Number Of First Time Buyers In State Of Collapse

[lowrentyieldmakessense(honest!)]

Are you in London?

Do they have to pay them back? Or are the parents taking an equity stake in the property?

Here is a wider question. If your parents offered to pay 30% towards the purchase of a new build house but you have to buy it today would you go for it?

the properties are all in London

i am not and neither are their parents

no equity stake but supposed payback

edit to change the parents to their parents before some control freak gets to me

Edited March 9, 2010 by lowrentyieldmakessense(honest!)

[The Masked Tulip]

I think there is another factor contributing to this stat which is that first time buyers are simply giving up wanting a house. Many of us, those with deposits saves and those without, don't see the benefit compare to what else we could do with our lives. When housing is very obviously going to take most of your income for life if you buy it you realize that you could do other things with your life / money instead.

I have noticed friends starting to think this way over the last year or so, especially now the housing only ever goes up mental bubble has popped.

Given up wanting to buy a house? I suspect many have given up trying to keep their savings ahead of inflation without taking speculative punts in the stock market, gold, etc.

[Mr Punter]

has the bank of mum and dad collapsed

Perhaps not completely, but it is no longer enough for parents to stand as guarantor when the kids want to over-borrow, they need to stump up cash, which they may have had other plans for.

[right_freds_dead]

I think there is another factor contributing to this stat which is that first time buyers are simply giving up wanting a house. Many of us, those with deposits saves and those without, don't see the benefit compare to what else we could do with our lives. When housing is very obviously going to take most of your income for life if you buy it you realize that you could do other things with your life / money instead.

I have noticed friends starting to think this way over the last year or so, especially now the housing only ever goes up mental bubble has popped.

aye aye to this.

ive been waiting in the wings for a fair price for a fair home for quite a number of years. hoo'ever, now im thinking that its taking so long perhaps its better to rent and spend the money on myself padding out my income. why would i want to swap the comfort of money for the tatty bricks of an accrington terrace with its pvc windows, crooked self built kitchen extension and faulty boiler. as i rent from a HA, they fix all that dog gone shit. given the two choices, its probably better for me to take it easy. i dont see the grass being so green after all.

[Sour Mash]

End of SLS and CGS with the Banks having to repay the £250bn - £300bn that SLS and CGS gave them in the last 18 months by 2012 and 2014. ....... the ongoing crash in property transactions ..... + there seems to be a rapid change in sentiment going on (last year people in the public really did seem to believe in the 'recovery' whereas now everyone in the pub, at work, etc. seems very worried about job security, that the recovery is falling apart, that none of the political parties seem to have the answers, that bills are going up, taxes are set to rise significantly, etc., etc. People are very worried and stressed. Also, everyone has seen that house prices are already falling this year.

There won't be a voluntary end to the special liquidity measures as they are basically what is supporting bank lending. It will almost certainly be funded in turn by more QE.

That's the problem with breaking the money printing, state support, taboo. Once you start it gets increasingly difficult to stop and the consequences of stopping are even worse.

Sooner or later, of course, market conditions will force it to stop but who knows how screwed up things will be by then.

[Damik]

Nope, still going on. Friend recently moved to the area having sold up in Leeds, now has money sitting in the bank and won't contemplate putting it anywhere other than bricks-and-mortar. Can't really blame her: she still stands to gain from the tax-and-benefits system by buying property, and to lose by having other assets.

if she bought last month she would already lost 1%. Congrats!!!

[Ben from Dover]

aye aye to this.

ive been waiting in the wings for a fair price for a fair home for quite a number of years. hoo'ever, now im thinking that its taking so long perhaps its better to rent and spend the money on myself padding out my income. why would i want to swap the comfort of money for the tatty bricks of an accrington terrace with its pvc windows, crooked self built kitchen extension and faulty boiler. as i rent from a HA, they fix all that dog gone shit. given the two choices, its probably better for me to take it easy. i dont see the grass being so green after all.

Especially since you are HA, if I was you i'd stay for life. Use your money to see the world, throw a massive party, live with a smug grim that comes from knowing that you could tell your boss to shove it and walk out today without the slightest financial worry.

[Selling up]

if she bought last month she would already lost 1%. Congrats!!!

That's a bit of a weird conclusion.

Property's not like gold where you buy and sell it instantly at the spot price with small transaction costs.

If she decided now to sell, the amount she would have gained/lost would depend on what specific offer from a particular buyer she chose to accept, minus substantial transaction costs.

It doesn't make sense to claim that a [edit: particular] house is worth 1% less this month than last month just because that's the average change in price of a substantial sample of houses sold UK-wide over that period.

Edited March 9, 2010 by Selling up

[eric pebble]

That's a bit of a weird conclusion.

Property's not like gold where you buy and sell it instantly at the spot price with small transaction costs.

If she decided now to sell, the amount she would have gained/lost would depend on what specific offer from a particular buyer she chose to accept, minus substantial transaction costs.

It doesn't make sense to claim that a house is worth 1% less this month than last month just because that's the average change in price of a substantial sample of houses sold UK-wide over that period.

Who the F*CK CARES? All that most people with any brain know is - a 2/3 bed terraced house in Averageton is NOT "worth" £550k, £400K, OR EVEN £150K. - even if it was built in pure gold.... And - this fact is dawning on more and more people as the weeks go by now....

JUST REMEMBER THIS FORMULA: 3 X AVERAGE SALARY = COST OF AVERAGE PLACE TO LIVE. PERIOD. END OF. FINITO.

AND - "AVERAGE SALARY" IS ONE F*CK OF A LOT LESS THAN £25K.

It is WAKE UP TIME. The last 10+ years have been a time of

UTTER DELUSION.

IT IS TIME TO SMELL THE COFFEE.

Edited March 9, 2010 by eric pebble

[dryrot]

That's a bit of a weird conclusion.

Property's not like gold where you buy and sell it instantly at the spot price with small transaction costs.

If she decided now to sell, the amount she would have gained/lost would depend on what specific offer from a particular buyer she chose to accept, minus substantial transaction costs.

It doesn't make sense to claim that a house is worth 1% less this month than last month just because that's the average change in price of a substantial sample of houses sold UK-wide over that period.

But but but - I read on the Daily Express frontpage that house prices had risen by 5%. My house was valued at £160k So I assumed I was immediately £8k richer and borrowed £5k for a foreign holiday!

[Selling up]

But but but - I read on the Daily Express frontpage that house prices had risen by 5%. My house was valued at £160k So I assumed I was immediately £8k richer and borrowed £5k for a foreign holiday!

You mug, you forgot to claim £3k of your free money!

[redwing]

I'm one of those STR FTBs. Began looking to buy in ;anuary and have had agents nearly biting my hand off. The problem is it seems their clients - the vendors - seem to think the whole correction's over. I don't feel destined to buy just yet. It needs a bit more panic amongst the sellers. It's going to be an interersting spring and summer. I'm lucky and old enough to be able to buy with cash - but I'm not going to throw my dosh around on over-priced dross.

[Johnny Storm]

Perhaps it is now people will begin to realise that high house prices are no good for anyone, not just first time buyers!

When did people start giving a toss about other people?

[Johnny Storm]

UTTER DELUSION.

IT IS TIME TO SMELL THE COFFEE.

I bet youve been saying this since 2004. Arent you a bit bored of being wrong?

[D.C.]

I bet youve been saying this since 2004. Arent you a bit bored of being wrong?

Bit too much coke tonight?

You seem to be more obnoxious than usual.

[redwing]

I bet youve been saying this since 2004. Arent you a bit bored of being wrong?

Go back to the Off-topic forum. That's where you usually hang out. And judging by your posts aboven it's where you belong.

[wonderpup]

I have noticed friends starting to think this way over the last year or so, especially now the housing only ever goes up mental bubble has popped.

This is important- buying into a lifetime commitment on a raising asset is one thing- doing the same on a falling one feels a lot different.

[Fairies Wear Boots]

There are still lots of deluded sellers who believe that prices have gone up since 2007. In the emails I receive the properties are often at 2007 +10% or are priced at higher thann anything else on the street or block has realised. eg now asking 365k sold for 320k in 2007.

Still no harm in trying, some mug may buy it - but generally I note that when people ask outlandish prices the properties either just sit there or end up being rented out (again). So sellers I think are still deluded but buyers are being more circumspect. So we now have more properties coming onto the market than are selling. The tide seems to be turning and the buyers can soon start calling the shots.

That's what I'm waiting for! Seems to me the indexes might start sliding back before the election contiguously, Which will just give more impetus for falls afterwards as well.

I don't think there is any shortage of wannabe first time buyers, Just the amount of first time buyers with a decent sized deposit and salary in todays market good enough for the banks.