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Guest KingCharles1st

Is This The Start- E.a's Bailing Out Chains?

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Guest KingCharles1st

Hi everybody, this is my first post as I am new here- so be nice to me :)

I'm at the end of a horrendous 3 year divorce, and wondering whqt to do with my settlement- at the start of the year I was desperate to get my "acceptability" back together by purchasing a house. Now I have sorted my head and many areas of my life, I feel it would be absolute madness to buy at this time.

I have found all the topics here very interesting, and if only I could start my life again, I would have been a financial analyst! LOL

But see what you think of this link

http://news.ft.com/cms/s/cd6970fa-216f-11d...000e2511c8.html

Is this anything worth worrying about - cheering over?

I think i will use my nest egg to invest in my lucrative little business for the next few years, and rent a place better than I could actually afford to buy. Then get back in when it makes sense.

Comments please-

Regards to all, King Charles

p.s. I have read the formula for being a landlord is x10- ten times what- over how many years- please explain somebody.

Also- my solicitor actually told me that the formula for house purchase AND a sensible life style was x 2.5 salary. Obviously HE can afford to live that way, but the reality is there...

Edited by KingCharles1st

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I think far too many people put too stock much into this 3.5 times salary business.

I think more people should work these things out in reverse.

How much do you need to live a relatively comfortable lifestyle ?

How much are you left with each month after that ?

You either buy the best you can for that monthly amount, or you compromise your lifestyle to buy something more.

A lot of my mates have really stretched themselves to buy lately, and now cannot even afford to go out for a meal once a fortnight or to the pub.

Right now in the UK it really comes down to how desperate you are to buy a house. If you rent, in my opinion you are stealing money out of the landlords pocket.

Provided you have the self discipline to continue to save towards a deposit until house prices are more sensible, it sounds to me like you are in an ideal situation, bank that money the LL is subsidising you and have a meal out on him every friday night.

And as for the link, that merely highlights to me the growing desperation of people struggling to offload their depreciating investments.

As the EA chap says, FTBs are in a position of strenght, and that is only going to get stronger as house prices fall further and homeowners get more desperate.

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I think far too many people put too stock much into this 3.5 times salary business.

I think more people should work these things out in reverse.

How much do you need to live a relatively comfortable lifestyle ?

This 3.5 times salary may be a redundant measurement for the future.

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I went to the pub last night and the only people in there were kids. O the way home the cab driver said that business was poor. Sign of the times?

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This 3.5 times salary may be a redundant measurement for the future

I agree, this measure has been the running average through the baby boomer generation, through the period when there were heavily discounted mortgages via generous tax benefits (until recently) and when global growth and economies have been unfettered by dwindling natural resources on which the price of every manufactured product ultimately hinges and where housing debt in general has been a profit generating boon for lenders with not too much fallout.

Edited by OnlyMe

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The borrowing/earnings ratio has increased due to falling interest rates, easy money and speculative optimism. Perhaps easy money is with us for good but low interest rates and market optimism can dissapear very quickly.

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Guest Bart of Darkness
I went to the pub last night and the only people in there were kids. O the way home the cab driver said that business was poor. Sign of the times?

Was in a very large Wetherspoons the other day (2 while 10 PM) and it never really filled up in all that time. No problem getting to the bar, loads of empty tables.

Staff looked at a bit of a loose end.

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I went to the local shopping centre yesterday and there were loads of people about but nobody actually in the shops..these were nearly empty apart from the school uniform suppliers..these people must be making a mint!

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  • 301 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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