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Hopeful FTB

Scared For My Friends!

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I have been wanting to buy a place for a while but cant afford it and have had to watch as friends make a fortune on their places and quite a few now have 2 properties- was feeling a bit depressed about it as really want to buy soon.

Still get that reaction of "you are just bitter as you dont own" whenever I mention the HPC and "its never going to go down".

One of my friends has just done a self cert mortgage borrowing, and sit down for this, 8 times their income to get a 200k interest only mortgage.

I am now really starting to get scared for people- does everyone think that this is going to get very messy very fast?

I intend to spend the next year saving like a woman posessed as I think things will be very different by then. I am scared for my mates as they arent the only people I know who are doing this now- there are still a people taking out massive mortgages and MEWin to BTL.

Is it me?!

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dont be scared. its their problem. as long as you dont say "told you so" after the fact it will be ok. they will think you are wise. it should work out sweet.

from my exps which are similar, when you get old contacts coming back to you and now agreeing prices are sliding they have a noted respect for your views.

and so they should. you were right.

this will effectivley give you a licence to meddle in all their future affairs and relationships woes.

bust open the mcvities hobnobs. the tears are coming home......

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The crux of the matter is that most people don't believe or won't believe that prices will ever fall. Hence they see it as a good idea to overstretch themselves as they see no risk in the future. People on this forum generally have a view that they can and will fall at some point soon. Having seen the crash of the 90's I know they can fall and believe they have started to. It could get very nasty again.

Like yourself I am saving like mad. It's become a bit of an obsession with me now (which isn't always good of course!) and unless I really want something then I won't buy it. Why bother frittering away your money on something when a few weeks later you won't bother using it.

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Don't worry you are not alone.! Last weekend I had my younger sister going on about how the Halifax still says prices are rising and how exciting it is for them to be moving into a new house in a few weeks time. They have rented their old house out as they couldn't sell it.!! My other sister has also bought a second house as they think its a good investment!! paying £ 160k to rent out at £600 a month.!!!!

Meanwhile I am in rented and have been in rented for 2 years. Cannot see us buying in the near future.

Patience I think is the name of the game.!!

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I have been wanting to buy a place for a while but cant afford it and have had to watch as friends make a fortune on their places and quite a few now have 2 properties- was feeling a bit depressed about it as really want to buy soon.

...

Be very careful - the illusion of wealth is a very powerful but deceptive one. Your friends have only 'made a fortune' if they buy low AND SELL HIGH. Many are sitting on paper profits that are fast dwindling. That's why there's so much denial. People don't want to accept that their 'investment' is losing money...

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I am now really starting to get scared for people- does everyone think that this is going to get very messy very fast?

Why worry about them - would they worry about you? Ring them up, tell them you have some illness that will mean you taking a few months off work and will be unable to do things like shopping... and then see how much they care about you...

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People on this forum generally have a view that they can and will fall at some point soon. Having seen the crash of the 90's I know they can fall and believe they have started to. It could get very nasty again.

ONLY "very nasty"??

The BIGGEST Inflationary House Price BUST in History!

It's gonna be 10 zillion times worse coz of the other £Trillion1/2 borrowing on cards, other loans and mewing - the final decimation of the Middle/Upper class!

It will be a DOMINO HPC.

One after another Property Investing VI's, BTL owners and recent buyers will flop, fall and fail.

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Guest Bart of Darkness
I am now really starting to get scared for people- does everyone think that this is going to get very messy very fast?

Yes.

Show your friends exactly the same consideration that they have shown you.

Last weekend I had my younger sister going on about how the Halifax still says prices are rising and how exciting it is for them to be moving into a new house in a few weeks time.

People who believe the Halifax report and other VI spin clearly haven't done enough research into the housing market and, frankly, deserve all that's coming to them.

Some people are too stupid to understand that fire will burn them just by being told this by someone else, they need to get burnt first before they will understand.

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Why worry about them - would they worry about you?

Also, they can just go bankrupt. It'll be the new fashion eighteen months from now: everyone will be doing it.

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...People who believe the Halifax report and other VI spin clearly haven't done enough research into the housing market and, frankly, deserve all that's coming to them...

I used to be one of those people who blindly accepted a headline. Now I ask myself what does the figure mean, what are they actually measuring, how does it relate to prevous reports from them, why would they say what they have and how does it relate to figures from others elsewhere in the industry (whether housing or any other).

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ONLY "very nasty"??

The BIGGEST Inflationary House Price BUST in History!

It's gonna be 10 zillion times worse coz of the other £Trillion1/2 borrowing on cards, other loans and mewing - the final decimation of the Middle/Upper class!

It will be a DOMINO HPC.

One after another Property Investing VI's, BTL owners and recent buyers will flop, fall and fail.

Dont be a D1CK, its not the middle/upper classes that have caused this, its a load of working class chav wan7s none have an ounce of intelligence, loads of arrogance, tons of greed. These people are gonna suffer.

You sound like the working class hero, with a chip on your shoulder

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Also, they can just go bankrupt. It'll be the new fashion eighteen months from now: everyone will be doing it.

:lol:

"Bankrupt Chic"

We could be on to something!

I mean we've had "heroin chic", revived by Pete Doherty.

"Bankrupt Chic" would be a dishevelled accountant look - it would involve stained, distressed saville row suits off-set by creased, dirty trousers that should have been dry-cleaned but that's too expensive now.

:lol::lol:

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I too have freinds who've recently morgaged up to the hilt, and I DO feel very worried for them.

They have not been wreckless, they just needed a roof over their heads, and could see no other option, and are not that financially aware.

It's not a crime but they will pay heavily for their lack of knowledge.

The ones I have no sympathy for are the people earning average wages, but living the Rock star lifestyle. F**k 'em.

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does everyone think that this is going to get very messy very fast?

No, it's going to get messy very slowly.

But as for your friends. An interest only mortgage. Backed up by what investment, one wonders. £200k. They are going to be in neg eq within a year. And what is the way out of it?

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Dont be a D1CK, its not the middle/upper classes that have caused this, its a load of working class chav wan7s none have an ounce of intelligence, loads of arrogance, tons of greed. These people are gonna suffer.

You sound like the working class hero, with a chip on your shoulder

From wot I read on 'ere about people's ideas of todays "working class" - the fact is they spend all their energy doing the exact opposite and get called 'chavs'

Just as an aside - I would say many of them wear their chips around their stomachs and bottoms these days under their ubiquitous 'tracksuit leisurewear'

In fact that is what they should be re-classified as "Leisure Class"

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I used to be one of those people who blindly accepted a headline. Now I ask myself what does the figure mean, what are they actually measuring, how does it relate to prevous reports from them, why would they say what they have and how does it relate to figures from others elsewhere in the industry (whether housing or any other).

Correct, why do they keep harping about it? To keep the asumed wealth peole think they have more real and growing!

The halifax are the biggest so have most to lose when the sh1t hits the fan.

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You probably won’t have to worry

The government will fix every thing next year

Oil will be cheap again- interest rates will be back down to 1-2 % - borrowing at 8 x earnings will be the norm just like 20% on your house every year

The government will fix every thing – except the pound, which will fall like never before

Well they are not going to admit defeat easily

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From wot I read on 'ere about people's ideas of todays "working class" - the fact is they spend all their energy doing the exact opposite and get called 'chavs'

Just as an aside - I would say many of them wear their chips around their stomachs and bottoms these days under their ubiquitous 'tracksuit leisurewear'

In fact that is what they should be re-classified as "Leisure Class"

ummm true

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I have been wanting to buy a place for a while but cant afford it and have had to watch as friends make a fortune on their places...

So they've sold and kept the cash?

I mean, you only have a fortune "in property" when someone else buys it and you make a profit, right?

And still have somewhere to live, obviously.

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Big business..

I ahve experience of my girlfriends mum.. Shes buying..

Just managed to sell a two bed executive aprtment at a profit after three months of ownership..

Her theory.. Well she has owned for years, if her equity drops.. well its money she never considered hers anyway..

Her money she earn't..

Place shes buying.. well.. it may drop.. but shes moving in a market.

The person developing it.. paper multi milionaire..

has 70 rental properties that he has expanded every year.. new buys.. profits from old into the new..

Reliant on his money on todays prices..

How did they not see this coming..? I did years ago..

If it had not been for self cert it would have gone pop in 2003..

Its just going to crash harder and hurt more people..

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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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