simplistic terms).

Not really on topic, though.

[DonkeyApple]

scenario8 said:

I wasn't really arguing, merely trying to show that many who are "benefitting" from low rates do so not from a position of any real choice. House price inflation possibly could have been much reduced had credit availability not been so free during the "good" years, but it happened and a good number are having to live with that consequence without having really benefitted. A rather large smack in the face to be stuck with huge levels of endebtedness resultant from "essential" asset values having soared to the benefit of others when rates are raised to punish the excessive consumers.

From my perspective the transfer of wealth from savers to spenders is heavily outwieighed by the transfer of wealth from the young to the old, much of whose wealth is tied up in their domestic property (in very loose, black and white, unqualified simplistic terms).

Not really on topic, though.

I know. Neither was I.

[Ozzie Osmond]

scenario8 said:

From my perspective the transfer of wealth from savers to spenders is heavily outwieighed by the transfer of wealth from the young to the old, much of whose wealth is tied up in their domestic property.

You wouldn't like Japan then, where 100 year domestic mortgages are not uncommon!

And DA, yes, my earlier bullet points were intended to refer to personal borrowing/spending as well as the state.

[CDP]

Ozzie Osmond said:

You wouldn't like Japan then, where 100 year domestic mortgages are not uncommon!

Does that mean a mortgage is passed down from generation to generation? It sounds like a frightening concept.

[Mojocvh]

CDP said:

Ozzie Osmond said:

You wouldn't like Japan then, where 100 year domestic mortgages are not uncommon!

Does that mean a mortgage is passed down from generation to generation? It sounds like a frightening concept.

It works perfectly well in other countries. Those that have a more stable, family supportive societies, that is.

Where we now have bred a generation [or two now] of "socially engineered" misfits......

[Mojocvh]

Anyway. Getting back to the OP

Just what is IDS deflecting attention from?

[sugerbear]

50 year mortgages were mooted a few years back. An utterly insane idea given that less than 5% of the country is actually built on but I imagine the banks would have relished the idea to keep extending mortgage interest payments and carry on with the bubble.

I wonder how much tax credits are re-cycled to landlords ? I have only anecdotal evidence given the limited number of people that I know that are on the benefit but I would say that it enables people to live in rented housing and have mortgages that otherwise they wouldn't be able to afford.

So I think it's great that IDS is considering cutting something that will bring forward the house price crash we so desperately need. Maybe the double blow of an interest rate rise would help as well.

[Mojocvh]

sugerbear said:

50 year mortgages were mooted a few years back. An utterly insane idea given that less than 5% of the country is actually built on but I imagine the banks would have relished the idea to keep extending mortgage interest payments and carry on with the bubble.

I wonder how much tax credits are re-cycled to landlords ? I have only anecdotal evidence given the limited number of people that I know that are on the benefit but I would say that it enables people to live in rented housing and have mortgages that otherwise they wouldn't be able to afford.

So I think it's great that IDS is considering cutting something that will bring forward the house price crash we so desperately need. Maybe the double blow of an interest rate rise would help as well.

"given the limited number of people that I know that are on the benefit"

"but I would say that it enables people to live in rented housing and have mortgages that otherwise they wouldn't be able to afford."

You mean like not declare the mortgaged house when claiming benefit.



I don't know many MP's personally either.....

[sugerbear]

Mojocvh said:

sugerbear said:

50 year mortgages were mooted a few years back. An utterly insane idea given that less than 5% of the country is actually built on but I imagine the banks would have relished the idea to keep extending mortgage interest payments and carry on with the bubble.

I wonder how much tax credits are re-cycled to landlords ? I have only anecdotal evidence given the limited number of people that I know that are on the benefit but I would say that it enables people to live in rented housing and have mortgages that otherwise they wouldn't be able to afford.

So I think it's great that IDS is considering cutting something that will bring forward the house price crash we so desperately need. Maybe the double blow of an interest rate rise would help as well.

"given the limited number of people that I know that are on the benefit"

"but I would say that it enables people to live in rented housing and have mortgages that otherwise they wouldn't be able to afford."

You mean like not declare the mortgaged house when claiming benefit.

I don't know many MP's personally either.....

You do know that you can claim tax credits whilst you are mortgaged and you can also claim them if you are renting a house. Owning or renting a house doesn't preclude you from claiming.

[Ozzie Osmond]

CDP said:

Ozzie Osmond said:

You wouldn't like Japan then, where 100 year domestic mortgages are not uncommon!

Does that mean a mortgage is passed down from generation to generation?

Yes, exactly that.

[DonkeyApple]

Ozzie Osmond said:

CDP said:

Ozzie Osmond said:

You wouldn't like Japan then, where 100 year domestic mortgages are not uncommon!

Does that mean a mortgage is passed down from generation to generation?

Yes, exactly that.

It's a little harsh, unless you have a ginger kid.

[Mojocvh]

sugerbear said:

Mojocvh said:

sugerbear said:

50 year mortgages were mooted a few years back. An utterly insane idea given that less than 5% of the country is actually built on but I imagine the banks would have relished the idea to keep extending mortgage interest payments and carry on with the bubble.

I wonder how much tax credits are re-cycled to landlords ? I have only anecdotal evidence given the limited number of people that I know that are on the benefit but I would say that it enables people to live in rented housing and have mortgages that otherwise they wouldn't be able to afford.

So I think it's great that IDS is considering cutting something that will bring forward the house price crash we so desperately need. Maybe the double blow of an interest rate rise would help as well.

"given the limited number of people that I know that are on the benefit"

"but I would say that it enables people to live in rented housing and have mortgages that otherwise they wouldn't be able to afford."

You mean like not declare the mortgaged house when claiming benefit.

I don't know many MP's personally either.....

You do know that you can claim tax credits whilst you are mortgaged and you can also claim them if you are renting a house. Owning or renting a house doesn't preclude you from claiming.

To quote yourself

"enables people to live in rented housing and have mortgages"

Both at the same time? Declaration of assets?

Just asking as I'm curious and you do seem to know....