wherebee

I've posted on Guardian BTL that people who dont understand how fiat currencies work are panicking now, whereas those that understood panicked a while ago. Got shouted at for being a twit. Sigh.

never had the chance to start one of these, so I am going Long on a Tuesday disaster thread. Several commercial REITS closed the doors, pound collapsing, and Carney going mental trying to talk the market down (?!?!?). So - got beans?

entirely depends on the house. a 2 bed flat, would want extreme value so if the value dropped to zero, I would not care a great detached house with a fantastic garden, if I could afford to buy without overextension, would not care if value dropped by half after I bought.

I've seen a few waverers overnight move to REMAIN in my social network. Not sure why. One thing for sure - probably the most important vote in our lifetimes for the UK. I don;t care it it is raining cats and dogs, whatever side you support you should make an effort to get down the polling station.

Interestingly, I have spoken to a number of rich and VERY rich people over the past month, and it's split 50/50. What I do find interesting is that the ones saying 'out' often say something like 'I know financially I will be worse off but it is the right thing to do for the future'. the inners all talk about who else is voting in - and often call the outers stupid.

Funnily enough, I was discussing this with a mate the other day in the USA. He was sniffing around the numbers for buying (he rents) and they just do not add up. By renting, he is effectively getting to live in a house that would cost the same in monthly terms under a mortgage BUT he still has his deposit fund earning interest elsewhere and has no negative equity risk. Might not be the same in all US cities, of course, but it's interesting that they are still 'overvalued' in some parts even after the crash.

Very true. I've been spending a bit of time in the US for work, and the thing I notice is just how massive the indirect public sector is. Armies and armies of people getting paid for by the state.

no, but I suspect it may be health related linked to his massive consumption of whiskey meaning he can't us it so often for weekend breaks...

I've met him. Seemed pretty OK, but well aware of what he could and could not say even in small talk.

So - I've posted elsewhere about a boomer friend of the family who has just put a 2 bed flat on the market along the south coast for close to 400k. I know he paid 30k ish for it 20 years ago. I know he has paid in that 20 years for one new kitchen, one boiler, and no structural repairs at all. I know he has a public sector final salary pension, after being a not very good middle manager in some small department for years I know he is a twit and blames the younger generations for not being as wise as he is with property, and that's why all his grandkids are renting at the age of 30+. AIBU to want the market to crash so hard I can put an offer into him for under 50k and then pull out at the last minute to give him palpitations? Feeling the rage today against idiots in general.

Stumbled across this great quote which says better that I did what I meant about TPTB: "People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason. But the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-given right." John Kenneth Galbraith

I am a landlord in Australia and just don't get this 'costs rise so I just put up the rent innit' mentality. I charged what the market would bear to get the quality of tenants I was happy with. If I put the rent up, they MAY stay, but more likely they will move somewhere roughly the same for the original rental cost. Then not only do I have no tenant, I have the agent fees to pay for the process of getting a new one! Why on earth would anyone who has the slightest knowledge of how markets work think otherwise?

rubbish. I have worked with HMT and there is no such rule. Look at what they did to pensions with Mad Broon. Much more likely that most of the mandarins at the time - and MP's - had substantial property portfolios and it would have been against their own self interests to go after landowners.

Fromage - this is an excellent soundbite that really sums up the madness.

the government would not have been able to keep borrowing billions each month cheaply, and so the rotten system of tax credits etc would have HAD to have been tackled.

Same reason I am not selling my GDXJ that is up 72%. If TPTB keep the plates spinning, I keep getting paid in fiat and saving like a *******. If the plates smash, gold to the moon and that's when - if needed - I sell.

I realised another way in which I was wrong - I went for a divorce settlement structure in 2008 on the logical prediction that house prices could NOT continue to rise. Government intervention cost me about 200k. *******.

I would say to the agent that you understood in the current market good tenants were getting rent reductions. You would not have signed at the old rate without looking around at options. Their problem, their cost.

I now do not think there will be a HPC in the UK in GBP. I do think there will be a crash in house prices when measured in USD/CHF/GOLD I think the UK gvt - of any colour - would rather the pound was toilet paper than face price collapses in the UK and London property markets. So yes, we woz wrong. Our error was forgetting the lessons of history, that those with wealth and power will do anything, no matter how crazy, to hang onto that wealth and power.

Naw, you'll have loads of fun in a great country. Just enjoy it!

I hope it falls 20%. Need to move some money back to the UK before November, and a 20% rise in the amount I get would be very nice

but don't forget the periods when places like NY, London, Berlin were crime hellholes and property was unsellable in some areas. It will happen again. Only problem is, then you will not want to live there!

but do the next generation, who are not yet born, deserve it? for example, my life was pretty screwed in many ways by the EU vote in 1973 when I was too young to have a say.

Venger - you know I am not an apologist for over leveragers. You know that. My point was this bloke GENUINELY had not been informed by the bank or the regulator. Once I explained it he tried to sort it out. He was not a head in the sand type. He was embarrassed and horrified at the risk he was facing. It's like someone buying drugs which have been approved by the government, and then we turn round and say aha! you should have known that eating those plus fish meant you were going to die. Didn't you read the small print on page 146?

I had a mate on IO who, once I explained the facts to him, saved like a ******* and converted to repayment. All credit to him. Was was truely scary was that the bank had leant him the money without making sure he understood that he was not decreasing the outstanding balance at all over 25 years. Yes, he signed the papers, but trust me he did NOT know that he was not paying down the debt. failure of the regulator and the bank both on IOs, in my view.