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Guest pioneer31

Had A Chat With Some Friends The Other Night

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Guest pioneer31

.....because "prices are going to rise"

This HPI brainwash is like a fundementalist religion. Can ANYTHING break the spell?

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.....because "prices are going to rise"

This HPI brainwash is like a fundementalist religion. Can ANYTHING break the spell?

1. How much are they borrowing?

2. Did they have a view on longer term interest rates?

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.....because "prices are going to rise"

This HPI brainwash is like a fundementalist religion. Can ANYTHING break the spell?

These are bears who like to think they are like other bears but in fact their behaviour dictates otherwise.

If it were not for these type of bears however, we would not be experiencing what is known as a bull trap.

Fascinating.

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Let them buy - you're wasting your time trying to disuade them. I've given up trying to educate people on financial matters - they way I figure it is the more dumb people there are the better it is for the smart ones.

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.....because "prices are going to rise"

This HPI brainwash is like a fundementalist religion. Can ANYTHING break the spell?

Why do you find their intention to buy a house so disturbing?

They, not you, will have to live with the consequences of their actions.

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Guest DissipatedYouthIsValuable
Let them buy - you're wasting your time trying to disuade them. I've given up trying to educate people on financial matters - they way I figure it is the more dumb people there are the better it is for the smart ones.

I killed my brother to get ahead this morning.

The capitalist money system made me do it.

Edited by DissipatedYouthIsValuable

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Good luck to them.

You know in the long term house prices only ever increase.

They could be fed up of renting and want a place of their own.

They only ever go up with wage increases in the long term.?

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Why do you find their intention to buy a house so disturbing?

They, not you, will have to live with the consequences of their actions.

Not true unfortunately. We will all have to live the the consequences of their actions, since they are purchasing a resource which is in restricted supply at an inflated price point, probably using a mortgage from a government supported institution... ie buying their overpriced house with our money.

Everyone's actions affect everbody else.

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.....because "prices are going to rise"

This HPI brainwash is like a fundementalist religion. Can ANYTHING break the spell?

They will have heard someone say they are going to rise and will not of done any research at all into the subject. i bet if you asked them they have not even heard about the Rightmove -2.2% fall in asking prices.

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Not true unfortunately. We will all have to live the the consequences of their actions, since they are purchasing a resource which is in restricted supply at an inflated price point, probably using a mortgage from a government supported institution... ie buying their overpriced house with our money.

Everyone's actions affect everbody else.

not so.

somebody is either making a place for them, or somebody is moving to make a place.

TBH, thousands buy houses every week in the UK. these people may or may not need a mortgage.

a client of mine, a Police Officer, lives in a 5 bed large house in the country...his wife's mum and dad are multi millionaires. the house value has no meaning to him whatsoever....probably no relevance to the parents either....and you know whats worse...SHE is absolutely gorgeous too. some guys just have everything!.

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Guest pioneer31
Why do you find their intention to buy a house so disturbing?

They, not you, will have to live with the consequences of their actions.

They are of course free to do what they want.

What I find bizarre is why they are buying now - "because prices are going to rise"

Where are the indicators?

I didn't bother arguing with them because as another poster said, I can't be bothered anymore. It's a losing battle, like trying to tell an Islamic fundamentalist that perhaps there isn't a god.

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They are of course free to do what they want.

What I find bizarre is why they are buying now - "because prices are going to rise"

Where are the indicators?

I didn't bother arguing with them because as another poster said, I can't be bothered anymore. It's a losing battle, like trying to tell an Islamic fundamentalist that perhaps there isn't a god.

Greed..or Fear?....or both?

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Guest pioneer31
They will have heard someone say they are going to rise and will not of done any research at all into the subject. i bet if you asked them they have not even heard about the Rightmove -2.2% fall in asking prices.

I couldn't get a clear answer as to why they think the prices are going to rise NOW.

In fact all my friends are bullish towards housing, they parrot these cliches but have obviously not given

one second's thought as to why this may be the case.

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I couldn't get a clear answer as to why they think the prices are going to rise NOW.

In fact all my friends are bullish towards housing, they parrot these cliches but have obviously not given

one second's thought as to why this may be the case.

My daughter (24) who listens to me a bit, said the other day (Sunday), that as they were driving home from their holiday, they were quite surprised everything was doing so well as according to the radio, things are receovering everywhere.

She went on to say she didnt really notice either any signs of recession...she has her job, she earned a small sales bonus last month, life is good.

She said I should watch the news a bit more and get the facts!!!!!

Shame. I couldnt be bothered to put her straight....money goes in her account and straight out again. new boyfriend...leave her to it.

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Guest pioneer31
My daughter (24) who listens to me a bit, said the other day (Sunday), that as they were driving home from their holiday, they were quite surprised everything was doing so well as according to the radio, things are receovering everywhere.

She went on to say she didnt really notice either any signs of recession...she has her job, she earned a small sales bonus last month, life is good.

She said I should watch the news a bit more and get the facts!!!!!

Shame. I couldnt be bothered to put her straight....money goes in her account and straight out again. new boyfriend...leave her to it.

o

Yeh. I didn't see any signs in the last recession.....or the 80's one.

My parents remained in employment throughout, so all this ranting about Maggie means little to me

but they DID occur and house prices responded accordingly

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Guest pioneer31
Greed..or Fear?....or both?

Fear.

Supplied by auntie/Express/Nationwide/any other mindless VI

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I couldn't get a clear answer as to why they think the prices are going to rise NOW.

In fact all my friends are bullish towards housing, they parrot these cliches but have obviously not given

one second's thought as to why this may be the case.

Your friends are not the only ones.

FTB demand is high

First-time buyers were first back into the housing market according to the latest research from Connells Survey & Valuation, but more recently, home movers and investors have also begun to jump back in.

In the first quarter, 58% of Connells valuations were for first time buyers, up from 42% in the same period of 2008. In the second quarter, as other buyers began to follow suit, first time buyers fell to 53% of all transactions, and by July, this had dipped to 46%. The recent decline in the proportion of first time buyers comes against a backdrop of an overall increase in the number of house purchases. Home movers have increased their share from just 35% of mortgage valuations to 44% by July. There is heightened activity on the buy to let front too, where investors have increased from just one in fourteen buyers earlier this year to one in ten in July.

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Not true unfortunately. We will all have to live the the consequences of their actions, since they are purchasing a resource which is in restricted supply at an inflated price point, probably using a mortgage from a government supported institution... ie buying their overpriced house with our money.

Everyone's actions affect everbody else.

What you mean is that they are prepared to pay more for a house than you which deprives you of the opportunity. Their not buying would not increase supply. If you bought it a lower price that would also reduce supply.

If they are borrowing at a commercial rate, and don't default on the loan, then no problem. Government supported financial institutions need high quality borrowers to allow them to recover. We may even be able to recover some of the support money then.

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If they are borrowing at a commercial rate, and don't default on the loan, then no problem. Government supported financial institutions need high quality borrowers to allow them to recover. We may even be able to recover some of the support money then.

Nobody is a "high quality borrower" when buying at a high LTV and high wage multiple, especially at the current artificially low interest rates. Subprime isn't just poor people, it's anybody who is seriously overstretched. Anybody buying at current prices must be either 1. overstretched or 2. able to slap down a big deposit, properly courtesy of their parents withdrawing mortgage equity or handing over some of their life savings. If it's the first one then that person is a bad borrower and the (state-supported) bank is risking its capital yet again, which may lead to even more bailouts in the future. If it's the second then it's just another example of British people accumulating more debt and running down their savings, which will suppress future economic activity as they will have less to spend in years to come. None of this is a good thing.

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