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Inside The 'house Price Crash' Community


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#91 satch

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Posted 23 September 2011 - 01:11 PM

Yep I always use the example of a 100K flat and moving to a 200k flat.

Bascially if the price doubles - everyone THINK they have 'made' £100k - when in fact in terms of payments they have 'lost' £100k

When you explain this most simple of thing sto people it is like they have just been told some amazing fact.

Or in terms of an extra bedroom; on a two bed £125k house the cost to go to a three bed may be £25k ie three bed costs £150k ie one salary extra, if they double in price overnight your two bed is worth £250k but the three bed now cost £300k ie two salaries and you can't afford it as it is two salaries. If you did not own even the two bed then you may as will emigrate as you will never even be able to buy a two bed.

This is essentially what happened over the last decade with rampant HPI. You end up with a property worth a fortune but can't move to one where you can bring up a family.

Edited by satch, 23 September 2011 - 01:12 PM.

George Osborne July 2013; 'I don't think in the current environment a house price bubble is going to emerge in 18 months or three years.' Mark Carney September 2013; ' ... there has been an improvement in prices and activity (talking about the housing market) Osborne to cabinet as quoted in the Indie October 2013; "Hopefully we will get a little housing boom & everyone will be happy"

Osborne says; “Printing money is the last resort of desperate governments when all other policies have failed.”

George Osborne December 2008; “Savers and pensioners are the forgotten victims … They are innocent bystanders and it’s simply not good enough for the Government to walk on by."

In his 1997 Budget speech, Gordon Brown said, "I will not allow house prices to get out of control and put at risk the sustainability of the future". He went on to say that he did not want a return to "instability, speculation and negative equity" of the 1980's and 1990's.

#92 satch

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Posted 23 September 2011 - 01:16 PM

But what about the poor sharebuyers who have over-extended themselves and stand to lose their shares? They have school fees to pay, mortgages to service, BMW lease payments to cover. These heartless 'bargain hunters' want to buy their shares on the cheap and derive such joy at the prospect of making a quick dime out of someone else's misery!

Might I suggest something like SMI for shares rather than mortgages; a Parliamentary Initiative for Stocks and Shares where the tax payer covers the loses so they don't lose their shares and become shareless.

Edited by satch, 23 September 2011 - 01:17 PM.

George Osborne July 2013; 'I don't think in the current environment a house price bubble is going to emerge in 18 months or three years.' Mark Carney September 2013; ' ... there has been an improvement in prices and activity (talking about the housing market) Osborne to cabinet as quoted in the Indie October 2013; "Hopefully we will get a little housing boom & everyone will be happy"

Osborne says; “Printing money is the last resort of desperate governments when all other policies have failed.”

George Osborne December 2008; “Savers and pensioners are the forgotten victims … They are innocent bystanders and it’s simply not good enough for the Government to walk on by."

In his 1997 Budget speech, Gordon Brown said, "I will not allow house prices to get out of control and put at risk the sustainability of the future". He went on to say that he did not want a return to "instability, speculation and negative equity" of the 1980's and 1990's.

#93 ccc

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Posted 23 September 2011 - 01:26 PM

Or in terms of an extra bedroom; on a two bed £125k house the cost to go to a three bed may be £25k ie three bed costs £150k ie one salary extra, if they double in price overnight your two bed is worth £250k but the three bed now cost £300k ie two salaries and you can't afford it as it is two salaries. If you did not own even the two bed then you may as will emigrate as you will never even be able to buy a two bed.

This is essentially what happened over the last decade with rampant HPI. You end up with a property worth a fortune but can't move to one where you can bring up a family.


That's about the nub of it. We have all met the person who tells everyone how much money they made on their flat this year. Then you ask them out for a pint - and they say they cannot afford it !!

You would have to be an imbecile not to work out the connection.
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#94 Democorruptcy

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Posted 23 September 2011 - 01:47 PM

That's about the nub of it. We have all met the person who tells everyone how much money they made on their flat this year. Then you ask them out for a pint - and they say they cannot afford it !!

You would have to be an imbecile not to work out the connection.


The other dots they cannot connect is that the "profit" they make is due to the expansive of credit that has led to inflation. The winnings are supposed to come when they sell and downsize but the money has much less purchasing power. It's total bank ponzi.

Pay miles more for a house, have much more debt to service, a lower standard of living by having to work more hours and less disposable income, then even when you sell the £'s are worth so much less.

Meanwhile bankers take your £'s each year on the mortgage and can spend them while they are still worth something.

Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and banks. It diverts public money (our taxes) to private companies (banks). George Osborne's Help to Buy Bail Banks, will see our taxes go to bankers to cover their losses on mortgages that default. The UK's Governbankment will even pay bankers "reasonable repossession fees" on Help to Bail Bank mortgages that default.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR, interest rates swaps, etc. are being paid by savers so that bankers can keep pocketing bonuses. 

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

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#95 hotairmail

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Posted 23 September 2011 - 02:11 PM

Amusingly, todays topic is how to cash in on stock market falls



Oh, the Irony.


That is very funny.


Schrodinger's cat.

How to hold two diametrically opposed thoughts as inalienable truths at one and the same time. :lol:


T*ssers.

"The chicken is radiating disorder out into the wider universe."


#96 Redcellar

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Posted 23 September 2011 - 02:17 PM

That is very funny.


Schrodinger's cat.

How to hold two diametrically opposed thoughts as inalienable truths at one and the same time. :lol:


T*ssers.


I assume this also links in with the dead cat bounce.
Allegedly.

#97 RichB

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Posted 23 September 2011 - 03:11 PM

I love explaining exactly what you've just pointed out (I go through an example showing 1% HPI v 10% HPI and how it's easier to "climb the ladder" with 1% - ie a £100k house and a £200k house and how the gap between those two prices will grow more with higher HPI and therefore become harder to "climb") and people are amazed. It's like they've just been given forbidden knowledge. And yet it's just f**king basic maths! **GAAH!!**



Except it isn't just basic maths is it - it's finance...


£100k house, with a £100k io mortgage. 100% ltv.

Doubles to 200k.

The next step up - 150k now also doubles to 300k.

So, we've now got to borrow an additional 200k. However, we also have 100k 'in the bank'.


This is important. This now means we have a 33% deposit on the new place, and are thus considered a reasonable risk to someone who wants to lend silly money out.

Hell, lets push the boat out - grab the place that should be 200k but is 400k - we've got 25% deposit, and stick the stampduty on a creditcard!

Sure, maybe the intelligent thing to do is pay the mortgage off, but hey you have to speculate to accumulate right? You can't take it with you, may as well spend it!

#98 right_freds_dead

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Posted 23 September 2011 - 03:19 PM

who cares anymore. these are the final days in hitlers berlin bunker.

Edited by right_freds_dead, 23 September 2011 - 03:20 PM.

i am boethius. author of the consolation of philosophy. it is my belief that fortune is a wheel. inconstancy is my very essence says the wheel. rise up on my spokes if you like, but dont complain when your cast back down into the depths. good times pass away, but then so do the bad. mutability is our tragedy, but its also our hope. the worst of the times, like the best. are always passing away.

#99 newbie

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Posted 23 September 2011 - 03:32 PM

who cares anymore. these are the final days in hitlers berlin bunker.


So it's all down to "wonder weapons" and "phantom armies".

#100 oracle

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Posted 23 September 2011 - 09:32 PM

Nope - people are not told this - they are constantly bomabred with the 'High house prices are good for everyone' message. I tisnot a surprise that so many think it. I it brainwashing. Pure and simple. And I do not say that in any TFH way either. People in the UK are brainwashed. Luckily it is starting to wear off. VERY slowly though. 10 years of brainwashing is not going to be over in a couple of years. :(



couldn't agree more.
we are even awake enough to see that these "issues" have been deliberately formented,and patiently await the "saviours" from this current crisis to come out of hiding...because we will be putting them straight back into hiding(after giving them a proper hiding).

as I said before......those who sought to do this to our sceptered isle and turn it into a remake of soviet/nazi snoopers and micromanagers are about to face the music....and we're fully loaded with violins and a set of turntables.

Edited by oracle, 23 September 2011 - 09:35 PM.

you take the blue pill...you fall asleep...you wake up in your bed tomorrow and believe what you want to believe

you take the red pill...you stay in wonderland...and I show you how deep the Rabbit-hole goes.

#101 200p

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Posted 23 September 2011 - 09:37 PM

Amusingly, todays topic is how to cash in on stock market falls



Oh, the Irony.


You can't make it up if you tried. Never can that site recommend people to profit from a house price crash.

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#102 Wait & See

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Posted 23 September 2011 - 09:42 PM

The filth (90% of the uk public) never listened to HPC'ers five years ago, when the regulars on here were saying that property was overpriced and in the biggest bubble the world has ever seen. This site was regarded as a looney bin for basket cases, lol.

Now look at the fecking state we're in because the dirt thought that "house prices only ever go up". :blink:

The poor house awaits the general public for being fecking muppets. The rope awaits the scum bankers. :rolleyes:

#103 Wait & See

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Posted 23 September 2011 - 10:23 PM

I only hope they learn from this bloody disaster bobthebuilder. :rolleyes:

At least I'm not having to listen to anymore imbeciles telling me to get on the ladder or miss out. :blink:

Fecking lampers, the lot of them, who are now "down the hole" for that 200k mortgage for the next 40 years. They clearly wanted to pay a lifetimes worth of wages to the scum banks, so well done one and all.

The banks will now demand a massive payment, with interest, every month for decades to come, for a property that was probably only worth 30k to begin with anyway.

What a situation we have here. :angry:




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