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Why Should Houses Be Affordable?


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#16 Jesusaves

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Posted 18 November 2009 - 09:33 PM

you didnt bank 2000 on the first sale.

dont forget the cost to move, the estate agents fees, the lawyers fees, the removal fees, the bank interest and loan fees.


True - but I had made a 'profit'. The risk had paid off a bit. Profit is reflected by the level of risk.

#17 Bloo Loo

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Posted 18 November 2009 - 09:37 PM

True - but I had made a 'profit'. The risk had paid off a bit. Profit is reflected by the level of risk.


gross profit....yes...net profit...no. net profit is what you bank.
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#18 Jesusaves

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Posted 18 November 2009 - 09:37 PM

Why should it be the case that first in wins?

Because you bought 30 years ago you can have a house, new generation - no house. How can that be fair?

I think the whole BTL thing is not especially fair and should be subject to taxes as it is just stealing from the next generation.
Not building enough houses generally (have you seen all that green space out there?) and selling off council stocks have all exascerbated problems.

Should be interesting to see how the coming generation who have been given everything will cope with less prospect for work and less chance of ever owning property.


Couldn't agree with you more.

I have a brother who has neglected his pension and now panicking and getting into BTL. He is a selfish are?shole, and I couldn't give a fanny if he gets burnt.

I get really pissed by the way people see him as so clever and rich. (Oh yer - only owes the bank about a million - some wealth!)

#19 pie-eater

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Posted 18 November 2009 - 09:38 PM

I was going to ignore this post but then I thought it would give me the opportunity to have a rant. We have come to a point in history particularly in London where the price of a 'home' is almost impossible for most. That includes not just those on average income but those on a dam good salary - it has gone too far. The consequences of this actually leads to a generation who are completely unable to have a family home near their work and raise a family. A home is a basic need like water or heat. There are very few social houses thanks to a sell off policy and I know personally couples sharing flats at vast sums of rent. If any one here says well they dont have to live in London my answer to that is well then London in time will have no nurses doctors etc.The constant ridiculous lending that is required for a basic two up two down has created this. It saddens me having been born in London. The problem has been that property has been seen as an investment not as a basic need. If you want to understand the laws of economics I think you should listen to Fred Harrison and have a think about what you have written. People go on about social breakdown in society - young people feel totally unable to attain anything even through education and working hard because it is all unreachable. Homes should be affordable by borrowing a reasonable multiple which will not put the borrower in a difficult position if interest rates go up. That should be a responsibility of a mortgage broker/lender. Property can fall as well as go up you know - it has gone too far and I personally feel such high house prices create nothing but misery debt and social upset. A mass social housing programme Is what I would like to see. I have a good job and education but do not earn the 92k per year required to buy a one bed flat near a crack den in London . Look at Fred Harrisons renegrade economist website - Im praying for the time when the B of E have no choice but to put rates up and end this madness. Your post has saddened me . Are you an estate agent or mortgage broker perhaps?



Ouch, my eyes.

Paragraphs please.

#20 Bloo Loo

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Posted 18 November 2009 - 09:40 PM

Couldn't agree with you more.

I have a brother who has neglected his pension and now panicking and getting into BTL. He is a selfish are?shole, and I couldn't give a fanny if he gets burnt.

I get really pissed by the way people see him as so clever and rich. (Oh yer - only owes the bank about a million - some wealth!)


you need to work on your tenses. makes yout posts sound like utter drivel.... i mean he IS panicking and GETTING INTO BTL...but he IS rich.

which is it?
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#21 Jesusaves

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Posted 18 November 2009 - 09:40 PM

gross profit....yes...net profit...no. net profit is what you bank.


Yer - I know, but let me indulge in my fantasy world.

I at least felt rich.

What about piece of mind?

I, at least, could replace the toilet lid with any colour I wanted and banged nails in the wall, and nobody was going to take me to court.

That's got to be a profit, surely?

#22 Jesusaves

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Posted 18 November 2009 - 09:42 PM

you need to work on your tenses. makes yout posts sound like utter drivel.... i mean he IS panicking and GETTING INTO BTL...but he IS rich.

which is it?


Come again?

You seem a little tight-arsed

#23 Bloo Loo

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Posted 18 November 2009 - 09:44 PM

Come again?

You seem a little tight-arsed


well, you see he is getting into BTL...present tense..indicates he is just about to do it.

Then you say he pisses you off cos people think hes rich...with 1m in loans. indicates hes been in a while with 6-8 properties.
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#24 miko

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Posted 18 November 2009 - 09:47 PM

But, my first house cost 20K. My salary was 4300 pa. Interest rates were at 12% (I think-something like that). I crapped myself as had just got married and had a kiddly on the way. But I got by (just).

Sold the house 4 years later for 22K, banked £2000 and felt really rich. Bought my next house for 32K and sold it for 45K. And so on. I was always close to the edge and worried about paying the mortgage, but managed it. Times were always hard and budgeting difficult. That's why I don't see myself as selfish. And, lets face it, when you die a big chunk goes back to the state anyway.

I didn't grow up in a golden age. BUT - eventually you reach a turning point; somewhere along the line, where your repayments seem to diminish and your assets appreciate.

To be perfectly frank, the only way to accumulate wealth in this country is through property.

So, go on, be an entrepreneur and create some wealth for yourself.

It's easy being a socialist when you don't own anything.



But what you had back then , was a lovely , free, fairy godmother called inflation . Yes it has always been hard to set up and buy one's first house . But if you struggled it was only for a few years , as inflation kicked in your salary went up in leaps and bounds , intrest rates , may have gone up and down but the mortgage amount did not.
So very quickly big mortgages got small.

If you had stayed in your first house , you must have had less than 20k mortgage unless you did get 100% loan , vary rare back then . Your salary would have gone up and up from the £4300 P.A. that you state . Just to give an example how salary's went up , I left school in 1979 in 1980 I and everyone at my firm got 25% pay rise.

My Dad started out before you , he and my mum paid £3,750 for a nice 3 bed semi with garage outskirts of London , They borrowed £2,750, they had saved £1000 through 4 years . My Dad was nothing special for a job insurance clerk , they had two kids I followed 1 year later and a fourth followed four years after me. My mum never went back to work untill my younger brother was at school and then only part time. My Dad when he bought took home £80 per month. The mortgage was £20 just 25% of his take home pay.
I remember my mum stating while I was growing up that the mortgage had shrunk so much in real terms and that renting of the council would be more expensive. They finished their mortgage years back and having never moved Dad still lives in that house . Peak Price was £350,000 now about £300,000.

People buying today taking huge mortgages will have huge mortgages for years as their is very little wage inflation .3% if lucky not 20-25% of those far flung days.

The fairy god mother inflation that helped you has Fu---d off now that the next generation need her.

Edited by miko, 18 November 2009 - 09:49 PM.


#25 codeine

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Posted 18 November 2009 - 09:51 PM

:lol: :lol: :lol: :lol:

Japan has limited space - and prices there have been falling for the past TWELVE years.

You made money through property because of the boom. (or paper inflation money, can't see any dates on your post)
Try it again these days - I suggest investing in some new build city centre flats.
Then you might see that the party is over.

Next leg down is due in the next few months.

"So get out there and buy"

Is your branch desperate for sales then?

Edited by codeine, 18 November 2009 - 09:52 PM.

Forecast Christmas 2010

Property down at least 25% by Christmas 2011

#26 Jesusaves

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Posted 18 November 2009 - 10:00 PM

But what you had back then , was a lovely , free, fairy godmother called inflation . Yes it has always been hard to set up and buy one's first house . But if you struggled it was only for a few years , as inflation kicked in your salary went up in leaps and bounds , intrest rates , may have gone up and down but the mortgage amount did not.
So very quickly big mortgages got small.

If you had stayed in your first house , you must have had less than 20k mortgage unless you did get 100% loan , vary rare back then . Your salary would have gone up and up from the 4300 P.A. that you state . Just to give an example how salary's went up , I left school in 1979 in 1980 I and everyone at my firm got 25% pay rise.

My Dad started out before you , he and my mum paid 3,750 for a nice 3 bed semi with garage outskirts of London , They borrowed 2,750, they had saved 1000 through 4 years . My Dad was nothing special for a job insurance clerk , they had two kids I followed 1 year later and a fourth followed four years after me. My mum never went back to work untill my younger brother was at school and then only part time. My Dad when he bought took home 80 per month. The mortgage was 20 just 25% of his take home pay.
I remember my mum stating while I was growing up that the mortgage had shrunk so much in real terms and that renting of the council would be more expensive. They finished their mortgage years back and having never moved Dad still lives in that house . Peak Price was 350,000 now about 300,000.

People buying today taking huge mortgages will have huge mortgages for years as their is very little wage inflation .3% if lucky not 20-25% of those far flung days.

The fairy god mother inflation that helped you has Fu---d off now that the next generation need her.



Good point.

#27 tricksters

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Posted 18 November 2009 - 10:00 PM

Why should everything be so stitched up that there is this never-ending, grotesque scramble just to get a decent home? It's Hellish and it stinks. Young people left behind by the avarice of older smug "homeowners" have rights too.

#28 Jesusaves

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Posted 18 November 2009 - 10:02 PM

well, you see he is getting into BTL...present tense..indicates he is just about to do it.

Then you say he pisses you off cos people think hes rich...with 1m in loans. indicates hes been in a while with 6-8 properties.



Go and screw yourself.

You stick these killer statements in, as a put down; an intellectual elevation. A diversion.

Actually, you are full of drivel too. But, I just read your post and accept them for what they are, without comment.

Basically, you come across as a control freak. Someone who considers longevity of membership a right to some form of stewardship; words of wisdom.

And - yes, you wanted a reaction and I feel bloody angry.

#29 Bloo Loo

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Posted 18 November 2009 - 10:08 PM

Go and screw yourself.

You stick these killer statements in, as a put down; an intellectual elevation. A diversion.

Actually, you are full of drivel too. But, I just read your post and accept them for what they are, without comment.

Basically, you come across as a control freak. Someone who considers longevity of membership a right to some form of stewardship; words of wisdom.

And - yes, you wanted a reaction and I feel bloody angry.


sorry, if you wish to make a point, make it clear. your post made no sense. I asked for clarity. you insult and abuse.
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#30 pie-eater

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Posted 18 November 2009 - 10:14 PM

Go and screw yourself.

You stick these killer statements in, as a put down; an intellectual elevation. A diversion.

Actually, you are full of drivel too. But, I just read your post and accept them for what they are, without comment.

Basically, you come across as a control freak. Someone who considers longevity of membership a right to some form of stewardship; words of wisdom.

And - yes, you wanted a reaction and I feel bloody angry.

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