"Cast_Iron" wrote in message
...
Mikael Armstrong wrote:
"Cast_Iron" wrote in message
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Mikael Armstrong wrote:
"Cast_Iron" wrote in message
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Mikael Armstrong wrote:
"Robin May" wrote in
message
.4...
Living many miles away from where you work and having
to
travel a long distance to get there is something that
should be discouraged. Not encouraged so that the rich
can
buy another castle and leave it empty for most of the
year.

Very true, so why not let people build a few more houses
in
such areas? The main problem is the lack of supply that
is
driving up the prices.

errrr, no. The only thing driving up house prices is
greed.

So why do we not have the same situation with cars? Cars
themselves can be bought for less now than ever in real
terms. This is due to the fact that there is far greater
supply so people buying cars can shop around for a good
deal. The laws of supply and demand will always work
things
out, and in the housing market, the market is artificially
being held high by restricting supply.


If you were to take note of news broadcasts you would have
noticed that the present government took action to force
down the price of cars.

Another part of the reason is that houses last
considerably longer than cars generally speaking. But just
for the hell of it, see what price you would have to pay
for a Mk1 Cortina now, it will be significantly above it
price when new.



The government action to reduce the price of cars has not
really made much difference. Cars are still even cheaper in
other EU countries. The main reduction in price of cars
between now and 20 years ago has been increased competition
in the market, increased efficiency in car production and
fewer trade restrictions.

Thankfully we have a far greater choice these days and
don't have to buy Mk1 Cortinas. People who wish to buy
"classic cars" are obviously free to do so.

Hmmm, You compared the difference in price rises between cars and houses.
I
used the analogy of a Mk1 Cortina to illustrate that cars also increse in
value over time.

Is using an analogy something you are not familair with?



No, I am completely familiar with it. I was pointing out that unlike the
housing market where every house except those ready for demolition have
appreciated in value. On the other hand, it is only the cars that people
deem as "classics" that generally ever appreciate given a few exceptions.
This means that the average person can still afford to purchase a car, which
is not the case in the housing market. If the only cars people could buy
were MK1 Cortinas, and no new cars were being built, I would imagine that
the cost of them would have gone even higher!

Mikael