r/Glasgow Tools

Title
Author	daleharvey
Comment	But someone would not use one of those £5 notes to buy some sweets, the fact that it is a £5 is irrelevant to its actual value, it is an arbitrary number which is my point, what function does putting an arbitrary low "instrinsic" value provide? > If they valued properties at, what you deem to be the correct value, then what happens when those people who still hold £40k in cash come up against those people who still don't have that liquidity even though they can now get a mortgage for this much higher amount? They still get out bid, surprise surprise! Not necessarily, just because someone has access to capital does not mean they will pay more than the market value. > You're not even considering lending criteria for the loans. It has nothing to do with my point. > The root cause of this issue is the disparity between the wealth of the different generations all vying for property at the same time That is a very real and totally valid issue, it is again, a completely different issue to the one I raised. Maybe you can used your actual financial and mortgage qualifications to be the first person to answer the actual question, why does Scotland have a unique system in which there is a systematic difference between the value a property can be purchased for vs the property that one can receive a mortgage in order to purchase that property? I wasn't asking people to moan about property bubbles and tell me thats just the way it is, I am well aware that is the way it is in Scotland, I just think it is a problem that should be fixed.
Reddit Link	https://www.reddit.com/r/glasgow/comments/umq1qh/question_to_house_surveyors/i86jtr9/
Created	Wed 11th May 2022 2:27pm
Status	normal ()

But someone would not use one of those £5 notes to buy some sweets, the fact that it is a £5 is irrelevant to its actual value, it is an arbitrary number which is my point, what function does putting an arbitrary low "instrinsic" value provide?

> If they valued properties at, what you deem to be the correct value, then what happens when those people who still hold £40k in cash come up against those people who still don't have that liquidity even though they can now get a mortgage for this much higher amount? They still get out bid, surprise surprise!

Not necessarily, just because someone has access to capital does not mean they will pay more than the market value.

> You're not even considering lending criteria for the loans.

It has nothing to do with my point.

> The root cause of this issue is the disparity between the wealth of the different generations all vying for property at the same time

That is a very real and totally valid issue, it is again, a completely different issue to the one I raised.

Maybe you can used your actual financial and mortgage qualifications to be the first person to answer the actual question, why does Scotland have a unique system in which there is a systematic difference between the value a property can be purchased for vs the property that one can receive a mortgage in order to purchase that property?

I wasn't asking people to moan about property bubbles and tell me thats just the way it is, I am well aware that is the way it is in Scotland, I just think it is a problem that should be fixed.