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Forthcoming Article On Houseprices In The Daily Mail

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I’ve recently given up on waiting for the house price crash and have been making offers on houses with a serious view to buying.

I had an offer accepted the other day, and I’ve been arranging a mortgage. The house fell through (gazumped), but the marketing department of the mortgage broker got in touch to see if I was prepared to do an interview with a Daily Mail journalist about house prices and first time buyers, I figured this was a good chance to spout off about house prices, and said yes.

It got set up very quickly, so i didn't have any time to prepare or revise facts and figures, but for the record, these are the points I made;

House prices are too high, and should have come down already. They have only been supported by the Special Liquidity Scheme, record low interest rates of 0.5% and the government funding people who can't pay their mortgages at more than 6% irrespective of their actual mortgage payments (he wasn’t surprised by this point, and seemed to know all about it)

It’s good that CGT is going to be charged at 40% for BTL landlords, as that might free up supply for first time buyers and lead to lower house prices.

It’s very difficult for first time buyers to save with RPI at 5.3%. (I was trying to make the point that there’s no real return on savings accounts, but I didn’t get a chance to elaborate, and don’t feel I made this point very well). I did say that I felt very sorry for pensioners and other people on fixed incomes who must be struggling with RPI so high (I figure they’ll print that).

He had a leading question about how the market was, something like "it's booming isn't it", and I made the point that volumes are down, and while mortgage approvals are up compared to recent months they're nowhere near the all time highs and prices are likely to start to fall when any significant volume returns to the market.

He picked up strongly on the fact that I just got gazumped so I think it’s going to be a “hooray! house prices boom” style article. My main reason for posting this is to create a record of what I said, to compare with what they print. It'll be interesting to see whether they quote me verbatim, twist what I said, or just make it up!

I'll add a link to the article when it appears (if they print it)

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Interesting inside on how the news is manufactured.

I think made up names are used often for bogus anecdotals, but here you have your face to it.

They made your point about Government support in their own text, rather than your quote, but at least it's in there.

Great post, and a lucky escape Gavin.

£158 000 for a 3-bed terrace!!!!! You KNOW that's not right.

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here's the link

http://www.dailymail.co.uk/money/article-1281399/Are-heading-new-housing-crash.html?ito=feeds-newsxml

I’m quite happy with how that turned out. The quotes are spot on.

Top man Gavin! Well done.

When I first read that article (before reading your post) I assumed that you were thrown in there as a bit of hope for all the property 'rich' mail readers. 'There is no mortgage funding available and prices might fall 20% but at least there are lovely young men like Gavin the accountant who will still buy your home'. I always assume that people like that in articles are just made up and that the paper wouldn't bother going to the effort of actually finding somebody, serves me right for being such a cynic.

Nice one anyway. and getting gazumped will probably be the best thing that ever happened to you.

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I think Gavin should send some flowers or chocolates to the gazumpers thanking them for helping him to avoid making a terrible financial decision.

I agree.

I have saved 2 friends from buying houses earlier this Spring. Two other friends who are trying to get out are having zero serious offers and are getting very worried as they thought the market was healthy. And why did they think that we might ask.

Edited by Realistbear

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I agree.

I have saved 2 friends from buying houses earlier this Spring. Two other friends who are trying to get out are having zero serious offers and are getting very worried as they thought the market was healthy. And why did they think that we might ask.

Plus the countless people you've saved on here RB. I know you get your fair share of criticism on this forum but about two years ago I was about to leave Dubai with a massive stack of wedge and decided it was the best time to buy back in the UK. now amount of swear words could possible describe how glad I am that I didn't. Instead I'm now in Singapore (a real first world country) and still have my savings (mostly) intact!

Probably wouldn't be here if it wasn't for your posts

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Plus the countless people you've saved on here RB. I know you get your fair share of criticism on this forum but about two years ago I was about to leave Dubai with a massive stack of wedge and decided it was the best time to buy back in the UK. now amount of swear words could possible describe how glad I am that I didn't. Instead I'm now in Singapore (a real first world country) and still have my savings (mostly) intact!

Probably wouldn't be here if it wasn't for your posts (by that I mean poor and stuck in UK not dead)

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Good job. My worry though is this turns into a media campaign for the continuation of government housing subsidy.

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Thanks to everyone for the positive feedback. It was largely luck; I was just in the right place at the right time.

I think the general consensus that buying that house for £158k would have been a terrible investment decision is right. The trouble is that buying a house isn't just an investment decision (my opinion on that would be different if we didn't have such rubbish tenants rights in the UK).

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  • 259 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%



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