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About BobTheBear

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  1. Cue massive increase in GDP, and numbers studying 'chemistry' and 'leisure studies and massage' at college You couldn't make it up.
  2. If house prices reverted to historic norms in the UK then they would be affordable. The elephant in the room is the cost of land with planning permission. Until landowners are forced to sell at much lower prices and the supply of building land is increased, prices must stay high. Do developers make excessive profits? I don't know, but my guess is they don't, as they have to re-cycle much of the money into their land banks. If land prices were to fall however, many developers will be left with egg on face, having overpaid for land, and of course the banks will be (more) bust etc. You can
  3. Forgive me if this has been discussed on here before, and I touched on it in a previous post, but I think it's something that might just work. Well that is to say it would work in a country where the government actually tries to govern for the greater good, so not in this one of course. Imagine if nationally and as a condition of planning consent for all housing developments that 25-30% of land area had to be set aside for affordable new homes . Nothing new here you say, this already happens in many cases. What happens though is that houses are built either for rent by housing associatio
  4. Her assessment of the UK housing market: http://moneyweek.com/how-the-government-has-fiddled-the-housing-market/?utm_source=newsletter&utm_medium=email&utm_campaign=Money%2BMorning#respond Someone called BorisMacDonut (aptly named) doesn't get it however, read his view under comments at the bottom. What he conveniently forgets is the absolute impossibility of any normal person ever paying off the capital of today's 'affordable in historic terms' mortgage during their lifetime - barring rampant inflation of course - which will probably happen sometime (but when?)
  5. Apologies if this has been posted and discussed before.... but: Where I live in the rural South Lincs the county council has been tasked with identifying land that could be granted planning permission. Apart from areas earmarked for mega estates, they are looking to build an additional 9000 homes in small villages such as the one I live in. This is a great idea, as I once lived on a mega estate, and the provision of schooling and road access to the wider area was dire - due to oversight by the so called 'planners'. Anyway, even in just our little village of 300 or so homes, it’s very surp
  6. Lower interest rates cause me a problem in that I have to fund more of my (not inconsiderable) rent out of income, worst scenario; try to re-negotiate rent downwards or move to cheaper house. The killer for me is if house prices start to go back up. Not likely IMHO. I'm with Tuffers - not enough available credit to fuel another boom. See also: "Liars loan curb" headlines after next weeks Panorama.
  7. My STR fund is in various savings accounts, not a great return I admit. Even worse, I spend the interest I do get on rent (plus more besides - 'cos I live in a really nice place that I couldn't possibly afford to buy!) So my STR fund is not growing at all, in fact it's decreasing in true value due to inflation. But...... as I'm eventually going to use it to buy another house, the only thing that really matters is the value of my STR fund against the price of a house. Right now that seems to be increasing, bring on the HPC. PS Can't wait to see next weeks Panorama - I'm with Eric P on
  8. Hi. STR'd in July - used to live on Thorpe Marriott. Now renting a fantastic renoveted cottage standing in splendid isolation south of Norwich. Waiting and hoping for the crash, and will buy back in, hopefully mortgage free, when prices return to "normal". I couldn't possibly ever afford the place we now live in, and it costs a couple of hundred more per month than we get in interest on our equity out of the old house, plus the mortgage we were paying. It's worth every penny though for the chance to live in such a dream house in a fantastic quiet location for a year or two. And here's an
  9. Good work - keep it up. I must admit I'm very surprised that the EDP property sup is still 105 pages. Is it my imagination or are there more "quality" properties and holiday homes coming onto the market? The well off bailing out? Last time local property crashed one of the factors was the sudden absence of the "London buyer", could this be happening again?
  10. Can anyone give me any advice on the merits or otherwise of gold ETF's in the present climate i.e possible (probable?) financial meltdown? My (limited) understanding is that they have to match your investment with holdings of physical gold, but since they are run by investment banks etc is there a risk that you could lose your investment? Moneyweek are keen on Bullionvault, but what guarantees do you have with them if things go very pear shaped? Sorry if this has been covered many times before, but no time to search through hundreds of old threads.......
  11. The financially illiterate?? We recently STR and sold for £254950 - top valuation by the EA. The buyer initially offered just under £250K, but as in truth I was a little unsure about moving, I held out for the full price, kind of half expecting not to get it, and therefore maybe not have to move! The idea to STR came to us one evening in April over a glass or three of wine, and things kind of snowballed from there, but that's another story! Anyway, I was expecting the buyer to want to do some kind of deal to mitigate the stamp duty, as his decision to pay that extra £5k was also going to
  12. Thanks very much Kingmaker for your very detailed answers, and to the other posters for the links - which I'm working my way through, kind of open mouthed as I read....... My gut feeling has always been that the root cause of HPI is simply too much easy credit, but now I understand the source; money conjured from thin air by very clever, but irresponsible city boys. As a simple engineer I had only an inkling of the sort of tricks these "masters of the universe" types on Wall St and the City have been up to. Regulation? there doesn't appear to be any. I've always thought that these people
  13. IMHO the problem of excess state spending on benefits to families is exacerbated because of the abject failure of the last few governments to make the biological father pay child support instead of the taxpayer. We now have the crazy sitution where no maintenance payments, or indeed any contributions from the absent parent, get taken into account when assessing entitlement to Family tax credit or indeed student grants and support with tuition fees. (Believe it or not this is true) The system is barking, and is just another example of NuLabours hatred for the traditional stable family unit. I
  14. Can any of the city/finance types on here please explain the following to a humble engineer: Ok I understand that a lot of lenders - especially sub-prime - have been selling on the debt packaged up as CDO's or MBS's - are these the same thing by the way? But how does ths actually work in practice? Say I have a mortgage with Northern Rock, they sell my debt on, it gets sliced/diced/re-sold/leveraged etc, etc. But as far I am concerned I still pay my monthly payments of capital plus interest (or just interest if IO) to NR. Do they (NR) somehow pass this money on to the current holder of the
  15. looking around the city there is not much under £750 PCM per month for a nice flat. I am just wondering what % people usually spend on their rent from their take home pay I always thought it was supposed to be 30% if that is the case I am just amazed how people can pay this out for all of the hundreds of flats in the city. There seems to a sizable premium for renting right in the city, go out 5 miles and you can get a 4 bed house for that money. Flats used to be cheap, but now we have all these high priced "prestige" developments everywhere they are dear to buy or rent. 4 bed houses furt
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