gfromls

Remember 1992 – 1995

268 posts in this topic

I urge everyone to read Serpico's post on this thread, and any others you can find by him. Very interesting.

seconded

I bought my first house in Whitley Bay in 1995 at the age of 25. I was a trainee solicitor earning 12k, and bought a 3 bed terrace for 41k. My deposit was 5%. Those same houses now sell for 180k!! Post crash!! at the height they were going for 200 plus.

Prices here are just unsustainable long term. If i was a trainee solicitor now id be earning 18k, so with a 5% deposit i could afford a 1 bed flat in Cowgate.....

Personally, we sold our big 3 bed semi in feb, same area, now buying a smaller 3 bed semi in south wellfield, much cheaper, HUGE garden, needs doing up, but still paying 160k.. but its the house we want to stay in, and as we are both approaching 40, and want to garden weve decided that a 80k mortgage is fine. I personally would like to see prices come down a LOT. I want my daughter and grandson to have the same choices and opportunities. It matters not a jot to me whether my house is worth more or less, im going to live there for another 20 years.

Ill still be logging on here, i still would like to see big drops. i hope they will happen

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I started on £17,600 fresh from uni in 1995 and I remember Harbinder buying a 3 bed semi with garage and garden for £54,000 - okay, not in the nicest of areas but not in a bad area either, obviously a starter home.

How many could afford that type of house now?

(and, paradoxically, the population of the North East is is now lower than what it was ten years ago! (3.5% drop from 1991 to 2001 census))

You were on about the same starting salary as I was in 1996, though in the South East that wouldn't have bought anything decent at that time, studio flats we £60k even back then.

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Giving this a gentle bump! Many thanks to those who contributed and who are still around, I thoroughly recommend reading the whole thread. I was born at the end of the seventies so I do remember the last recession, but only in terms of my kiddie building society account having 10%+ interest. I was very excited by that, as the yearly interest alone could cover the purchase of one, if not two, computer games. The only other thing I really remember is a megabucks stockbroker my parents knew having to do a runner to the US (dual citizenship, IIRC). Presumably some overleveraged plays went the wrong way.

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I haven't read the whole of this threat, but I believe that the current situation is different than anything that has come before.

From personal experience, if you are looking to buy a house under £350k in a decent area, where people my age (25 - 35) want to live, you are competing with baby boomers looking to buy a place to rent out. For every one person genuinely looking to buy to live, I would estimate there's two looking to buy to rent.

From what I've read, this wasn't the case in the past. I'd be interested to see if that's the opinion of those on here who bought in decades gone by.

If this is true then, even when relative interest in buying is low, it will still be higher than decades gone by.

Unless this additional interest is nullified, either by tax on second homes, a change in attitude to buying to rent or a marked rise in interest rates, this will not change and will keep prices high.

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I haven't read the whole of this threat, but I believe that the current situation is different than anything that has come before.

From personal experience, if you are looking to buy a house under £350k in a decent area, where people my age (25 - 35) want to live, you are competing with baby boomers looking to buy a place to rent out. For every one person genuinely looking to buy to live, I would estimate there's two looking to buy to rent.

From what I've read, this wasn't the case in the past. I'd be interested to see if that's the opinion of those on here who bought in decades gone by.

If this is true then, even when relative interest in buying is low, it will still be higher than decades gone by.

Unless this additional interest is nullified, either by tax on second homes, a change in attitude to buying to rent or a marked rise in interest rates, this will not change and will keep prices high.

I have heard talk of housing benefit capping this may alter rents slightly and dampen the interest in BTL.

Edited by awaytogo

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I haven't read the whole of this threat, but I believe that the current situation is different than anything that has come before.

From personal experience, if you are looking to buy a house under £350k in a decent area, where people my age (25 - 35) want to live, you are competing with baby boomers looking to buy a place to rent out. For every one person genuinely looking to buy to live, I would estimate there's two looking to buy to rent.

From what I've read, this wasn't the case in the past. I'd be interested to see if that's the opinion of those on here who bought in decades gone by.

If this is true then, even when relative interest in buying is low, it will still be higher than decades gone by.

Unless this additional interest is nullified, either by tax on second homes, a change in attitude to buying to rent or a marked rise in interest rates, this will not change and will keep prices high.

Which area are you interested in buying in?

Other than your personal experience, do you have any data to substantiate your thought that there are two baby boomers looking to buy to rent for every person looking to buy to live?

I would be surprised if there are actually many baby boomers still jumping into the buy to let market, why would they want to take on a low yield asset at a time when interest rates and unemployment can only go up?

Until 18 months ago, virtually any house offered for sale, in the area I live, sold within days, now there are more for sale than I've ever seen, prices are dropping, albeit slowly, but very few are selling.

I don't believe now is the time to buy and the lack of homes selling in my area seem to indicate that many people feel the same.

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I haven't read the whole of this threat, but I believe that the current situation is different than anything that has come before.

From personal experience, if you are looking to buy a house under £350k in a decent area, where people my age (25 - 35) want to live, you are competing with baby boomers looking to buy a place to rent out. For every one person genuinely looking to buy to live, I would estimate there's two looking to buy to rent.

From what I've read, this wasn't the case in the past. I'd be interested to see if that's the opinion of those on here who bought in decades gone by.

If this is true then, even when relative interest in buying is low, it will still be higher than decades gone by.

Unless this additional interest is nullified, either by tax on second homes, a change in attitude to buying to rent or a marked rise in interest rates, this will not change and will keep prices high.

dur!

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My other half has pointed this thread out to me - in particular Serpico's posts

... all I can say is that I've just spent some of the most fascinating hour or so reading them (and this thread too!)

thank you Serpico, I hope you're OK at the moment too ...

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have just spent the last week re-reading this thread, in my opionin the best ever thread hpc.

well we now have our bad house in a bad street...£12000.

this street was buy to let heaven during the boom, even seem one muppet asking £75000 at the peak.

the street now stand empty and boarded up, i dont suspose there is one owner ocupier in the whole this street.

http://www.rightmove.co.uk/property-for-sale/property-28678069.html

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have just spent the last week re-reading this thread, in my opionin the best ever thread hpc.

well we now have our bad house in a bad street...£12000.

this street was buy to let heaven during the boom, even seem one muppet asking £75000 at the peak.

the street now stand empty and boarded up, i dont suspose there is one owner ocupier in the whole this street.

http://www.rightmove.co.uk/property-for-sale/property-28678069.html

Good investment sold for £42k in 2004?

Very interesting street view!

2004-07-06 18, Baden Street, Hartlepool, TS26 9BJ

Terrace, Freehold add details...

£42,350

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Good investment sold for £42k in 2004?

Very interesting street view!

2004-07-06 18, Baden Street, Hartlepool, TS26 9BJ

Terrace, Freehold add details...

£42,350

looking at sold prices, it seems one in the street actualy sold at £70000 ffs

how often do they update street-view??? at one point half the street was boarded up, i think the council made them take the boards dowm though cos it looked a discase and bought the whole area down.

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You can look back even further, how about the property boom of the 1780's:

"It was intended that, along with the access provided by Pulteney Bridge, the eastern side of the Avon would be popular with speculators and developers. This appears not to have been the case — no further developments were made on this scale, and one of the side streets off Great Pulteney Street, Sunderland Street, is the shortest street in town, with only one address. After 1789 the financial climate did not encourage further building, the Panic of 1797 (Deflation 1793 - 1800) was followed by the Depression of 1807."

http://en.wikipedia.org/wiki/Great_Pulteney_Street

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I am probably a lot older than most posters here and have seenand experienced the peaks and troughs of the economy and house and commercial property prices since the late fifties, I am also partially blind so any stupid errors in my post are not through any illiteracy or poor education, thats why I do not post as often as I used

Several things control our financial destiny, employment and earnings, interest rates, and the most crucial of all, debt liability and the ability to cober our creditors and liabilities. I was born and bred in Birmingham before the war which was the centre of world manufacturing industry, its moto was 'Forward' if you want it we can make it many of the finest industrialists in the world such as James Watt and Matthew Bolton centred around Soho, which is now Handsworth, Aston and Sandwell.

My early expereiences of industry were during the war and my mother working as one of 19,000 employees manufacturing and building Spitfires and Lancasters at Vickers Castle Bromwhich on a 500 acre site givent to Churchill and the country by a wealthy landowner.

After the war when I was nearing leaving school we were regularly visited by people from such companies as Joseph Lucas, Dinlop Avery's scales, Cadbury's and many of the worlds leading manufacturers looking to recruit apprentices, the Birmingham mail was a large broadsheett it was full of every concievable type of secure well paid jobs, at the time you expected to remain in a secure job for life.

I started a five year indentured engineering apprenticeship with one the most worlds most famous motor cycle manufacturers, I was immediately enrolled at the Cadbury Companies own technical Ccllege at Bournville for one day a week. I prospered and could afford everything I needed, I lived in a Council prefab built for such as my father returning from the far east totally blind from combat injury, my father was was immediately also found fully time employment in a factory in Hockley were he worked till he retired and got ironically the gold watch, my mother left Vickers and worked until she retired for a gunsmith in what was known as the gun quarter.

A girl who was a bit older than me has been my Sunday school teacher who lived in a terraced back to back with her mother who was very poor having lost her father in the war won a scholarship to King Edwards grammerr school in Handsworth still one of, if still not the finest in the country. she qualified as a Pharmacist at 19 four years later we married and opened our own Pharmacy a brand new large shop with a flat large garden and a rear garage cost, £2,000. the business prospered and interest rates were similar to today, I had a seriously good job with all the overtime I could work, almost everything manufactured was for export.

There was long waiting list for new cars and motor cycles, in the factory I worked every month big banners went up. "The Boats Coming In" referring to the cargo ships arriving from America, which meant everyone was to expected to work overtime and switch jobs to wrapping and crating, it meant everyone from engineers, toolmakers and drawing room staff, we had full order books for months ahead with the Berliner Corporation the importers in New York.

In the early sixties things changed, I cannot recall why, I was not as aware in those days of market fluctuations as I am now, but there was a serious recession, sales slowed dealer were going bust by the shed load, including the biggest in the country, Kings of Oxford owned by Mike Hailwoods multi milliuonaire father Stan, the company I worked was taken over and moved to London, I immediately got a job with gunmakers Webley and Scott by West Bromwhich football ground. One of the cleverest racing motor cycle development engineers I ever met and had been apprebtice to went self employed painting and decorating and never returned to industry.

The Pharmacy continued to grow and proper and every year I bought the wife a new car, she earned it the hours she worked not a Morris Minor, but decent kit Wolseley 6/99 the a 6/110, a 3litre Princess a Jaguar 3.8s and another 3.8s followed by a Rover 3.5 coupe a Lancia Flaminia coupe and Jensen.

We sold the Pharmacy to Boots because my wife had caught TB of a patient and I bought a good motor cycle business in Cheshire, the trade was making a huge comeback with the Japanese, I had four franchises Honda, Suzuki Yamaha and BMW, we made remarkable progress over the years increasing the turnover from £75K to £1.4m (yes million), the previous owner had been in the job since the war, made his packet and just kept it on as a hobby, we expanded into engineering, racing engines, insurance and finance brokerage, plus we were exporting a substantial amount of new Honda cummuter machines and spare parts to the the Gambian government in Banjul for the use of medical and aid workers.

We opened a second business in 1975, the first business was a very large showroom, plus worhops and car park with three flats, which we used as offices and stores,a large clothing accessories and spares departments and accident repairs all boosted income this was in one of the wealthiest areas of Cheshire, the second business was not so big but had a good showroom workshop and a flat above we did not lease these premises we bought them, in addition I rented a vast newly built chicken battery house that had been built by a local farmer who failed to get planning , I stored up to 500 new motor cycles in crates there, if you did not forward order from Japan you were selling from an empty barrow.

by 1977 we were employing 27 staff and woking all hours, every year we won many holidays for reaching sales targets, Japan, Acapulco, Greek Island Cruises, the States, Cannes etc, we never took them because we could not spare the time, we took just two in 1979 and 1980 to the states, the rest we gave to the staff by drawing the highest card , win one, and you were excluded from the next draw.

Deals were plentiful, because of the volume of business I could afford to buy big, a tasty one was a **** up at the Cooperative Wholesale Society, some idiot ordered 24,000 pint bottles of Castrol two stroke oil, unfortunately with a chain saw label on them, it was the same stuff as Castrol TT motor cycle oil, I bought the lot at 2p a bottle, stacked it high sold it cheap at 65p well below RRP.

In 1976 I was offered a house by the boss of the business next door an E.A it was in Burton on the Wirral very expensive and exclusive area, five bed bungalow four car garage 3 are garden, paddock, and large 7 acre field, it had a massive sandstone wall frontage with double gates at each end, he showed me brochure £59Km it had been empty and overgrown for a few years I knew the place and laughed it him, he persisted and offered the keys and told me to have a look inside and around the back.

I took the wife for a look, massive gravel drive and frontage was knee deep in grass and the garfens were overgrown and inpenatrable, the inside of the house was huge the lounge was 46ft, the kitchen was old and dated with a rayburn and the huge bsathroom was antique with black tyling and what like a ships boiler room showet it had two sets of french windows one from the lounge and one from the master bedroom/dressing room leading onto a massive raised patio with steps to the gardens, the view across the river dee to north Wales was stunning, all the windows and french windows were old steel framed.

The wife loved it but it wanted a lot spent, I went back and told the guy no way at £59K, he opened a foulder and slid a letter out just as far as the heading HM Customs & Excise VAT Recovery was all I could see, bid me at it? okay £15K it want;s a fortune spending and a years work, he told me to piss off I was not going to nick it, it had been subject of a Court charging order and a four Court battle with the Wirrakls biggest Audi/VW dealer who had gone bus. I eventually went £30 and got it, the wife spent a year and £35k (thirty years ago)

Totally gutted new kitchen etc new tramacked dribe sandstone wall rebuilt with two sets of 9ft Oack gates new tarmac deive to the paddock four stable block and tackroom and a new full size all weather riding menage. We had a housewarming garden party three knights of the realm and members of government members , Japanese company bosses from Handa Yamaha and Suzuki and government Minister of Transport who is now a peer.

Nice? live in Australian groom, top class hunters in the stables, gardener, Bentley T11 and the wifes Mercedes 450se in the garage, lovely jubbly. I had just a 9K mortgage on the place, it sold a year last may for £985K. I was also sponsoring a 10 time Isle of man T.T winner and and world champion motor cycle racer plus a couple of good blokes on a sidecar outfit.

£985K great stuff the trouble is it was NOT SOLD BY ME!!!,

Not the end of the story but my eyes are acheing, going for a walk along the stunning Atlantic coat of Ireland with the dog then I will come back and tell you how it all goes pear shaped, not only for us but ten of thousands of others many close friends one for £50 MILLION.

bump...

*sighs*

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We had a housewarming garden party three knights of the realm and members of government members , Japanese company bosses from Handa Yamaha and Suzuki and government Minister of Transport who is now a peer.

FFS how smug can someone get?

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Whoosh......... that was the point flying over your head :rolleyes:.

What point would that be? Some bitter overly extended, free-spending boom head thinking he deserves to remain at the top?

Some of what occurred then, needs to happen now. Well done to the neruosurgeon in turn buying Serpico's house cheap; the house Serpico bought dirt cheap but risked with his luxury free spending way, thinking he's alone can run all 4 major franchises and money come to him; only looking at income alone, rather than debt positions. The market dealt him the consequences he deserved.

* every year I bought the wife a new car, she earned it the hours she worked not a Morris Minor, but decent kit Wolseley 6/99 the a 6/110, a 3litre Princess a Jaguar 3.8s and another 3.8s followed by a Rover 3.5 coupe a Lancia Flaminia coupe and Jensen

* We sold the Pharmacy to Boots because my wife had caught TB of a patient and I bought a good motor cycle business in Cheshire, the trade was making a huge comeback with the Japanese, I had four franchises Honda, Suzuki Yamaha and BMW,

* I bought a good motor cycle business in Cheshire, the trade was making a huge comeback with the Japanese, I had four franchises Honda, Suzuki Yamaha and BMW, we made remarkable progress over the years increasing the turnover from £75K to £1.4m (yes million),

* We opened a second business in 1975, the first business was a very large showroom, plus worhops and car park with three flats, which we used as offices and stores,a large clothing accessories and spares departments and accident repairs all boosted income t

* I went back and told the guy no way at £59K, he opened a folder and slid a letter out just as far as the heading HM Customs & Excise VAT Recovery was all I could see, bid me at it? okay £15K it want;s a fortune spending and a years work, he told me to piss off I was not going to nick it, it had been subject of a Court charging order and a four Court battle with the Wirrakls biggest Audi/VW dealer who had gone bus. I eventually went £30 and got it

* live in Australian groom, top class hunters in the stables, gardener, Bentley T11 and the wifes Mercedes 450se in the garage, lovely jubbly

* I forgot to mention my wifes passion next to horses, flying, and the 1975 Cessna 182P Skyline sitting gobbling hangar, maintenance fees and avgas at Hawarden Aerodrome.

Edited by Venger

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