Jump to content
House Price Crash Forum

Neil B

Members
  • Posts

    551
  • Joined

  • Last visited

Everything posted by Neil B

  1. The journo obviously doesnt know the difference between a loandlord and a developer. The guy is not a landlord - he build properties just like Barrats / Redrow etc. Developers get tax relief for building affordable (social) housing and have a guaranteed buyer in the form of the council or housing association. However, if you are only a small developer, like this guy, who only builds small developments and sometimes one - offs it isnt financialy viable to build social housing - you make a higher profit from private builds and the tax relief doesnt outway the difference in selling values. If he doesnt want to build social housing; so what? Thats his choice.
  2. It's the hidden debt mountain Charlie! The hiddent debt mountaiiiiiiin.....
  3. Go as low as you want - they can only refuse your offer. But try to get out of the mindset of prices dropping and waiting etc. Thats an investment mentality that has got us into this mess - its going to be your family home for the rest of your life so if you like it buy it.
  4. Thats only assuming that the value of your property increases. (Note - I say 'value' and not 'price' - the two are not the same thing). Right now values are dropping so you'd be in negative equity as soon as you bought a house. Why give away your money to a bank?
  5. That opens a whole can of worms - a huge amount of mortgages taken out in the last 10 years were interest only. As those have been scrapped now never to return (or only with hard evidence of an investment plan secured against it) no-one will be able to move. Ever. Renting truly is freedom for the next 25 years.
  6. Good spreadsheet. However in the real world there isnt an option to buy anymore - theres no mortgages left to support the rediculous asking prices so there is only hobsons choice for the majority: Rent
  7. It seems that my comment about NY, Berlin and Paris taking London's crown has stired a few people up I notice that none of the posters have actualy lived in any of those cities - and I stress 'live' - its completly different when you are a tourist, which is exactly my point of why London is dead now. London to a tourist is still great and is better than any city in the world, but for living not anymore. London relied on the wealth of the City filtering the money down into other occupations. Now that the City workers have gone (to Paris, NY and Berlin) there is nothing left but tourists for London - and they are shunning it at the moment. Oh and to the poster that thinks Berlin is 'boring' (presumably because its 'German'?) you obviously have no idea of what a good time is and obviously havent spent much time in Berlin.
  8. ..and if the poster is in London that will be miaow - another bit of crap thats spoiled London that we can thank the east Europeans for
  9. You miss my point - I lived in London for 10 years and loved it. There was nowhere in the world like London. But Im afraid all of that is in the past tense now. Paris, NY and Berlin have taken London's crown.
  10. There are 6 million people in London. Its their choice whether or not London sinks or swims..To be honnest thats not my concern - I look after No 1
  11. When I left London this is all I heard... However it was from only those friends that have no escape. I saw London turn from a vibrant, exciting, safe, friendly, open metropolis that was the capital of the world full of happy people with opportunites for everyone to somewhere dirty, run down, boring (a huge number of bars, restaurants and clubs, cafes and shops have closed), unfriendly, bitter sad place, with no opportunities and property prices and rents that no one can afford, that tourists seem to shun and no one British wants to go to now. At one time you had to shuffle along Oxford Street - these days you can quite easily run. The infrastructure is starting to crumble: The number of tube lines closed, sometimes permanently is apalling. Theres no teachers left. Its impossible to find a doctor. Mini Cab drivers dont know London at all as they are all immigrants so you spend 4 x as long going from A to B and in the end you have to tell them where to go. The list is endless and it makes me quite sad to recall all the bad points but I really cant think of any good ones anymore. Samuel Johnson was born in the 1700. Thats 300 years ago. Its quite sad to see mighty London die in only 3 years.
  12. He'll be well and truly stuffed in 15 years time when the bank repo his house cos he hasnt saved anything to pay the capital off. There's nothing wrong with renting at least you can sleep at night. When you hear the boomer response of 'its dead money' just remind them that so is an IO mortgage but renters dont have to worry about being made homeless and bankrupt when they are 60.
  13. Protest with your feet and your wallets: Dont buy their rediculously priced properties and leave the country and put your taxes into a system that values your education and experience. The bomers are only rich as long as some mug buys their house. In 10 years time there won't be anyone left to keep the country running to the standards that they expect.
  14. OK...while everyone is flapping about 'propping prices up' etc lets have a reality check: 1. The multiples of income are back down to pre-2000 levels, i.e. around 3-5x your salary with existing depts taken into consideration. 2. IO mortgages are gone never to return. 3. 1 and 2 equate to very few people qualifying for a mortgage at the current asking prices. The market is dead. There are hardly any sales. Prices can double and there will be less sales (i.e. None). Forget what has happened over the last 10 years - those days of easy credit causing HPI are gone. That was when there was an active market.
  15. All three - and the fact that it has allowed people who traditionaly dont earn enough to qualifiy for a mortgage to get one for the last 10 years. This is the real reason why house prices have inflated to rediculous prices. I have one friend who was advised to get an IO mortgage 'because prices only ever go up and you just sell it at the end of the term and make profit'...my friend was told this by a financial adviser!
  16. Not yet but they will when they try to remortgage or upsize their house and cant get a mortgage because because no-one does IO anymore...Then they will be well and truly stuffed in 20 years time or whenever the term ends and they find they havent got 200k lying around around to pay the capital and get repo'ed.
  17. This is just ramping by the BBC. The average sales figure is in the region of 6000k / anum. Therefore current sales are 0.1% of the normal market. You dont see that figure plastered all over the BBC news do you? http://www.marketoracle.co.uk/images/2009/July/09-07-29_existing_home_sales.png
  18. This is just ramping by the BBC. The average sales figure is in the region of 6000k / anum. Therefore current sales are 0.1% of the normal market. You dont see that figure plastered all over the BBC news do you? http://www.marketoracle.co.uk/images/2009/July/09-07-29_existing_home_sales.png
  19. Everyone fails to notice that the target is 2%. Fiscal Stimulation without positive GDP leads to inflation. Expect many more months with inflation greater than the target, however the media will concentrate on meaningless statistics like this one.
  20. People putting their homes up for sale is not a measure of the property market. The market is measured on Sales.
  21. Thats not the reason.....Utilities and local authorities do a lot of work in the spring as winter freeze thaw conditions cause a lot of problems to underground networks and road surfaces. Also they use their budgets up before the new financial year or they have their budgets reduced.
  22. Another Boomer thats raped and pillaged the future economy for younger generations and is now running away with the loot. I think Italy is scratched off my holiday destination list now....
  23. I do know that. It is hard fact. I only an odd few people that have been lucky enough to inherit enough wealth to be able to afford a 200k+ house when they are under 45. I know many many people who are on average wages or below average and have bough houses that would traditionaly been beyond their budgets. They are all on IO mortgages with multiples well beyond 4 x their salary. From whatprice.co.uk: More than 25% of homeowners are paying for their homes with an interest-only mortgage say the Abbey. The reason is obvious - their monthly payments are much less. For example, a £125,000 interest only mortgage at an interest rate of 5% and repayable in 25 years time, costs £525 per month - but on a repayment basis the monthly cost rises by £210 to £735 per month. Interest Only Mortgages popular with borrowers Understandably, this level of cash saving has proved highly popular with first time buyers struggling to get the feet on the property ladder and others working on a tight monthly budget. But there's a time bomb lurking. 37% of homeowners with interest only mortgages are failing to save any money for repaying the mortgage when the mortgage capital eventually becomes repayable at the end of the term. Read more: Interest Only Mortgages - The pros and cons of Interest Only Mortgages for Borrowers and Lenders http://www.whatprice.co.uk
  24. They cant afford them: They all took out IO mortgages that were 10x their salaries. As soon as IRs go up they will be stuffed and if they survive that then in a few years time when they come to the end of their mortgage term they'll get repo'd as they wont have 200k lying around to pay the capital off.
×
×
  • Create New...

Important Information