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lets get it right

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Everything posted by lets get it right

  1. Indeed. Until and unless it is in the wider interest (banks, politicians and 'the people'), what the hell is going to make it happen? If it is in no-one's interest (i.e. not in the interest of anyone who has a position in the market) - what would drive it? After 7 years of muddy thinking, I think I'm beginning to see things as they really are, not how I wish them to be.
  2. Funnily enough, my accountant has just told me I've got a wad coming back too.
  3. Whose interest is served by the housing market being allowed to collapse and die? This is the bit I don't get. It's not in the lenders' interest to watch the housing market collapse - the money they have already lent would be at risk. It's not in the borrowers' interest for the housing market to collapse - negative equity and loss of equity won't do them any good (at least, they wouldn't see it that way) It's not in savers' interest either - the banks they save their money in would be at risk. So, given that the only interest served is that of potential FTBs who at the moment are out of the market and who, therefore, do not really affect it - what is the driver to cause house prices to collapse and die? The banks becoming wary about lending into an over-valued market is one thing - and this will/has caused a mild correction. But where is the appetite for the housing market to collapse and die? Strikes me the best outcome all round might be 20 years of stagnant house prices along with some modest wage/price inflation.
  4. Just as a matter of curiousity, if you don't mind ... how old are you, what do you do for a living, are you married, do you have/want children and ... if Arundel and Chichester hold up forever ... nothing happens for 5 to 10 years and then prices start picking up again (for example) ... how long are you prepared to wait?
  5. You and lots of other people. I could buy two houses in the North - but what would be the point. There's no money there.
  6. About 30 years ago one of my brothers, in a fit of entrepreneurial enthusiasm inspired by his lack of gainful employment, suggested we go to an Army Surplus auction. I was to provide the money, he'd sell the stuff on and we'd split the profits. There was all sorts of wonderful goodies up for grabs, pallets of camouflage netting, job lots of tools, lorry jacks, used vehicle batteries and odd job lots of metal - aluminium, stainless steel etc. Another brother ran a small metal stockist at the time and he told us he'd buy everything we could lay our hands on (metal wise) and gave us the top prices to bid. Off we went to some awful wind-blown army base near Bicester - inspected the lots we were interested and attended the auction in a local hotel that afternoon. Wow, that was an eye opener. Everything, EVERYTHING, went for absolutely crazy prices. One guy at the front bid for virtually everything and just kept bidding until he won. There were a few spivvy types in front of us getting more and more narked that their day was going to be wasted. One of them lost his rag at one point and kept on bidding - for a huge trolley jack, sort of thing that would lift a 20 ton truck. His mates started telling him to stop but he was shouting out things like 'I'm not letting that b a s t a r d at the front have everything - I'm getting something' ... and they're all pulling him down and saying 'you won't make money at that price, let him have it' etc. Anyway, we started chatting to the other (seasoned auction goers) there - asking them what the feck was going on. Why was aluminimium angle that you could buy new for £2 a metre (made up figures, can't remember) selling at auction for the equivalent of £2.50 a metre etc. Why were pallets of second hand camouflage netting selling for £400 a box? They told us the bloke at the front would have an order from some African nut job to supply their army - and would make a fortune on it. (Ironically, it may have been being bought with our aid money!) Another wheeze many years ago was to buy computers at auctions. We attended two as I recall. One was in North London somewhere - at the time the mob in question used to advertise continously (bit like Galliard Homes used to do) on London's local radio stations. I remember standing there somewhat bemused as a second hand Apple Mac sold for more than you could buy one new from the Mail Order merchants of the time. Everything went for truly daft prices. And, thinking about property, I've been a few property auctions in my time and always walked out muttering 'Are they all mad? - as delapidated houses sold for more than similar, renovated ones in the same street had recently sold for.
  7. This really puzzles me - why on earth isn't this happening more? I know a few blokes who travel - a lot - for their company. South Africa, the States, Japan etc. Why they don't video conference baffles me.
  8. Pay cuts are only part of the picture. Take a million people out of the public sector and put them in the private sector. A million less salaries and pensions to pay, a million people paying tax instead of being paid by tax.
  9. And yet, over any 25 year period you care to name, someone buying a place with an IO mortgage will have a shedload of equity they would not have had if they had rented for 25 years.
  10. Renting seems so cheap? I think £1600 a month for a 4 bed estate box is very expensive. 10 years ago I had a young lad working for me who paid £400 a month for a room in a house. Bedsit sort of arrangement - shared use of kitchen and bathroom. My 21 year old moved out a while ago and paid someone £750 a month for a fairly sh!tty 2 bed place in the sort of area where people puked on the front of the house some evenings. Aforementioned niece who bought her own flat using a shared equity scheme had flat shared for 10 years before deciding to take the plunge. Short of waiting for Mum and Dad to die, in her early 30s she was getting too old for putting up with sharing. When she moved in she was so pleased - her OWN place to decorate as she liked and without having to share! She would tell you that shared equity is great. (I don't agree, I think it's a racket to keep house prices high but you have to see things from other people's viewpoint.) What do 'professional letting agents' have to do with anything? I have rented through two 'professional letting agents' - doesn't alter the fact that when the landlord wants to sell, we (my family and I) are out on our ear - at someone else's say so. I've done it for 7 years and I've had enough of it. Renting under Shorthold Tenancies is a pain in the backside.
  11. What ARE you talking about ... the "despair" stage? You only reach the despair stage when you've lost your job, you're 6 months behind with the mortgage, you can't get any help (although as far as I can make out the government is doing anything and everything to avoid repos), you have some equity and you think that selling up will somehow get you out of a hole. Not many vendors are at that stage. The vast majority faced with low offers will simply take their property off the market and 'try again next year' or 'when the market picks up' or realise they aren't that bothered about moving anyway. I viewed a house a few days ago, couple about to retire, kids left home, want to downsize. They will not reach the 'despair' stage at all. They have pensions and can afford to carry on living there (I got the life story off the vendor!) so low offers will simply be rejected. Wanting to sell and needing to sell are two different things. Another one I looked at recently was a divorce job. On for nearly half a million they've had an offer 25k below which they won't take. I think the wife doesn't want to sell at all so even a full asking price offer will probably fall through in due course.
  12. I have voted Lib Dem before, and would again - just to say 'thanks' for doing what they needed to do to get New Labour out. It still brings a smile to my face when I think that Brown, Balls, Cooper, Milliband, Postman Pat et al are now back in opposition where they belong. (And I'm a natural Labour supporter, I just happen to think they are all congenitally useless and will never forgive them for the debt they have placed on the backs of our children.) It would not surprise me to see Cameron and Clegg trying to amalgamate the parties a couple of years before the next election. This would mean the right wing of the Tories leaving the party and starting up some nonsensical, right wing, bring back hanging and fox-hunting group calling themselves Real Conservatives - and the Left Wing of the Liberals moving over to Labour. Labour would then have to fight to occupy the middle ground and, unless they get another Blair in charge (a man who can fool most of the people, most of the time) Labour will be out of power for a few terms until either there is a crisis of some sort or people get fed up with the government and simply vote for a change.
  13. Where do HSBC fit in? I looked at the link and he seems to be another one of those general smart a r s e s who want to tell the rest of us how to make money, how to change, to win, to do better, to excel, to be all that we can be .... sorry, puked there. And he's talking at a church event called Weathering the Storm ... what have I missed? Why are you angry?
  14. Sigh ... it wasn't the 'latest must-have' - it was a way of getting a roof over your head without paying all the money to a landlord in rent. I think you have a very strange understanding of how the average person thinks and acts. Sure, there are plenty of a r s e holes around - serial BTL investors who think the world owes them a special living. But a young girl buying a shared equity place - she's not 'responsible' for anything. She's just going along with things - swept along by forces she is unaware of.
  15. Seriously, renting via a succession of Assured Shorthold Tenancies is no way to live your life. When you have a wife and a couple of kids in tow - and the accumulated detritus of years spent accumulating crap to lug around - and trying to stay in the right catchments for schools etc. etc. - it's no fun. Okay if you have a plan, sit out of the market for a while and watch it fall. In a couple of months I'll celebrate my 7th anniversary of doing that. And of course I'm not saying that if she doesn't get on the ladder now she never will - but what I am saying is you can't wait forever to get on with things. If you can't afford property, okay, what can you do? Wait for it to become cheaper? I'm beginning to think you'll have a long wait. I'm not trying to defend the indefensible - just getting a bit tired of it all to be honest.
  16. Okay you could rent - and have no security of tenure and never get out from under. My wife's niece, against my advice (to her sister), signed up for a 40% equity share two years ago. She's had a promotion at work and is rapidly repaying the mortgage so, soon, she will be in a position to buy the rest of the property. For her, assuming prices do not crash (and the longer this goes on, the less likely it looks (to me)), it will have been a good move. I thought it would be a disaster for her. That within a couple of years she'd be trapped in negative equity. Seems I was wrong.
  17. No, you haven't. The banks refusing to lend to each other caused the mild correction (crash? what crash?) in 2008. It was nothing to do with you refusing to buy a house, or the 25 other people (including me) who haven't bought 'on principle' either. My refusing to buy didn't stop house prices recovering (around here) in 2009 to the point where they were selling at full asking price within a week of going on the market. They aren't now - but one thing that seems very clear to me is that everyone in the establishment (banks, BOE and the government) is determined to avoid any sort of significant house price correction and will do anything to prevent it. That combined with an ongoing supply shortage means that nice houses in nice areas will not go down much. (I think)
  18. Given that prices were going up, and had been for years (probably as long at that young person can remember), why would she think the property price was 'over-inflated'? Why would she think that buying a property at current prices was going to be part of a bubble? The vast majority of people just take the world around them as they find it and their world view is formed generally by listening to others. How you can blame her for what has happened baffles me. I'd blame the banks myself.
  19. She didn't do it out of 'self-interest'. She did it because she wants to buy somewhere to live for feck's sake. She is not 'guilty'. Naive - maybe even ignorant - but not 'guilty'.
  20. Wow, there's some unpleasant comments on here. Why don't you save your bile for the banks, the media and the government that got people like her into the mess she's in. She was like a lamb to the slaughter - just trying to stick a roof over her head and doing what the whole world seemed to be telling her was the right thing to do.
  21. You're in cloud cuckoo land. 40% off? Why on earth would anyone accept 40% off when the market is still functioning? Yes, transaction levels are low, yes they might have to wait to get a proceedable offer, but they are selling - at 5% to 10% off. The only thing you might get 40% off is a really sh!tty house in a really sh!tty place that has been repod.
  22. Why do you say that? Loads of banks in the US have gone to the wall. I can't think of any in Europe.
  23. What's wierd is if, like me, you are actually looking at houses at the moment because you want to buy. Where I live offers are being made. We looked at a place recently - 4 bed detached, decent plot, needed everything doing to it - developers were offering cash, someone else had found out they could get a mortgage big enough to fund the whole purchase without having to sell their current house. Shame about the 2,500 houses they will build one day soon just up the road. Other places we have looked at are attracting offers - 5% below seems to be about the mark. Everything I read on here - much of which is linked from media sources - all about house prices down for 3rd month in a row, mortgage approvals down blah blah - when you go out and try to buy a house it's as if none of that is relevant. Around here, the market just seems to pretty much shrug it off. The old saying 'Location, Location, Location' is still true. A house in a nice area, run-down or not, will command a premium price.
  24. Article in the Telegraph on Saturday about equity release schemes ... bank lends you 100k secured against your house as a mortgage. Interest is rolled up and becomes payable when you die. At 7% a year the sum owed doubles every 10 years ... you need to check the schemes apparently to make sure the money owed can never exceed the value of the house when you die - otherwise bank has a further claim on your estate. Banks eh? Don't you just love them. You spend your life paying them interest to buy/live in a house and, as a result, you can't afford to save for a decent pension. When you retire you borrow again from the bank and, when you die, they take all the money back and the whole cycle starts with someone else. Boy, we are all complete and utter mugs.
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