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Bobajobbob

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Everything posted by Bobajobbob

  1. Not entirely as these children will potentially be contributing to your state pension when you retire.
  2. I love the deluded couple who bought a flat for £150k, were told it was worth £750k at the height of the bubble, tried to sell and didn't get a single offer. Now rather than simply drop the price to a more attractive or realistic level they are trying to sell 10,000 lottery tickets at £75 a pop to get their £750k. To date they have sold 2000 in a year or so which is in itself a miracle. How long will they wait to sell the other 8000?
  3. Given it is only an additional 5 minutes to the station that looks like astonishing "value" for the area. I can't see how big the plot is from the web site but I can only assume it is not as big as it looks and the house itself must be pretty small. It looks too good to be true so I suspect there is a hidden reason for the price.
  4. European banks can go to the Fed for € liquidity at EONIA +50bps? The Fed is going to print for the ECB?
  5. When I sold my house I asked for and was given a clause to the effect that in the event that I found a private buyer I would pay the EA zilch. It is pretty standard practise I believe.
  6. Is there anything else that I can help yourself with .... at all?
  7. Give it a few months and move to Greece. Civilisation will rise from those ashes again and the sun will be shining.
  8. Someone earning £150k a year is already paying more than 50% in income tax once you factor in NI etc. They are unlikely to burden the national health system, use state schooling or commit crime. If they bought a house for more than £1 million then they have paid 5% in tax (£50K +) simply for exchanging a contract. I am all for lowering the cost of housing but the politics of envy from those that haven't to those that they perceive to have gets my goat. The tax burden in this country is ridiculously high and complicated and should be reduced. If someone buys a house "worth £2m" with a mortgage then do they pay any mansion tax on the equity in the property or the total value of the house? If the bank effectively owns the house shouldn't the bank pay the tax?
  9. More city accumulated wealth in Kent/Hampshire whereas Middlesex is older money?
  10. For what it is worth I am currently short gold and long platinum, effectively buying the spread between the two. A couple of days ago the prices were nigh on the same. I.e. you could buy an ounce of platinum for the same price as an ounce of gold. Historically the spread between the two averages about $400 and peaked at $1200 just before the crisis. How long will the distortion in the market caused by the massive demand for gold last and will gold eventually become more valuable than platinum? Who knows but I don't think so and I am happy to buy the spread.
  11. I grew up in Wolvercote. Ugly house but my back garden was Port Meadow and my views were the dreaming spires. Quiet little village in North Oxford but if you can find a house facing the meadow it is hard to beat. Short drive to Summertown or Oxford city centre.
  12. I went to Winchester College, my wife to a grammar. We both have good careers. Our two kids are at Private Prep school at the moment. Whether they will continue on to Public School or a Grammar depends a lot on finances and whether they are bright enough or suited for one or the other. Given the monstrous sums of tax we pay as a family it is ridiculous that those that choose to privately educate their children do not receive a tax advantage or refund from the state. Even though my wife and I both work and we could potentially afford the cost of sending both children to Public school we have moved to an area where there are still good grammar schools. We will at least have the choice, if the kids are up to it, between paying or not for a good education.
  13. Another update and I have nearly bought a house, this is a copy paste from another thread but thought it worth adding here as well for those interested in Sevenoaks. I exchanged last week and will complete in July. After a year of looking I have realised that in popular areas within quick commute of London liquidity/supply has all but dried up meaning there is a lot of money chasing the good houses which go quickly and for asking if not way over. Bad houses simply are not selling. The quick and dirty crash/correction I was hoping for did not and has not materialised in my area and price bracket. I thought I was the clever one selling up and looking to buy with cash or close to it but I am not alone. The agents have hundreds of people in similar situations having sold to rent. If anything like me then most of these potential buyers are long cash and have made significant profit from previous house so the outright price of the house to buy is not the real cost. I hoped to buy for cash but have taken out a mortgage as I was forced to pay more than I hoped for the right house. The mortgage was not a problem as I am putting up 75% in cash. Having missed out on two houses that went to sealed bids and then sold for way over asking when offered the current house before it was actively marketed I lifted the offer at asking without hesitation. If it had gone on the market I have no doubt a bidding war would have ensued so uncomfortable that I was paying asking it was better than taking the risk of paying more. As to the debate of renting vs buying there is of course no right or wrong answer to this question. It just depends on the situation. For me the monthly rent was obscene and was beginning to hurt given the total lack of return on my cash currently. Certainly on a monthly basis the mortgage will be 50% cheaper than the rent and I can't see rates flying up in the short to medium term. I can also understand when people say they feel their life is on hold while renting. I think this really depends whether you renting while you look to buy or simply renting. If you rent while you look to buy then yes your life feels on hold. You don't really care about the rental property and do not invest a great deal to make it a home because you anticipate moving on. This is certainly my feeling on the past 1.5 years of renting. I never felt settled because I wanted to move on. Of course having said that I have quite happily rented for years in the past when I was not considering an alternative. It pains me to have bought at what will most probably be close to the all time high for housing but having ridden the bubble on the way up and realised the free money so easily and undeservedly made I would have to be a very pompous and deluded individual to not accept that nothing comes for free and what goes up inevitably comes down in the end. Easy come and easy go and now I can finally buy that ride on mower I always wanted.
  14. Congrats RB. I too have recently exchanged having sold up in London 2 Years ago and rented since in a leafy part of Kent/Surrey borders. I have no doubt that prices will eventually drop but they haven't where I am looking and the time is right to move on whether or not it is the best choice financially. After a year of looking I have realised that in popular areas within quick commute of London liquidity/supply has all but dried up meaning there is a lot of money chasing the good houses which go quickly and for asking if not way over. Bad houses simply are not selling. The quick and dirty crash/correction I was hoping for did not and has not materialised in my area and price bracket. I thought I was the clever one selling up and looking to buy with cash or close to it but I am not alone. The agents have hundreds of people in similar situations having sold to rent. If anything like me then most of these potential buyers are long cash and have made significant profit from previous house so the outright price of the house to buy is not the real cost. I hoped to buy for cash but have taken out a mortgage as I was forced to pay more than I hoped for the right house. The mortgage was not a problem as I am putting up 75% in cash. Having missed out on two houses that went to sealed bids and then sold for way over asking when offered the current house before it was actively marketed I lifted the offer at asking without hesitation. If it had gone on the market I have no doubt a bidding war would have ensued so uncomfortable that I was paying asking it was better than taking the risk of paying more. As to the debate of renting vs buying there is of course no right or wrong answer to this question. It just depends on the situation. For me the monthly rent was obscene and was beginning to hurt given the total lack of return on my cash currently. Certainly on a monthly basis the mortgage will be 50% cheaper than the rent and I can't see rates flying up in the short to medium term. I can also understand when people say they feel their life is on hold while renting. I think this really depends whether you renting while you look to buy or simply renting. If you rent while you look to buy then yes your life feels on hold. You don't really care about the rental property and do not invest a great deal to make it a home because you anticipate moving on. This is certainly my feeling on the past 2 years of renting. I never felt settled because I wanted to move on. Of course having said that I have quite happily rented for years in the past when I was not considering an alternative. It pains me to have bought at what will most probably be close to the all time high for housing but having ridden the bubble on the way up and realised the free money so easily and undeservedly made I would have to be a very pompous and deluded individual to not accept that nothing comes for free and what goes up inevitably comes down in the end. Easy come and easy go and now I can finally buy that ride on mower I always wanted.
  15. Sounds like Sevenoaks. Good houses are still flying off shelves and not reaching market. Bad houses hang around not selling.
  16. Taking on a 5 YR fix at current levels vs running a floater with the free option to move to a fix at a later date? That is the question. Of course it depends on how much you want to overpay and how far and fast you think base rates and fixed rate mortgage rates will rise, and of course the level of risk you want to take. Personally and I say this as someone without a mortgage contemplating taking one out I would still go the floating route at this point in time. Yes rate will rise but in my opinion not hard and fast enough for fixed rate mortgage to dramatically rise from the levels they are at now. Sure there will be spikes but unless there is a dramatic change in the economy the risk is low. Of course this is only my personal opinion and from a position of relative security given I have a large deposit.
  17. The advantage of a floater over a fixed mortgage is that you can normally overpay and/or cancel/transfer the mortgage with no penalty/cost. Even the most conservative borrower today would struggle to take out a fixed when trackers are still significantly cheaper than fixed and offer the flexibility to change when the rate outlook turns more negative. Rates are not going to shoot up in the short to medium term so borrowers will have plenty of time to find the tipping point to shift to a fixed if market conditions become clearer with regards to the longer outlook for rates. The only problem I see for those on floaters is that some may not have the equity to re mortgage at all given their LTV in the current environment. Being trapped on a floater is a different proposition to choosing floater over fixed for sound financial reasons. (yes yes being trapped on a floater made me snigger too)
  18. The language is as one would expect from Boris but the points he makes are absolutely sound. What is the alternative that Labour is suggesting apart from Ed Balls total denial of the debt and deficit?
  19. Twitter Q and A going on at the moment. Send Phil your questions about imminent House Price Crash. @Pipoffthetv Hash Tag #PhilQA
  20. Surely you can withdraw the first offer and then resubmit to the second agent?
  21. For the seller I agree, great deal. I just naively thought that in going to closed bids a house was effectively put up for opaque auction. At the cut off the highest bid should win. I would be pretty pissed off if I was highest bidder within the time frame defined by the agent especially if the agent revealed my bid in order to elicit a higher bid.
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