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Questions On The Uk Housing Market - Guardian

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Smart investors need Sheeple. I sold out at the peak in 2007, if it wasn't for the Sheeple I wouldn't have made such a great profit, so you lot play nice and leave the small-minded imbeciles alone. B)

:lol: Exactly, Sheeple make great cannon fodder. The love it anyway, so it's win win; smart people enjoy fleecing them and they enjoy being fleeced.

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As said I'm having trouble with my own sister about this. She paid off the mortgage and has a very insecure job (who doesn't) and she's been looking at BTL all week. It has been impossible to talk her out of it. My older and wiser dad even told her not to as hethinks is 1988 again (but worse) and refuses point blank to lend her any money at all. Silly cow is up to her eyeballs in debt as the second she paid off her mortgage she went and took out another one :rolleyes: to buy a car then another car.....

Mind boggles at this idiotic behaviour, its like gold fever

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Here's a beaut:

That guy sounds like an addict who can't stop chasing the housing dragon.

Seriously, he's subsidising someone else's housing to the tune of around 30% of the house's total (ed. monthly mortgage cost) out of his own pocket which is preventing him from paying bills or purchasing a more suitable house for himself and the eejit can't figure out what to do?

Edited by Diver Dan

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Here's a beaut:

AndyManning

20 April 2011 12:14PM

I currently own a property in the Midlands worth 240 ish with a mortgage of 210 on it.

Due to work and family commitments, I had to leave the area and currently rent on the south coast at considerable cost.

I let the above property out but it only covers 70% of the mortgage. This means that our monthly finances are very stretched and we have got into arrears n various loans, cards and even the mortgage from time to time.

I have no intentions of moving back to the area as our jobs are set for down here on the south coast. I would like to sell the property but cannot remain on the ladder if i do as I would not make enough to buy a property down here with the fees and 10% deposit I would need.

Question is, should I cut my losses and sell anyway or hang on and take the monthly hit in the hope I can reach a point whe I have enough equity to sell and still remain on the property ladder?

Assume a mortgage rate of 5%. Repayments = 10,500 pa.

Rental at 70% cover = 7,350 pa.

Allow for a 5% yield

Property is worth 20 x 7,350 = 147,000

Stretching the case

Mortgage rate 7%. Repayments = 14,700 pa.

Rental at 70% cover = 10,290

Allow 5% yield

Property is worth 20 x 10,290 = 205,800

Worth 240 ish ? :P

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As said I'm having trouble with my own sister about this. She paid off the mortgage and has a very insecure job (who doesn't) and she's been looking at BTL all week. It has been impossible to talk her out of it. My older and wiser dad even told her not to as hethinks is 1988 again (but worse) and refuses point blank to lend her any money at all. Silly cow is up to her eyeballs in debt as the second she paid off her mortgage she went and took out another one :rolleyes: to buy a car then another car.....

Mind boggles at this idiotic behaviour, its like gold fever

My (much older) sister is like this, in terms of attitude. Bought in the eighties, been MEWing up to the eyeballs ever since, has four cars (always bought new) for a three-person family, a new kitchen / leather sofa every five years, shopping weekends in New York etc. She and her husband are on not much more than minimum wage.

Meanwhile, despite earning almost the same as her and her husband combined, I've only just got my first (third-hand) car, am renting, don't own a piece of furniture that cost more than £30 etc - all to much ridicule from her over the years (I'm 37).

Recently, she's started telling me I don't know what it's like to struggle financially, I'm so lucky to have money in the bank etc. Basically, she's furious because she's now not able to borrow what she feels entitled to (so she now relies on help from our parents that doesn't need to be paid back).

Apologies for the rant but it strikes me as a half-decent metaphor for what's going on nationally. Plus it's extremely annoying :)

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..... It is changing but very slowly and the government and other VIs will do everything they can to stop house prices falling.

....the Government and VIs can't stop nature ...the tide , earthquakes, volcanos and burst balloons from flying....mortgages were flying in a balloon which has now burst... :rolleyes:

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and another likewise, here. Unemployed? Approaching retirement age? I know how to sort this out:

I mean seriously, what sort of base instincts does he possess to enable him to think that putting his mortgage-free home on the line is a good idea? No wonder we're f*cked.

:lol:

He thinks he can't lose.

He expects to pocket any profit but to be bailed out by the government if it goes wrong.

Wrong government now :lol:.

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He thinks he can't lose.

He expects to pocket any profit but to be bailed out by the government if it goes wrong.

Wrong government now :lol:.

...yes...but his ticket of hope is his vote for Labour in the next election....that's his own guaranteed lottery.... :lol:

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'Hi - I've been quite lucky and managed to jump on the property bandwagon at the right time[....]"

Did they actually use the word "bandwagon"? Seriously? Do they not know that jumping on a bandwagon is mindless copycat behaviour, it is not something to be proud off. Sweet jesus on a drumkit. :wacko:

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House I bought years ago with 3X salary sold recently for equivalent of 7.5X salary, but they had added a small conservatory.

For that kind of price rise, you'd expect the conservatory to be one like this! :)

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Some select quotes:

'I guess the question is it best to aim for a sizable deposit or take the plunge with first time buyer initiatives like shared equity etc? '

'My mother thinks it is vital that as soon as I sell one property I should buy another so as not to lose my place on the housing ladder. She thinks that since I am not ready to buy a place to live in, I should buy to let instead.'

'We have just sold a property in London for 248k and received a nice profit'

'Hi - I've been quite lucky and managed to jump on the property bandwagon at the right time. I don't earn a significant salary but it is more than average and all my savings are in property. We've recently had a baby with another on the way so are now living off of one salary'

And it goes on and on. Idiots one and all. Stretching themselves to the max, taking out BTLs and as soon as they feel safe with one, rather than pay off the place that they live in as soon as possible (which is what I'd do), they put another 10% down for another place.

COMPLETE IDIOTS.

Certainly, the first two are idiots. All we know about the third person is that he or she has made a cash profit recently. The forth appears in every way to be a very modest person and nearly undoubtedly this will hold him or her in good stead I think.

You have to remember that anyone who has not bought in the last five years are bathing in equity and any potential falls in house prices - given the extremene inflationary environment we are forced to live in - will barely make a dent in their portfolio. If you are not particularly savvy, financially, I would not recomend cashing up ANY asset in this day and age until government has restored some order to their finances. It is just too dangerous.

Edited by Peppa Pig

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But this is how people are expected to behave. Banks don't repossess (generally) the figures show that, there is SMI and low interest rates. It's like the old days when the bigger mortgage you had the more money you would make. In the 80s (for a couple of years) people were making so much money they could have stopped working - take home pay = £500 per month, house price increase £750 per month. This mentality is hammered into everybody by the VIs. And let's face it BTL has been a licence to print money as in ; I pay £200 per month mortgage, you pay me £300 per month rent plus the value of the property will double every seven years. It is changing but very slowly and the government and other VIs will do everything they can to stop house prices falling.

Very sober analysis of the situation. The government is doing all it can to prevent falls in house prices and to prevent any depositor losses. It has certainly succeeded in this aim, but at what price?

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Certainly, the first two are idiots. All we know about the third person is that he or she has made a cash profit recently. The forth appears in every way to be a very modest person and nearly undoubtedly this will hold him or her in good stead I think.

You have to remember that anyone who has not bought in the last five years are bathing in equity and any potential falls in house prices - given the extremene inflationary environment we are forced to live in - will barely make a dent in their portfolio. If you are not particularly savvy, financially, I would not recomend cashing up ANY asset in this day and age until government has restored some order to their finances. It is just too dangerous.

Agree with that.

I just cannot understand the mindset of these people, this utterly reckless approach to personal finance. I almost enjoy trying to live on as little money as possible. I give myself an extra chocolate biscuit if I can spend less than 50 euros in a week. Far more fun than buying a new car.

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I am 59 years old and have paid off the mortgage on my house. I'm currently looking for work.

I have been thinking of buying a second property to let in order to move money into a tangible asset and to produce an income.

It's likely that I would be able to fund the majority of the purchase from savings, requiring a mortgage of maybe £60,000-£90,000 (max 40% of value).

and another likewise, here. Unemployed? Approaching retirement age? I know how to sort this out:

I mean seriously, what sort of base instincts does he possess to enable him to think that putting his mortgage-free home on the line is a good idea? No wonder we're f*cked.

:lol:

This guy is nearly 60, unemployed, no mortgage to pay, and must have circa £100k in savings. Yet he's willing to risk his lifetime's assets on a roll of the property dice. You just can't help but shake your head in disbelief. If he wants 'tangible assets' instead of debasing fiat currency then he'd be better off buying commodities - at least he'd still have an house if their value plummeted.

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We've had 10 - 15 years of VI propaganda pumped into our brains daily through every medium immaginable; it's terrifying, they've basically turned bricks and mortar into a religious cult.

It's why the likes of Halifax and Northern Rock were making such stupid lending decisions - ....

I'd guess that large numbers of employees were meeting sales targets and pocketing bonuses as a result. The lending decisions were stupid to the persons with the debts, not the sales manager with the bonus.

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  • 317 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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