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Now or never

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Posts posted by Now or never

  1. "But who wants to burst a bubble? Not investors, not politicians, and especially not bankers. So the bubble keeps growing. Until it bursts."

    Right, and this is why the priced out will continue to suffer. No one knows how long the market can be propped up. All we know is it can't last forever. 3 months? 3 years? 13 years? Damned if you do, damned if you don't. We can say we expect disaster this year (& I do) but no one really knows for sure. It would almost be funny, if not for so much being at stake.

    Agree with you on this year, as far I see there is nothing left to prop up the market - what else could they do?

  2. Just walk down to Sainsburys and save 34p. Lets face it, its not really worth it and thats the point. Food purchases are largely price insensitive so retailers can charge what they like, within reason. I still don't understand why people buy skimmed milk for £1.53 when virtually the same product is on an aisle costing £1 in a different colour bottle. Apparently orange puts many shoppers off, looks cheap and tacky, and thats why they use orange.

    Orange always reminds me of Happy Shopper, back in the late 80's/early 90's. Total shite! :lol:

  3. I was getting that feeling too...and I feel a bit 'twisted' for doing so. Usually, bad news is...well....'bad news', but in the case of the economy for most HPC'ers bad news on the economy is...well...er...good news for the direction we want house prices to go in.

    For example, whenever the stock market has a good day, I look on it negatively, but when it dives I have a little cheer.

    All a bit perverted really. Am I the only one who thinks like this?

    I suppose it is a fine line and the old adage 'be careful what you wish for' comes to mind.

    With you on this one, but it's not just about house prices any more; the whole UK is a effing f up!

    I've got kids, so don't long for a total meltdown, but at the same time realise that we need one.

  4. Theres some good advice there. I'm going to be 30 this year and I hope that by the time I'm 50 I can give up the 9 to 5 have someone else manage my properties and just enjoy life.

    My other thought is that one day I will have kids hopefully and I don't want them to have to work as hard as I have to. So once I'm gone my property can help support them.

    Good for you, though why don't you sell all those houses that you've purchased outright, you must be minted.

    I'd start making babies now if you can, having kids living with you during your retirement kind of defeats the object.

  5. We were refused viewing on 4 bed house because we had kids; the fact we have rented privately for three years with two kids and have good references with full deposit returns was not taken into consideration beats me.

    The fact of the matter is; you're either a good tenant or a shite tenant, if you've got kids their actions become your responsibility and you deal with it.

    for eg. one of our kids (very young) used to pick at the wallpaper, so we completely redecorated the room. if we didn't, the LL would have charged as much more to make good and we would have lost the monies from our deposit.

    LLs can discriminate against me if they chose because I have kids - their loss, ie extended voids.

  6. http://www.guardian.co.uk/uk/2010/jan/09/food-costs-soar-big-freeze

    I know that a sample size of 1 is crap (statistically speaking)... but at 5pm today my local tescos (med sized store) were out of...

    1. Milk

    2. Bananas

    3. Chickens

    4. Bread mix

    5. Sliced Bread

    That has never happened before at this store. The checkout lady said that folk were just panic buying.

    effing idiots the lot of em!

    Why is it that they have to bulk buy on the assumption they won't be able, or suppliers won't be able to get to the supermarket when they've already managed to do so?

  7. To be fair they won't go up more than 5% next year.

    It's a good time to get on the ladder.

    Agree with the possibility of an increase below 5% for 2010, but a good time to get on the 'ladder'?

    Shouldn't a good time be when you need somewhere to live and can afford to do so?

    Unfortunately the majority are now forced to wait until they become affordable, which they will.

  8. I agree. But you have to remember the knowledge they do takes a good 3yrs of damn hard work to pass.

    Is this still the case, now that SatNav is available?

    Another thing (change of subject); a cabbie would never jack in for the dole, so this another group of workers currently working at much reduced hours/rates not highlighted by any form of statistic/report.

  9. Look mate - don't take it so personally.

    The fact remains - the broker who fixed up that loan for you LIED to you -- he LIED when he told you you could "afford" a 6 x salary loan... By doing that - brokers [agents of the Moneylenders] drove up house prices MASSIVELY, AND drove up their commissions on the loans they made..........

    You haven't lied -- but the BROKER has LIED to you - persuading you - and everyone else like you - that it is "OK" to borrow 6 x + salary --- THIS IS NOT SUSTAINABLE to 95% of people --- Sorry mate - you have been suckered... And in that process the VI's have driven up prices - and made more cash on commissions -- they are laughing all the way to [their] the bank... :rolleyes:

    Again, I understand where you're coming from, just for me your definition does not reflect what I see as a true liar loan where the borrower has clearly committed fraud to obtain a loan they could not really afford and have assumed a short period of hardship before the value of the property rises and justifies their "gain".

    As I said in my post, I was offered a mortgage but I didn't accept; the rate was too high. I'm currently renting and my monthly outgoings are now higher than what they would have been if I'd accepted the mortgage, though I'm living in a bigger property in a better area. My point being I could afford 6 x salary based on current circumstances which apply to me as a renter also.

    I agree lenders should not be lending at these levels and the consequences of this, but their decision to offer those multiples is a commercial one based on what was happening at the time; a stupid and wrong decision as I stated in my post but not a lie.

    If you categorise these loans as liar loans then you could also argue that an interest only mortgage is a liar loan when it is the only option to obtain a mortgage to "buy" a house.

    Again I see your point, I suppose I must have been one of the 5% who this did not apply to, and better still, one of the 0.01% of people who decided not to accept the ball and chain.

  10. For the majority of people on low to middle incomes - it is a lie - because it is a lie to pretend that they can afford them. As soon as any problem arises - broken boiler, car, illness etc etc. arises - they are going to be in schtick..... No denying this. It is REALITY. Therefore, 3 x salary max for the vast majority of people is the ONLY viable, HONEST, way to go.

    I understand where you are coming from but disagree with your definition of a liar loan.

    I'm an honest person and was offered a 6x salary mortgage back in 2006; no lies told, just honest facts. My repayments on that mortgage would have been less at the time than the rent I'm currently paying; albeit that the house I'm living in now is worth twice as much, the fact that I can afford to pay a higher rent, higher council tax, higher water rates and anything else that comes with living in larger properties shows that repayments on 6x salary could have been made and I made no attempt to gain the mortgage through fraud. Of course there will be times when you're hit with an unexpected bill which can set you back, but this can happen to people who rent too!

    I have a colleague in work who sold his house and downsized, shared some of the equity with his family and then used the rest for a deposit for a larger property which required a mortgage he could not obtain with honest facts; he therefore lied to get the mortgage he needed - that my friend is a liar loan.

    You suggest that people are not honest because they accept a loan based on their financial situation; this may classify them, or even the bank as stupid, but no unlawful act has been made and they have not been dishonest.

    I have read many of your posts in the past and totally agree with your views on liar loans and their affect on house prices, but disagree any loan provided a bank based on honest facts can be classified as a liar loan because of the amount offered.

  11. I also don't see why 3x is seen as some sort of magic number. Sure historically, that was a lending multiple that was often around in the 50s and 60s, but so was tuberculosis, rickets and the Morris Minor. Times move on, people move on.

    I am sure that 4x or 5x mortgages are a viable option in many cases, without requiring fraud or major sacrifices.

    Agree. A liar loan is exactly what it implies; a lie to obtain a loan. What does multiples have to do with it? Higher multiples come with higher rates, no lie necessary!

  12. The average age of a FTB is more like 34*. If you haven't managed to save a reasonable deposit by that age you probably aren't responsible enough to look after one of the banks' assets for 25 years.

    *I can find evidence if needed.

    So tell me how you're meant to save for a deposit while bringing up two kids and renting privately? I suppose you could always skip the children like so many have; sadly they value bricks an mortar more than family.

  13. A friend of mine has been living in an inherited 2-bed terraced house for nearly a year now. It would of fetched £135,000 in 2007 and would probably fetch £110,000 - £115,000 now.

    He asked me whether it is a good idea to sell it to someone he knows and rent from him and buy a better place in around 2011.

    The person who wants to purchase from him has got caught up in the current bull trap sentiment and is trying to build a property portfolio :rolleyes:

    I told him to go ahead and sell it but couldn't guarantee how much property will fall from now. Houses like his rent for around £500 per mo. so he would be out of pocket £6000 per annum.

    What do you think?

    I'd tell him exactly what I believed and what I would do; whether I'm right or not is another matter, but it's my opinion not advice.

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