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2rocketman

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Posts posted by 2rocketman

  1. 8 minutes ago, jiltedjen said:

    People are attracted to buy to let as it’s the only way you can get extreame leverage, if you could borrow 200k very cheaply then stick it in an interest account you would do.

    people still see buy to let as a magic money tree. 

    Can’t really compare a interest account to buy to let, as they are two very different propositions. 

     another issue is that ‘nice houses’ sell quickly as those who buy are not price conscious, they want it. the bargain houses generally will never be the desirable houses. 

    plus interest rates are soo low and have been, and will be for so long, that the value of money itself is being eroded very quickly. 

    companies have started to be quite profitable as their U.K. workers are starting to become quite cheap. labour markets are getting tighter. 

     withoit currency destruction everything falls apart, the system is designed to run by constantly bailing out the feckless. it’s also how schools and prisons and hospitals are paid for, we have high tax rates, but we also have hidden massive value transfers back to the U.K. gov, on top of it all via money printing. 

    the game is rigged against you. 

    U.K. society requires a huge majority to pay 80% of all value creation back to the gov in direct and indirect means, to pay for the whole shit show. while a few ultra wealthy are above it all, once people have enough assets on the right side of the robbery then they are on an endless money train. 

    I could not agree more. 

  2. 10 hours ago, Pop321 said:

     

    My guess is somewhere in the middle.

    The HTB debt could be carried over like a student debt (but for life) and live with the person until they move into a nursing home. 

    The tax payer may never get their money back (so there is a loss) but the debt lives with the borrower for life. 

    HTB is an absolute disaster in my town. I even respond to housebuilder on right move adverts asking why the price is so high and send them details of houses literally over the road which are £100k less AND BIGGER.

    One example is a 50% share costing £179k for a 3 bed semi (also available for £359k). Across the road is a slighter bigger 3 bed semi for £220k but built in 2000. 

    The new houses are dressed beautifully....I mean like beyond the old ‘coffee roasting dmell’ and ‘nice neutral creams’.  They have chandeliers, grey kitchens, grey blinds, wood burners with oak mantle over, egg shell paint not gloss, off greys, old leather luggage staged in the spare bedroom with desk and map of the world....infact whoever designed them deserves every penny of their wage....but it’s all decor and no substance. The garages aren’t wide enough, the gardens not big enough (but beautifully staged) and the price is too high.

    Saddest part (this is the 50 year old man in me) is that all the sold ones have a pair of brand new cars outside...I don't judge (indeed they are as likely to be company cars as private) but it indicates possible attitude towards debt and risk.

    A young couple (about 32/33) have bought a 1930’s detached across from us a year ago. It was scruffy and in my mind they overpaid (but everyone does) but it was a ‘relative’ reasonable buy at £300k. Went round at Christmas and it was stunning, just like the show homes...this couple are annoyingly perfect, pretty, 2 kids, clean little dog etc and they told me they had viewed a ‘new home’ and couldn’t believe how daft the offer was...so bought this bigger home and ‘wasted’ £10k on making it how those show home did. Nice to see a break in my stereotype and that’s why I ‘try’ not to judge...good for them I thought as they now have a 1500 sq ft detached instead of a 850 sq ft semi box. 

    I see the blame the government and it’s HTB schemes, I blame the house builders but I also see some blame in those buying.  

    Who buys these over priced matchboxes? 

    Unfortunately those only able to finance 60% and probably without any spare funds available to renovate, barely scrapping the 5% deposit together let alone stamp duty. 

    Partly due to lifestyle, having new cars on pcp etc.

    They think they’re buying the dream you describe not realising it will turn into a nightmare further down the line.  

     

     

  3. 6 hours ago, dougless said:

    I think he should be encouraged to do this.  It will create lots of (unnecessary) work and hopefully he will be left with 30 unsold flats in 18 months time which will help to push prices down further.

    Problem is, 30 flats would no doubt sell and they would have a leaseholds, maintenance etc to cash in on top. Only because they will be eligible to use Help to Buy scheme (taxpayer) to shift them at over inflated prices as they will fall below the 600k threshold.

    That’s where they have gone wrong, if they could tap into the HTB scheme on those houses, idiots would of already moved in! 

  4. 6 minutes ago, ftb_fml said:

    Nice post / thread :)

    I'd agree that the tide is definitely turning; although I'm not sure we've gone over the edge yet. It's taken over two years for London to reach the point is has and those of us outside PCL are still waiting to ride the ensuing ripples.

    Both sentiment and hard economic / HPI data have also been declining for a while now; and globally this seems to have accelerated markedly in the past 3 months - which I believe is very important. I think given all the factors concerned the rate of deterioration is only going to increase for the foreseeable.

    Public sentiment is definitely souring towards the establishment lies and their increasingly obvious fallout, however en-masse the people are still largely uneducated and placated; still being led by the nose by the media. This has not been, and there is unlikely to be, some enormous national epiphany / awakening of understanding. As times get harder the public look for someone to blame (anger which is often hi-jacked by opportunists with agendas - see Brexit and Trump); when (if) they get better, the people go back to sleep. 

    How things play out also depends on the government's actions; however IMO the incumbents' time is almost up as they've proven to be one of the most shamefully dysfunctional and overtly exploititive assemblies in living memory; one whose hypocrisy, lies and ineptitude have become clear for all to see as the situation has deteriorated. 

    A Brexit "deal" outcome might result if short-term optimism for 6 months until everyone realises we're all screwed. A "no deal" outcome will cause things to collapse far more rapidly since everyone has been conditioned to accept this as basically the end of the world. Regardless, in the medium to long term things will continue to tank as people realise the true horror of the situation we're facing (in general terms, not just as a result of Brexit) and we'll see recession, job losses, asset price collapse and a change of government as the Tories rightfully cop the blame for it all despite thier whimpering and pointing of the finger of blame at Brexit as the sole cause.

    I don't think anyone can deny that the housing market is in for a kicking and that the decline has already begun; the only questions remaining now are "how long" and "how far". 

     

     

     

    Agreed. 

  5. 33 minutes ago, warrior88 said:

    I completely agree.


    We need a recession and increase in interest rates to have any real impact. The availability of credit is still plenty.

    I don’t agree. I know people with a lot of equity that have struggled to remortgage for whatever reason. Interest rates are low but real world lending is tightening! 

  6. 15 hours ago, longgone said:

    That`s what happens when you try and shoe horn in the cheapest built rubbish on the smallest bit of land. 

    do you blame the developer or the planning dept ? 

    Some you win some you lose, it’s not worked out for them, only themselves to blame, they submitted the plans and set the asking prices.  Surrounding residents have all ready put up with one round of development and should not be subjected to any more. Market forces need to be left to play out. They are only worth what someone is willing to pay.

    The build cost is circa 3 million, they want a return of 6.5 million. If they want them gone, slash the price 50% and move along. 

    The real problem here is pure greed! I really hope they’re plans are rejected and buyers have there pants down! 

  7. When the market crashes, I wonder if we will see HTB keys getting handed back on a big scale. Especially once the high maintenance fees kick in when they are no longer new anymore and the poor build quality start to show. The big new build blocks of flats, with 2 lifts to service, non stop interior decorating from renters coming and going damaging the hallways, flashy glass exteriors with regular cleaning required etc etc it’s going to be savage.  I don’t know to much about htb but I believe you have to start paying interest on the loaned equity after 5 years as well. Very bad news for those who don’t look past tomorrow with debt up to there eyeballs with every penny accounted for.

    Already couples separating, needing somewhere bigger to start a family are facing a substantial loss in the majority of cases.

    Surley its not if it’s when? 

     

     

  8. I have been waiting 6 years to buy, come close a couple of times out of desperation,  pressure from others around me etc same as many on here. I follow West London and parts of the south. I know variety of people from all different backgrounds, amongst them, an estate agent, couple of developers, first time buyers, landlords, affluent individuals, help to buy owners, business owners, sellers, professionals of all types etc. I really think from everything I see, read and hear this next 12 months is going to be brutal. Many are talking negative now,  no longer the uber upbeat tone of a couple of years ago.  I have said on here for a while  the crash started long ago and I personally think it is now clear it did (London & south only, I know nothing about the market in the north of the country). Sentiment has been turning, prices dropping, properties not selling/renting etc but it has been gradual. I’m calling it now, this time next year I think the market will be decimated. I know of someone selling land to a developer, a big deal, they have backed out on him. I know someone who was flipping a house, been holding it 2 years from purchase now and just coming to terms with the fact they are going to loose 100k plus and that’s after doing a complete renovation and a loft conversion. I know someone else, tight as two coats of paint, just took a 200k drop to get a sale through on one of his properties, very out of character,  but he is a right time right place kinda guy and I’ve no doubt that will look shrewd in time (he still made a killing).  I could go on and on but the point is the tide has turned and it’s now common knowledge. Those who kept saying buy buy buy have fallen silent. We are now in reverse and I think it is going to pick up speed. Redundancies are becoming more common, closures happing all over the place, Brexit, S24 all ready to add to the doom.

    I was speaking with the estate agent I know the other day and he said it’s not only buyers on the sidelines, he has plenty of potential sellers too. Many of whom get valuations done only to inform him after they won’t be marketing the property until post Brexit. I think once it is done whatever the outcome a lot more properties will come on and hopefully sellers will out number buyers and it will trigger the collapse. I am sure someone will repost this if I am wrong, I even will if I remember but I can feel it, this is different! The next 12 months is going to be a bit tasty. 

    I won’t be taking out any more fixed isa’s etc I want my funds accessible now.

    2R

  9. 36 minutes ago, thecrashingisles said:

    I'm happy to give you a no deal Brexit providing you'd support a new application to join later in the year if it's a disaster.

    I would be happy with this scenario, however, it would need to be a minimum of 5 years from the official exit date before it was held again in my opinion. This would allow enough time for a proper analysis to be conducted. Then we would be able to hold a second referendum (if the appetite was still strong) based on all the facts.

     

    Thats me done, I’ll be back on the 29th of March.

    2R

     

     

     

     

  10. 4 minutes ago, jonb2 said:

    I'm sorry. You don't get away with that. Define it please.

    More snooper's charter rulings perhaps? More tax evasion? Greater NHS privatisation? More cuts to the army and police? A breakdown in the social fabric? Less education? Less worker's rights? More support for Russian oligarchs? More crime? More asset stripping?

    Tell me.

    Way to much drama. Don’t panic, we’ll be in control. Have some pride. 

  11. 8 minutes ago, jonb2 said:

    What is Brexit for? Where's the vision? Where's project hope?

    As far as I can see, it's just going to make us poorer with another 10 years of shit Tory self-serving. Tell me what is going to change for the common man? We know JRM, Farage, Johnson, The Barclay Brothers, Murdoch etc will be fine.

    Westminster is unaffected. Corbyn is sinking fast in the polls. What is Brexit for? How is it going to change anything for the better?

    Independence.

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