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Wall come tumbling down

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  1. These people the BBC have been focussed on I would say are in a "typical" position in regards to their mortgages. There are hundreds of thousands of people in this position. The Bank of England should never have allowed interest rates to fall so low. Too much cheap credit. People have only seen or only want to to see that there will only be "low" interest rates. Your money does not grow in a bank because of the low interest rate. People have been releasing the "equity" in their property to pay debts- the banks should never have allowed this to happen. Will the market crash though? It can only move downwards, but mybe Gordon will introduce an IVA style scheme for those who are mortgaged to the hilt.
  2. Teaching may be a steady job, but will you get a pay rise? My brother works in FE and has been offered a whopping 0% pay rise for the year. Obviously inflation is dead according to FE! Don't know how they can justify putting up course fees.
  3. like another friend who has put his gambling debts on his mortgage, therefore nearly trebling his original mortgage he took out in 2000! Nothing like wealth in bricks and mortar
  4. This will become all too apparent in my view. I know plenty of people and families who are struggling with housing based and housing induced debt. One friend moved from his two bedroomed house, to a three bed house because of wanting to have seperate bedrooms for the kids. Think he got a the three bed semi in 2002 at £62K. However he was very foolish, as property values began to rise, he started to borrow on the "equity"/ new found wealth in the property- conservatory, kitchen, extension, car, furnishings etc. He now has to sell up because they can no longer afford the mortgage, and are going to move back to another 2 bedroomed house. Have to try and find a buyer for their house first though
  5. I totally agree with this. Where I live many properties are on the market, particularly those in the higher price brackets of £150k plus have been and are still on the market, in some cases for more than 12 months. Obviously people are queing up for them
  6. Could the HPC replicate the 1929 Stock Market crash- 3 years to hit the bottom?
  7. I was in my last year at Uni in 1999. Got a job more or less straight away after graduating. In hindsight, should have bought a house in 2000 on an Interest Only Mortgage. After about 5 years paying interest only and earning better money, would have switched to full repayment mortgage. Result would have been a low mortgage, low monthly repayments (in comparison with what people are paying today) and plenty of equity in the property to faciliate a further move up the property ladder. I would not recommend the Interest Only Approach now as part of the cunning plan, far too risky now with the high level of prices.
  8. Good school areas often have the most affable housing areas anyway and the link between house price and a good school is over played. If a rough inner city area had the best performing school in the country would it suddenly have a house price boom? If Harrow became the worst performing school in the country would local house prices crash?
  9. I would not rely upon the land registry figures either. It can take quite a while for them to process sales data, and so figures can change quite a bit. My friend bought his house in December 2005, and this is still not being shown by the land registry over 14 months later. For all we know their may be a backlog of sales data that is has not been processed to delay the crash.
  10. I was wondering that as well. If you look at the main graph on the HPC homepage, it may take at least ten years for it to bottom out. Hopefully not, I want 18 months!
  11. Why have a campaign based on a "Just say no" principle. As people have already stated, it may be negative to the FTB image because they are seen to be holding the market to ransom. Would it not be better to promote a campign that highlights the risk people are taking in buying a property, how the banks are ripping them off, how can they survive paying such large mortgages if there is economic downturn. Unfortunately the British public have their eyes shut or are unaware of their own person finances and are just on for a get rich quick mentality, ie "I bought my terraced house for £85K last year with a £95k mortgage, but its worth £105K now so I'm richer." Alternatively, instead of a Just Say No campaign, why don't FTBs just offer the true value for a property. For example where I live, average household incomes are £21K (in 2005), so I'll put it up to £25K, and make an offer around the local economy and the present interst rate. A 3 bed house where I live should be £100k, not £130K to £180K, so offer the £100k instead. So lets get an "Offer what you can afford campaign".
  12. Better make sure you have a good pension if you are still paying your mortgage off at 70. Then again will you be able to afford paying a pension or even get one at 70?
  13. It is because banks and building societies are offering such stupid multiples of salary that house prices have risen to the extent they have. They are feeding the market. The government should pass legislation that limits how much people can borrow. Nobody should borrow more than 3 times there salary for a property, instead of what some are doing such as 6x salary.
  14. Yes this is right. The tax credit system does not encourage people to work. A friend of mine who works in education has told me recently that a colleague has halved their hours, so they get more Tax Credit. They work half the hours, but have the same pay as working full time. How can a government promote such incentives, that ultimately dis incentivise work? I have seen blokes, who wherethe main family bread winner, reduce their works hours substantially, because they are no worse off because of tax credits.
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