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Hector's House

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Posts posted by Hector's House

  1. Equivalent to a take home pay of around 22k. I think a single parent working 16 hours a week minimum wage and living in a council house 'earns' the equivalent of around 27-30k gross when all the benefits and perks are taken into account.

    Now we know why this lame ass government of ours thinks we're all out there earning £26k! LOL!

  2. The solution, then, should be to give them 'busy work'. Don't make them do anything that would take jobs away from someone who is decent enough to want to earn a living, but get them to do something thats hard work, boring and ultimately unnecessary. Their lives should be as tough and uncomfortable as possible, with getting a proper job or at least making a genuine effort to get one, being the way out.

    Wasn't that the concept behind the original workhouses?

  3. I agree £14k will not let you live like a king, but there are ways that can save money and make your money go further without feeling out done by...don't borrow, it will make you feel poorer not richer. ;)

    True.

    My sister earns just over this amount but she took my advice in recent years and got rid of the credit card debt, kept clear of all other debt and she's worked hard to get herself into a position at work where her bosses know she's not just a drone happy to come into work and sit there for the allotted 8 hours. She's sniffed out any new working methods coming in that make savings and increases in efficiency got herself involved so I'm hoping she will see the next few years out with a job.

    I earn more then her, but certainly not the govt's joke 'average' wage. Between us we would still struggle if we tried to take on a property more then £100k...despite one IFA telling me they'd give me £130k before even taking my sis's earnings into account.

    We're lucky. We've had property before, sold at a good time and banked a good amount that we will use for our deposit.

    To be single, earning £14k and with storecard, credit card, car loan debts must be a pretty miserable place to be these days.

  4. Sadly, much as you might want to spare your friend a lot of pain and financial loss, in the end, he has to live his own life.

    You have at least offered him advice that you think is sound. You may think that you ought to be doing more, that's understandable. However, I think you would be better off leaving him to it. From the sound of it he's not going to listen however hard you push the issue.

    Many of life's lessons can be mightily expensive.

    This is sound advise.

    I backed off from trying to get my BTLer friend to see sense when he started getting very bullish evey time I was around and told me the people on this site were a load of idiots.

    Luckliy I spend most of my free weekends out of town with my partner so avoiding any potential conflict wasn't a problem.

    We met up again at a do we'd both been invited to a couple of weeks ago and he actually apologised and said he'd wished he'd listened to me and started acting on the advise a year ago.

    He may still be in the sh!*e yet but at least he's stopped buying.

    What I've learnt from it is that it is very easy in these distorted times for the whole issue of housing to wreak friendships. And I haven't been tempted to tell him 'I told you so' cus it really doesn't need saying.

    Although you want to stop your friend making a huge mistake it is probably best to bite your lip and leave him to it. You'll still be around when it all comes collapsing around his ears to give him your friendship and support.

  5. seems a bit steep.

    id go for

    flat 35k

    terrace 55k

    semi 75k

    det 95k

    based on earnings.

    I would be happy to pay in the region of £55k for a terrace as that would more or less match my increase in earnings over the years.

    It would be even better if a semi fell back to £40k but I can always dream.

  6. From Daily Mail

    One woman's blow by blow account of what it's like trying to sell a house in the credit crunch :

    Too big to post, Link : http://www.dailymail.co.uk/femail/article-...dit-crunch.html

    So this woman earns £1,500 per month, has £8,000 credit card debt and a £4,000 overdraft ( :o ) and now realises she can't afford the £2,000 per term private school fees for her kids and she can't afford the petrol for her BMW X3.

    It beggers belief!!

    Fair enough, she didn't expect her husband to die so young but where do these people have their heads stuck? In the sand???!!!

    I'm surrounded by youngsters in the office who all think they deserve to drive a BMW on a juniors wages.

    What has happened to this counrty??

  7. Hate to p**s on the bonfire, but I can honestly say that I am not seeing any price falls in my area (N/E outer London). In fact, the houses that are coming on seem to be at even more aspirational prices than this time last year. I appear to be in a genuinley "crash immune" area. This crash is rubbish :angry: :angry: :angry:

    I'm seeing the same here in the East Midlands.

    Mind you, it's only the new sales coming onto the market that are at ridiculous prices...maybe they are anticipating a summer bounce? Those houses that have been around since early last year are starting to either be withdrawn from sale or coming down in price.

    I reckon for some reason the EAs are determined not to be the first to acknowledge a crash is happening even if that means ignoring the vendor's request to advertise it at less in the hopes of a sale.

    I'm assuming they're doing their best to talk housesellers to rent out their property (through their letting agency side of course) in the meantime.

    Either way everything is just stagnating.

  8. I think with loads of these new development's it will be a case of can not complete. Even if someone wanted to the banks valuation will be way down on what will be needed to obtain the mortgage that buyers would need to complete on their original ifigures and valuations when they were reserved.

    Is this the MSE poster who was saying he'd been to all his mates and family trying to get together the difference between what the bank would now lend him and the price he promised to pay the developer so he could complete?

    Madness!!!

  9. Apologies in advance if I'm missing the bloody obvious but I just don't get it. Take the example of City Lofts at Princes Dock Liverpool where they went into administration having approx. 20 apartments unsold and nationally 230. Now surely with all the corporate 'intel' at their disposal they could see sales slowing and could have off loaded this time last year, wtf stopped them? Repeat this scenario with so many of the builders; Persimmon stating sales are 35% down vis a vis this time last year. Were, for example, City Lofts concerned that irate customers (past) would give them a hard time if they saw the prices plummet below the original selling prices? Just doesn't make sense...at Princes Dock they could have off loaded all the units by reducing by 20% (30K) last year, are they all that thick that they bought into the BS of a winter lull to be followed by a spring bounce? Pick just about any poster on HPC and you can bet (put in charge of sales) you'd have just witnessed the crunch beginning to happen in August and instructed them to sell at whatever price you could get with whatever incentives were available...Not making sense... <_<

    http://www.liverpooldailypost.co.uk/busine...64375-21219449/

    We still have companies building new stuff up here in Nottingham and I can only assume that their doing it cus they simply didn't expect the party to end.

    It's only very recently on MSE that I've begun to see threads appearing with folk who have realised the worm has turned and are trying to get out of their contract to buy. In some cases they signed that pledge years before the development was finished.

    And seeing as these were people who actually had the nounce to get online and try and find out what to do (finding MSE along the way) I bet there's thousands more who also thought the party would never end and are still signing up for these new builds.

    A friend of mine who has spent the last few years leveraging to increase his BTL portfolio has finally said he'd wished he'd listened to me a year ago and stopped buying.

    Maybe it really does take until the word 'recession'appears on the front of the papers before all types of folks - builders and buyers realise what's going on?

  10. Is it true they have giant Wetas as big as dogs near Christchurch?

    There was a giant Weta down on the beach at Beach Haven when I was a kid that used to sneak down the rope swing and drop onto you when you weren't looking.

    os

    I had the misfortune to be bitten by a Redback the day before my family came back to the UK. That was a LOT of fun in a hospital in Los Angeles on our stop over!!

  11. I wonder how long it will be before EAs are following the NZers and trying to sell house with such slogans:

    'The kiwi`s that I have met run on a pretty tight budget. I know of one couple, who both work full time, run it so tight that their treat (which they haven`t had for a while) is a take away on a friday night. I would say that this is not unusual.

    My own thoughts are that this is just the start of a slow economic depression. Every week in the property press there are more and more price reductions with agents using phrases like "desperate" and "bank says sell". With food and petrol prices on the rise and wages remaining still, I cant see a sudden recovery.'

    Go here for the full thread:

    http://britishexpats.com/forum/showthread.php?t=543288

  12. The employment fallout from the HPC is going to be huge - its not just the homebuilders and estate agents, but brickies, plumbers, sparkies, mortgage brokers, car salesmen and travel agents (no more MEWing your way to a holiday in Barbados or a nice new 4x4), staff at home improvement stores (Land of Leather, Carpertite, ILVA etc)... the list is gonna be huge.

    Let's keep track.

    The local EA office that messed me around and treated me as if I've got something wrong with me for not wanting to pay full asking has just closed down.

    Closer to home our Facilities Management (postroom/porters/security) has just been told they're to lose 5 people. And if 5 don't volunteer it will go to folks having to interview again for their jobs.

  13. Cases like this show exactly how negligent the Government has been in all this. A government in a capitalist society should act to protect people from the worst excesses of the free market. They're failing to protect people when the market is crashing, and they failed to protect people when the market was growing out of control. The credit crunch isn't a problem, it's a solution to a major social and economic problem, brutally driven by an impassionate market solution.

    Excellent post.

    I wonder if we have the calibre of politicians left anymore that understand this.

  14. You had my sympathy all the way up to "roll-ups". Anyone who can afford cigarettes is not poor. Just ten cigarettes a day is around £20 a month. You could put this towards heating before your showers.

    I fully agree.

    I've told him that he should consider giving up smoking before complaining about how he has to live. Unfortunately his head is in the sand. He believes he should be able to smoke as he works full time so deserves it.

    I've given up and will just wait until the month when he can't afford his mortgage payment to give him a wake-up call.

  15. What does everybody else think?

    http://news.bbc.co.uk/1/hi/business/7481927.stm

    My partner just about survives on a wage of £11,500.

    He gets the single persons reduction on his council tax, but that is all he can claim as he isn't in social housing. He doesn't run a car and gets through the winter without heating (I've paid his heating bill since I met him as it's not much fun trying to get a shower when you can see your own breath before you even get out of bed!).

    This last year things have started to get tight for him and I've been helping him out where I can (we don't live in the same town).

    Our holiday this year is going to be rent-free in my folk's static down at Snettisham but I think he is soon going to have to start smoking roll-ups and waiting until the weekend before having a pint.

    He came through the last recession by the skin of his teeth working two jobs and using his bike to travel to them - 40 miles each day in total).

    He is looking for better paying work but there isn't a lot going in Leicester if your name isn't Patel (sorry if that offends anyone but you really have to spend time in Leicester to see how true this is).

  16. This stuff will never cease to amaze me, and no, I don't mean the phrase "airing on the side of caution"*.

    There are plenty of times over the last [insert moderately large number here] years where I've wondered if I was actually some kind of financial pervert for not diving in with both feet and borrowing right up to my nostrils, and these wonderful little annecdotals just remind me that I was actually right to be cautious. The second on inparticular amazes me. Quite frankly, if you can't take a £300pcm increase from the "It's so cheap my lender must be Santa!" rates we've seen, then you could never, ever have afforded it. These people must be utterly lacking in the part of the brain that prevents most people from playing chicken on the M4. I fully expect them to post on Money Spending Eejit again next week with something to the tune of "I microwaved my bollosk and it really hurt! Help!".

    * Which, I assume, means putting your jeans in the cupboard with the hot water tank in so as to be sure they're dry for the next day.

    Great post! :lol::lol::lol::lol:

    I've thought myself that I must be doing something wrong not to have waded in up to my neck in all this cheap money too but I just could never make the numbers stack up somehow....

  17. I must have misread the article about the average UK person owing 173% of their monthly salary in debt - surely that is economic suicide?

    How can anyone get away with being that much in debt each month?

    Surely the banks would have called this all in along time ago? I do not owe any debt so what does that make the average when people like me are in the equation?

    If you go over to the Debtfree Wannabe forum on MSE you will see some truely scary stories. Debt of £20K is smallfry compared to some posting over there.

    It seems that the lenders were quite happy to let folks get to that level of debt and the whole house of cards is starting to come tumbling down on a lot of folks with the credit crunch.

    Before now folks had been meeting the minimum payment on their debts but the banks have got scared and have hiked up the interest rates to such an extent that folks are starting to go to the wall.

  18. We have one young chap here in the office already on a Debt Management Plan (MEWed to buy a caravan and then a large car to pull it around with as well as other debt like credit cards. He came unstuck cus the loans for the car and van were secured against his property and the mortgage lender started action after not getting a payment for 7 months).

    Another was one of the few who got a payrise or the yearly bonus and is still moaning that he can't get together the £1k he needs for a holiday he's going on in a couple of weeks. He's got close of £20k of debt (souped up car etc.) with no assets and has realised he's a long way from being able to afford to get on the property ladder.

    Both these lads have taken to gambling.

    A friend who has been into BTL for years has just admitted he'd wished he'd listened to my warnings a couple of years ago and not leveraged what he did have to buy more properties. At least he's finally realised which way the wind is blowing and I hope he can hang on to what he's got without rental voids sending him to the wall.

    It's all sad to see when you're close to it and I just thank God I managed to get rid of my debts in recent years.

    I can see this credit crunch getting very nasty for a lot of people.

  19. 12 months from now 125K might be 50% over-valued.

    The problem with this bubble is that it is hard to remember what the sensible long-term average of house prices were. The hosue you describe, in my part of the world, would be about 45 - 50K in the mid 90s, perhaps a tad higher for really good quality ones. At the start of this year they were going for 200K, many still are, but I am noticing a few coming down to around 160ishK now. Give it another year and I think they will easilly be about 100K and continuing to head down. If we have a shock they could be back to 60K within 12 months.

    Just my tuppence.

    The sorts of places I'm looking at were selling for approx. £54k back in 2003.

    And maybe in a year or two that's what they're going to be worth again.

    I remember someone describing the housing bubble as an ever-expanding elastic band that eventually contracts in on itself. Not a bad analogy.

  20. Well my househunting saga over the last two years has gone something like this:

    £125k for a 2-bed mid-terrace. They eventually reduced to £114k but said they wouldn't go any lower 'because they know their house is worth what they're asking'. It's just been reduced to £109,500 and they're selling it themselves through one of these online 'sell your place cheaply' websites. I'll continue to watch this one.

    Had an offer accepted on another property nearby but it turned out to need extensive repair (at least £25k worth) and the seller expected me to pay for it. Pulled out of that one.

    Made an offer on a 3-bed place after the seller started dropping it by £5k a fortnight. That stopped when I came along and he reverted to the 'I know my house is worth £115k and I won't sell for less.....'. My best offer was rejected and he's now moved back into the place...to a huge pile of what looked like creditor's letters which the EA had to shovel away from the door when I went to see the place. Good luck to him. I'll continue to watch and wait.

    In all the above cases I was the only person who booked to see the places that weekend. I've come across EAs lieing to me and making out the house was so in demand I'd have to wait for a viewing, only to turn up at their office to find the staff sitting around making paper aeroplanes and slipping up and telling me I was the only person who was booked to see the place.

    It's been frustrating and I've decide to sit back and watch for a while.

    And I've finally started to see repossessions appearing in my search area too.

  21. As subject

    Yes, more talk of the government coming to the rescue to help those struggling.

    I don't know who the talking head was but he suggested some government-backed rental scheme allowing folks to keep their houses.

    And they spoke of fears that Northern Rock is becoming known as the bank full of customers in dire straites that they won't help.

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