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pamaris

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Everything posted by pamaris

  1. If the US goes into recession, is the UK 100% certain to follow? Also, if the BoE drops rates, is housing certain to rise?
  2. pamaris

    Btl Friends

    A couple of points. I do not know the exact numbers they are dealing with but I do know: 1) The BTL mortgages are not fixed. When the rate is hiked, the mortgage payment increases. 2) They didn't actually use the proceeds of the recent sale of their home to fund the BTL deposits. Well, sort of... they took out a MEW earlier on to fund the deposits and fees, and this was paid off when they sold their home. This is a minor point and not really relevant, just correcting an earlier poster. Personally, I think that the risk for this couple is overbearing and circumstances will prevail, because not only does the rent not cover the mortgage, they do not have an overflow in income to cover that. In addition, they have no savings and something will need doing on the properties. IMO this is a very expensive and risky way to save for a pension. Lest we forget, this is "house price crash" .com and most of us believe the market will crash. After such an event, what kind of "investment" is a couple of grotty terraces in East Manchester going to turn out to be?
  3. I cannot believe that so many people have rat stories! In Texas you might get a lone squeaky mouse if your house backs to a field (or a few if you're a slob) but RATS! Disgusting. Is this a problem all over the UK? Might they be in our back garden? I shudder to think of it.
  4. That is pretty much how I see it too. Entirely mundane and not mysterious at all.
  5. Oh but that is just what they want you to think! Trust me you can't win with this lot... My OH got obsessively interested in this stuff... to the point where he was seriously ready to buy a shotgun, load up on dehydrated food and move to Oregon. We even have potassium anti radiation pills, just in case. He has totally lightened up now though, and we've moved to the UK, the cesspit of the big brother NWO conspiracy. No matter what you say, you will be told you are blinded and the truth is the opposite of what you think. In case you wondered, all those trails in the sky from the planes are CHEM-trails, not CON-trails and they are not the regular emissions from regular planes, they are weather modification experiments. What else... Jews are bad... sons of Cain... Prozac in the water supply puts us in a dream state, just like the Matrix. No moon landing. UFO's... oh yeah in the garden, Eve had sex with the serpent, which is actually a reptilian from another planet... the illuminati has maintained the reptilian bloodline throughout the centuries, and the queen is a lizard shapeshifter (I think we can thank David Icke for this tidbit!) etc. etc. p.s. OH is so not interested in this stuff anymore, thank God.
  6. Hiya, what I want to know is... Do the MPC REALLY want to control inflation? If so, why did they cut interest rates in 05 and why do they mess around with these piddly .25% rises? Is it in their interests to control inflation? Wouldn't an appropriate rate rise stop inflation in its tracks– like if they upped it to 8%, although they say it takes time for the effects to filter into the economy, it would have an immediate effect because people would actually pay attention and realize that the MPC mean business!
  7. Agreed!! Cops are everywhere! They have very elaborate speed traps set up. Lots of unmarked cars too. Beware. They even hide in car washes.
  8. The grass is actually a lot greener in the UK than where I am from (the grass is brown in Texas). Just speaking of the color of the grass. As for standard of living... well you have to pick your battles. Yes we had a 2000 square foot house for $150k. However, within a year of purchasing, we got pregnant and paid $12000 out of our own pocket in medical expenses (with insurance mind you). Plus, OH got 5 days a year holiday. So we are back here in the UK. This is the second time I've immigrated... First time was in 2000, then went back to the USA in 2002. Arrived back here December 2006. Another thing I hated about the USA was spending 3 hours a day in the car. So... OH and I have tried it both ways and here we are. (OH is British) Another thing... OH had major difficulty with culture shock and feeling like a fish out of water. This is home.
  9. Wow, I'm going to have to read this a few times. It seems that debt is extremely complicated these days! People take on debt to buy debt that buys debt, etc. No debt here.
  10. Hi. I am trying to get an idea of what is going on. Have the bond markets collapsed (and in which country)? Are we waiting for the bond market to collapse? What affect does this have on stock markets? And of course housing? What I have gathered so far is that junk bonds in the USA are worthless. So what? Doesn't anyone who buys junk bonds know the risks? Isn't that why they are called junk? I can see that this will lead to tighter lending policies, but I don't know what other effects this has. Thanks... plebeian explanations only please.
  11. pamaris

    Btl Friends

    No, they are £200+ (before the last rate rise) in the hole every month. That is what would entice them to sell. They have no savings whatsoever and cannot afford it. The £200+ they must pay every month to keep this wonderful investment is £200+ more than they actually have. They are eventually going to get repossessed if they don't sort it out.
  12. Hello. As it has been said, if it isn't selling, drop the price. Neither the price you paid, nor how much you owe, have any bearing whatsoever on how much it is "worth" (how much you can sell your house for). Don't let these guys scare you off. It is seriously and vitally in your interest to read the posts, articles, graphs and data on this website. If you don't drop your price now and cut your losses, you could be living in a 1 BR house for a long, long time. Apparently, after the last crash (early 90's), it took around 7 years for the prices just to get back where they were at the peak. I don't know how old you are, or what your situation is, but if you want to start a family any time in the next few years, get rid of that house now. This advice is based on the consensus opinion of this site, that we are heading for a crash.
  13. pamaris

    Btl Friends

    I'm not jealous of their 2 BTL's whatsoever but I am jealous of their 4 BR 3 story Victorian and 45k mortgage. Surprise surprise, their motive is a pension. Which is fair enough... but really they may as well have put the 20k equity used to buy the BTL's in a more liquid and less risky investment... maybe even one with a positive yield.
  14. pamaris

    Btl Friends

    Also, another point I was making is that if your BTL's are costing you £200+ a month out of your own pocket, it's not an income stream but a debt stream.
  15. pamaris

    Btl Friends

    It's got absolutely nothing to do with clever! Right place, right time+ nice inheritance to start with.
  16. I am saving £25 a month each for mine (2 and 5). One is in the government CTF, the other is in a "regular" trust fund. I know it isn't enough though; I have the feeling it should be at least £50 each; more likely £75-100. For us, the point is to save for their education so that they do not get trapped in the cycle of debt through student loans. However, if university is £3k a year now, what will it be in 15 years!
  17. pamaris

    Btl Friends

    This is certainly a different topic, but it seems they're either borrowing from God to pay for their BTL's, or borrowing from their BTL's to pay God, depending on which way you look at it. Either way, it's foolishness.
  18. pamaris

    Btl Friends

    Hmmm well where you live isn't exactly determined by what you do for a living; but by how much your income is... which is often determined by what you do for a living! The point is that (aside from the regional bubbles which have burst), getting a decent house in a decent area has nothing to do with when you got on the "ladder"... There are definitely exclusive areas. Attorneys, surgeons and old money tend to stick together. Whatever gave you the idea that the USA was not a classist society? My only point was that generally, in most areas of the US, a normal person can buy a house. Obviously the bubble areas are different; but with the bubbles bursting in those areas, the playing field is more even than before.
  19. pamaris

    Btl Friends

    Crap, this is what irritates me... the house they have moved into is a gorgeous 3 level Victorian plus cellar!! Basically, here are the figures... in 2001 they bought a 3 BR Edwardian semi for £80k... they took some money out of that house at some point to buy the BTL's... Anyway they just sold it for £202k, and bought a gorgeous house in a rough-ish area for 177k... all in all their mortgage on the new house is about 50k because they had so much "equity". This property ladder stuff is nonsense. Where I am from (Texas) you get a house according to your income... so if you are an attorney, you have a $400k house. If you are a fireman or a teacher, you have a $150k house. etc... there is not this idea that you need to get in at the bottom and work your way up with equity; or invisible make believe money.
  20. Seriously, I doubt it will happen this year. I think this year will see stagnation and flattening (in many/ most areas but some will still be bubbly)... hopefully the bubble will burst within 12 to 18 months, as the low interest rate mortgages expire and must be fixed again at the higher rate. It is easy to lose hope though as the madness gets even more... maddening. At least we are finally starting to see the mainstream press hint that there *might* be a problem.
  21. pamaris

    Btl Friends

    Replying to my own topic... What sort of madness causes someone with a household income of 20k to think it is reasonable to own 3 houses?
  22. pamaris

    Btl Friends

    Hi! I have friends who are a couple, who have bought 2 BTL's in East Manchester within the past year. Last year when they bought the homes they were earning about 37k jointly, give or take. Well one half of the couple has changed jobs and taken a pay reduction, while the other half has stopped her contribution, which was childminding. So, now they have a joint income of 20k, (make that 18k actually, because they give 2k a year to the church)... and they are subsidising their tenants' rents to the tune of £200 per month altogether... this is before the rate rise of late. I've tried to talk sense into my friend, but she insists it will be good if they can find a way to make it work... so they will hold on to them as long as possible. I've tried to convince her to at least sell one of them... and sooner rather than later... 18k a year... 3 mortgages... rising rates. Need I say more? ETA: the £200 a month they are short on the mortgages is £200 a month that they do not actually have. It is coming from a small stash of cash set aside from selling and moving house last month to a cheaper, more grotty area (move was for new job).
  23. Hi, If you're still reading this... the lowest cost way to purchase ETF's is through a selftrade ISA. If you are referred by a friend, then each you and the friend get £50 from selftrade once you complete your first transaction, which must be £500 or more. There is an annual fee of £25... however you can purchase as many iShares ETF's as you want free of charge.... no commission is due to buy iSHares... However the normal commission is due when you sell. If you want me to be your friend, just send me a PM. iShares are really good for sector and region diversification. Penny
  24. So, please someone tell me.... does this mean that if I have a (small) portion of my pension in a "fixed interest" and "index linked" fund, I should reposition those funds? I still have 30 years to retirement, not sure if that matters.
  25. Currently DH and I are living in Urmston with my mum in law... saving like mad! We live on one income (30k due to increase to 33k in 3 months) and hope to purchase a house in 18 months. If the prices are still stupid we will just rent... why pay a mortgage for £900 a month when you can rent for £600. Not everyone has 2 incomes, and even those that do are foolish to max out their borrowing based on that. Came back from the USA 6 months ago... you should have seen the size of my house in Texas! I am keeping my eye on Urmston... plenty of houses are sitting. TONS of inventory. The estate agents are trying it on though... you'll see the prices in the windows some weeks and think, things are getting better... then the next week they've hiked all the prices back up again! It's a conspiracy! They must have secret meetings or something. I do not believe people are buying at the prices they are on for. Oh I forgot to add this place is a hole now!! Yeah yeah they're renovating (so we're told)... but seriously what is so special about it! It is about as ordinary as any place comes. Once FTB's are priced out there is nothing left to feed the frenzy.
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