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cypher007

No Wonder There's Been No Crash

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just seen what seemed some very cheap new properties and it turns out the price on rightmove isnt the price you pay, because the government is backing 30% of the price for the first 5 years, with a 0% loan. sounds like a nice way of keeping prices artificially high, i wonder what will happen after 5 years? i guess this is why we havent seen the 30% drop everyone on here keeps predicting.

http://www.redrow.co.uk/homebuydirect?gcli...CFV8B4wodqEHikA

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This will 'help' about 6,000 people.

I think first time buyers have to make a stand and tell them to shove their 100% loan up their big, fat, hairy, smelly ****. This is a once in a lifetime opportunity.

Do we

a. Take their loan so we can all tell our friends how great it is to be on the property ladder, and wave our borrowed wonga around for all to see, while living hand to mouth giving over 50% of our wages to some bankrupt bank?

or

b. Don't buy into this crap, wait a few years and then wave our own wonga around for the next 25 years.

Hmmmmm <_<

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Brown's future, legacy and life depend on the direction of one thing: house prices.

NuLabour will stop at nothing to keep inflating them as momentum lost will send us back on the inevitable crash track. He is buying time but the tide will not obey him as no one beats the market.

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FTBI is similar to other government shared equity schemes through which it enables eligible first-time buyers to buy a share in a new FTBI home.

The buyer must take out an affordable mortgage, which along with any deposit, must make-up a minimum of 50% of the full purchase price. In return the government will assist with up to 50% of the full property price. Assistance is paid to the participating housebuilder, not the first-time buyer. The government then has an entitlement to a share of the future sale proceeds which will be equal to the initial percentage contribution. For example, if government paid 50% towards a £200,000 home, it would be entitled to 50% of the achieved sale price on sale.

http://www.englishpartnerships.co.uk/ftbi.htm

So when prices drop by 50% the taxpayer loses, its a little time-bomb designed to go off when the next (non-labour) government is in power

The wording redrow use glosses over the above:

If you purchase a Redrow home through HomeBuy Direct, you will still have 100% title to your home and you can sell it on the open market without restriction.

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FTBI is similar to other government shared equity schemes through which it enables eligible first-time buyers to buy a share in a new FTBI home.

The buyer must take out an affordable mortgage, which along with any deposit, must make-up a minimum of 50% of the full purchase price. In return the government will assist with up to 50% of the full property price. Assistance is paid to the participating housebuilder, not the first-time buyer. The government then has an entitlement to a share of the future sale proceeds which will be equal to the initial percentage contribution. For example, if government paid 50% towards a £200,000 home, it would be entitled to 50% of the achieved sale price on sale.

http://www.englishpartnerships.co.uk/ftbi.htm

So when prices drop by 50% the taxpayer loses, its a little time-bomb designed to go off when the next (non-labour) government is in power

The wording redrow use glosses over the above:

If you purchase a Redrow home through HomeBuy Direct, you will still have 100% title to your home and you can sell it on the open market without restriction.

no if the house falls 50% the taxpayer gets 50% of the proceeds...the "affordable mortgage" will remain the same, so the "owner" is now homeless and still owes the mortgage co, half the loan.

not good if you are hoping to trade up some time.

and even if you do decide to trade up and the market rises, you still havent got the equity the government has provided. so basically, you are stuck for the foreseeable....best make sure you get one you can live in.

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It is both fascinating and perverse when all manner of spending cuts are deemed necessary, and £50b is the figure being discussed, that the government are actually spending money (they don't have) in propping up ludicrously overpriced houses.

It is both dishonest (the HPI/wealth lie) and short-sighted (it will end in tears). However, to sucker in and entrap the naive buyer is beyond contempt.

When money is tight and cutting services necessary, how can propping up house prices with taxpayers money possibly be 'the right thing to do?'

If I hear another politician spouting on about 'affordable' (subsidised) houses...

Edited by tinker

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Brown's future, legacy and life depend on the direction of one thing: house prices.

NuLabour will stop at nothing to keep inflating them as momentum lost will send us back on the inevitable crash track. He is buying time but the tide will not obey him as no one beats the market.

Britain's short term future depends on house prices.

Government will stop at nothing to prevent the market from tanking, for now.

Unfortunately us there are the simple matters of baby boomers retiring, an impending energy crisis, and a broken financial system.

The only thing the rest of us can look forward to is increased taxes, loss of civil liberty, and uncertainty.

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just seen what seemed some very cheap new properties and it turns out the price on rightmove isnt the price you pay, because the government is backing 30% of the price for the first 5 years, with a 0% loan. sounds like a nice way of keeping prices artificially high, i wonder what will happen after 5 years? i guess this is why we havent seen the 30% drop everyone on here keeps predicting.

http://www.redrow.co.uk/homebuydirect?gcli...CFV8B4wodqEHikA

Data would suggest there has been a significant drop in property prices. Are you a crash denier?

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Data would suggest there has been a significant drop in property prices. Are you a crash denier?

no im a "still waiting to see a crash happen" here in Boston. low end 3 bed semi's have lost maybe £25k, but detached places in the right area have only dropped maybe £10k. this is on asking prices. were desparate for a crash to happen as we want to trade up.

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no im a "still waiting to see a crash happen" here in Boston. low end 3 bed semi's have lost maybe £25k, but detached places in the right area have only dropped maybe £10k. this is on asking prices. were desparate for a crash to happen as we want to trade up.

you could always try a new game....its called...lets view and make an offer! could be fun

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you could always try a new game....its called...lets view and make an offer! could be fun

:) hehe, yeah we used to try that, but these days the agents want you to be sold before they even let you view a house let alone put offers in. one agent tried to convince me to drop my price to get my house sold, as he said it would put us in a better position to offer on houses. yes i said, but if we cant afford anything as weve had to drop our price so much we would have to pull out of the sale. plus my guess is they would charge me for pulling out of the sale. so im not prepared to go down that road.

Edited by cypher007

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Brown's future, legacy and life depend on the direction of one thing: house prices.

NuLabour will stop at nothing to keep inflating them as momentum lost will send us back on the inevitable crash track. He is buying time but the tide will not obey him as no one beats the market.

+1 and then some more

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:) hehe, yeah we used to try that, but these days the agents want you to be sold before they even let you view a house let alone put offers in. one agent tried to convince me to drop my price to get my house sold, as he said it would put us in a better position to offer on houses. yes i said, but if we cant afford anything as weve had to drop our price so much we would have to pull out of the sale. plus my guess is they would charge me for pulling out of the sale. so im not prepared to go down that road.

If what you say is true, then that is further evidence that the current market is driven by "qualified" buyers....thats those that need to move having sold, have cash and have mortgage approved.

standing at the sidelines or having an unsaleable house excludes many....if not most of the "demand".

course, qualified buyers would have better incomes and therefore better access to funds....

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If what you say is true, then that is further evidence that the current market is driven by "qualified" buyers....thats those that need to move having sold, have cash and have mortgage approved.

standing at the sidelines or having an unsaleable house excludes many....if not most of the "demand".

course, qualified buyers would have better incomes and therefore better access to funds....

we have the funds and can get a mortgage for the rest, i just dont see why i should sell for nothing and pay top dollar for a detached.

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It is both fascinating and perverse when all manner of spending cuts are deemed necessary, and £50b is the figure being discussed, that the government are actually spending money (they don't have) in propping up ludicrously overpriced houses.

It is both dishonest (the HPI/wealth lie) and short-sighted (it will end in tears). However, to sucker in and entrap the naive buyer is beyond contempt.

When money is tight and cutting services it necessary, how can propping up house prices with taxpayers money possibly be 'the right thing to do?'

+1

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:) hehe, yeah we used to try that, but these days the agents want you to be sold before they even let you view a house let alone put offers in. one agent tried to convince me to drop my price to get my house sold, as he said it would put us in a better position to offer on houses. yes i said, but if we cant afford anything as weve had to drop our price so much we would have to pull out of the sale. plus my guess is they would charge me for pulling out of the sale. so im not prepared to go down that road.

I don't get this, you're waiting for prices to crash but you won't drop the price of your house so that you can sell it.

If you won't do it then why would it surprise you that nobody else will?

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I don't get this, you're waiting for prices to crash but you won't drop the price of your house so that you can sell it.

If you won't do it then why would it surprise you that nobody else will?

ive already dropped it by £20k, which is more than some of the detached properties weve looked at.

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It is both fascinating and perverse when all manner of spending cuts are deemed necessary, and £50b is the figure being discussed, that the government are actually spending money (they don't have) in propping up ludicrously overpriced houses.

It is both dishonest (the HPI/wealth lie) and short-sighted (it will end in tears). However, to sucker in and entrap the naive buyer is beyond contempt.

When money is tight and cutting services it necessary, how can propping up house prices with taxpayers money possibly be 'the right thing to do?'

If I hear another politician spouting on about 'affordable' (subsidised) houses...

Its because so many MP's and councillors have BTL portfolios. Even the tories. They don't want prices to fall because of their own greed let alone votes.

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just seen what seemed some very cheap new properties and it turns out the price on rightmove isnt the price you pay, because the government is backing 30% of the price for the first 5 years, with a 0% loan. sounds like a nice way of keeping prices artificially high, i wonder what will happen after 5 years? i guess this is why we havent seen the 30% drop everyone on here keeps predicting.

http://www.redrow.co.uk/homebuydirect?gcli...CFV8B4wodqEHikA

Another false distortion of the market! I suppose you have to hand it to this loopy government - they are the masters of the 'smoke and mirrors act'. All but the wisest have no bl**dy idea what is going to happen with house prices as a result. Personally I reckon that eventually the market will win through, prices will fall and then some people who have been conned into jumping onto the ladder by these govt schemes are going to be in a lorry load of trouble. Frankly, I feel very sorry for them - the govt is pulling the wool well and truly over their eyes blatantly for political gain....once again 'spin-over-sustance'.

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It is both fascinating and perverse when all manner of spending cuts are deemed necessary, and £50b is the figure being discussed, that the government are actually spending money (they don't have) in propping up ludicrously overpriced houses.

It is both dishonest (the HPI/wealth lie) and short-sighted (it will end in tears). However, to sucker in and entrap the naive buyer is beyond contempt.

When money is tight and cutting services necessary, how can propping up house prices with taxpayers money possibly be 'the right thing to do?'

If I hear another politician spouting on about 'affordable' (subsidised) houses...

+1

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