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House Price Crash Forum


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Everything posted by CrashedOutAndBurned

  1. It seems like the 'make your home look like a Travel Lodge' fad seems so mid-2000s now. Does anyone really give a shit about sticking in a cheap B&Q kitchen if the old one is functional? Those stupid spotlights? Statement wall paper? Vases of twigs? Lino, sorry, laminate flooring? DIY-for-the-sake-of-it just seems as retro as an episode of Changing Rooms.
  2. Retirement age down to 60 from 62 sounds like a vote winner. The French has a very high fat diet of red meat and cheese but very low rates of heart disease. Some put this down to beneficial substances in red wine but I'm sure it's the lack of stress. When they cut their working week, the economy grew thanks to new business set up to cater to increased leisure time. We are told that a bank holiday costs us gazillions. The dog eat dog, toe-treading f-you societies just kill people with stress. Advocates of this stuff even hold up dystopias like Hong Kong and Singapore as model states. I like France.
  3. Labour were shite because they were neoliberal, bankster-loving, hard-right warmongers. If they'd come in, nationalised customer-shafting utilities and public transport, built loads of council homes and started running the welfare state with the ruthless efficiency of the Scandinavians, they'd have been the most loved government you could imagine. Sadly the only left-wing policies they introduced were 'no borders immigration' (which happened to be a big biz policy too), throwing cash at the NHS wastefully, and expenditure on various social engineering projects - none of which your traditional working class voter really cared for, only leftist elites.
  4. Which is why basic infrastructure and natural monopolies are better off in public hands. It's insane that instead of fixing leaks, utilities can just overcharge customers and splurge on speculative investments.
  5. Hammond is an idiot, same as Mensch - two tories that have stuck up for two groups very unpopular with the public, banksters and the Murdoch empire. Hammond is basically telling all the 'hard working families' that they are dumb ******s for taking sweeties from the nice man in the suit backed by billions of marketing propaganda an an army of spineless fawning politicians. Great way to get votes, Phil.
  6. So much business has gone online. It was only the insane credit bubble that meant there was both money for online growth AND 90s-style megamalls full of dull chain stores selling overpriced tat.
  7. While it would be ridiculous to say that things like lack of building and no border immigration have not harmed affordability, we shouldn't lose sight of the fact that the far bigger problem was excessive credit expansion. I'd be all for higher density, well planned communities with great transport links, plenty of neighbourhood shops, situated close to major centres of employment. Boomers might favour the suburban house with the large garden and a 'nice view' of some agricultural land. Remember than many young people have grown used to living in cramped flats or grotty shared housing - a spacious family-sized apartment close to everything would be a dream come true for many of them.
  8. The 1960s system was better than the orgy of money creation seen in the boom. That said, prices must fall. In fact, I can't believe the crash hasn't been more pronounced. Every day I here people complain they can't remortgage even if they are reasonably well off. Some self-employed people I know can barely get a mortgage at all even with very large deposits from all but one or two specialist lenders at a much higher rate, especially if they've only been self-employed for a year or two. Before it was simply a case of self-cert, no problem. Add in all the people who might be able to pay the mortgage no problem, as they are paying the same or more in rent, but don't have much of a deposit, well, that's vast numbers of people removed from the system altogether. That seems to be the biggest complaint among would-be FTBs just now, 'We have to pay XXX in rent each month but could never get a mortgage with a monthly payment of that amount'. Still - the problem isn't making banks lend or bringing back a milder version of self-cert. The problem is that homes that would have been £50k in the late 90s are over £200k today in many areas.
  9. How? They explain clearly how credit is produced and destroyed as loans are issued and repaid. Anything used as money IS money - sea shells, cocaine, zeroes and ones on a computer... If you're working from some personal favourite 'true definition' of money than can you tell us what it is? Certainly, if the government can make revenue from the sale of coins and notes the system to be updated that it can create a certain amount of digital money into the economy. This, together with much more stringent minimum reserves, placed on private banks alone would make for a much happier system. In fact, at it's most mild, monetary reform merely turns back the clock to how things were a few decades ago, where cash made up almost 20% of money, and debt was rationed keeping house prices low enough that thrifty working people could buy them through mutuals rather than just turn up with a pulse and get a liar-loan as big as they like.
  10. Mail making something out of nothing. All this charity shop is doing is taking advantage of the huge oversupply of big box retail space.
  11. We could just stop watering down our money first with easy credit and now QE. That's the real driver of HPI and the lack of a bust.
  12. I think they probably have a different view of a 'graduate job' over there - seems US business is much more set up for recruiting college leavers. Here, there's the professions and milkround jobs but these only account for 1 in 40 graduates. Seems in the Uk that 90% of graduates just go into positions that a degree is not necessary - I have no clue where this idea that soon dustmen will 'need' a degree comes from. Seem the opposite - the economy seems to need only McJobbers and a handful of whizkids.
  13. There are a few good reasons - and I'm partly talking from personal perspective and partly playing Devil's advocate here - why owning means stability and 'getting on with your life'. Most of these, though, are depending on where the market is. 1. If you buy while a mortgage payment is less than renting and house prices are rising you can 'lock in' a lower cost of living. Of course, this is if you are in a house you want to stay in for the longish term and interest rates aren't rising dramatically. We have slightly older friends that could buy pre-boom and their mortgages are less than a debt-ridden young graduate pays to rent a room in an HMO slum. 2. At the moment rents are rising. Our LL is alright and we've had just a £25 rise in five years but if we wanted to rent a place like this now in the same area on the open market we'd have to find rather more per month. Interest rates may rise sometime down the line and your mortgage payment might rise but if you you can overpay you can work your way down to a smaller mortgage to mediate this risk. I just don't fancy paying higher rent when my income hasn't increased much - it sucks. 3. It can be a right pain in the **** if the LL wants to sell up and you have to leave when it's highly inconvenient. It's even worse with kids or even a dog. What if you're super busy with work and other aspects of your life and you have to move at pretty short notice all of a sudden? Of course, this is in large part a failure of laws surrounding renting. 4. While it's brilliant that if the boiler goes you don't have to pay, in rented housing you are either not allowed or can't be arsed to really configure your living space. If we owned this flat I'd feel more inclined to ins tally innovative storage rather than just muddle along with everything. 5. While a huge chunk of your mortgage payment is interest, with a repayment mortgage at least you pay off a little of a real asset. When cash saving get little interest you can 'earn' by overpaying the mortgage and cutting the interest. Paying rent is more like the gas bill. You feel more 'stable' because you feel you, rightly or wrongly, are 'achieving' something in slowly buying a home. People feel, for whatever reason, that they are 'working for the landlord' especially where high rents mean they pay a higher % of their income than most would consider sensible. Most of this assumes being reasonably settled in an area and in a house large enough for longish term accommodation.
  14. I was doing a day job for just under £20k. To move to a measly £25k the sheer workload and hassle wouldn't have been worth it if I could have found a suitable job and got past the interview stage. I have three As at A Level, degree, Masters. Just sheer competitiveness meant I couldn't make it pay in the standard jobs market. Lots of people I know in their early 30s have never done the kind of work you might expect their education would deliver. It's a different world. On the side I was earning at least a few hundred a month and when people assumed I did that full time offered work that would need regular daytime availability to di. Not bothering with a day job soon became a no brainer. Look at what you actually get a week in a 15k, 16k, 20k, 25k job and see if you could better it with your own self-created economic activity. It's not rocket science if that's something you want to do.
  15. Yes, we'll certainly negotiate a good price - there's not really a huge shortage of the kind of place we'd consider, there's always something coming on the market, some that have been on a while. We're not in any sort of rush as we can hand in our notice on our flat anytime we like. Yes, if you go for the best cash ISAs you can get around 4%. But if we switch from paying rent to paying a mortgage we are paying down the house slowly. We currently pay rent of 750PCM and if we move to a somewhat cheaper area and get a half-decent 3 bed terrace we'd need to pay 800-850PCM. But buying said terrace, slapping down a big deposit, that monthly outgoing would drop as low as 450-500, and still keep a decent chunk of savings back. Our strategy would then be to pay around 800-1000 a month and whittle down the mortgage. Other considerations are the real trend towards more central 'inner suburb' living - whether it's to cut commutes, graduates in poverty and unable to buy cars, or 'lifestyle' choices of wanting to be near amenities they can get to fast. Transport costs are brutal. I can usually claim mileage from clients if I need to travel for freelance work. The poor bastards with long commutes and medium sized cars they pay for out of their own pockets must be feeling the pinch. As an avid PropertyBee fan, I've certainly noticed that inner suburb properties have continued to sell (not always particularly quickly) and hold more value to than dreary homes in the outlying village-towns, which seem to be on the market forever and ever.
  16. Right. It's a different equation now. House prices have fallen (only a fraction of what they really need to but still a noticeable amount). Rents have risen so the 'hundreds of pounds less to rent they same place' isn't true in many cases now. The government and Bank of England have shown their hand and QE, low interest rates, and restrictions on new building mean they can mask house price falls - by the time the UK is based on something other than proberdee and shuffling debt round a casino we'll probably all be dead. Cash savings get nothing so you may as well buy bricks and 'earn' 4.20% or whatever rate by paying down the mortgage. Have spent a decade priced out living in the usual dank rented hovels and so have done other things to enrich our lives than sticking up a UPVC conservatory and changing the kitchen - just want to buy the kind of three bed terrace we'd look to rent anyway, nothing flash, nothing we'd need to stretch for. Nice low monthly outgoings.
  17. In London??? You've never seen people buying £300k ex-council flats in Camden? Never seen the East End colonised by young hipster tossers? Never seen greasy spoons turn into plush trendy cafes for the new demographic? Never seen a 'posh fireplace shop' open in a once working class area? London is the capital of this stuff.
  18. Yeah, it's a different situation now and our attitudes have changed. Rents are rising, house prices have fallen, albeit modestly. Economic cleansing has meant rougher areas now have a critical mass of normal people in them so feel safer if a little grimy. We'll probably buy in an inner suburb to keep transport costs down. There's a real influx of young middle class types into these areas who want proximity to the city over Dolls House Barratt living miles away so I think that's a real trend that will continue regardless of the market. At the end of the day, we're more focused on our work and family than some Ideal Home fantasy - a home's shelter and not much else. We don't envy Mr and Mrs 'too much mortgage' one iota. Perhaps it's time.
  19. Okay, so we might buy a house. Well, we live in a two-bed rented flat, a similar sort of place that we've lived in for a decade. We now need a bit more space - just an extra room or two to keep work junk out of our living space, have an proper home office, etc. 1. Rents have gone up so much that they are only a shade cheaper than buying with a hypothetical 100% mortgage (if such a thing existed) BUT if we chuck down a big deposit then the monthly payments' up to £300 less a month than rent. 2. We're just so used to living in not exactly rough but not exactly salubrious areas and never had a problem - at the end of the day 'rough' areas are so full of people like us these days, what's the problem? We're no longer thinking about an HPC allowing us to live in a 'nice' area anymore. Therefore we'd only buy an unpretentious half-decent 3-bed terrace that's easy to afford and could mean we'd overpay most months. Probably clear the mortgage before too long. 3. We have to move anyway soon and there's cost in going from one rented hovel to another. So why not now?
  20. I think Bristol's an odd one. Yes, there have been modest falls in the downturn but then little pockets of upturn, which I personally put down to younger people preferring urban living to the Sadly Broke experience and places like Easton becoming acceptable places to live and attracting a middle-class influx. Even Easton is getting expensive with Greenbank, allegedly the 'nicer' bit, full of terraces approaching 200k. The same process seems to be happening in the East - lots of economically-cleansed FTBs and renters going to St George/Redfield/Church Road, which is just showing mild gentrification with a token trendy cafe and non-threatening refurbed pubs amid the greasy takeaways and newsagents. So far prices haven't gone the way of Easton, St Werburghs, etc. - biggest downside is proximity to Barton/Lawrence Hill - by far the worse bits of Briz.
  21. If strip clubs and bookies are opening up, sure they ARE the economic recovery, such as it is.
  22. Sea change of opinion right across society. People realise how screwed they are by HPI now. Back in the height of the boom I lost count of how many friends or colleagues squeezed themselves to get on the ladder, struggling almost from the first month. No cushion, no pension, no savings, no real way to get the serious extra money they'd need through standard career progression. We're talking people with interest only mortgages, often liar loans, taken on to obtain £250k terraced houses when a (non existent) 70 or 80k home made more sense to their finances. They are effed with a capital F. The OP on the Mumsnet thread is just a pretty normal middle-of-the-road woman. If there hadn't been the unchecked boom they would have paid half the price for their home, hubby could start saving for a pension, and they could live well enough within their means. We too have older friends able to buy pre-boom and they didn't stretch themselves in the bizarre way people did at its height. Middle earners that paid £75-120 for a home in the mid-late 90s now with tiny mortgages less than a young person pays to rent a room in a student-digsy BTL slum, less than half a working couple pay to rent dank 2-bed flats, sometimes with a kid or two crammed in too. HPI has ruined society, utterly trashed it, killed it, buggered it, raped the corpse. if the working-class homes that were selling for £50-£60 in the late 90s and now on the market for 200-250k were the £80k they should be then pretty much everything would be fixed, or at least a heck of a lot easier.
  23. I think you are right that Jobs would have delayed the iPad 3. The thickness and weight is practically a non-issue as it's so slight but a friend that upgraded does not like that it runs seriously warm when plugged in - and at home he tends to to keep his iPad plugged in so if he pops out it's always charged not half-charged. Fair enough. Thick, heavier, hotter - no, Jobs would have binned that idea. I think bean-counting will ruin Apple. Tim Cook has employed a guy from DIXONS(!!!!) to run retail and they have already moved to McDonaldise working conditions - next strong-arming AppleCare I guess. The easy $$$$ of sticking an Apple logo of lesser products will degrade the brand with no Jobs. Not that Jobs was all that - loo seat iBook, overpriced Cube, crappy anaemic .mac, flower power iMac... plenty of laughable failures before he found his range.
  24. My Uni had a teacher training department. A lot of the PGCE people had returned to Uni after finding it impossible to get another better than a basic admin job or stacking knickers in M&S. I have known teachers that wanted to leave and they live in cloud cuckoo land and £35k teachers get a rude awakening that their 'skills' might land them an £16k at best starting at the very bottom in the private sector (unless they luck-out and get a local authority 'advisory' position on big £££).
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