DONTDOITMAN

I am not sure where to post this topic, so I have out in here. Please move were appropriate. I am trying to get some market information on Estate agents, and the word "Trust". My only experience with estate agents is with renting from them....AR$EHOLES! Anyway WHCIH! magazine said that Nine out of Ten poeple don't trust estate agents. Can I ask what is your experience when it came to you buying/selling your house and the main question I would like answered is.."is it Buyers/Sellers or both equally that don't trust estate agents" I would have thought it was buyers that don't trust estate agents more, as the sellers instruct the agents, or have I got it wrong. Any input would be greatly appreciated. DONTDOITMAN

Some interesting replies. I understand those who have commented on how the economy would nosedive if this was implemented NOW but if we imagine and take it back to the begginning.i.e residential mortgages had not been invented Lets make this assumption: "People can only buy a property with cash - No loans at all secured on a property" (I am not prohibituing loans, just loans secured on residential property) From what I gather from people's posts, We would initally have to live with commercial landlords ( state regulated) till they saved enough to buy a house. Say the landlord bought and built a flat for Me to live in at say £30,000. Surely my rent would be say £3,000 a year (10% yield... feeling generous!). As I am trying to use todays figures, surely it wouldn't take me that long enough to actually buy the property - and woudln't have the mountain of debt. And as the commercial landlords are state regulated, and can only charge say 10% yield as rent, this will prevent massive HPI, whilst ensuring the stability of the economy for our children. Thoughts?

What I mean is 100% cash from the bank account. No loans what so ever. Putting some regulation in place so that no person, bank etc can secure any loan on a house ( so that should prevent people from scaming the system) As for renting, image paying 6% on what the lower house price would be. There would be far more money to spend on other stuff. I would have thought average house prices would be c£30,000 in this case. I can't see a down side to this. Anyone think this is mad?

Hello, It seems obvious to me that the mess in the world economy is due to excessive mortgage debt. So what would house prices be if you couldn't get a mortgage....i.e you need cash to buy a house - no debt! I think a house should be a home and not an investment, and thus to stop the massive HPI over the decade if people could only buy with cash, surely this would end all the problems....or would it?

Hello, I've been checking out st albans for about 6 months, and the sellers just aren't budging with more and more property coming onto market - and absolutely nothing selling. What sort of proces drops can we expect. I have seen property which is way above the current market value. Is property in St albans ever going to drop!!! I'm getting very frustrated! or I may have to consider living somewhere else! :angry:

Sorry to say mate but they are Number 1 and 2 are true. I do feel sorry for the physiotherapist but she is currently winning the poll!!! So if you aint liking it, please support the NHS by making her your "No. 1" Vote Number 2, because if whe does become bankrupt she will be coming to a Br0thel near you!!!

Well it can't be number 2 as definitely is mortgaged to the hilt! If number 1 comes in the top 10, I would love to send them the link to the website but might compromise our relationship. Can we have a top ten list??

I have two for you boys to mull over! 1) Couple bought 1 Bed flat in Highgate London, £340,000 near council flat. Paid £5k less than crazy asking price. Just looked on houseprices.co.uk and flat above sold in May 08 for £300,000!!! So that is £40k negative equity. But if we are back to Aug 2006 prices, I note one flat in the same building sold for £270,000. £70k in negative equity??!! I told them not to do it, but they were desperate. 2) Physiotherapist friend of mine desperate to buy bought a 1 Bed flat for £220,000 in .....Hounslow!!! This completed TODAY. This girls is really stupid with money....never has any. Her brother gave her a deposit and told her to buy. I fear she will be one of the people who will be repossed in the next 2 years. She is so desperate that she is taking my broken vacumn cleaner and cutlery and plates I was going to chuck away. Somebody gave her a chair for the lounge and only plans to buy a mattress for a bed. No Frame!! That is it! As a physio she could have got social housing for £500 a month. She also wouldn't listen! What is the Bl00dy point of buying and then living like a squatter!! So do any of these win??

When Roger was being bearish about house prices, inflation and interest rates everybody who was watching was shocked I was the only one smiling

Hi Guys, I have just been at a presentation with Robert Bootle - Capital economics who predicts house prices to fall by 35% on the homepage. I found him to be a very interesting man, was a great speech. He explained how we got into this mess in the first place, eg. low interest rates to increase GDP to compete with China and how he blamed the government policy of tracking inflation as wasn't a stabilising tool "pain on the way up and pain on the way down". He also explained that equities wont crash with the housing market and economy because of the DOTCOM crash, and thus already had their crash. He thought inflation would increase to 4.5 % and if it stayed over 4% for a significant period of time said it would be "Armageddon". He then said inflation would then drop to 1% and interest rates to drop lower than those in the 1930's....I think 2% and then the cycle would start again. Unfortunately he didn't say any time frames and the Q&A session was cancelled because we ran out of time. Anybody else got to go to one of his presentations? The man is a legend!

Sounds about right!! Am loving this CRASH!! Bring on the recession of all recessions!!!

Boony you are an idiot! PERIOD Edit: to include name!

Yipee!!!

Anyone know how to get banks to offer to sell you repos without going though auctions? Getting first look would be great, especially in my case as I might need to buy due to family reasons and can't wait for the market to fall to the bottom. Many thanks,

That is exactly what I thought. They aren't even married. The girl is the main money earner of the pair of them and they are always broke. I told them not to do it but they were so desperate to buy, and to be honest, it isn't a great one bed flat. They got a 10% from her daddy, which I recon is now wiped out. The two bedroom flat going at the price they bought the one bed is even in the same building!! To add insult to injury, they are on a tracker mortgage, which recently they have been laughing saying they have made the correct decision as interest rates have gone down but I always warned of higher interest rates to come. I just hope they can afford and struggle through the next 5 years -10 years before they get married ( if they do) so can upgrade for a baby.

I'm thinking it will take about 9-10 years before prices get back to their peak last year!! What does everybody else think? I'm just basing it on what happened last time and the well known phrase " History can repeat itself"? I know some friends (Couple) who have paid £340,000 for a one bed in highgate, London - August 07, and looking on the RM see that they now could have got a 2 bed for the same price. I'm thinking they are in a world of pain! So how many years will it take them to come out of negative equity?

I can't believe the legend that is Eric Pebble replied to one of my emails!!...........I think I am going to faint!

Eric- Just saw your message mate. Excellent. I'll quite happily put an offer in that low and love watching the faces of the estate agents.

Hello To soon to Buy, Re: £700 rent a month Mrs DONTDOITMAN and I know we have got a bargin. We are in a block, of which the owner owns it all. Except for us, all her family live there. I guess we are getting it for Family rates. She was given it in her inheritance and so I guess isn't wanting to maximise her rental as don'thave a mortgage to pay. We are good tenants who aren't too noisy, and have lived there for coming upto 3 years. It is also a good block that you can't hear everything above and below - unlike other place we have rented. The only reason I want to buy is for stability for the new baby. I was brought up outside London and appreciate that there is more to life than the rat race. I think we have worked out we can stay there at least for another 2 years, but then we will seriously need to think about either renting a new place, or buying. Ideally would love to buy when the market bottoms out but not sure whether we can wait that long. I guess if we find the right house, at an afforadble price then that would make us happy. Delusioned - Sorry about getting your name wrong! That is what I think, but to be honest I have got it wrong for at least the last 6 months (re: interest rates) but at least the house prices are coming down :-). We will have to see what happens.

Hello Dillusional I work in Corporate Transactions i.e the buying and selling of companies. Companies/Private equity houses are definitely finding it more difficult to get money from the banks to list on the markets and acquire other companies. The "good transactions" are still going ahead but all "Ok transactions" are stalling. Companies that can get bank funding are paying a huge rate and thus explains why the deals have reduced. As for interest rates - In my opinion interest rates will have to increase to deal with inflation. I personally believe the BoE will give up on the housing market ( not that is was their concern), knowing it will fall and look to stabilize inflation over the next year. I personally don't see interest rates going to the levels of 15% because of all the debt that is around, but can quite easily see them going to 7-8% over the next 2-3 years. I know people argue interest rates have to decrease to facilitate "spending" but I don't buy it. We are all spent out. Inflation is going to be the killer over the next few years and must be controlled. I think everyone is beginning to feel it, and with reduced spending, redundancies and unemployment will follow. To be honest, a recession would do this country good, and bring back everything into line. DONTDOITMAN

Hello All, Let me continue. I have been following this site for about 2 years with great interest and I think now addiction!!! I live in NW1 Camden area with the newly married Mrs DONTDOITMAN. We are both professionals. I work in Finance in the City ( accountancy firm), and my wife works for the NHS. I have been renting in London for the last 10 years ( 5 years student, 5 years working) , probably for the last 3-4 we wished we could buy, but for the money £250,000 gets you a two bed in a ex-local authority( absolute rubbish!) . It is only for the last 2 years that my wages have increased substantially that we really wanted to buy but when we look at what we get I said NO WAY. The Mrs DONTDOITMAN is pregnant and I am thinking about buying, but really want to get value for our money. We rent in a beautiful 1 bed flat that currently sells for around £400,000 paying only £700 a month so I know renting is so much cheaper and buying. We are saving for a £250,000 detached house and want to have a massive deposit before we likely move out of London. ( a quality of life decision) I have followed this site about everyday and although some people want Armageddon, I do agree that we are heading for a massive recession, and the only way for house prices are down. I also think alot of posts are interesting and fing they get repeated in the news a few days later which makes me chuckle As I am approaching 30 I have many friends on the bring of buying or have bought 6 months ago. I have tried to persuade them not to buy, but they aren't listening so have decided to shut up. I can't believe the stuff they say like: "its different this time" and "it can't happen again"....its as if they are estate agent scum! and hence my HPC Name The news today of 2.5% MoM drop has made me really happy. Although as a baby is approaching I am really desperate to buy. Any questions regarding the city I am happy to answer ( although may not know all the answers). In my department we are experiencing reduced work flows and no longer recruiting. Keep up the posts. You guys are great. DONTDOITMAN