Debbie568 Posted November 8, 2011 Share Posted November 8, 2011 The UK housing market baffles the hell out of me. Other countries around the world in similar states to our own have seen proper corrections, but here in old Blighty we are well in bubble territory and FTB's are still desperate to buy. I was recently speaking to a FTB who has taken the plunge courtesy of some crooked subsidised deposit scheme. When I mentioned that the only reason I'd consider buying right now would be to hedge against inflation I got a blank stare. I also got the same blank stare when I suggested that buying now maybe risky given the base rate has never been this low in the entire 300 year history of the BoE. There are lots of things to consider when buying a house in normal market conditions but given the clusterfook that is the global financial system much more needs to be considered right now. Still none of that matters, the people already on the ladder say you cannot go wrong with bricks and mortar so why consider anything, just saddle up with a massive pile of debt, afterall, debt is wealth Quote Link to comment Share on other sites More sharing options...
Debbie568 Posted November 8, 2011 Share Posted November 8, 2011 Sorry about that - no edit button showing for the posts. Mr Flibble, I don't see what is so baffling about our housing market, especially down in England. It's one of the most densely populated countries on the planet plus the UK as a whole is growing its population at a rate of knots. A 470,000 increase from mid 2009 to mid 2010, and most of that went to England. Goodness knows what the latest mid year increase will be. It's not as if all of our land is even available or suitable to build on. If it's green belt, forget it. If it's on a flood plain, don't expect to cheaply insure anything you build on it. And if near a cliff, be prepared for your land to disappear into the sea from time to time. Plus the government is prepared to fleece taxpayers an exhorbitant amount of money to keep residential property rentals at levels way beyond what our low wage structure can actually support. I used to think that people would do well to pay their rent/mortgage before anything else, even if it meant living on baked beans for a couple of weeks. But that was before rents and mortgages soared - what does it matter what the interest rate is if you are struggling to pay back the £100k capital amount? - and the real value of wages plummeted beyond the bottom of the well. Quote Link to comment Share on other sites More sharing options...
MrPin Posted November 8, 2011 Share Posted November 8, 2011 It's not new, and was happening 30 years ago! Quote Link to comment Share on other sites More sharing options...
Vagabond Posted November 8, 2011 Share Posted November 8, 2011 Weren't these just called Bridging loans before? They've been around for years.. To be honest I can't see a major problem. Anyone that can't save a deposit for a house they want is probably buying out of their league anyway so they may as well go all in at the HPI casino. Personal responsibility is sooo yesterday donchaknow. Quote Link to comment Share on other sites More sharing options...
ingermany Posted November 8, 2011 Share Posted November 8, 2011 There is no such thing as unsecured debt when you have an asset like a house. There is no such thing as unsecured credit when your bank is owned by the government. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted November 8, 2011 Share Posted November 8, 2011 (edited) Back alley lending for something which has been purposefully idealised into the last vestige of personal security and prestige... ... No wonder people here are so miserable. As people always say, it won't end well. Weren't these just called Bridging loans before? They've been around for years.. As Vagabond says - this is only a twist on an old idea, but you are right that it won't end well. Only those who get themselves into too much debt need be miserable though - others will be in much better shape as the mess begins to sort itself out. Edited November 8, 2011 by scottbeard Quote Link to comment Share on other sites More sharing options...
Guest unfunded_liability Posted November 8, 2011 Share Posted November 8, 2011 As Vagabond says - this is only a twist on an old idea, but you are right that it won't end well. Only those who get themselves into too much debt need be miserable though - others will be in much better shape as the mess begins to sort itself out. Not so sure about this. With no debtor prisons and those with savings watching their value being QE'd away I'm not sure who will be more miserable, debtors or savers. Quote Link to comment Share on other sites More sharing options...
crouch Posted November 8, 2011 Share Posted November 8, 2011 You cant be a Director of an LTD if you are Bankrupt. Plus the fact that the receiver in bankruptcy would go for the loan to the Ltd company and liquidate that as well. No. Quote Link to comment Share on other sites More sharing options...
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