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House Price Crash Forum


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Everything posted by Insane

  1. Sad part is there are still plenty of people willing to use it. The big draw is the just 5% Deposit needed. They could get a much better deal in the second hand /nearly new market but do not have the larger deposits needed. Sad.
  2. I have a friend who lives on a new build development in Chelmsford Essex. They started building about 7 years ago and finished a few years back. There are about 200 houses and apartments in total , much of it sold under HTB. She said this time last year there was 1 house for sale , this year she has been able to count 19 (might be more) she thinks it is the people coming to the end of the 5 year interest free period that has caused such an increase in Houses For Sale.
  3. Well it is all great isn't it we can bring in as much legislation as we want , irrelevant if it gets ignored. Just before xmas I was hit by a driver on a roundabout , she drove off and I caught up with her , phoned the Police who did not want to know , went into a Police Station about 200 yards from where the woman was now parked, told the Police she looked out of her head on Drugs ( might be wrong but it looked that way) they were not interested and would not walk/drive 200 yards to check this out. Long story short I was given a form to fill in , filled in form sent pictures of driver and a man who arrived at the scene that she knew ( I think she was not meant to be driving that car and he was going to say he had been driving not her ) again cannot state that as fact that is the Police Job to work out. Received a letter a few days ago telling me this incident will not be investigated further.
  4. Well are all their roads level with the pavement ? We were disusing the Newley introduced no demarcation of Road/Pavements in UK high streets and how dangerous they can be. Especially when introduced in a half hearted way little signage and jo public just expected to know all about them.
  5. A point that is debatable in court and although in statue does not have that much bearing. I know someone who was knocked over by a speeding driver but was told in court he was as much to blame as the driver as he did not cross at a crossing.
  6. Well on the two occasions where I suddenly thought I had driven into a pedestrian area that caused a lot of confusion the speed limit was 30 mph still. So where these ill thought out changes have been introduced in the UK as usual they have only managed to do half the job. We have had pavements with kerbs and a drop down to the road even before the motor car was invented , but some smart people have decided to change this system in certain places and I cannot see any advantage to it. How would a blind person know when they are walking off the pavement and onto the road ? A bit like the great Smart Motorways , when someone explained them to me I thought they were talking rubbish as it is so crazy. However what I was told is true. There was a recent documentary on these and a woman on there who had killed someone said " I had never heard of a smart motorway never mind being told how to use them " another woman on there said she had no malice towards the man who killed her son as the accident was not his fault it was the fault of the smart motorway system. I am not sure about other countries I live in the UK what I am seeing in London and around London is millions of £ being spent which has caused congestion and confusion which leads to unsafe roads and pavements , but as usual when someone or a committee of people decide that they know how best to spend other peoples money nothing can stop them and if all else fails lets just paint the car driver as the big bad monster.
  7. No once you kick the can you cannot always stop it at the exact point you want to stop it. Government can interfere buy the Jennie out of the bottle takes on its own life.
  8. So someone walks out in front of a moving car and the driver loses his licence for life NO THANK YOU. Where has anyone said that cars have more rights than pedestrians or want more rights than pedestrians. Cars drive on the roads , pedestrians walk on the pavement and cross roads when it is safe to do so. In the UK until recently there was a kerb between the pavement and the road with a distinct drop down to the road , this was easy for everyone Drivers and Pedestrians to see where the road and pavement was and far safer than this crazy system where people driving along a road suddenly find themselves not knowing if they are still on a road or have driven into a pedestrian only area.
  9. But if you put it on the seller those with most to pay would be more reluctant to move and would impede the market. I'm not sure when Stamp Duty first came in either the 60's or the 70's but have been told it started at 1% for Luxury Properties only. Those over £15,000 when the average house price was £8,000 so Mr/Mrs average did not pay it. Due to fiscal drag not increasing the rates when it starts millions of average people now have had to pay it. Gordon Brown was the chancellor who then in the late 90's started raising the % paid when Labour first got elected. They have coined the phrase STH as a market prop but if the rates that it starts at had risen with house price inflation those benefiting from this holiday would not have had to pay it anyway. For 40 years I have watched the fall in the basic rate of income tax while to get the money back other taxes NI, Vat and stamp duty have risen. They give with one hand and take with the other.
  10. Not everyone would benefit, which ever way the wind blows some will come unstuck. When prices crashed at the end of the 80's many were financial destroyed and added to the massive recession , we can forget how bad things were for many and not just those who could not pay their mortgages. I can recount many stories of people who kept their houses but lived life's of poverty for years. The problem facing the Government is if house prices crash how much impact would it have on the wider economy and how much damage would there be. When it turned last time it went lower than anyone expected and no one knew where and when the bottom was. Policy can change a direction of something but cannot determine how far the direction is.
  11. It was not just the withdrawal of double Miras that sparked the Crash. During the spring and summer of 88 Interest rates dropped quite a lot the FTB's rushed in , back then there were very few fixed rate mortgages so they were on variable rates. When Miras ended Interest rates shot up at the same time. I remember Dear John Major putting them up 2% in Just 1 day when the balance of payment figures were released for the month of August. Strange that back then the setting of Interest rates was almost linked to the figures for the balance of payments and were a big part of Interest rate policy. Today the balance of payments has no bearing on interest rates. Debt being one big driver for people selling houses those FTB's of 87 and 88 crashed and burnt. Anyone like myself who had bought pre 87 was unaffected by negative equity as the market did not crash more than it had gone up in the previous 3 years. I had also had 3 good pay rises so even at 15% my Mortgage was less of my take home pay than it had been in 1986 when I paid 12% interest. Today Interest rate shocks are not going to be as big as they were in 88 . The late 80's early 90's crash was bought about by those who had massive mortgages and bought in the last few years of the boom. Today people who have bought many years back are still carrying massive debts as wage inflation has not reduced their debt in real terms as it did for people in the 80's. I see on one hand the Interest rates not being the massive problem at this time but the size of debt being the overriding problem that could crash the market. The ending of SD holiday is not a shock to monthly payments but an incentive while moving that has been withdrawn. It will not affect those who have already bought and their ability to service the debt. We will wait and see.
  12. Absolute Madness yes I have. The whole point of the Kerb and the drop down onto the road is for people both motorists and pedestrians to easily see what is road and what is pavement. Safety. I was in Bexleyheath Kent recently a place I do not know well and all of a sudden I thought I was driving over the pedestrian only part of the high street. Your in a situation and you slightly panic I braked , the person in the car with me who knew the area was saying no no it is ok it is road carry on , I was working out what was happening and the car behind me annoyed at me breaking started Hooting. It all adds to confusion and that is when accidents happen. Same thing in Guildford Surry a few years back and the person in the car with me (Brother) was not sure either and saying , yes you can drive here carry on and then oh no I am not sure if you can or not , umm yes , no , yes . It was dark and confusing. A few days later my brother phoned me and told me that a woman had been knocked over and killed at the exact spot where we had been trying to work out if it was road or pavement. MADNESS !!!!
  13. Parts of London have been plagued with these Cycle Lanes. Two lane roads have been reduced to one lane causing massive bottle necks and parking spaces in high streets removed destroying local businesses. I think it was Wandsworth Council who said they were going to Rip Out a Cycle Lane that the Mayor had just had built and cost £18 million. It had caused massive bottle necks for motor cars and other motor Transport , while hardly any cycles used it.
  14. Bovis Homes the company that moved people into unfinished homes to get their year end figures in and then left the buyers with massive amounts of faults both big and small.
  15. Massive over supply. I have heard the second hand market is very quite. However the developers are still selling the new ones with people using Help to Sell ( Sorry buy ) Government's scheme. In London you can have up to 40% interest free loan for 5 years on HTB. The people buying would get a much better deal in the second hand market and even buy somewhere in the more prime areas that were developed first , however they have not got the deposits needed so they are forced into the over priced brand new. I see a tunnel those that bought a few years back coming out at one end screwed and stuck in their flats and now having to pay the interest on the 40% if they have been there 5 years. While at the other end of the tunnel there are plenty of new entrants just starting out and willing to sign up for these over priced boxes. People on here speak about what will be the next prop to keep the Ponzi going ,could it be HTB on second hand properties ? In order to stop the dropping second hand market having an impact on the new market when buyers realise you lose far more money getting the keys on a new flat than you do when you drive a new car off the forecourt.
  16. Yes when I look back at my life and property when I did not try hard I made money things just happened. When I went out there actively to make money I lost. Good Luck and Bad Luck some of it we make or help to make some of it just happens. Was speaking with a Lady I worked with a few years ago , very elegant mid 40's she had done some modelling work in her younger years and made big money. Obviously past that career now and had an ordinary office job average wage. During the early 90's she bought a 1 bed in Mayfair for £400k and sold a few years later after things had gone back up for £700k thinking it was the top of the market. She wanted to sell wait for prices to drop and buy back in Mortgage free. Fast Forward 20 odd years. Still Renting , Got some money left for a deposit but can only buy anywhere in London if prices drop hard and fast and would have to have a big mortgage in relation to her earnings. I asked her how much the 1 Bed in Mayfair would be worth now ? Answer £3 Million . OUCH !!!!
  17. The one I bought was a 1 bed River View in Surrey Quays. The block was almost empty. Stunning Block Swimming Pool , Gym the lot. Service charges were a bit high just over £2,000 a year which 28 years ago was a fair amount of money. I remember laying in the swimming pool ( had it to myself ) thinking how did I get here. I sold it in 1997 for £75.000 , remember the agent saying these flats will chip up in price over the years but never go above £100,000. I paid £105,00 for a two bed in the same block on the same floor , it all took about 3 months to complete. On the day I moved I phoned an agent who said my two bed was worth £160 -£165 and my old one bed was £110. That is how fast the market moved in those 3 short months. I sold a few months later for £166,000. I looked recently the one beds in that block are £375,000 - £425,000 Two beds river front like I had £600,000. LOL.
  18. I am old enough to remember the late 80's early 90's crash. During the 80's the Mantra was property will stop going up but never go down. Then at the end of 88 when Double Miras was scrapped and Interest rates moved up it crashed. The biggest and first drops were in London and places where it had gone up the most they went down the most and the fastest. When there are times of high unemployment even those in secure jobs can feel insecure due to secure jobs not being guaranteed and the fact that they are aware of what is happening around them. One massive driver for the Market like any Market is Sentiment and after a few years of price drops Sentiment changes very fast. I remember friends who could afford their homes refusing to pay for an expensive asset that was losing money and giving back the keys ( long term bad decision) but at the time their feelings and sentiment won over. I Remember friends who could not afford their homes getting repossessed. Property became a dirty word. In 1993 I bought a flat for £50k it had been purchased for £150,000 in 1988 had never been lived in and had been held by the lender empty for years. People said to me you must be mad why do you want that ? Today when I relate this story I know people think I am talking rubbish. I still have the advert form when I bought that flat have tried to upload it to here but the system says the file is to big to upload on here ( if anyone knows how I can upload let me know and I will do it. If we have a massive economic upheaval and downturn I cannot see a smooth transition of those losing their properties and there being many on the side lines waiting to step in as Sentiment not to do it will be a massive driving force.
  19. I have argued the point before that if the housing market tanks it creates opportunities. People can buy in areas they want to work, communities can be built with better social cohesion and less reliance on handouts. People will have more money to spend locally rather than the money going to the banks and shareholders. Sure, the people who go bust have less to spend but one landlord with 30 houses could create 30 family homes when liquidated. Yes agreed However to get to the point of the housing market tanking while we have such low interest rates there would have to be a massive economic downturn with mass unemployment first creating those who hold current mortgages unable to pay their debts. If this would happen it would not be a case of people going bust and there being plenty of others to take their place at a lower price as the people wanting to take their place would also be part of a bad downturn. It could happen but there would be much upheaval and economic turmoil for much of the population first it would not be a smooth transition.
  20. Excellent advise I Advised two of my nieces not to buy about 10 years ago , I told them to wait , they said prices will go back up as they had softened a bit. Thank god they did not listen to me. They were right I was wrong. If anyone asked me today I would say I don't know.
  21. This is a very bad situation for thousands of people not just in Canary Wharf but across London. Everywhere you go there is block after block of new build ( supposedly Luxury apartments ) not sure what qualifies to get the Luxury tag. However the worst part is while people like this guy are now facing financial ruination there are plenty of others still being led by the hand to buy these apartments new on the Government Help to Sell , sorry Help to Buy schemes. I have a friend who sells for a developer out in the Royal Docks a few miles from Canary Wharf the development she is on is at the end of the Royal Docks past Beckton. Yet they are selling like hot cakes under Help to Buy. Being in the industry she speaks to sales staff from other developments near hers to gauge the market and everyone is having a field day. At one end of the Tunnel the screwed like the man you mention are coming out destroyed while at the other end of the Tunnel there are plenty of people still joining the madness who think they are going to make money.
  22. Yes I remember that episode the idiot turned the living room into a Garage when there was plenty of on street parking , he made one of the three bedrooms a living room , the bathroom a third bedroom and made a new bathroom out of two cupboards. Funny enough I don't think he was able to sell the property and make any profit.
  23. Well in the article they did say there was a confiscation hearing , so something is happening.
  24. Those houses would have cost less than 50K to buy as well. Do you not mean less than 5k to buy. I and my family live on the outskirts of East London/Essex. All built in the 30's when the London Suburbs appeared. I know that my Dads house cost £600 new mid 30's, he paid £3,750 in 1962 and it is now around £500,000. My house was around £400 new in 1932 , now £350,000. There is a Road near to my Dad the best Road in the area where 4/5 Bed Detached houses Backing onto the park can be as much as £1 million ( ok many have been updated and extended since being built in the 30's) a local agent had the original sales brochure in his window recently they were £1,200 new. A big selling feature in the brochure was the fact they had a Gas Point in the kitchen.
  25. To be honest they have not done a lot , however there has been some improvement's. Under Labour there were families receiving vast amounts of benefits , the more children the more money. They have capped the maximum amounts that can be received and removed the incentive to have more and more children paid for by the state by having a policy of benefits for a maximum of two children.
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