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tentboy

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About tentboy

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    South East
  • About Me
    Climbing - housing ladders and mountains
  1. Things don’t appear to be particularly buoyant in the commuter town of South Woodham Ferrers, Essex. This place was particularly badly hit in the last property boom. South Woodham Ferrers, Essex"]South Woodham Ferrers, Essex
  2. Interesting point. But how much more money would that cost than just leaving them where they are? How many more government jobs would it create? Somewhat tenuous.. but my girlfriend is currently writing an essay on ‘Gardening: the positive effects to well-being.’ for her OT course. She hasn't covered the positive effects to lazy ar$es. I'm not implying that everyone who is out of work is a lazy ar$e. But there will be a few work shys out there.
  3. I have a couple of questions: Where could you get 10% year-on-year these days? And what about inflation - what would the real effect over the term of the investment?
  4. But why would they change the IR when the pound is showing no sign of weakening? I know there are a lot of pressures which could facilitate an increase, but with the current environment of ‘lets leave it alone’ and every VI asking for a cut, what is the real incentive - apart from inflation - but then how serious have they been about tackling that particular issue in the recent past.
  5. It's great to hear this sort of thing in main stream press. I so want it to be true... Not that I wish financial pain on anyone. I just want a house of my own - purchased at a fair price. I don't think the rates will rise until the £ has started to weaken.
  6. Tank you for reading my post, and yse. It's not an education issue more of a cognitive one. I have moments when I know the word I want but can’t see it. I also have times when all is clear. Fatigue has a lot to do with it. I think some people call it stupidity, I know it’s there and do every thing I can to suppress it but sometimes it gets out. But thank you for pointing it out
  7. OK so ten years from now. No. Twenty. Where will you be and what will you be doing? Who really knows. Life does tend to throw the odd curve ball - so predicting where we’ll be in the future is really just folly. But thinking about future proofing yourself isn’t and it could make areas of your life very different and potentially far less problematic. What’s this got to do with house prices I hear you say, well nothing and everything. You see, when prices finally become affordable and you make that plunge into home ownership; will you have really thought about all its connotations? You have bought a home!!! You have put down roots and unwittingly you have made a statement that says: 1. You like the area. 2. You’re a 4 bed detached house kind of person 3. You’re probably the family type etc. etc… or what ever… We all hear about climate change and what effects it may have and to what degree (deliberate pun), but what about other factors? Addressing them now and refocusing on where you want to be in the future, after considering some of the potential curve balls could make a world of difference. What am I talking about? Potential future world issues or (PFWIs). Working out what could potentially be happening in the near term and long term could really make a difference to where you want to end up putting down roots. It could also help to evaluate want is important to you and make home ownership when it happens a lot more rewarding. Basically this is an idea I have had recently (probably due to lack of sleep). But we should compile a list of PFWIs for consideration before paying your money and anchoring yourself in a particular area. I don’t just mean mundane immediately obvious things, we really need to think outside the box. I’ll start off with a few and we’ll see how many we get. It will take a research to really get to the issues of the future. 1. Flooding 2. Fuel costs 3. Transport 4. Oil 5. Gas 6.
  8. The point I was trying to make was that MP’s have the trappings their job / position provides. Without wishing to generalise: I expect some MP’s have made money from property at some point during their careers, they are after all provided with accommodation and/or an allowance for housing. Gaining a foot hold on the ladder is not an issue most can relate too to any significant degree. I think the response I got sums it up: ‘Can’t get on the house ladder dear o dear, we must have more shared ownership… We must have more council houses to sell to council tenants’. Neither of the above would solve the problems we have today, and neither are relevant to me and shouldn’t have been in his response - but they are seen by MP’s as the stock answer to give to us lower class non home owners. I sold to move in Sept 04 and selling was a conscious choice. I had owned the house with my Girlfriend; we split up and split the proceeds. I have banked the cash and I rent a lovely little place in the country, but which I could never afford to buy. Again without wishing to generalise: roaring HPI is seen as vote winner as home owners get a feel good factor. And let’s face it there are loads more of them (home owners) than us. And this is a democracy. If I were an MP I’d be looking for roaring HPI and affordable housing it must be a “win win” situation. But of course it can never happen which is why the affordable ownership schemes on offer will never work.
  9. Thanks all for the feed back. Yes… the point of my letter was missed by the MP, but in fairness on rereading my original letter I feel that perhaps I am somewhat to blame. I seem to have got into a bit of a rant and probably covered too many points which clouded the issue. I do get the impression from the MP reply that it was a stock answer; and that has left me without much love towards him, even though his signature does appear to have a kiss at the end of it (no joke)? It seems to me that BTL has been the HPI catalyst during the current boom. A distinct problem is perhaps the VI, which most MP’s are. My next letter will certainly be more succinct. I will also say that Houses should be homes and not investments. Property bought for anything other than “owner occupier” should be subject to large taxation.
  10. I wrote to my MP on the issue of HPI last week. Well today I have the response. The first letter is the one I sent the other is his reply. He missed the point of my letter to some extent, and hasn't answered many of the points I raised. What do you think? I will be sending another letter to the Department of Communities and Local Government. Dear Mr MP House Price Inflation 1. I have never felt it necessary to contact my elected Member of Parliament before, but the current situation regarding the housing market has prompted me to write this letter. 2. I am 29 years old, earn above the average wage for the area, have a reasonable level of savings and am debt free. My partner and I would like to put down roots and buy a house in the parish where my partner has always lived and start a family. The cost of housing is prohibitive and we are delaying our family as we feel we should first have the security that home ownership brings, rather than relying on less stable rented accommodation. 3. The building of so called “affordable housing” / “shared ownership” is not the answer. The problem lies much deeper - house prices are artificially high. The lax lending policies of mortgage and secured loan lenders have been encouraged by the current government to facilitate the home owning population to release equity in their homes in order to buy consumables. This has been done just to give the false impression that the economy is thriving. This policy seems floored as people can not continue to get deeper and deeper into debt. Individuals will reach a level of debt where monthly repayments become difficult to meet. When this happens high street spending will decrease. I believe we are starting to see this happen. I feel the current government have failed a generation to have let and encourage this to have gone on for so long. People so desperate to gain a foothold on the property ladder have even falsified their applications in order to get on the ladder before they “miss the boat”. With these policies I would be able to secure a mortgage on a property in the area, but this would be at a much greater income multiple than would have been acceptable in the past. While the repayments would be affordable at the current rate of interest, if there were to be a rise in rates the loan would become difficult to service. As you are aware interest rates are at a near historical low with the average interest rate nearer to 6% than 4%, it would be risky to say the least relying on low interest rates for affordability over the 25 year term of a mortgage, recent inflation has felt significantly higher than the official figures indicate and rumours of massaging the inflationary basket are becoming widespread amongst my generation. 4. There are winners and losers in any situation, and if I were of my parents’ generation I doubt I would have cause to trouble you. I would have been able to take advantage of the situation as I would have already had a home and been able to remortgage my house to buy a second home or invested the money in a “buy to let” property as so many have. But this has further increased the difficulties for mine and younger generations. We are left paying for our parents’ good times. Not only do we have the prospect of working for longer, but we cannot put money into a pension when we can not even buy a home, or if we do we will be saddled with such a huge loan that it would totally restrict our next 25 years and even then the next rung of the ladder would still be out of reach. 5. My situation is not unique and will be echoed by many of your constituents of my generation, some will be in a far worse position as they will have bought in (quite literally) to the consumer ideal so enthusiastically endorsed by the government. I would ask that you take these issues forward; raising the profile of the difficulties the current government have given to the people of Britain. House price inflation does not benefit anyone in the long term as the very same “good time” parents will inevitably have to pay towards their first time buying offspring’s house purchase. Yours sincerely Dear Mr Tentboy Thank you for your letter of 14th June about house price inflation. One of the biggest challenges facing this country is the fact that so many young people cannot afford to buy a home. It is vital that the barriers to home ownership are brought down and families and individuals are given the scope to fulfil their aspirations of having a place of their own. Unfortunately, the trends seem to be going in the opposite direction at the moment: the number of first-time buyers in 2005 was the lowest since 1980; the typical first-time buyer is now unable to afford a semi-detached property in 87 per cent of towns in this country; in the last 10 years, the typical deposit for a first-time buyer has increased from £5000 to £24000. A sensible approach is needed to help more people onto the housing ladder – there is no easy, “quick fix” solution. More homes which are suitable for first-time buyers must be built to high environmental standards with greater power for communities to decide where they will be built. Not only is this an opportunity to provide the homes that we need, but also a chance to revitalise our towns and cities. We should provide a new model of “near-city” living, revitalising run-down suburban communities and providing homes in places where people would like to live with vital infrastructure already in place. Shared ownership schemes should be made more flexible and accessible to a greater number of people. Such schemes could be an extremely valuable way of helping people into home-ownership. At present, however, they are only open to a small number of people, most of them public sector workers. Even those people who are eligible are finding the scheme too restrictive, leading to one third of all the homes built in London and the South East under the “key worker” scheme lying empty. Shared ownership opportunities should be extended to more people. We must also ensure that people in social housing have opportunities to more into home ownership. The Right to Buy has helped over 1.5 million council tenants to own their own home, and I believe that we should continue to help people in housing association and council properties to gain a stake in their homes, as a step towards the long-term goal of full home-ownership. Let me assure you that the Conservative Party is making wider and more accessible home ownership a priority, and is devoting in-depth, long-term consideration to how we can best achieve this. I am writing to the minister for Housing and Planning at the newly formed Department for Communities and Local Government, drawing her attention to the issues raised in your letter, and I will write to you again when I have received her response.
  11. Recent media reporting seems more and more extreme, from both bull (ever greater highs predicted) and bear (greater lows). Like a drug do the public need a larger and larger hit of hp / economic news to fulfill their needs. VI’s are obviously keen for momentum to continue and perhaps alleviate public fear. If my insight is correct does this vigorous boiling of the hp/finance news mean anything? Are we about to see the pot boil over or boil dry? Is this rallying of the media enough to push HPI beyond anyone’s wildest predictions? There currently seems to be some confusion, and it is open as to which way things will go in the near term. This stalemate can't continue though, people like to feel they are moving in a definite direction - something will have to give one way or another. But the VI’s appear to have limitless predictions of HPI joy… and with more and more HP bears loosing conviction where does this leave our forgotten generation? We could certainly do with a war cry.
  12. These links are probably old HPC fodder. Even if they are it may be useful to revisit. They highlight that sometimes there isn’t a single cause or even tangible reason for a bear run. Market crashes Bear Markets: Wall streets worst I know the links come from the beeb, but they can't spin history. Can they?
  13. I think he's trying to say it's all about the stats - Student loans aren’t in the same bag as other debts.
  14. That’s quite a generalisation. They don't hate the English, just enjoy it when we underachieve. A large number of Scots are descended from Ireland anyhow.
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