Petem95

http://www.bbc.co.uk/news/business-31668135

Can't believe I've always voted for these clowns Latest scheme to prop-up the housing market before the election.. sorry I mean to 'help first time buyers'.. This lot really are something else! I'm seriously wondering if Labour would actually be worse or not now.

Chip

Did you read the article, the scheme has been around for a while now, it's just been extended as was I believe announced some time ago. It's just regurgitated news as usual.

Tidgy

Whether for political gain or not, its the only reason im able to afford to get on the propety ladder. It's a good scheme and whoever is in power after the election should keep it going.

As far as if it buy's my vote, does it **** hahahahaha

Tidgy

O and the bbc have got it wrong.

It's an interest free loan that after 6 years starts to earn interest. you have to pay it back.

Petem95

I'm well aware the 'help-to-buy' scheme has been around a while, but this element of it is new and has only just been announced.

Tidgy, would rather get 'help' to buy into an over inflated market, or not have all these government backed props and buy at a much lower price?!

All these schemes boil down to being debt-fueled, whether thats government debt (which is everyones in effect) or the individuals debt. It's clearly not a good thing.

The way things are going we're going to have negative interest rates from the BoE - just a case of whatever it takes so that people can take on more and more debt and keep spending :s

Chip

We're all doomed

Tidgy

one thing to note though is 'starter homes' are tiny sheds pretty much.

jonc

How is the Government using tax payers money? The 20% discount is achieved by waiving local authority fees levied on homebuilders. Tax revenue is not used to pay for this discount. There is good debt and bad debt. For Tidgy, he has taken on debt, but this is good debt as he has home and capital which he would not have if he was renting for example. To keep the economy going and stop it from stagnating, you need debt and people who borrow the money will spend it and put the money into the economy. If everyone stops borrowing money, the flow of money into the economy slows and thus cause a recession, ie the sub prime crisis when people stopped servicing their mortgages. It's almost a catch22 situation, but a fine balance has to be maintained in the economy between borrowing and paying off debt. This is why the modern economy will always go through the boom and bust cycle. You might argue, then stop all borrowing and have everything cash based and only spend what you can afford. Well then our country will fall behind the rest of the world, no money to expand and increase capacity of businesses, think how long it would take for many to build up enough money in savings to buy a home without a mortgage.

f1_fan

iTrader: (9)

That's only the case because we live in an economy purposely built that way. There are other economic models built far differently to this where borrowing would not be a requirement, but people don't want to know about those as they tend not to work as human greed gets in the way much as it does with the current economic model of course. If you could eliminate greed from the human race the planet would be a much nicer place! Or maybe just eliminate the human race!

jonc

You're right, there are different economic models, but most of the economies in the developed world (including Australia ) operate on the model we are "trapped" in. To change it would require everyone else to change too. Unfortunately you can't eliminate greed, it is an inherent part of human nature, however, there are also worse qualities within human nature other than greed.

Chip

You'll never eliminate greed. A certain amount is good, without it the human race would never achieve anything.

Tidgy

All are equal, just some are more equal than others. Ring any bells?

warrenm2

Sorry, a bit slow on the uptake here...

VOTE UKIP!