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House Price Crash Forum

BrickandMortar

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About BrickandMortar

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    HPC Poster
  1. Funny old world is it not?.....Bl00dy greedy sellers not accepting offers 30-40% off the asking price. How dare they? Greed on the way up, greed on the way down and all that.....
  2. That's right. at 7% or 10% game over for him and millions more. Mass defaults = Game over for the banks too. You can kiss goodbye the STR fund / savings in the process. Will this tipping point allowed to happened? very unlikely. You know it, so do the governments.
  3. What facts? OP did not give in his scenario all the facts to begin with, certainly on purpose just to validate his opinion then once a few posters including myself try to address them, then all you got is arguments going back and forth about how much partner will get on child credit, SMP etc...ffs not even mention of part time work??? Surely, the credibility of this story and indeed of the OP have to be questioned since these key pieces of information had been withdrawn? Unless these can be added in the original statement, then there is no point trying to work out what SMP or child credit should be as these should have formed part of the original situation from which OP was trying to prove a point. Indeed, we seem to be going nowhere....
  4. I do not need a link you retard. 90% of average pay for this guys' partner salary should net at a very minimum 500/month, assuming she was employed before going on SMP. So i know what I am talking about. Anyway will leave it as that. ciao.
  5. +1. An important detail which seems to have gone missing just to prove a point. How strange.... (SMP is about 900/month. Child credit and benefit would be about 160/month for this couple)
  6. Two questions: 1) Are you conveniently omiting his partner salary? You need to confirm that - Otherwise your argument is hogwash. 2) Assuming he sold for 70k and rented, is it less risky to stash the STR fund in a bank and go renting considering RPI is running at 3% a month, than actually hedging it against an asset?
  7. So the guy earns 25k that's net about 1,600 a month 200K mortgage assuming 4.99% over 25yrs I/O for the time being (assuming his partner is on maternity) that's 800 quid a month. What about his partner? Is she not getting SMP? Tax credit? What's the problem? renting on the bigger place would have cost him more or less the same anyway. And this is without the rent income. I think OP needs to get away from HPC brainwashing and get real. Nothing is easy in life. It's all about taking calculating risks. Most of my peers are doing the same. they just don't spend days on internet forums sitting on their @rses end moaning how unfair life is. They just get on with it.
  8. Don't you guys get tired with these kind of statements? Crash will happen after this, after that and the other... Actually "things will get worse after the holidays" to quote a prolific poster here lol Since 2004 the same tune - Wait till summer, wait till this winter, wait till [pick your season] Fact is the game is rigged and will be manipulated to no end. No government are prepared to let a HPC happened. There is way too much at risk.
  9. I would not be so quick to call people idiot and stupid if I were you. One flaw with the above calculation is the initial rate of borrowing and deposit required. Take your example again. Bought flat in 2001 for 100K sell in 2010 for 200k. Equity carried forward - 100k (Other costs omitted for simplicity) 3 Bed terrace price 2001 150K, 2010 price 300K. Extra 150K purchase cost. Clearly, the equity from the flat sold would make the purchaser have a LTV of 33.3%. At todays borrowing interest rates, that would make a 3-4% bracket rate, which on a 200k purchase. Had there been no HPI, purchaser would have "to find" a 15-20k for at least 10% deposit on the 150k 3 bed terrace to go up the ladder and worse be on the lender higher interest rate, may be 6-7% on a purchase price of 150k since LTV would be 80-90%. So in summary you have: With HPI LTV 33.3% rate 3-4%, borrowing 200k Without HPI LTV 80-90% rate 6-7%, borrowing 135k Not saying HPI is a good thing, but this is why HPI is so welcome by existing homeoweners.
  10. You called Rinoa and Valerius on several occasion d!ck....when they happen to disagree with your views. Cant be @rse to find the links though If that's not an insult not sure what it is. So why take to moral high ground here?
  11. Just checked a few postcodes (in Berkshire) using mypropertyspy.com Good properties are selling around 8-10% cheaper than 2007. I am pretty sure this saving is largely offset by the stamp duty, solicitors fees, and rental costs etc.... So my point stands. STR is quite a risky strategy in some areas.
  12. Where I live, asking prices are at or close to 2007 level according to rightmove. Anyone who whould have STR in 2007 in my area, would just about breakeven today (or lose money) when stamp duty, solicitor fees, moving fees, and renting costs are taken into accounts. Not sure STR is the gravy train most posters are trying to portray here...
  13. The French model is quite a good one... First off, all debt repayment including the mortgage should be around 33% of net disposable income. It is a general accepted rule from the banks althought not mandatory. Then, there is what is called "reste a vivre" (leftover), and on that basis, the 33% above is adjusted up or down. So a couple in their mid 40s with no children will have a higher leftover therefore their debt level could go higher than 33% and still be manageable. Likewise a couple with children could be denied a below 33% debt level (even 20%) because their leftover per month will be significantly less than a couple with no kids. Imposing a 3x rule on income alone is not workable and just a bit silly IMO.
  14. This got me thinking too. So many posters on this site seem to be logged in in all day, posting all day whilst moaning about their salaries being too low to afford to buy. To me, it is either: -They have plenty of free time (in which case may be they need to prioritze their time to better use?) -Work shifts (get a second job?) -Are at work but have some free time (get more productive then get promoted and earn more?) -Can't be bothered to take this time to retrained/re-qualify/go back to uni etc....(time to get back to studying?) So which is it? ....
  15. http://www.lloydsbankinggroup.com/media/pd...dexJuly2009.pdf
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