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House Price Crash Forum

bottom feeder

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  1. AFAICC, disposable income is already over the limit for a good few of our population. This is why borrowing is spiralling on credit cards etc, etc, and people are spending more than they are earning. It is going to be a sorry day when people have to stop borrowing (first whammy) and start paying back their debts (second whammy) when interest rates are going up (third whammy) which will cause a slowdown in the economy which means less tax reciepts for the government, which means taxes have to go up (fourth whammy) just as bonus and overtime are being cut back (fifth whammy) which means even le
  2. Errr, yeah, normally know as a 'bear rally'. You are going to have to do a lot beter than that, BBB. The fall in mortgage approvals is worse than in 1990. This is as good a leading indicator as you would want. If there are half the number of buyers (must be if there are half the number of mortgage approvals) then demand must have halved. Looking at all the new properties being built wherever I go, plus the second-hand ones that have built up on agents books over the last six months, I would say supply is massively out of kilter with today's demand. Come on BBB, lets go through the primary s
  3. Yep, and this is the problem, the dream that is sold by the seminars is the 'free money' type of spin. Leverage to buy more and more property, that will create an income that will service the borrowing, etc, etc, etc.... What people don't get is that the majority of BTL borrowing is 100% LTV, even if the 15% came from a previous property via MEW. Very shakey way to expand a business, IMHO. As soon as the income stops, the borrower is going to have to stick their hand in their own pocket. If BTL wobbles and multiple-property landlords are suddenly short on tenant demand, it will not be long b
  4. Super Member Group: Members Posts: 5,053 Joined: 18-August 04 How in earth do you manage 42 posts per day ?!?!??!
  5. Hi zzg, don't know I am afraid to say. have you noticed what the Dow Jones is doing - just come out of it's trap like a rocket. Also, the FTSE 100 is just 70 odd points off its 52 week high. I was expecting it to drift down today. I wonder what is charging these markets up?
  6. My understanding is that the lender keeps the money within it's own organisation and creates the MBS itself. Why would it set up a company with its own company to 'sell' the loans to? The lender is using the loans, which are an asset on a balance sheet, to secure further borrowing, to then lend to more customers. And round and round it goes. The money does not actually go anywhere, it would be like selling your house and then trying to raise a secured loan on it afterwards.
  7. Anyone with an offset mortgage might do well out of this. HSBC are currently at 5.75% IIRC. At 2.99% you can offset nearly twice as much again, as long as you still get the same tax break on your savings.
  8. Sure thing DrB. They can do 'em up to whatever standard they want, if there are no buyers out there it will be money flushed straight down the pan.
  9. C4 is looking for newbie property renovators for a new series that they are filming in the first quarter of next year. They are looking for people who buy run-down property and do it up with a view to selling it on - no change there, then. http://www.channel4.com/4homes/ontv/appear_pl.html I found this link which says the same, however, I came across the info from as estate agent who is being touted by C4 for anyone he knows who fits into the category. Maybe there just aren't any newbie developers out there anymore, or maybe they are a bit shy of showing their 'blunder' on TV. I mean, wit
  10. Hi zzg, how do you know that? He is always silent when asked where his BTL empire is - hence the Lego jokes.
  11. I read this last Friday. A crash starts with full employment, then a massive drop in mortgage approvals, then a massive drop in transactions, then falling prices but they don't show up because no index will record them due to them not selling, then finally people realise prices are indeed falling/houses not selling and MEW stops along with all the new home purchases like white goods, sofas, carpets, etc, etc... This then means the economy shrinks dramatically and people start to lose their jobs in great numbers. I would say that we are between the 'massive drop in mort apps' and 'massive dro
  12. Yawn........, really must not feed trolls.. 2.3% yield? £7,300,000 debt at 5.75% = £419,750 interest only payment per year £14,000 pcm rental income= £168,000 per year You are already bankrupt mate - crappy wind-up anyway.
  13. It will take a while for the drop in asking prices to show up on any index. Mostly all houses are not selling at present, which means that people are not applying for mortgages, etc, etc... So from Rightmove to LR, it will take a few more quarters before substantial falls show (Rightmove do not report reduced prices in their index, just the initial asking price). Before we see any real damage, we will see transactions falling away first. This is clearly going to happen because the first phase of the crash has taken place with 40% less mortgage applications. Not a happy sign when there are m
  14. Thanks for that RC, always useful to get an inside take on the market.
  15. Naah, I am just well connected. The idea of estate agents touting for business is because AFAICC, there will always be some houses that will sell in the market, whatever is happening to prices. It might be half normal volumes or it might be 1/10th. I am not trying to talk it up with that statement, just saying a fact. What the agents will try and do is get as many houses on their books as possible. Typical knee-jerk. If the stock of houses goes from 50 to 200, they will reckon that they will stand a better chance of selling some. Type of 'throwing mud at the wall' stratagy. However, down th
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