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About beenhearingthisforyears

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  1. London is a big place. So think it is more common than you would think. Many people come to London in their early 20's rent for few years, then buy in 30's and move out to "greener" areas when they have kids. Most of my friends now in 30's are following that pattern. Not a majority tho , agreed. Also return on improvement investments can increase with HPI. You know a coat of paint and a vase of flowers and £20k suddenly added. In a falling market would not be the case. The improvements seem to get inflated too. I am talking about people keeping same job and so earning same money but moving to different "cheaper" area. In the example i gave my friend benefited from HPI in his area and then moved to a place that hasn't risen so quickly. I spoke to him yesterday and therefore know the facts.
  2. This is how it can work. Mates in London are doing it. Bought 1 bed flat in dodgy East End 5 years ago, and prices have increased to a greater % than the area they are moving to. So now they can afford a 2 bed in a area that is slightly further out. So for them local HPI was a positive. Many people have bought in London in their early 30's and then move out of London when they marry/children etc.
  3. So what are you suggesting? We all STR and dump our homes? And gamble on the markets or try our luck with gold? I really wish we could make a distinction here between investors/LL's/BTL and ordinary regular 1 home owners. And have you seen what is happening to the interest rates on people's STR / FTB’ers deposit funds?. Many are coming down..... I would rather sit out any crash and at least continue to live in my "asset."
  4. Cheers for link. Luckily Halifax allowed me to move it to a fixed 5% ISA, but many of the higher rates are variable, so could easily come down too? i.e: A&L.
  5. Even on this forum, (where surely people are more informed) member after member are saying they would not STR; it is not an option for many. I doubt if the average HO has even heard of the term? Banks are lowering their interest rates for savings. My ISA has already had a rate cut with Halifax just 1 day into the new tax year, and unless you are able to play the markets as well as Dr Bubb then IMO it isn't that simple. Even reading the business pages is confusing as hell. The story seems to change by the hour! No-one knows for sure what is going to happen and many, many people think of their home as just that, not an asset to be dumped when the going may get tough. Of course there will be investors who will ditch their BTL's, but many ordinary members of the public will be able to ride it out. And some LL's have stated they are in it for the long term. I pointed out last week, check the investment section on this forum, and you will see some people are struggling with the markets; even on this board with all the advice available. Does anyone agree with me??
  6. I would never have believed it until i discovered that my ex was a pathalogical liar and had wardrobes and wardobes of designers clothing. And a flat decked out with all the latest gadgets/furniture. All on credit which they just walked away from. Nothing was repossesed.why?? not the car/furniture all the designer clothing. Declared for £60k. And had to pay something pathetic like £5 per weeks because they were on teacher training salary. Then got loads more credit cards and started on the spending spree again. I eventually found the cards and the statements. I can not believe it happened but it did, and they ran up another £9k in 12 weeks with no way of paying it. How the feck did they get the cards the 2nd time?? This person honestly just laughed about it. And they still went on holiday etc, etc. Just in my experience for what its worth....
  7. People are just laughing at the system. Just one ! year now before the bankruptcy is dissolved. My ex was declared bankrupt and didn't loose car and after a few months after being dissolved all the credit cards came through the post-box again and then they ran up £1000's more debt. It is that easy. Please read this article below, because in my experience this is exactly how much effect it has on some people. Not much at all. Z list celeb Anthea Turner's sister and sister's husband both declared bankrupt last year and she was joking about how they still shopped at Waitrose and they hadn't lost their house, all in some naff interview that she obviously got paid for! Off course people do loose their houses but a lot of young people are living for today and a bad credit rating is last of their worries! Many students see it as a way out of all the debt and with credit cards so easy to get it will just get worse. edit* noticed someone mentioned student loans are except ? the actual loan may be, but debts certainly are not, as that is when my ex ran up the debt, when studying to be a school teacher. Could laugh if it wasn't so tragic!!!! Article from http://www.fool.co.uk/news/comment/2006/c0...ioodftxt0010001 Among the many fascinating discussions posted on our Dealing with Debt board, a subject that crops up with increasing regularity is bankruptcy. There are people contemplating it and are terrified, people who have taken the plunge and post about what it's like, and then there are those who have been there, done that, got the T shirt. The thing I've noticed about these discussions is that just about everyone going through the process of bankruptcy has found the courts and the Official Receiver (OR) pretty sympathetic. Surprisingly so. The fact is, bankruptcy doesn't carry the stigma that it used to and recent changes to the law have made it a much quicker process. Bankruptcy simply frees you from overwhelming debts so you can make a fresh start and ensures that your assets are shared out fairly among your creditors. This may include your house but not always. The worst bit about it is probably the paperwork which starts with completing a Debtors Petition in triplicate and a Statement of Affairs in duplicate. You present your petition to your local county court in person handing over a cheque for the cost of it while you're at it. At the moment it costs £475, which is made up of a £150 court fee (which you don't need to pay if you're on benefits), and £325 which goes towards paying for the administration of your bankruptcy. You then see a judge for about two minutes who, if satisfied that a bankruptcy order is appropriate, will agree to make an order at which point you are declared bankrupt. The next step is to meet the OR who goes through your paperwork with you to establish the sequence of events that led to your bankruptcy and work out a repayment schedule called an Income Payment Order based on what you can afford. This will last for three years even after you have been discharged. Although bankruptcy can last for up to a year, the OR can discharge you even earlier if s/he think it's appropriate so at some point you'll get a letter and questionnaire asking for an update of your personal circumstances. Once the questionnaire is returned the OR contacts your creditors to inform them that you may be granted an early discharge so s/he can consider any objections they may have. If no-one objects, or if any objections are without merit, the OR can apply for an early discharge. Note than when you're declared bankrupt you have to immediately stop using any bank accounts or credit cards that you might have. You can open a new bank account immediately after being declared bankrupt but it makes sense to withdraw enough cash to see you through the next month before you present your petition. Obviously your credit rating will be ruined but you're not allowed to borrow more than £500 without declaring that you're a bankrupt anyway - and, besides, it'll have been the borrowing that probably got you into trouble in the first place so you'll want to avoid repeating the mistake! As a former bankrupt declared on our Dealing with Debt board: "Apart from the credit rating side of things, I have found the rest of my life to be quite unaffected by being a bankrupt. Life just seems to go on pretty much as it always did". END ARTICLE If the worse bit about it is the paper work.....bring it on. no wonder more and more are going this route.
  8. Been pondering this question: "Why if UK didn't track interest rates on the way down, (US in particular) do we need to track them on the way up." PM'd 'Jason" and checked if it would be ok to use a reply he recieved from BOE last year regarding "what effects FED interest rates have on our interest rate policy." Please see link to that post : http://www.housepricecrash.co.uk/forum/ind...97entry253597 In view of the reply from BOE, could someone explain - in basic easily understood terms/language please - why we need to track US/other countries rates? Just something i am wondering about after reading another forum and no-one had responded to that question. Just would like to hear more informed members views. cheers. ***sorry EDIT***** new link to Jason's post should now activate. please see above
  9. I live N1 and have stopped posting anything about London as accused of talking buls**t when i mentioned Autumn last year that prices are on the up here. Out for dinner 5 friends last nite. 2 are looking to FTB and they mentioned BS's seem to be offering lower rates than few months ago? Britannia just announced new 4.34 fixed 2yr. http://www.britannia.co.uk/unison/mortgage...ates/index.html Islington properties were being remarketed after Xmas with price increases. The trouble is London media has been full of bullish news every single day for months now. Even radio news covers it in depth. People can see they can afford the repayments if they have ok jobs as many do in London. Interested DD are you friends saying the same thing?
  10. I know of many on benefits and they are ALL working to! they are laughing at how easy the system is and i will not even start on people who are also involved in drugs etc, etc. Drive around some parts of really rough South London and look at the cars people are driving....Lexus 4WD....how do you think they afford these vehicles??. I go there every week to visit a friend and it is scary territory. These people are making a mint! i also know of high power businessmen who have excellent accountants to get them out of paying taxes. People do what they can to get by, and it is dog eat dog. In my view it is the hard workers in the middle who are well and truly stuffed.
  11. found out Halifax lowering their ISA rate on Halifax ISA Saver Direct rate from 5% to 4.75 on 6th April!! whilst still heavily advertising a 5% fixed for 1 year or more. Penalties if you move within the fixed period. Phoned to check this and they agree to move my ISA to fixed. Just frustrating as had just moved it from Smile to get the 5%! Edit: bu%%er what have i have just done. In my "indignant rage moment" i have locked £3k away for 12 months and will loose big chunk interest if i try to get access to it! .......and now i know why i dare not let my self loose on the markets. all for the sake of 0.25%!!!
  12. If the economy "crashes and burns" as you predict would have thought Blair would have wanted to be as far away as possible.....if the "ship sinks" surely he will go down with it?
  13. Because to most - talking about Joe Public here - it is a "specalist" area. When a study last week was showing many in Uk struggle to understand even basic financial principles, a small % couldn't even understand their own bank statement. .....do you really think they can get their heads around playing the markets? Even members on this forum admit they would not risk their STR funds on market. Looking at "investment section" you will see how some are even cashing in investments and have made NO profit. Others are struggling playing the markets. http://www.housepricecrash.co.uk/forum/ind...showtopic=26361 And in the news yesterday it was announced that Halifax are cutting interest rate on some ISA accounts, and apparently it is going to hit across the board with Banks lowering rates. Will try to get link to yesterday's Evening Standard. All due repsects but we are not all Dr Bubb, the guy is an expert, i would imagine very comfortabley off and to him it makes perfect sense to STR and use those funds to invest. I personally do not think it is that easy....just IMO. Anyone who is financially savvy will read the FT or business pages and see for themselves how markets are performing.
  14. Found this to be a very balanced article and sums up how my view of HPI. Be interested in the view of more bearish members. http://www.telegraph.co.uk/money/main.jhtm...4/cnhouse04.xml
  15. I just highlighted one reason which could explain why prices are rising in some City worker 'favoured areas" as my post explained......i have got nothing to "rant" about. It is a fact. Many other members have confirmed this regarding the London market. I have no idea why you need to question something that has not been challenged even on this forum. If you believe the central London areas i mentioned are crashing please could you show me some evidence.
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