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Grime- skint wouldbe ftb

Another Financial Suicide..

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Just a wee anecdote of the sort of madness that's still out there amongst the young, inexperienced and foolish...

I reported back in March that four mid-20 somethings in my small office had all become FTBs in the West London/Berks areas. One of them got quite a good property, 3 bed semi, but at over £200K for a first time for an average earner it seemed a bit mad. They're also credited out to the max- expensive German sports car, big loan to fit-out the new place, etc etc.

Anyways, he's just had it valued, and reckons he's made £40,000 in six months, and is going to MEW/remortgage to consolidate all debts and free up some cash for yet more spending. I've tried pointing out that that is fantasy Monopoly money, that the EA who valued may be a muppet, and that when the mortgage company do a valuation they are in the VI position of being able to repossess if it all gets impossible to manage. The arguments coming back are brilliant.. prices will double over the next 3 to 4 years being the best.

Its like watching a car-crash in slow motion :o

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These young uns are going to have a huge shock in the coming years. There is an entire generation out there who have never known unemployment, who have always had ready cash available and, boy, is it going to be a shock and a burden for them.

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Just a wee anecdote of the sort of madness that's still out there amongst the young, inexperienced and foolish...

I reported back in March that four mid-20 somethings in my small office had all become FTBs in the West London/Berks areas. One of them got quite a good property, 3 bed semi, but at over £200K for a first time for an average earner it seemed a bit mad. They're also credited out to the max- expensive German sports car, big loan to fit-out the new place, etc etc.

Anyways, he's just had it valued, and reckons he's made £40,000 in six months, and is going to MEW/remortgage to consolidate all debts and free up some cash for yet more spending. I've tried pointing out that that is fantasy Monopoly money, that the EA who valued may be a muppet, and that when the mortgage company do a valuation they are in the VI position of being able to repossess if it all gets impossible to manage. The arguments coming back are brilliant.. prices will double over the next 3 to 4 years being the best.

Its like watching a car-crash in slow motion :o

Consolidating his debts is probably sensisble (his mortgage rate is likely to be at an interest rate substantially below his other debts), but obviously spending more if he believes he's richer on the basis of his property is insane...

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Consolidating his debts is probably sensisble (his mortgage rate is likely to be at an interest rate substantially below his other debts), but obviously spending more if he believes he's richer on the basis of his property is insane...

His interest rate probably is, but at a guess he will be paying off that designer watch he bought on credit card for the next 25 years bet he wasnt thinking that when he bought it.

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Guest Bart of Darkness
These young uns are going to have a huge shock in the coming years. There is an entire generation out there who have never known unemployment, who have always had ready cash available and, boy, is it going to be a shock and a burden for them.

Very true. I grew up in the 70s, left school in 1984. Given all that was going on in the economy during that time, I accepted that unemployment and belt tightening were facts of daily life in my neck of the woods (South Yorks council estate).

The current generation of school leavers/20-somethings often have very different expectations and will find it difficult to cope at first. They will cope but boy will they be p****d off!

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  • 302 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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