Jump to content
House Price Crash Forum

Recommended Posts

During the boom, stamp duty and moving fees really didn't matter when prices were rising. The 3/4% for the higher bands really weren't much of a disincentive, you could just add it to the mortgage if you wanted.

Now for the bust, if you need to move for work reasons, you may find yourself unable to afford those fees (5% total), even if moving to a house of identical price. At companies I've worked for recently, there has been no relocation package available and I don't see that likely to reverse in future.

This is not exactly optimal policy for a recession when you need to get all your workers into any job to avoid paying about benefits.

VMR.

Share this post


Link to post
Share on other sites
During the boom, stamp duty and moving fees really didn't matter when prices were rising. The 3/4% for the higher bands really weren't much of a disincentive, you could just add it to the mortgage if you wanted.

Now for the bust, if you need to move for work reasons, you may find yourself unable to afford those fees (5% total), even if moving to a house of identical price. At companies I've worked for recently, there has been no relocation package available and I don't see that likely to reverse in future.

This is not exactly optimal policy for a recession when you need to get all your workers into any job to avoid paying about benefits.

VMR.

Why would they not just sell up and rent? Almost seems like a no brainer, oh.. except for the fact that saving attract Zero interest and the banks might use the money to snort a bit more snow. Unintened consequences and all that..

Share this post


Link to post
Share on other sites

i was 'headhunted' for a job in london for 60k in 07.

i explained there was no way i would benefit with the london house price conditions and would better off where i was.

i thanked them for their offer., but declined an interview they were a little 'stunned'

but im glad i declined.

Share this post


Link to post
Share on other sites
Why would they not just sell up and rent? Almost seems like a no brainer, oh.. except for the fact that saving attract Zero interest and the banks might use the money to snort a bit more snow. Unintened consequences and all that..

Very few people are prepared to give up home ownership once they have had it, even for strong financial reasons.

VMR.

Share this post


Link to post
Share on other sites
Very few people are prepared to give up home ownership once they have had it, even for strong financial reasons.

VMR.

Like losing your job and going broke for instance?

Share this post


Link to post
Share on other sites
i was 'headhunted' for a job in london for 60k in 07.

i explained there was no way i would benefit with the london house price conditions and would better off where i was.

i thanked them for their offer., but declined an interview they were a little 'stunned'

but im glad i declined.

I'd accepted a job once and then got a house paper for that area. I had to then turn it down, the recruiter wasnt too happy.

VMR.

Share this post


Link to post
Share on other sites
I'd accepted a job once and then got a house paper for that area. I had to then turn it down, the recruiter wasnt too happy.

VMR.

yeah. its like they didnt realise the problems london housing was causing.

i would have loved to have taken the job AND spent some time living in the big smoke, but not for the prices there asking for rentals. id have been stuck in some forsaken bedsit !!

no way. how about quality of life - thats got to be worth a paltry extra 20k than i get now, and the rents here are much much lower. too high though, but not crazy like down there.

Share this post


Link to post
Share on other sites
yeah. its like they didnt realise the problems london housing was causing.

i would have loved to have taken the job AND spent some time living in the big smoke, but not for the prices there asking for rentals. id have been stuck in some forsaken bedsit !!

no way. how about quality of life - thats got to be worth a paltry extra 20k than i get now, and the rents here are much much lower. too high though, but not crazy like down there.

Although I appreciate your point, I doubt £60k would result in a flea infested bedsit, with a work from home prostitute as your neighbor.

Most profesional jobs I've seen in London pay half that. Something really has got to give.

Share this post


Link to post
Share on other sites
i was 'headhunted' for a job in london for 60k in 07.

i explained there was no way i would benefit with the london house price conditions and would better off where i was.

i thanked them for their offer., but declined an interview they were a little 'stunned'

but im glad i declined.

Snap - except it was 57k, in Camden.

I even put "NOT LONDON" on my CV and ended up explaining to one especially pushy agency that I'd move to London if my standard of living could remain the same, so I'd be looking at a 3 bed semi with a 70ft garden in a nice area, maybe circa £500k, so £200k was the minimum I could work for. He didn't quite get it :)

Share this post


Link to post
Share on other sites
Although I appreciate your point, I doubt £60k would result in a flea infested bedsit, with a work from home prostitute as your neighbor.

Most profesional jobs I've seen in London pay half that. Something really has got to give.

probably, but the weekly rents i looked at are what you would pay monthly here.

it cancelled out the raise almost £ for £.

Snap - except it was 57k, in Camden.

I even put "NOT LONDON" on my CV and ended up explaining to one especially pushy agency that I'd move to London if my standard of living could remain the same, so I'd be looking at a 3 bed semi with a 70ft garden in a nice area, maybe circa £500k, so £200k was the minimum I could work for. He didn't quite get it :)

they called me out of the blue like id been nominated for an mbe.

in an ordinary world id have jumped circles at the offer.

sad times. life killing times.

i could have had so much adventure.

Edited by the-sign-jacker

Share this post


Link to post
Share on other sites
probably, but the weekly rents i looked at are what you would pay monthly here.

it cancelled out the raise almost £ for £.

they called me out of the blue like id been nominated for an mbe.

in an ordinary world id have jumped circles at the offer.

sad times. life killing times.

i could have had so much adventure.

There's always a price :(

Share this post


Link to post
Share on other sites
Snap - except it was 57k, in Camden.

I even put "NOT LONDON" on my CV and ended up explaining to one especially pushy agency that I'd move to London if my standard of living could remain the same, so I'd be looking at a 3 bed semi with a 70ft garden in a nice area, maybe circa £500k, so £200k was the minimum I could work for. He didn't quite get it :)

Most don't. Either they assumed everyone had 'equity' or went in for LIAR LOANS, or they just didn't realise the situation. I remember on Spendaholics they were trying to get a girl in London who earned, I think, about £16k, to 'save for a deposit'. A deposit on what? A tent in Regent's Park?

Share this post


Link to post
Share on other sites
Now for the bust, if you need to move for work reasons, you may find yourself unable to afford those fees (5% total), even if moving to a house of identical price. At companies I've worked for recently, there has been no relocation package available and I don't see that likely to reverse in future.

This is not exactly optimal policy for a recession when you need to get all your workers into any job to avoid paying about benefits.

Could be Very Good News, if it helps hasten some of the dinosaurs out of the old-fashioned 19th/20th century office, with its soul-destroying bums-on-seats culture and Dilbertian work practices, and make flexible and home working the norm for those of us in the "information economy".

Share this post


Link to post
Share on other sites
Snap - except it was 57k, in Camden.

I even put "NOT LONDON" on my CV and ended up explaining to one especially pushy agency that I'd move to London if my standard of living could remain the same, so I'd be looking at a 3 bed semi with a 70ft garden in a nice area, maybe circa £500k, so £200k was the minimum I could work for. He didn't quite get it :)

http://bahumbug.wordpress.com/2007/07/03/couk-in-a-timewarp/

Yesterday El Reg ran a story about how UK companies can’t recruit IT talent, and lack the imagination to update their working practices to what people find acceptable this century. It attracted quite a few comments, showing a thoroughly predictable (to a geek) lack of sympathy with the poor companies. They are, and have been for as long as I’ve been in the business (over 20 years now) the authors of their own misfortunes.

At my venerable age, they no longer insult me by offering peanuts of the kind that dip below the statutory minimum wage once you factor it over all the unpaid extra hours. But even when they talk of really good money, they’re stuck in a dinosaur mindset.

Here’s my contribution to that article. I meant to post it anonymously, but forgot to check the box, so my name’s already attached to it.

[Ring Ring]

“Hello, [me] speaking”

“Hello, this is J. Random Recruiter. Is this a good time?”

“Yeah, fine. What can I do you for?”

“We’ve got a city financial company needs your skills, in particular [foo]“

“Indeed?”

“Would you be available to work in The City”?

“I work for clients around the world. The City is fine. Just so long as they don’t expect my bum physically in their seat on a regular basis. Happy to travel to London occasionally - say, up to once a month.”

“They’ll pay £150K for this. And that’s a permie salary”

“Great. And that’ll be based on working primarily from home?”

“No, clients won’t generally do that. But you don’t have to live in London, you can commute in from the country”.

“It’s a minimum of five hours from here to Paddington, one way. About monthly is OK; anything much more frequent isn’t. That’s why I work from home, for clients around the world”.

“You find clients who are happy with that?”

“Most of my income comes from America, which means it’s losing its value. I’d welcome work coming from London.”

“And you wouldn’t consider moving”?

“Yes, but not to anywhere in SouthEast England.”

“They might be flexible on the pay”.

“The money is fine, thank you. Southeast England isn’t. That’s what I’ve escaped from, and I’m not about to go back”.

“Oh. So you wouldn’t be interested?”

“As I said, I’m happy to go up there from time to time.”

… and it draws to a close. We haven’t even discussed the work itself, beyond the recruiter having taken an interest in my CV. He can use our telecoms infrastructure to do his job (contact prospective recruits) remotely, but won’t countenance the recruits themselves doing likewise.

Not all of them say £150k (the last one I recollect did). But the shape of the conversation is remarkably predictable. I expect hacks prepared to work in central London are in huge demand and commanding correspondingly inflated pay, while those of us who won’t do it will find my tale very familiar.

Share this post


Link to post
Share on other sites
Although I appreciate your point, I doubt £60k would result in a flea infested bedsit, with a work from home prostitute as your neighbor.

Most profesional jobs I've seen in London pay half that. Something really has got to give.

3 x 60 = £180k.

In 2007 this would have bought a 1 bed flat in a grotty area, or a studio flat in an average area. So maybe not flea infested bedsit etc but maybe not much better.

Share this post


Link to post
Share on other sites
During the boom, stamp duty and moving fees really didn't matter when prices were rising. The 3/4% for the higher bands really weren't much of a disincentive, you could just add it to the mortgage if you wanted.

Now for the bust, if you need to move for work reasons, you may find yourself unable to afford those fees (5% total), even if moving to a house of identical price. At companies I've worked for recently, there has been no relocation package available and I don't see that likely to reverse in future.

This is not exactly optimal policy for a recession when you need to get all your workers into any job to avoid paying about benefits.

VMR.

Good point VMR - I was also thinking that these fees and falling prices will make trading up impossible for many. Many people could move up as their house went up in value so they now had say 25% equity for the next house up, and as you say fees could be added onto mortgage. If house hasn't gone up in value, or has gone down its going to mean that people actually have to SAVE money in order to trade up.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.