Jump to content
House Price Crash Forum
LaceUp

My 'property Crash' Story

Recommended Posts

My wife and I have been prudent over the years when the economy was booming. We ran our own businesses and earned good money and paid off our mortgage, saved, made some pension provision, educated and brought up 3 kids. I have always thought it best to pay off any loans asap and save the interest.

In 2007 my wife wanted to move to a £850k house. I was very worried about the property market and what looked like a certain property crash (about then I discovered this site). I talked her out of it. Then Brown went on his spending binge to save the banks and try to get himself re-elected, and 'saved' the property market from a 'devastating crash'.

Now I am really worried. Instead of a quick drastic property and bank crash, which would have shaken out all the over leveraged, overspending, over borrowed, over MEWD - families, property investors, BTL'ers, inefficient and over borrowed businesses etc - we have this drawn out recession which is dragging the whole economy down - including my business.

I know a house crash is painful and I was in a negative equity situation back in the 80's. But at least it hits the people who created and profited from the bubble in the first place - not the entire population - many of who have not even managed to get in on the property bandwagon.

I know so many people who spent it like Beckham in the good years and were completely over stretched. But since the bank bailout and the ridiculously low interest rates - which is hitting my hard earned savings returns! - these people are actually better off, paying less on all their mortgages and BTL's that were not previously showing a monthly return but were bought for 'capital growth' - they are know paying them a healthy monthly income as rents have gone up!

I still have to get my kids through uni and now they are talking about putting the fees up. I really am worried about how my kids will ever be able to buy a property. Nobody ever seems to point out that if future generations don't have to spend all their money on a mortgage they can spend it on other stuff - surely this would help the economy rather than a huge proportion of income going to the banks. I feel like giving up and going over to the dark side and just start borrowing and spending - to hell with the future!

In summary the last 3 or 4 years policy has protected the feckless, spendaholic, credit addicts - and shafted forward planning and sensible people like me.

Needed to get that off my chest.

Share this post


Link to post
Share on other sites

I know. I gave in earlier in the year. Its wierd however when you're on the other side how one's attitude changes. Before I was all for crashing things as quickly and badly as possible. Now I have a more nuanced view. Confirmation bias I guess.

I think the reality of it is that there has been vast malinvestment and we are in a drawn out process of wealth destruction. The low rates are simply helping to spread the pain. Those who overpaid for assets are suffering and will continue to do so as assets decline; those in unnecessary public sector jobs will suffer; tax payers will suffer; I do think low rates are needed to ensure that some of the pain is also suffered by those who have saved. Although there are some real idiot borrowers out ther who deserve to get burned, there are thousands upon thousands of ordinary home owners who reached that stage in their life where they needed to buy property and were able to do so on a sensible basis. I dont think it would be right either morally or as a matter of national policy to allow all the pain to be taken by the financial ruin of those who found themselves buying in the last 5-6 years. Of course it should never have gotten to this stage - but there's a lot of people under that curve now (far more than in the 80s: 89-90 spike was quite narrow).

I shouldn't worry though, there should still be plenty of crash to allow the sensible to get a reasonably priced house.

And I've protected myself so am happy to sit back and watch.

Share this post


Link to post
Share on other sites

I dont think it would be right either morally or as a matter of national policy to allow all the pain to be taken by the financial ruin of those who found themselves buying in the last 5-6 years.

The people who got on the ladder in the last 5-6 years might be better off in the long run with higher interest rates and a crash. I know some, they are couples where both have to work all the time or the mortgage doesn't get paid. If they defaulted on the mortgage and went bankrupt, and house prices fell by 50%, they could buy again in a few years' time on a single salary. That would be better than the 25 years of dual income slavery for a new build slavebox they are signed up for now.

Share this post


Link to post
Share on other sites

The people who got on the ladder in the last 5-6 years might be better off in the long run with higher interest rates and a crash. I know some, they are couples where both have to work all the time or the mortgage doesn't get paid. If they defaulted on the mortgage and went bankrupt, and house prices fell by 50%, they could buy again in a few years' time on a single salary. That would be better than the 25 years of dual income slavery for a new build slavebox they are signed up for now.

+ 1. Sometimes simply losing a war quickly, or failing a business into bankruptcy is better than years of prolonged suffering.

Share this post


Link to post
Share on other sites

I think you'll find that roughly 98.7% of people on this site agree with those thoughts exactly.

I think the pace of chnage towards a proper HPC is gathering. You did just the right thing. Your kids will be able to buy when sense returns to our green and sometimes pleasant land.

Share this post


Link to post
Share on other sites

I think the reality of it is that there has been vast malinvestment and we are in a drawn out process of wealth destruction. The low rates are simply helping to spread the pain. Those who overpaid for assets are suffering and will continue to do so as assets decline; those in unnecessary public sector jobs will suffer; tax payers will suffer; I do think low rates are needed to ensure that some of the pain is also suffered by those who have saved. Although there are some real idiot borrowers out ther who deserve to get burned, there are thousands upon thousands of ordinary home owners who reached that stage in their life where they needed to buy property and were able to do so on a sensible basis. I dont think it would be right either morally or as a matter of national policy to allow all the pain to be taken by the financial ruin of those who found themselves buying in the last 5-6 years. Of course it should never have gotten to this stage - but there's a lot of people under that curve now (far more than in the 80s: 89-90 spike was quite narrow).

The low rates are simply helping to spread the pain to everyone except the banks.

There, fixed it. ;)

The entire purpose of low rates (which are more a result of Ben 'Helicopter' Bernanke than anything the UK has done) is to make sure those Bankers are happy. After all isn't that Ben's true remit, as the apex of the pyramid scheme?

Now Benny says he's going to increase inflation. Well never mind that this is against his charter and fiduciary duties, but it makes his banker friends in New York and London really really happy. They can buy that pleasure craft for the wifey for Christmas. Wouldn't want to deprive them now would we? I've been to the French Riviera, a cursory examination indicates that about 60% of the boats there are owned by City bankers.

I can't wait until the whole thing collapses and burns, and then Interpol tracks Banana Ben to Fiji and does this to his hut.. :lol:

Share this post


Link to post
Share on other sites

My wife and I have been prudent over the years when the economy was booming. We ran our own businesses and earned good money and paid off our mortgage, saved, made some pension provision, educated and brought up 3 kids. I have always thought it best to pay off any loans asap and save the interest.

In 2007 my wife wanted to move to a £850k house. I was very worried about the property market and what looked like a certain property crash (about then I discovered this site). I talked her out of it. Then Brown went on his spending binge to save the banks and try to get himself re-elected, and 'saved' the property market from a 'devastating crash'.

Now I am really worried. Instead of a quick drastic property and bank crash, which would have shaken out all the over leveraged, overspending, over borrowed, over MEWD - families, property investors, BTL'ers, inefficient and over borrowed businesses etc - we have this drawn out recession which is dragging the whole economy down - including my business.

I know a house crash is painful and I was in a negative equity situation back in the 80's. But at least it hits the people who created and profited from the bubble in the first place - not the entire population - many of who have not even managed to get in on the property bandwagon.

I know so many people who spent it like Beckham in the good years and were completely over stretched. But since the bank bailout and the ridiculously low interest rates - which is hitting my hard earned savings returns! - these people are actually better off, paying less on all their mortgages and BTL's that were not previously showing a monthly return but were bought for 'capital growth' - they are know paying them a healthy monthly income as rents have gone up!

I still have to get my kids through uni and now they are talking about putting the fees up. I really am worried about how my kids will ever be able to buy a property. Nobody ever seems to point out that if future generations don't have to spend all their money on a mortgage they can spend it on other stuff - surely this would help the economy rather than a huge proportion of income going to the banks. I feel like giving up and going over to the dark side and just start borrowing and spending - to hell with the future!

In summary the last 3 or 4 years policy has protected the feckless, spendaholic, credit addicts - and shafted forward planning and sensible people like me.

Needed to get that off my chest.

You were/are in the position to move to a house worth three quarters of a millions pounds (Not that it would be worth that mind you) and you're WORRIED ROFL

Why are you wasting your kids time and your money sending them to uni? Total waste of time. Educate them yourself in entrepreneurial skills and money management.

Edited by Soul Reaver

Share this post


Link to post
Share on other sites

My wife and I have been prudent over the years when the economy was booming. We ran our own businesses and earned good money and paid off our mortgage, saved, made some pension provision, educated and brought up 3 kids. I have always thought it best to pay off any loans asap and save the interest.

In 2007 my wife wanted to move to a £850k house. I was very worried about the property market and what looked like a certain property crash (about then I discovered this site). I talked her out of it. Then Brown went on his spending binge to save the banks and try to get himself re-elected, and 'saved' the property market from a 'devastating crash'.

Now I am really worried. Instead of a quick drastic property and bank crash, which would have shaken out all the over leveraged, overspending, over borrowed, over MEWD - families, property investors, BTL'ers, inefficient and over borrowed businesses etc - we have this drawn out recession which is dragging the whole economy down - including my business.

I know a house crash is painful and I was in a negative equity situation back in the 80's. But at least it hits the people who created and profited from the bubble in the first place - not the entire population - many of who have not even managed to get in on the property bandwagon.

I know so many people who spent it like Beckham in the good years and were completely over stretched. But since the bank bailout and the ridiculously low interest rates - which is hitting my hard earned savings returns! - these people are actually better off, paying less on all their mortgages and BTL's that were not previously showing a monthly return but were bought for 'capital growth' - they are know paying them a healthy monthly income as rents have gone up!

I still have to get my kids through uni and now they are talking about putting the fees up. I really am worried about how my kids will ever be able to buy a property. Nobody ever seems to point out that if future generations don't have to spend all their money on a mortgage they can spend it on other stuff - surely this would help the economy rather than a huge proportion of income going to the banks. I feel like giving up and going over to the dark side and just start borrowing and spending - to hell with the future!

In summary the last 3 or 4 years policy has protected the feckless, spendaholic, credit addicts - and shafted forward planning and sensible people like me.

Needed to get that off my chest.

Well said.

I also agree with WageslaveX14:

I think you'll find that roughly 98.7% of people on this site agree with those thoughts exactly.

But just be patient for a little longer. The party can't go on any more, mathematically, as the country is running out of credit. The correction is coming, in ALL areas, and for everybody, starting soon, this autumn/winter, and going on for a few years. "Gravity always wins." Get the popcorn ready, and watch.

Share this post


Link to post
Share on other sites

Why are you wasting your kids time and your money sending them to uni? Total waste of time. Educate them yourself in entrepreneurial skills and money management.

Amen to that. I've put two kids through Uni, one starting GSCEs next year.

The first, after 3 years of biochemistry, decided he wasn't interested and left. He's got a good job overseas.

The second, after a first in Business Management from one of the best schools in the UK, can't find work. Every opportunity meets with at least 500 candidates (usually more). Then applications. Telephone interviews. Online literacy and numeracy tests. Psychometric evaluation. Further face to face interviews. And in the end one candidate is selected (I wonder if sometimes they don't select anyone).

I've spoken to some of the professions, like senior executives from big accounting firms, and they say that they prefer to take kids with good math skills straight from A levels.

Then I spoke to a youngster hired to work for the Insolvency Service. He said he started his degree in business, but changed it to Philosophy. So a degree in Philosophy gets you into the Insolvency Service, but a degree in Business won't. Go figure. You work your butt off only to see someone get the job in a field completely unrelated to the requirements. And the government wonders why no one wants to crack their head open in the sciences and maths.

And of course it costs around 30 grand to pay for a degree these days.

We always thought that a good degree was a passport to a good start. But I've changed my view. We are undecided about the 3rd child. We may advise him that the cost just isn't worth it.

Share this post


Link to post
Share on other sites

There are just too many people in the world - I got a degree in engineering which I'm glad for, but even I worry as there are now so many from the East to compete against. If I were to start again at this moment in time I'd look at an apprenticeship.

Share this post


Link to post
Share on other sites

I think you'll find that roughly 98.7% of people on this site agree with those thoughts exactly.

I`m one of the 98.7%.

I sat back and watched as the debt junkies binged on easy credit. I predicted and waited for their day of reckoning. It seems that the day of reckoning has come for the prudent, while the debt junkies have escaped with a minor scratch.

What kind of message is this sending out to the next generation ?

"Mummy and Daddy took on a huge mortgage, three credit cards and a 4 x 4, and it didn`t do them any harm.........."

Maybe this will change, but I`m getting tired of waiting.

Share this post


Link to post
Share on other sites
<br />My wife and I have been prudent over the years when the economy was booming. We ran our own businesses and earned good money and paid off our mortgage, saved, made some pension provision, educated and brought up 3 kids. I have always thought it best to pay off any loans asap and save the interest.<br /><br />In 2007 my wife wanted to move to a £850k house. I was very worried about the property market and what looked like a certain property crash (about then I discovered this site). I talked her out of it. Then Brown went on his spending binge to save the banks and try to get himself re-elected, and 'saved' the property market from a 'devastating crash'.<br /><br />Now I am really worried. Instead of a quick drastic property and bank crash, which would have shaken out all the over leveraged, overspending, over borrowed, over MEWD - families, property investors, BTL'ers, inefficient and over borrowed businesses etc - we have this drawn out recession which is dragging the whole economy down - including my business.<br /><br />I know a house crash is painful and I was in a negative equity situation back in the 80's. But at least it hits the people who created and profited from the bubble in the first place - not the entire population - many of who have not even managed to get in on the property bandwagon.<br /><br />I know so many people who spent it like Beckham in the good years and were completely over stretched. But since the bank bailout and the ridiculously low interest rates - which is hitting my hard earned savings returns! - these people are actually better off, paying less on all their mortgages and BTL's that were not previously showing a monthly return but were bought for 'capital growth' - they are know paying them a healthy monthly income as rents have gone up!<br /><br />I still have to get my kids through uni and now they are talking about putting the fees up. I really am worried about how my kids will ever be able to buy a property. Nobody ever seems to point out that if future generations don't have to spend all their money on a mortgage they can spend it on other stuff - surely this would help the economy rather than a huge proportion of income going to the banks. I feel like giving up and going over to the dark side and just start borrowing and spending - to hell with the future!<br /><br />In summary the last 3 or 4 years policy has protected the feckless, spendaholic, credit addicts - and shafted forward planning and sensible people like me. <br /><br />Needed to get that off my chest.<br />

Hardly anything has changed except the City(Govt) attacking the general population and hiiting us with higher taxes and lower/withdrawl of benefits/facilities just as millions are thrown on the dole)as a direct consequence of Govt policies!)

In the City, it's exactly the same Finance JUNTA running the UK that screwed us into the ground - whilst creaming off Billions in Taxpayer subsidies to keep their bent and bankrupt organisations paying out the City bone-uses!

Share this post


Link to post
Share on other sites

My wife and I have been prudent over the years when the economy was booming. We ran our own businesses and earned good money and paid off our mortgage, saved, made some pension provision, educated and brought up 3 kids. I have always thought it best to pay off any loans asap and save the interest.

In 2007 my wife wanted to move to a £850k house. I was very worried about the property market and what looked like a certain property crash (about then I discovered this site). I talked her out of it. Then Brown went on his spending binge to save the banks and try to get himself re-elected, and 'saved' the property market from a 'devastating crash'.

Now I am really worried. Instead of a quick drastic property and bank crash, which would have shaken out all the over leveraged, overspending, over borrowed, over MEWD - families, property investors, BTL'ers, inefficient and over borrowed businesses etc - we have this drawn out recession which is dragging the whole economy down - including my business.

I know a house crash is painful and I was in a negative equity situation back in the 80's. But at least it hits the people who created and profited from the bubble in the first place - not the entire population - many of who have not even managed to get in on the property bandwagon.

I know so many people who spent it like Beckham in the good years and were completely over stretched. But since the bank bailout and the ridiculously low interest rates - which is hitting my hard earned savings returns! - these people are actually better off, paying less on all their mortgages and BTL's that were not previously showing a monthly return but were bought for 'capital growth' - they are know paying them a healthy monthly income as rents have gone up!

I still have to get my kids through uni and now they are talking about putting the fees up. I really am worried about how my kids will ever be able to buy a property. Nobody ever seems to point out that if future generations don't have to spend all their money on a mortgage they can spend it on other stuff - surely this would help the economy rather than a huge proportion of income going to the banks. I feel like giving up and going over to the dark side and just start borrowing and spending - to hell with the future!

In summary the last 3 or 4 years policy has protected the feckless, spendaholic, credit addicts - and shafted forward planning and sensible people like me.

Needed to get that off my chest.

Have you considered hedging your bets instead of sending all the kids to uni?

Send one to uni, have number two go straight to work, persuade the third to pop a new child out every year on benefits.

At least one of them should be OK instead of putting all your eggs in one basket. A third of call centre staff have degrees.

Share this post


Link to post
Share on other sites

I think you'll find that roughly 98.7% of people on this site agree with those thoughts exactly.

Which is kinda why we dont see things coming, everyone is too busy agree with each other. We have become a VI website. :(

Share this post


Link to post
Share on other sites

My wife and I have been prudent over the years when the economy was booming. We ran our own businesses and earned good money and paid off our mortgage, saved, made some pension provision, educated and brought up 3 kids. I have always thought it best to pay off any loans asap and save the interest.

In 2007 my wife wanted to move to a £850k house. I was very worried about the property market and what looked like a certain property crash (about then I discovered this site). I talked her out of it. Then Brown went on his spending binge to save the banks and try to get himself re-elected, and 'saved' the property market from a 'devastating crash'.

Now I am really worried. Instead of a quick drastic property and bank crash, which would have shaken out all the over leveraged, overspending, over borrowed, over MEWD - families, property investors, BTL'ers, inefficient and over borrowed businesses etc - we have this drawn out recession which is dragging the whole economy down - including my business.

I know a house crash is painful and I was in a negative equity situation back in the 80's. But at least it hits the people who created and profited from the bubble in the first place - not the entire population - many of who have not even managed to get in on the property bandwagon.

I know so many people who spent it like Beckham in the good years and were completely over stretched. But since the bank bailout and the ridiculously low interest rates - which is hitting my hard earned savings returns! - these people are actually better off, paying less on all their mortgages and BTL's that were not previously showing a monthly return but were bought for 'capital growth' - they are know paying them a healthy monthly income as rents have gone up!

I still have to get my kids through uni and now they are talking about putting the fees up. I really am worried about how my kids will ever be able to buy a property. Nobody ever seems to point out that if future generations don't have to spend all their money on a mortgage they can spend it on other stuff - surely this would help the economy rather than a huge proportion of income going to the banks. I feel like giving up and going over to the dark side and just start borrowing and spending - to hell with the future!

In summary the last 3 or 4 years policy has protected the feckless, spendaholic, credit addicts - and shafted forward planning and sensible people like me.

Needed to get that off my chest.

I understand your frustration but you're not exactly qualified to be "worried".

If you can talk about buying an 850 grand house then you should not have a problem sending your kids to uni whilst living in a slighlty cheaper house!

Share this post


Link to post
Share on other sites

In summary the last 3 or 4 years policy has protected the feckless, spendaholic, credit addicts - and shafted forward planning and sensible people like me.

Sadly that's the way I figured it would be hence when all the neithers were challenged to go one way or the other I went Bull, and sadly, relative to many predictions on here I was right. I can see this whole correction being a horribly long drawn out affair which IMO helps no one really.

I'm encouraged by the FSA's intentions though I think the'll struggle. The sooner all the cards are on the table and everyone knows where they stand the better.

Share this post


Link to post
Share on other sites

Hardly anything has changed except the City(Govt) attacking the general population and hiiting us with higher taxes and lower/withdrawl of benefits/facilities just as millions are thrown on the dole)as a direct consequence of Govt policies!)

In the City, it's exactly the same Finance JUNTA running the UK that screwed us into the ground - whilst creaming off Billions in Taxpayer subsidies to keep their bent and bankrupt organisations paying out the City bone-uses!

Actually it is worse, look at the companies that are actively hammering advertising, its the screwup brigade - sick of seeing/hearing Halifax/ RBS / Lloyds saying how how good their services are and what they are offering.

OP is right - the damage is being spread and doing this will only cause more problems and further sink any hope of a true turnaround in the economy - these one-track shysters are doing to dig this country into a hole that it will never recover from.

Share this post


Link to post
Share on other sites

Although there are some real idiot borrowers out ther who deserve to get burned, there are thousands upon thousands of ordinary home owners who reached that stage in their life where they needed to buy property and were able to do so on a sensible basis.

No one had to buy an overpriced property

I dont think it would be right either morally or as a matter of national policy to allow all the pain to be taken by the financial ruin of those who found themselves buying in the last 5-6 years.

Let's agree to disagree, eh ?

Share this post


Link to post
Share on other sites

Why are you wasting your kids time and your money sending them to uni? Total waste of time. Educate them yourself in entrepreneurial skills and money management.

I'm don't think the BMA will look too kindly upon a surgeon operating on someone having only gone to the "school of life". Some things require further education.

As for the OP, I feel his pain, we're in a very similar position having STR'd only to find prices didn't budge and we've got sod all for our savings. However perhaps he should consider himself lucky since by his own admission the recession has severely affected his business. If he had managed to snap up a house after a sudden drop he may not have been able to run/pay for his new home.

I think it's going to play out, just 2-3yrs behind when we thought it would.

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.

  • 261 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.