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House Price Crash Forum

Insane

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Everything posted by Insane

  1. Thatcher placated many people by selling them their council house at a knock down price. She also knocked down Income Tax. The fact that most of what came off the basic rate of income tax went back on NI went over peoples heads , many believed the lie that NI was not TAX.
  2. In 1988 most people said property would never fall it would stop going up but never fall. The next 5 -6 years were a blood bath especially in London and the South East. I have often heard quotes that the late 80's early 90's crash saw 19% overall drops , well it might have been 19% overall across the UK but in London and the south east it was much higher , I would say between 30% - 50% dependent on area and type of property and yes new build flats were hit the hardest. I have told younger people about this crash and they sometimes look at you as if you have two heads either that or they do not want to hear what I am telling them as it is too uncomfortable.
  3. I agree that the one who saved the money by not buying cigarettes would have more wealth now but to say " massive differences in health " Is not correct that is not a given. I am 55 have smoked since 12 and my health is much better than many of my peers. Yes I know smoking is bad and one day if and when it catches up with me I will regret it but I have noticed people have stopped smoking and switched to food . Have you seen how many fat people there are ?
  4. That is a very bad comparison. People do not buy a TV set as an investment it is a household item that they use and know that it will wear out in time. However as you bought the subject up let me explain buying a TV has worked out much cheaper than renting one (not sure you can rent a TV anymore) as they are such a cheap item to buy the business model of renting them to people who cannot buy has disappeared. In 1985 it was £90 a year to rent a TV , my Dad paid £350 to buy a Sony , 30 years later it was still working he only got rid of it because we bullied him into getting an up to date flat screen. I know during that time renting a TV would have got cheaper however working on the starting figures :- £350 cost price divided by 30 years use = £11.66 pa. compared to renting at £90 pa. which would work out at £2,700 over the 30 years.
  5. When my Dad went to work in 1949 the standard working week was 50 - 55 hours , he worked in insurance and Saturday mornings were a Standard part of the working week for most. Holiday entitlement was two weeks paid and there was very little if any sick pay. When I left school in 1979 we were told the Leisure age was on its way. By then it was a 40 hour week for most I started on 4 weeks holiday a year and got x amount of sick pay. A year later the standard working week for many was cut to 39 hours with more cuts promised. Those promises have never been met. Now 38 years later with all the technology that has occurred there has been no cut. In fact for many I see the working week has increased (not contractually) people are just expected to work the hours needed to conform to what is expected by the company and everyone else. I see that workers have gone backwards in the last 38 years Zero hours contracts , no holiday pay , no sick pay have all reared their heads in the last 15 years.
  6. MIRAS was not stopped overnight. Double MIRAS where unmarried people could both claim MIRAS on the same mortgage was stopped in August 1988. The announcement was made in the spring budget of that year creating a stampede of people who could claim it rushing to buy prior to the cut off . The rush to buy along with interest rates reducing during that spring caused a house price bubble that then burst as interest rates rose at the end of 88 and during 89. Single MIRAS remained , you could claim it on the first £30,000 of a mortgage and those paying 40% income tax rate got the 40% relief. As time went on it was limited to the basic rate of income tax and I maybe wrong here but reduced to the first £20,000 of a mortgage. As interest rates dropped the value dropped and the Labour government finally stopped it a few years after coming to power.
  7. Not only that but the MP in this case has now been promoted by Labour !!! If anyone ever asks me why I will never vote Labour again after always voting them I quote that MP and what she said , most people are shocked but have never heard about the situation I then tell them to get on the internet and look it up. I don't think that particular case was a Torie own goal I think they just did not want to raise an issue with a sensitive subject as they have no back bone. For me when this happened and it was all brushed under the carpet was the day I lost any respect for anyone in Westminster.
  8. Have you ever been and looked ? Or do you just take the Sun & Co's Opinion and accept without question that there are no nice parts of Essex?
  9. Yes Was at a large family gathering on Saturday sitting around a table of about 12 people and house prices came up. One guy said " house prices where I live will never drop they always go up " A lady sitting next to me jumped in and said " No where I have lived for 30 years they have never dropped but they are dropping now " Then other people around the table joined in and all agreed with this woman. She was talking about Billericay a very nice part of Essex.
  10. No I was just saying how different the life styles are that was all. Things were very different back then , yes people always strived for more but not to the excess that they do now. When people started going abroad in the 70's it was two weeks in Spain not further afield' For the record I am not blaming the young I am just saying how it has changed if you read my post I did quote that if they went without all the big lifestyle stuff they would still struggle to buy a house. You ask when I first bought my home. Answer I was 22 and single. I went from taking home £70 a week working in a pub to getting a job in a Brewery and went on the night shift earing £13,000 a year £16,000 with overtime. Six months later I got 100% mortgage on a £34,000 new build flat bought just before prices went into orbit prior to the 80's crash. Today that same flat would be about £350,000 10X the price I paid would I be earing £130,000 if still on the night shift in the Brewery NO. I see both issues which I said in the first post House prices and life style.
  11. House Prices and Life Style is what went wrong. I left school in 1979 and we were told then that the leisure age was on it's way. We would work 2 or 3 days a week and the time frame given was either " in ten years time " or " by the year 2000 " . Since then for many the working week has got longer and as you say you need two wages to survive. Just chatting to a friend tonight who has a son with his girlfriend in rented both 32 and both earing quite good money. However the life style and how they live is way beyond the life style that your parents generation had. They have at least 3 decent holidays a year and have to join in their large circle of friends in all the big circus of Stag & Hen weekends abroad , they had a massive engagement and eat out often. Nothing is small any more Engagements, Weddings, Christenings, holidays it has all got so much bigger than it was. I can remember my Mum treating herself with a trip to the hairdressers every few weeks she did her own nails and makeup. Today the young women and not so young women I work with spend fortunes on Beauty treatments and not one of them does her own nails they all go to nail bars. Male spending on Grooming is also way up . However if these people went back to the life style of previous generations they would still struggle to buy a house and raise two children on one full time and one part time job.
  12. I often speak with people who have adult children in their late 20's early 30's and they say they just do not expect these adults to leave home. They understand the situation and cannot see it changing even if house prices drop massively so many are earning so little that they will still not be able to move out.
  13. Well as fast as they went up they can go down. When they were rising no one argued that they could not have gone up that fast and tried to find comps at lower prices in their block or other blocks close by. Happy times ahead.
  14. It is frightening how little people know, care or think about their pensions. I was the same when younger , luckily I was in a very good final salary scheme topped up with money purchase. The difference between the two is huge. When I was made redundant 12 years ago the pensions transferred over to one of these companies who manage funds for various firms. From the transfer onwards the mistakes that have never been in my favour have been huge , they could not even get the initial transfer amounts right. As I know a bit about pensions I have kept a close eye and pointed out mistakes, but even I don't know if the figures are correct. Bumping into ex colleagues over the years when mentioning this I am often met with blank stars and replies such as " Oh I never check anything about the pension ".
  15. I drove to my local town centre recently > I have to think about going there and plan the route as the one way system is so complicated and keeps changing, it is very easy to end up in a street that is busses only and the local council then love to send you a fine. So going there is only if I have to. Once in the car park I notice that the 2 hours parking has increased from £2 for two hours to £3 so 50% inflation not the 2% we keep being told. Then I could not find the pay machine just notices saying pay here, so I paid via phone which used to attract an extra payment of 14p that has gone up to 40p. In the scheme of things these increases are not life threatening but all add up to less money in peoples pockets to spend. The hassle of the whole outing must put other people off just popping into town now and again and then making purchases. The retailers in these town centres who pay massive business rates need to lobby the local councils to make a retail experience a pleasant experience not an expensive obstacle course with shopping as an add on.
  16. Did Molior predict which quarter will see more properties sold in London than any other quarter in history and remain at that level for years to come. As there is so much over supply in the capital it will need a market that strong to soak up all the new build. As you have said Battersea has been a mess for a long time that is due to over supply and over pricing.
  17. From what I am hearing I don't think the MSM are telling anywhere near the truth about how bad the London market now is. Only word of mouth but someone who is looking to buy in London said this weekend " The developers are slashing the prices on new build Luxury apartments in Battersea by 50% " E16,E15,E14 (Canary Wharf) , Greenwich, Southwark, Bermondsey, Elephant & Castle, Vauxhall they are all covered in these new shiny high rise blocks being built. That is just London down by the river the rest of London is covered as well WHO IS GOING TO BUY THEM !!!
  18. 700 more flats in the centre of Ilford !!! The place just like much of East London is awash with new flats. There are not enough people with and willing to spend £400,000 on a two bedroom flat there. The problem will solve itself by the time these are built they will be begging people to move into them at affordable prices.
  19. Exactly what I thought. In fact as interest rates have dropped massively since 1996 if they had not reduced their payments they could have been mortgage free already. I worked with a guy who bought at the bottom of the last slump early 90's, I think he paid about £80,000 when he and his wife were made redundant 13 years ago from well paid jobs they had to sell up to clear the then £250,000 mortgage they then borrowed the deposit from his Mum to get a rented house. While in the old job they earned well plus great share options and bonuses. They could have been mortgage free when they were made redundant. They are both earning quite well now and he has taken his pension from the old job with a lump sum but they are still renting @ £1,200 pm and I think they always will be.
  20. But that will not produce jobs. Today more people than ever go to university, yet they leave at 21+ and cannot get the kind of jobs available to 16 year old school leavers when I left school in 1979. When I left school they spoke about entering the leisure age the dates given were in 10 years time or by the year 2000. Since then the working week has increased for many people not decreased. Decades ago they should have been looking at a four day working week. Instead we have people doing long working weeks and paying tax credits to support those in part time employment. We were also told the retirement age for men would decrease and match the retirement age for women at 60 now it has increased for both to 66 then 67 and then is going up to 68.
  21. These schemes that the government have made company's set up are not going to pay big pensions. I believe as from April this year a minimum of 5% has to be put in them , 2% from the company and 3% from the employee. That will not be enough for a comfortable retirement.
  22. But from our population how many people are on this Forum ?
  23. I get my pension this May and have asked the company looking after it for my figures some is final salary and some money purchase. I can see how much better final salary is compared to money purchase. Due to the changes and more options I am looking at moving it to another company and having a draw down pension. When I got my figures there was a yearly pension amount for the final salary and then they said if I added the pot from the money purchase account to it I could have x amount more each year. I won't be doing this as I would have to draw the pension for 54 years to get the money in the pot back as a pension. It has been a bit of a nightmare getting my figures and options from the pension firm and they keep making mistakes that I am able to pick up and then demand that they address. What troubles me more than anything else is I know former colleagues who have just signed on the dotted line and accepted the pensions without having them checked and not having taken outside advice.
  24. I did not vote for them in 2010, I voted Labour. But if there was an election tomorrow I would vote for them they are doing an horrendous job however it will be them again or Labour and the thought of a Labour government with the people prominent in the Labour party right now fills me with total dread.
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