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Orbital

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Everything posted by Orbital

  1. Classic HPC anti BBC. The article is reporting that Mervyn King has said this and that. What are they supposed to do, not report it? Report it but put their own spin on it? It seems quite balanced to me, the first part reports what people are saying. I think this is fair enough and is of interest to me. And then it ends with some food for thought "However, most believe that any recovery will be weak, with rising unemployment hindering stronger growth". The OP however tells a very different story and is perhaps even more guilty of spin? I don't think it really makes a point one way or the other just reporting what various people say, after that it is up to us to make our own minds up. Thinking for ourselves is a good thing. Sure you could rewrite the article with a doom and gloom spin but I prefer to be told straight with no spin either way, a straight report of what those bankers are saying - whether I agree with it or not of course !
  2. Agreed. They should sort out renting laws. That's why I bought! Got kicked out myself once on a LL's whim. No fun. Sort that out and I'd rent myself! I'd want security and the right to alter the property. But that said, I bought in London with no help from my parents a couple of years ago. It can be done, but, like our parents had to, you need to start saving right from when you first start work, you need to start off in rubbish houses outside preferred areas etc. My folks didn't get their "family home" until their 30. I really don't think saving a couple of grand a year between a couple is out of reach and plenty of people are. For some couples it is literally as simple as giving up smoking, perhaps going without a holiday. My parents couldn't afford holidays. I think it is easy to forget how good we have it. It is my friends who thought their "20s" was for having fun that I feel sorry for. They are now facing the prospect of starting their families with very little foundations whereas I have the house and am starting to see my disposable income rise each month. It is they that are now reaching 30 and have another 10 years of deposit saving ahead. What gets me is the number of people who seem spiteful towards my attitude. I did exactly what Im supposed to, and got what I wanted yet they seem bitter at my achievement and seem to think the government is to blame for their failure. But those are the choices we all make and we have to live with the consequences. I accept that many people don't have the same choices and it is those people who need additional support, I accept and support that 100%. However I don't have a lot of sympathy for the kids who I went to (state) school with who thought it was fun to bunk off and have a laff, I have friends who lived with their parents, paying zero rent, whilst I was at uni and managed to blow £1000s each year on nothing. I don't have much sympathy for those that spent a couple of grand a year on designer gear, smoking, drinking (you know who you are) and now wish they had 20k in the bank for a deposit. Perhaps I didn't have so much fun in my 20s (although I think I did !) but now things are getting a bit easier for me each year that goes by. It pays to build foundations, and if anyone <20 is reading this - start now, not when you are 30. Sorry, rant over
  3. My mortgage is more than 3x yet I have enough left over each month to save, pay into a pension, over pay, and enjoy life. Where did it all go so wrong! Good to fix though if you can...
  4. EA brokers have a bad rep, there was a story on the Beeb recently about how some EA's won't help you unless they use their broker etc. I don't see why a genuine independent (of any bank) broker working with an EA would be any more biased or less than any other broker though. You can lay the same charge of bias to a non EA broker too if you really wanted to be cynical? IFAs & brokers make their money from commissions (always?) so I guess there is always some incentive to push one product or another whether the broker is attached to an EA or not. That said, I was very happy with my unattached IFA and was happy he didn't push me in for a product that wasn't suitable. Heck once you get the info you are still free to do your own research too . But if you don't like the broker, find another one, there are plenty of very helpful and reputable people out there!
  5. ROFL - nice find. IT recruitment ads are always silly, agencies have no clue and just end up listing a whole load of technologies that almost no one will have a complete knowledge of. Yeah, we want a CSS, photoshop, design expert with .net skills who can build a data warehouse using both Oracle and MS solutions, wire up a router, and stand on their head. Good luck with that!
  6. I always find inflation an interesting topic. For example, my Pop bought at the top of the last peak, paid a massive 80k for a property that should have been what 50k? At today's wages etc it all seems irrelevant. My grandfolks bought their family home for 5k! Imagine if they have never paid a penny off of the mortgage! I would gladly repay it for them in a couple of monthly instalments lol. Makes it hard for me to imagine that people will really be "debt slaves for life" - oh wait, it's different this time rofls !
  7. I thought the Kittens were cute, we need more kitten pictures, any website is instantly better with kittens.
  8. nice idea, we should do a few polls like this to look back over and see just how accurate HPC predictions are (or not!)
  9. So, to be pedantic, he can be a millionaire if the "true value" of his assets are >31m. Phew, glad that's sorted .
  10. Those comments resonated with me, and although a happy home owner, I just wish that rental laws were sorted out in this country. If I were forced to rent I would be kicking up a storm right now trying to get our rental laws revised. It's sad that supposed campaigning sites like this have never really taken up these kinds of challenges. They have a voice but perhaps have other motivations aside from real political reform? Renting sucks because a LL can kick you out of a home on a whim. If that could be change even slightly in the renter's favour then I for one would agree that long term renting is a real possibility. But, and I say this from experience, the first time a LL kicks you out of a rental property, just because he wants someone else to have it, you'll probably think buying is worth the additional risk. Who wants to tell their 6 year old daughter that she has to say good buy to her home, her room, perhaps her best friend next door, etc. And then perhaps you have to tell her again a few years later because your next LL wants his son to move in. Like I said, I've been there... not good. I'm not even bothered about paying off the mortgage (although I am paying it off). I would be happy to "rent" via a mortgage for 20 years because at least that way I can have the control I want. I am paying considerably less mortgage than I would rent right now so (for now) things are in my favour, and just like Joseph I will be storing plenty of grain whilst the times are good! I understand my parents plan was to "rent" a house from the bank so they could bring me and my bro+sis up in the same house for 20 years. At the end they planned to sell and move to something smaller in a cheaper area. Although thanks to inflation etc that 80k 1980 mortgage is kind of irrelevent now. Even if they had only paid IO for 23 years my Pop's final salary would have ensured he could have paid the remainder off in the final 2 - but I guess not all of us will finish at the top our careers! Anways, Im rambling. Good luck to OP
  11. I quite enjoy working. Wouldn't our case study get a bit bored doing nothing for the next 30 years. Perhaps he should use the money to fund a move to his dream job, whether that be helping people to play golf, scuba diving or writing a book... etc.
  12. I also wonder if some 100k households have 2 earners making up that number? But I dispute that you need that kind of figure to live in London anyway. Unless you want to also lead a "celebrity" London lifestyle too. My house hold income isnt even close to that yet am a home owner, <30, have a pension, blah blah. Maybe I should start a "how to manage" money consultancy because I seem to be the only person on the forum to have managed it !
  13. I still don't get it. x% of a small number is a small number. x% of a big number is a big number. So x might be constant but that's about it! If my monthly expenses (a small number) goes up by x% and my income (a bigger number - we hope!) goes up by x% then you are better off. Anyway, I used to have a 5x multiplier (things have changed fro me since then , but that's another story!), and managed to overpay my mortgage and put 10% into my pension. Although 50% of my income went on the repayment the 50% left was more than enough to cover monthly costs, have fun, and save. Just how much disposable income do people need? I think a lot of the failure to make accurate predictions over the years is a desire to oversimplify something that is a little more complex.
  14. If you want a house and can afford it, then buy one! Anything else is just greed ! Oh wait it is only greed if you profit from the property market going up (evil BTL scum!), those who profit from it going down are just sensible (those saintly distressed sale buyers!). I don't see the difference myself !
  15. Back on topic... So before the "global ecomony" took off, back in my grand parents day for example, where did the money come from? How come they had a larder full of food, a house and a car? Given the world economy was pretty shabby post war too! I'm just curious. I ask because I don't get it. If the UK survived before mass Eastern imports then it must be possible? I read this week that we actually manufacture more than ever before and even produce more food than we ever have done. It would be great if someone could confirm that (or not) with some stats. My own experience of the global economy is interesting. I used to work for an IT firm that outsourced to India. Costs went down, quality plummeted. The company was eventually purchased by the Indian outsourcers! The workers who got themselves up to speed and became competent left to seek jobs in the West! They got replaced by people a tenth of the cost and a tenth productive. I eventually left because I got fed up of re-writing the work of 10 people which, whilst I was doing this, made management think the experiment was working. Several years later and the Indian owners are now recruiting more local UK IT geeks! Ironic really! Anyway, I moved somewhere that believed in hiring a small number of highly productive and motivated individuals who were enthusiastic about pushing standards and development methodologies as far as possible. I have no doubt that my current company is in the order of 20 times more productive than my old one! Thanks to the Internet we operate and draw money in globally and I genuinely believe our quality and speed continue to give us an advantage on a global stage. Sure in 10 or 20 years people will be up to our level, but we will have pushed ahead too. I see the same flaw in poster's logic time and time again, they seem to assume we will just stop and let this happen. Maybe this is the difference between those of us who are able to buy a house comfortably and those that aren't. I dunno..? I'm not just going to sit here and moan, I'll be doing something about it
  16. Depends on how you look at the world really. For example, if this is your news feed then the world looks very depressing indeed: http://news.google.co.uk/news/search?pz=1&...;bad+news" But on the plus side, there are 3x as many stories if you look at: http://news.google.co.uk/news/search?pz=1&...good+news" yay! edit: this forum doesnt seem to like links with quotes - but recreate this exciting experiment for yourself by googling "good news" and "bad news" in google news.
  17. I would make two comments. 1) from the above quote it sounds like you have been reading this site too much. I am not much older than you but perhaps that extra life experience tells me that things are always up and down. Many here were making jokes about how things can't keep going up for ever and how everything is cyclical etc and mocking those that said "its different this time" but ironically some of the same people are saying the same about the downward spiral. It really is different this time, we really will be living in caves! It really is different this time. Yeah yeah, we've heard that before ! Yeah things are tough, but the world hasn't ended just yet! 2) as someone who has links with schools etc and sticks up for the rights of the younger generation I think your generalisation is off the mark. I engage with many lively, intelligent and considered people who know exactly what is going on. If they don't quite agree with your point of view then that is their right. To be fair, based on the above, it does seem like you are a little brainwashed by some of the more extreme opinions on this forum. So when you say "corrupt, unsustainable, ponzi-fraud" to someone and they look at you funny then maybe it's because they have a more optimistic outlook? And who is to say they aren't right, many of the more pessimistic predictions made on this forum many years ago were far far off the mark! For every tale of young person misery I read here I can tell you a positive story. The fact is, the majority of us are in work, are productive and are happy with our lives. I think there is a tendency to see the worst, and imagine what would happen if no one acted to stop it. But actually many of us are working very hard to ensure a better future and this is all too often forgotten in predictions. Your life is what you make it, make the right choices
  18. Reminds me of my parents plan, they knew they could never buy a massive family house outright and therefore planned to hold it for 15 years or so whilst me and my bro+sis where little, then sell it on and move to a small place. They would therefore have the guarantee of staying in their ideal house for as long as we were kids whilst paying "rent" on the money they borrowed. Things didn't quite go that way in the end, they paid off the mortgage as their income went up. But if they were still paying IO today they be paying back £600 a month on their 80k (or thereabouts) mortgage. Not bad "rent" really for a large 7 bed London town house in a highly desirable area. I think what really needs to happen in this country is for improved renting rights. Essentially this guy is "renting" money to "rent" a house so that he can stay in control. I don't think this is so bad given my nightmare renting experiences - you don't need to be kicked out on a landlord's whim in your 70s (like I was - except the 70s bit ofc). Renters should be able to stay in a property for as long as they like and LLs should need a VERY good reason to get them removed. Unlike now where thye can just serve you notice.
  19. This raises something that interests me. At today's prices it cost 100-200k or more to build a "nice" house so this idea that they "should" be selling for 50% less than they are now just seems wrong. I get that the market for existing houses operates independently of new houses to some extent but there comes a point where if the former drops then the latter just won't exist - ie if you can't build a house for profit - why build it? This then brings us round to the shortage issue. Sure, there are empty properties (i've seen the stats too) but the reality is that where I want to live, there just aren't nice big houses for sale. None are being built, the current ones are owned and lived in, the ones that come up sell quickly and for large sums. So can prices really drop to the levels people want? I'm inclined to think no, but would be very happy to be wrong of course ! Seems a bit of a mess really
  20. Do you think people should be allowed to start up a blog and post endless defamatory comments about an individual? I think this is a good move. Having read some of the posts it is undeniably rude. Would you mind if it was about you? It is easy to imagine people writing fabricated nasty things that could insight wider hatred against individuals. That said, I don't think people should get silly about all this, forums (even this one gasp!) often have quite rude comments but most of us except it's all part of the "fun" - if it bothers you, don't post here! However, setting up a site just to destroy someone's reputation is very different and I think there should be avenues to address this. In the UK publishers are jointly responsible, about 10 seconds of clicking on this forum leads to defamatory comments that I'm sure opens the owners up to being sued. But I hope it doesn't go too crazy, once you apply some common sense only the most serious cases should be processed imo. Be nice to each other !
  21. Yep, I bet there are some recent buyers who have come off their fix this year and are seeing massive overpayments in their mortgages now. And if this goes on then the total cost of ownership for their home is ironically going to be much less that some of you who waited to buy at a lower price but with a higher interest rate! Ho hum! Meanwhile those big deposits are earning very little in the bank whilst inflation eats away... I'm not pro people buying for the sake of it, I just don't like this idea that buying is necessarily the worst thing anyone could have done in the last 10 years. It isn't clear cut and will depend on personal circumstance and how much value you place on home ownership.
  22. Which is why I'd suggest people buy a house they like and can afford (assuming they can of course) and get on with their lives. Not being a greedy person I don't really care if I die with 100k in the bank rather than 200k in the bank. You can't take it with you! As someone who did buy back in 05 against the best advise of the forum I am getting on with my life and feel like this whole "mess" is passing me by. Low interest rates (I've saved tens of thousands over the lifetime of the mortgage by maintaining the same level of payments and overpayments - prove it to yourself!), working hard, investing in my own human capital, etc. Who know what the best decision will be from a financial point of view, but from a getting on with my life point of view I know which I prefer. Good luck with renting !
  23. mortgagesexposed is another great site for looking at why buying is normally cheaper than renting over 25 years. Put in some realistic numbers and many will be surprised. It's really cool to add in some overpayments too, just pop in a few extra quid each month and watch the repayments fall (or term shorten). Personally it is my view that as long as you avoid buying at the peak and selling at the bottom you won't have done so badly. Of course in an ideal world we'd time it perfectly but life rarely works out like that. Just make sure you can afford it and have enough left over to maintain the lifestyle you want - what else do you really need....? Best of luck with the buy!
  24. You forgot to mention that the idea is to replace with half price offers - something that I'd welcome. Nice spin though.
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