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House Price Crash Forum


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About rentslave

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  1. No shortage of them I'm afraid. I caught up with a friend I've not seen for a few months last night to hear that he has just bought a small one bed flat in London for £335k (EIGHT times his salary). He stumped up £50k in deposit, stamp duty and fees and the mortgage payment will still come in at more than two-thirds of his take home pay. Add council tax and bills and he has about 20% of his income left. I tried to point out (gently!) that he couldn't really afford that and he said "I can always rent out the living room as a bedroom if I need to." A colleague has just bought her first BTL "Investment" property and I've heard several other friends saying that they want to do the same. It appears to me that prices are due for another round of "irrational exuberance". We have learned nothing.
  2. Improving technology has always made old roles (and the people doing them) redundant, but in the past it was always low-skilled workers that were displaced by process automating technology; now it's higher skilled workers being displaced by knowledge sharing technology. Ironically some lower skilled jobs are safer now because they're less geographically transferable - you can't get your hair cut or your house cleaned over the internet, but you can get legal advice, receive training, be informed of new developments, find new business contacts etc... This article is just a complaint by the person who has to think of new ways to earn a living. I am a knowledge worker and my role has transformed beyond recognition over the last 10 years and will do so again over the next 10 years. Will it become redundant? Maybe. If so, I'll find something else to do and not demand that anyone protects my current role...
  3. The NHS employs over 140,000 doctors, who are generally high-earners once they're fully qualified with a bit of experience, so not even remotely surprising that around 5% of them will earn over £100k. Add in a few senior managers and this number actually looks quite modest. The Telegraph uses a nominal figure, rather than a percentage one, thus generating a big headline for a small story. What if the headline read "0.6% of NHS earns over £100k" Not quite the same impact is it?
  4. Best bit Sigh. We have learned nothing. Maybe we should transfer all housing stock to BTL landlords and then tax the hell out of it!
  5. This whole story is bogus. You can live wherever you want if you are prepared to pay for it. If you want someone else to pay for it (such as the taxpayer), you might just have to accept what they can afford to provide (and where they can afford to provide it). I work in central london, but have to live out and commute in each day (which I hate). Why should I pay taxes so that people who earn less than me can have a better standard of living than me. It makes no sense economically, politically or morally. It would be better just to give unemployed or poorer people a single benefit payment and let them make their own decisions about where they live and what they do.
  6. I'm paying £100 more in rent than I was 12 years ago, but for a nicer flat in a better area, so view it as paying about the same (or potentially less). Having said that, there has definitely been a spike in asking prices over the last 2 years that seems to have eased. Just helped a friend find a flat in my area (SW London) and she ended up paying the same rent that was being asked up to about 2008. I moved in the slump of 2009, so got about £200pcm off that, but haven't had a rent rise since (landlady definitely knows she's got a reliable long-term tenant who always pays up and never asks her to do anything). In my view the recent rises in rent have just been a recovery from the rent-price slumps of 2009, but rents have not supassed previous highs and are unlikely to IMHO. Would be good to have another slump tho
  7. If you take all conditions and benefits into account, it is true in many "concrete examples". I'll give you 2 from my own life. I do a semi-IT/Information Management role in a large private sector company in central London. I earn £47k, but get minimal benefits on top of that. My friend does a more junior role in this area in a central gov't department with a huge team of people for £35k , but gets 8 days extra holiday and pension contributions worth around £8k (gross), so is in fact on a comparable income. Add in the subsidy he gets for his shared ownership flat and his disposable income is greater than mine. I recently saw a similar (i.e. more senior) role to mine advertised for a central gov't agency. The advertised salary was £114k!!! I nearly fell off my chair when I read it. On any measure this is about £40k more than you would get for a similar role even in the most generous of private sector businesses. Of course I would have applied for the job, but they wanted experience of dealing with central gov't or working a similar agency. I'm not keen on attacking public servants - many do a good job under difficult circumstances - and I think our real anger should be directed at those who grow rich from controlling the creation of money and extracting rent from people who do work.
  8. Telling article in today's City AM http://www.cityam.com/latest-news/warning-slow-growth-ahead Included this gem To me, this is a sure sign that the gov't have given up trying to solve the problem in reality, and instead are now just focusing on how to fiddle the stats to make it look like things are moving in the right direction. Expect a lot more of this over the next couple of years. Those GDP figures, unemployment stats and deficit targets will all look marvellous as the real economy tanks.
  9. Bad economic news is always "unexpected" or a "shock". It is also never a result of long-term underlying factors, but short term one-offs or external events. It is truly amazing that serious outfits like the BBC or FT should publish this bullsh1t (I would expect it of the tabloid press of course) Denial truly is the most powerful force in the Universe.
  10. Quote of the year. Best description I've seen yet of QE
  11. The really interesting thing for me is that in the end neither of these 'first time buyers' actually bought. Ultimately they both decided that the price of these properties in the current climate was too high. Also first time buyers with budgets of £240k and £400k must be as rare as hen's teeth in this market. If they're not buying, we can assume that very very few other FTBs are either. Challenge to the LLL team - find an average potential FTB and see what you can get for them!!!
  12. I pay £210 per week to rent my flat in London. If i were unemployed the state would give me £250 per week to rent somewhere. Should the unemployed be able to live in more expensive properties than those on professional salaries? Seems a bit perverse. My brother is a single parent and his take home pay including benefits is 20% higher than his gross salary! Also take into account the other state costs (healthcare, education for my nephews, etc) and his take-home pay is effectively 60% more than his salary. Another friend has decided to go back to university after losing his job because that the state are now paying his mortgage interest. After tax, rent and bills I only have 35% of my income left (I rent a small 1 bed flat above a restaurant, have no kids, car or pension). Difficult to see how the state/economy can sustain this. I have no idea how people afford to buy a family home, have a family, run a car and still eat. But then maybe that's why in my late 30s, most of the friends I have my age are single and/or childless!
  13. Is your deposit not held by the Deposit Protection Scheme? http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/Tenancies/DG_189120 Mine is and in fact I thought this was now compulsory for landlords (since 2007). You should be able to claim it back directly from the DPS, regardless of what your landlord does or doesn't do. If your landlord has not placed your deposit in this scheme, I think they can be fined. It is worth checking up on this. If the letting agent arranged your tenancy, they should know about this (even if they don't manage the property)
  14. rentslave

    Rents Soar...

    The same thing is happening everywhere I think. I moved flats in London in early 2009 because rents had fallen as much as 20%, so I took advantage to move to a nicer place. Since then I think rents have risen back to 2007-2008 levels, but not surpassed them. It allows headline writers to talk about rising rents, but the reality is that historically they tend to remain pretty stable (in real terms my current flat is cheaper than a similar flat that I was renting 10 years ago)
  15. Not quite, but am 38, on £45k in London, savings will hit £45k in the new year. Have given up on thought of buying in this country, so me and a friend are clubbing together to buy somewhere basic but liveable in the sunshine (maybe SW France or Italy). Could buy it outright or might take on a small mortgage to do it up. Idea is to get freelance work or a remote working contract and spent half the year in the sunshine. Screw this 9-5 nonsense - it's a mug's game. Time to start planning for my semi-retirement On a serious note, the whole situation is fubar, which suggests something will have to give - although that something might be the entire economy
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