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Yandros

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Everything posted by Yandros

  1. I cringe at the amount of equity I'd see evaporate from our house, but then we could upsize to something positively palatial. My job would probaby be ok as we serve a pan-european client base, and I MIGHT still have a pension worth collecting if the markets survive. However, virtually everyone I work with who owns a house would be financially ruined.
  2. I'm not sure any of us want the scenario of house prices returning to 1998 levels. Speaking personally as a homeowner, I could cope, as we've massively overpaid our mortgage, and bought in 1999, but my god it would be economic armageddon! What would be the impact of that amount of unsecured lending by banks & building socs? Last time they started suggesting repayment schemes to clear the negative equity, but the scale this time is potentially so vast that surely most people would just opt for reposession and bankrupcy?
  3. They're already ahead of us...you really can't make this up!!!... Yvette Cooper on R4 Today program this morning "House prices are still 40% higher than they were 5 years ago"
  4. Actually there was a BIG surge in prices before 2004. I keep an eye on previous properties I've owned, as I know the area and their true 'worth'. The flats I watch made the biggest gains in 2001-2003 according to nethouseprices. If the market crashes to the extent where pre-2001 buyers (who haven't been idiots) are in trouble, I'd start stocking up on tinned food and digging a bunker. In our case it would take a 60% fall to return our house to the price we paid in 1999, and an 85% fall to put us into negative equity. But then we've been clearing our debts rather than buying plasma TVs an
  5. Oh that is so funny! Methinks somebody is losing their already tenuous grip on reality. I just have one thing to say... *SQUAAAAWK*
  6. It gets better. Some report claimed that they also want to BAN household non eco-friendly household goods, such as plasma TVs and high powered home computers :angry: So whatever looney think tank came up with that brainwave has just lost them the geek vote overnight. Nice one lads. As a computer using home cinema fan, he certainly just lost my vote if it's true.
  7. In your original post, you suggest that an undersupply of housing has underpinned HPI. ie "In a nut shell 1) massive under supply of housing over the last 30 years 2) This has underpinned recent HPI" Eddie George says that he stimulated consumer spending to levels "which couldn't possibly be sustained into the medium and long term", and "that pushed up house prices". I don't don't that undersupply isn't playing some part, but it's interesting that it suddenly comes to the fore now that the affordability crutch has been kicked away. Incidentally, all these people living in rented acc
  8. Wow! Could that reply be any more patronising? Maybe we now know what Patricia Hewitt has been doing since she was fired Yes I have heard of Kate Barker. Have you heard of Eddie George? Who is Eddie George? He is the former governer of the Bank of England, who left this position in June 2003 after 10 years, and after presiding over the worst phase of the current house price bubble. Now please don't be offended by this remark, but I think he probably knows a little bit more about economics than Kate Barker and what did he say? "We only had two alternative ways of sustaining demand a
  9. Exactly. Someone on a good fixed rate deal will get significantly more interest on a cash ISA. With our base rate tracker mortgage an ISA is marginally worse, so we opt for overpay. With £1200 disposable, maxing out an ISA is probably sensible. Oh, and I don't wish to be boring, but consider your pension contributions as well, as although they're not exactly fashionable, they're also highly tax efficient of course.
  10. Give the man a cigar As it happens, using the rental income as measure of the 'real' value of a property is fairly standard, but it's nice to see someone indepedently think "hang on a minute!!!...." I wish a few more people would have this 'The emperor has no clothes' revelation. To use an example from my neck of the woods - 2 bed flat....purchase price £167K. So a repayment mortgage of about £1050, or IO of £800. An identical flat can be rented for £675. This suggests that a more realistic value should be circa £110K
  11. Very true. RealistBear seems to be able to spin ANYTHING into a trigger for a HPC. According to him, the crash began in Q2 2007 Dollar rises...HPC! Dollar falls...HPC! Same for gold, stocks - anything. He's not the only one, and it makes this site look pretty ridiculous at times.
  12. What a silly comment to make. What's your point? Are you saying that mortgages are bad? Perhaps you're advocating that we all rent for 25 years while saving, then buy our first house for our retirement? Or are you just being pedantic ?
  13. Bear here. Bought a flat in 1991, a small house in 1994, and our current house in 1999. Got caught out in the last crash to the tune of £30K of negative equity and don't intend to repeat the mistake thanks. Mortgage in 1999 was £90K. We remortgaged about 3 years ago onto a fully flexible product, allowing us to overpay, take payment holidays etc. Due to substantial overpayment, we've knocked it down to £56K, and are currently overpaying by £600/month+lump sums. We'll be mortgage free in 36 months at the current rate. Given your disposable income, it's a no brainer. Keep a slush fund
  14. I think there is genuinely a trend of kids staying with parents longer (don't want to rent as it's 'dead money'), but you're quite right, rents are pretty static. I'm also failing to see the vast numbers of homeless people we surely must have if we're that short of accomodation We have a shortage of houses for FTBs because new builds are being snapped up by BTLers. I heard a news item only a few weeks ago about a seaside town that had built a housing estate to solve the housing supply problem. Virtually all of them were bought up by property speculators and out-of-towners. The spokeswoman
  15. Nah, just some bull who's £500K in debt and possibly getting nervous
  16. I love it!! The irony is quite delightful. Anyone who takes the time to craft an essay like that is clearly DESPERATE to convince everyone that there isn't going to be a crash. I'm afraid that every bull post on here simply adds weight to the bear argument. If the HPC crowd really was a load of deluded idiots, nobody would give them a second thought. You can smell the stench of fear and political spin a mile away
  17. Of course a HPC would be good for me. The only questions are if, when and how much? Before someone wheels out one of the stock HPC answers, consider this - our class of house dropped about from £260K to £230K a couple of years ago. Everyone here said "Here we go - assume crash positions", and I started to consider STRing. The current value is £300K and holding. If I had followed the HPC mantra 2 years ago, I'd be renting, and needing to find £70K to buy my own house back today As has been commented many times, we'll only see the true shape of a crash well after the event.
  18. I don't need to be lucky actually - you do! We bought before the boom, so all gains are pure profit, and will own outright within 3 years. That makes me an impartial observer and you sir are a VI There's no gun barrel for me - the question for me is - how much money do I want to 'make'? We want to move up the ladder. We have three options Move now, assuming no crash - HIGH RISK (could end up in negative equity, so NOT going to do this!) Wait to see if there's a crash, and move at the bottom - LOW RISK (if crash - some paper loss but bigger house. If no crash, no loss and still have
  19. Heh, back with the homeowner bashing again. You realise of course the smart money will be busy cashing in their property now. I'm tempted to do the same, but the market is still very difficult to call. The safe option is to take the risk of an equity hit and ride out any crash, rather than STR and find ourselves stuck renting forever if the market stagnates (hands up all of you who've been STRing since 2004!). If we get a serious slide though (not just a little 10-20% blip), we might reconsider and sell up at a fairly aggressive price, then sit back and watch the fun. I'd quite like to
  20. "Since keeping old statements is not part of the Millard world picture, I have had to start the process by asking for details of all the charges my errant account has incurred." ... "Don't you agree it is spectacularly dull, though? Reclaiming something as abstract as a charge levied in 2005." My heart bleeds Rosie :angry: I have 20 years of bank statements in a little box file within arms reach. She's living a lifestyle way beyond her pay grade, and expects us to feel sorry for her. Dear BBC, can Alvin Hall do a Rosie Millard special please?
  21. Sadly she's for real. She used to be the poster girl for the BTL croud. So chic and clever with her BTL portfolio and her flat in Paris. We then had a legendary self pitying article, where she admitted that she'd no equity left on the property, maxed out her cards, and exceeded her overdraft limit, but couldn't possibly cut back on her ridicuous spending habits.
  22. We're looking to move up, but haven't STRed. To be honest, I'm not sure if I'm brave enough. Sitting tight and accepting a loss of equity in exchange for a sensibly priced bigger house doesn't sound like too bad a deal. I'm still not sure I'd bet the house on Gordon not worming his way out of this mess somehow. The trick is going to be spotting when the time is right. Maybe I've got the advantage in that I haven't got a stash of cash burning a hole in my pocket, and am more likely to sit and wait (in slightly cramped but comfortable surroundings) until the dust settles.
  23. I think he's kinda cute! Can we keep him?? huh? huh? PLEEEEEASE!!!
  24. My favourite property junk mail was an investment opportunity based around property. They made a big feature of a graph showing that property value only goes up. The graph started from 1994
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