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Caveat Mortgagor

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Posts posted by Caveat Mortgagor

  1. It's an average.

    Household income of £36800 in some parts of Hull or Hackney, for example, would seem like a lottery win.

    The same income in Kensington or Chelsea wouldn't be enough to pay off your annual Harrods account.

    What the Rowntree Foundation is doing here is stimulating debate about the huge gulf in income between households.

    Accept the figures for what they are but realise JRF are highlighting the rift between rich and poor.

    These figures seem to be net of tax.

    It seems me that they are designed to guide the left leaning and/or anti-poverty campaigners to a minimum acceptable level for benefits. The headline figure will be used to vilify the govt as and when cuts are made to benefits - in fact doesnt the report mention that the figure has increased because of cuts? That strikes me as some kind of double think

  2. Just thinking.. for a family of 4, we pay in the region of £1600 per month in various forms of tax. For this, we get:

    - Comprehensive healthcare coverage for 4 people

    - Full time education for 2 children

    - Roads and transport infrastructure

    - Policing

    - (effectively) contributions towards the basic state pension.

    - Social security (although if we dared to use it we'd be 'welfare scroungers', of course)

    - The ability to nuke other countries to glass (hmm)

    - The rubbish and recycling collected

    Which is significantly cheaper than it would be privately..

    Your argument is weakened by the fact that total tax revenue falls more than a hundred billion pounds a year short of providing all of your 'bargain' services.

    You are simply passing a huge slice of the true bill on to your kids. You nasty person :D

  3. Some people cant help themselves.

    A couple of months ago i spoke to an east mids based estate agent who was only doing rentals because the govt wasnt helping people to borrow from the banks. She had been made redundant twice in the previous 12 months.

    She must have been her own best customer because in that 12 month period she still bought 3 btls.

    It must be a lovely world she inhabits. Probably the same one as the guy played by alexander armstrong in the direct line adverts, 'ssssshhhhhhhh other people will hear......... average people'.

  4. By contrast, Unicef measure poverty in non-financial terms. 13 or 14 crieria; the ones i recall are:-

    Does a child have a space in which to do homework?

    do they have 2 pairs of shoes that fit properly?

    Are they able to invite friends home for a meal?

    Are they able to celebrate religious festivals?

    Alas, Unicef have been infiltrated by hard of thinking leftists who believe that spending cuts will drastically affect the above. In general though, their poverty criteria show that the attitude of parents towards being actively involved in their childs formation and development are more important than extra benefits to buy iPods and Nikes (and money for smokes and booze).

  5. The banks want debt junkies. It doesnt matter that borrowers havent paid back what they've borrowed previously, the banks simply want to pretend to themselves that they can declare an imaginary profit on the money they lend to debt junkies.

    But if you show that you pay in full every month, the bank wont earn much out of you. Better to give a card to someone who will run up a bill get stung for a chunk of interest, than to give a card to someone who will spend responsibly and avoid the punitive interest charges.

  6. I've always thought that its easy to get carried away and over exaggerate the motives behind programmes like this, but over the weekend I saw the presenters declare profit had been made when the house was only half finished, in fact, I think it was the former shop that still had the front of the house missing, but hey ho, get the beers in we've declared a profit.

    The same bloke did a piece straight to camera looking right into the eyes of the naive punter sat on their settee and shamelessly said all you need is the confidence to be the winning bidder (or something very similar). Did anyone else notice this?


    Ive just looked for it on iPlayer. Didnt have to wait long. In the first 14 seconds the following happened....

    Blonde trout with forced smile: Now the UK property auction market is worth billions of pounds every year. Now those are big numbers so dont be put off by that. (She's still smiling - these property people are really friendly aren't they? And trustworthy too!)

    Scruffy haired fella: (Puts on serious voice) No the auctions are (tone gets higher and uses hands demonstratively) a level playing field, they're open to everybody!!!!! (doesnt stop for breath to excitedly state in a slightly higher tone) all you need is a little bit of cash and some confidence.

  7. This so-called affordability is bull.

    In 1998 the average house price in UK was 62k

    mean average salary in the UK was 20k

    A 25% deposit was equivalent to a years take home pay.

    If you had a 25% deposit then buying the average house you could easily get a 46.5k mortgage at 7% fixed for 10 years meaning your monthly repayment costs were £328 or 26% of your take home pay. Total purchase cost including interest = £98.5k

    In 2012 the average house price in UK is 162k

    mean average salary in the UK is 26k

    A 25% deposit is now equivalent to 2 years take home pay.

    if you have a 25% deposit then buying the average house if can get a 121.5k mortgage at 5% fixed for 10 years means your monthly repayment costs are £710 or 42% of your take home pay. Total purchase cost including interest = £213k

    For the same house. You have less disposable income as a percentage of take home pay if you buy now and you pay more than twice the price in total when your average wage has only gone up by 5k

    Affordable my A€$£

    Btw, my salary info is from ONS ASHE freely downloadable.

    Median UK salary is currently circa £21.3 k

    The house price to salary ratio comparison has been rendered void by the relentless march of the tax credit.

  8. I hate myself for renting from a couple of teachers (real amateur landlords). Also we got s21'd last year after 4 years in last place. Current LL deserves a bad tenant - in fact looking st the state of most rentals that become available, most LLs in the area deserve bad tenants.

    However, its not enough to make us want to buy at current prices. I monitor the local market quite actively for signs that prices are reasonable. In general they are coming down, but painfully slowly.

    Most stuff locally sits on the market in no-mans land. The vendors are deluded and dont want to give it away, the buyers either cant afford or baulk at the insane prices.

    (Annoying anecdote alert), I saw a 3 bed semi come onto RM over the weekend. In a cul de sac, at the entrance to the park. Location looked pretty good when viewed on RM, price seemed to me to be 25% higher than it would sell for. When i walk past with my dog you can hear the dual carriageway to quite an annoying level. Oh, and the wall has been knocked down to make a through lounge diner - which merely masks the fact the dining room was tiny to begin with.

    So, on the plus side, a pleasant view when stood in the front garden, downside, when in the garden its noisy, its cramped and too expensive.

    It was listed on RM on Fri and was showing as sold before the weekend was over!

    Now is not the time to view houses. I'm resigned to at least another 2 years of bailing out a couple of canny business minded teachers. :angry:

  9. No you are right, they will no doubt be doing it in an even more complicated 'weighted' manner to make it look the best it can for their agenda.

    In the interests of balance.......

    In March London as a whole fell by 1.8%

    However the biggest fall in any area of London was only 1.7%. Roughly half the areas in London that month had a small fall, half had a small increase.

    London overall - Page 5; Individual London Boroughs - page 11

  10. Welcome to HPC Papa L.

    Its strange that LR think they still compare apples with apples, and that omitting forced sales helps to retain the integrity of their Index.

    Apples started to be compared with genetically modified apples when Liar loans and 100% ltvs took off.

    LR fail to acknowledge that coercion has existed in the market for many years due to demand (ie desire and ability to raise funds) being hugely distorted by 100%+ LTV mortgages and self certs.

    The buyer was coerced into paying ever more. The LR paradigm of yesterday has been replaced by a chemically enhanced apple of today.

    Now that self certs and high LTV mortgages have been removed from the market, true price discovery is allowed to happen. It seems LR dont want price discovery to be reflected in their index. Your instincts of looking after VI's seems well founded to me

    It would not have been practically possible for LR to hide the impact of the mortgage market craziness. Even if they removed from their index everyone who bought with a 100% mortgage (or even 90%+), the prices paid by those with bigger deposits would still have been distorted upwards by the pressures from the lax mortgage lending.

    So their only option is to accept that the integrity of their index has been tainted. They should accept that having incorporated the effects of coercion in the demand side of the market on the way up, they have no alternative than to incorporate coercion in the supply side on the way down.

    Anything else is merely rigging the numbers.

  11. 0 Tax Credits - made the tax system five dimensional and encouraged people not too work more than a part timer or they would 'lose' state top ups

    On this point, the other day i was considering the oft repeated mantra that we have to create jobs in order to increase tax revenues.

    However, creating low paid jobs may be revenue negative in that the low paid earn an entitlement to wtc's.

    Does anyone have any idea the 'tipping point' pay rate at which a job becomes revenue neutral and starts to yield something for the treasury? I know this will be different depending on family size. Perhaps examples for 0, 1 and 2 kids?

  12. if the money isn't protected there's a straightforward claim for 3x (or whatever they're paying these days).

    The landlord had better find some money to protect fairly quickly - it was their choice after all to choose the agent.

    Anyone else sense that Karma is going to bite the LLs in this story on the ****? You just know they chose an agent with no regard for the scale of the fees paid by the tenant, its was simply a matter of who promised them the most money every month.

  13. The sold data for march is now showing on nethouseprices.

    Just had an interesting 10 mins or so looking at what sold prices are being achieved.

    There's an area of Coventry called Earlsdon. Prices seem to have been sticky there forever. Ive often wondered if its cos its partly inhabited by students and partly by public sector workers. Earlsdon has a less desireable part, and a very expensive part

    Last few days Ive seen asking prices in the very expensive bit start to drop - including one house that must have been on at £300k for nearly 4 years (been re-listed numerous times so cannot verify with PB).

    Today I have seen a terrace listed as sold in March 2012 as follows

    67 Stanway Road, Coventry, West Midlands, CV5 6PH

    Terraced, Freehold, Not New Build £140,000

    67 Stanway Road, Coventry, West Midlands CV5 6PH

    £153,000 Terraced, Freehold 19 May 2006

    £147,950 Terraced, Freehold 04 Jul 2003

    £77,000 Terraced, Freehold 15 Oct 1999

    £55,000 Terraced, Freehold 24 May 1996

    So I make that 5.4% below the Jul 2003 price!

    Edit to add!

    Just found a flat that sold for less than the Dec 2002 price

    14d Lyndale Road, Whoberley, Coventry, West Midlands CV5 8AX

    27 Jan 2012 Flat, Leasehold £48,000 Land Registry

    06 Dec 2002 Flat, Leasehold £49,950 Land Registry

  14. Could some antichrist reporter do this:

    Reporter to mortgage payer: "When did you take your mortgage out and what was the rate"

    Mortgage payer "2007 and it was 7%"

    Reporter "What is the rate now?"

    Mortgage payer "4%"

    Reporter "So you want savers to keep paying your mortgage?"

    Mortgage "Err....".

    Reporter "Have you paid down your debt while your payments were low or saved anything?"

    Mortgage payer "Pay down debt!?!? What do you mean? The property is supposed to make us rich"


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