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Sadly, it really is. QE and artificial low interest rates have changed the game. Not that I think it will turn out well in the long term.

The major banks are global, and it is not in their interest that Britain's banking system is brought down. So the UK will continue unmolested by the markets for a long time yet. Maybe not forever though.

no it really isn't

QE don't only affect house prices, failure to invest in real performing assets is a major opportunity cost, and houses ain't among them

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no it really isn't

QE don't only affect house prices, failure to invest in real performing assets is a major opportunity cost, and houses ain't among them

True, but so what?

I didn't say that QE was being done for the good of the country, it isn't.

The banks don't give a t*ss about the country, they are a global parasite.

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no it really isn't

It is different this time...it's much much worse than before !!!

Sorry if I was a bit harsh to the OP but if you bought a house in 2010 for what looked like a good price then, then, you are part of our problem, not part of our solution.

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Sadly, it really is. QE and artificial low interest rates have changed the game. Not that I think it will turn out well in the long term.

The major banks are global, and it is not in their interest that Britain's banking system is brought down. So the UK will continue unmolested by the markets for a long time yet. Maybe not forever though.

It's QE that is financing the government's deficit right now, not the markets.

So, 1/4 of all government expenditures is being paid with freshly printed paper "money".

This has got to cause inflation at some point.

And some inflation saves the banks too, as nominal property prices don't fall, or not by much.

Though it can't be too high, or mortgage rates will go too high, triggering customers' default.

But some 4% or 5%/year is just perfect for them. A few more years at this rate and we would have had a crash in real terms, but just a small correction in nominal terms.

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How much did you parents give you anyway - being from Cheshire, unless you're from Runcorn, implies they may have a bit of properdie wealth of their own, most Cheshire-peeps I've ever met bung the odd X-ten-K to their kids from time to time, it's fashionable

Everyone I know in Cheshire must unknowingly have originated in Runcorn then! All my mates with houses have worked for them - not received multiple 10k handouts from parents.

First 1000 Rightmove houses in Cheshire for up to £100k: http://www.rightmove.co.uk/property-for-sale/Cheshire.html?maxPrice=100000&index=100

But feel free to continue thinking everyone's a footballer living in Alderley Edge...

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I am amazed at the replies by some people, just as bad as a troll posting tbh.

It is fair to say houses are in a bubble and need to come down for the sake of our economy and the sooner they do the better. I do not mean for the better for the people who are playing the 'game', as some of the posters here are and currently losing, I mean for our economy.

However a house is a Home not an investment, if it makes financial and non-financial sense then go for you. The reasons you have given are the correct ones and best of luck to you.

As always life is a gamble, and depending on the person involved then the level of risk taken will vary.

All the best.

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I am amazed at the replies by some people, just as bad as a troll posting tbh.

It is fair to say houses are in a bubble and need to come down for the sake of our economy and the sooner they do the better. I do not mean for the better for the people who are playing the 'game', as some of the posters here are and currently losing, I mean for our economy.

However a house is a Home not an investment, if it makes financial and non-financial sense then go for you. The reasons you have given are the correct ones and best of luck to you.

As always life is a gamble, and depending on the person involved then the level of risk taken will vary.

All the best.

Nice one, I mean nice first post ;)

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Don't listen to the naysayers on here, they're bitter because the BOE printed and made them wrong when they should have been right, and are going to continue to do so.

Best of luck.

Right and wrong Sir.

Right they will print and print and print.

Wrong it will raise house prices. Slashing of rates did that in 2009-2010. Oh look, they haven't risen since then even though they've printed a further £200BNs! And they can't slash rates again. Ever.

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I am amazed at the replies by some people, just as bad as a troll posting tbh.

It is fair to say houses are in a bubble and need to come down for the sake of our economy and the sooner they do the better. I do not mean for the better for the people who are playing the 'game', as some of the posters here are and currently losing, I mean for our economy.

However a house is a Home not an investment, if it makes financial and non-financial sense then go for you. The reasons you have given are the correct ones and best of luck to you.

As always life is a gamble, and depending on the person involved then the level of risk taken will vary.

All the best.

You joined in March 08 and this is your 1st post?? :blink:

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An old couple had lived there for 30 years and the property needed updating but it was mostly cosmetic (my level of DIY). We knocked them down to £249,995 to save paying stamp duty as first-time buyers. With a 40% deposit First Direct gave us a mortgage which tracks the base rate plus 1.69% - so 2.19% over 15 years.

The premise of the decision was – money in bank earning no interest and wanting the freedom to make our home our own (without landlord hassle). We could cope with 15% interest rates and if interest rates remain low, worst case scenario re: house prices, the property will not deprecate quicker than we pay off the mortgage. Fortunately, as we speak, the property is worth a little more than we paid for it.

Knocked them from what, down to quarter of a million pounds?

Well done. It's like you're living rent free you smart fellow.

Come back and update your story in 2014/15.

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It's QE that is financing the government's deficit right now, not the markets.

So, 1/4 of all government expenditures is being paid with freshly printed paper "money".

This has got to cause inflation at some point.

And some inflation saves the banks too, as nominal property prices don't fall, or not by much.

Though it can't be too high, or mortgage rates will go too high, triggering customers' default.

But some 4% or 5%/year is just perfect for them. A few more years at this rate and we would have had a crash in real terms, but just a small correction in nominal terms.

That same 4 or 5 % inflation is taking away the buying power of the people who are getting no wage increases and no savings interest.

This is not sustainable, we will either have a massive recession or hyper inflation.

Petrol went up 30% in 1 year or so but has stuck. The petrol companies whacked it up again but they suddenly realised that people then stopped buying it or drove slower...petrol has come back down, not I reckon, because of any helpful government intervention but because the oil companies had gone past that level where people could afford it.

We are at the tipping point.....

Edited by TheCountOfNowhere
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no point, I have been a follower of HPC for some time and thought I would share. Maybe you're right. I know it's a gamble .

It is not a gamble and cannot be a gamble because this is a place you buy to live in, not an investment or a speculation ( unless you state of mind is to threat this as an investment or speculation).

People staying out of the market even though they can buy is nevertheless gambling for underestimate Uncle King's resolve or a sudden discovery of oil/gold/new technologies..

Buy what you and your wife need ( not the biggest house) with a decent deposit (as you did), work hard and smart and I think you will be fine.

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no point, I have been a follower of HPC for some time and thought I would share. Maybe you're right. I know it's a gamble.

I started following this site in 2004, joined in 2005, and still believe house prices to be hugely overvalued.

However, due to my circumstances I decided to buy at the end of 2005. I took a gamble and low interest rates subsequently that have allowed me to eat through the capital outstanding.

I would be paying over £1000 p/m in rent to live here (approximately 5% of the property's value) and would have been doing that for about 5 years (approximately 25% of the property's value). As I say, it was gamble, and it paid off.

I was expecting house prices to fall in 2005, but I could not be bothered with renting any more.

Compared to the fundamentals, I would think that buying at today's higher prices in today's economic climate is a bigger gamble than in 2005, but it might pay off and if you can afford it and prepared for the risk, good for you.

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Compared to the fundamentals, I would think that buying at today's higher prices in today's economic climate is a bigger gamble than in 2005, but it might pay off and if you can afford it and prepared for the risk, good for you.

Remember that market can remain irrational longer than you can remain solvent (ok - you and your other half and kids can remain sane) bit ?

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Everyone I know in Cheshire must unknowingly have originated in Runcorn then! All my mates with houses have worked for them - not received multiple 10k handouts from parents.

First 1000 Rightmove houses in Cheshire for up to £100k: http://www.rightmove...00000&index=100

But feel free to continue thinking everyone's a footballer living in Alderley Edge...

nicely taken out of context with a bit of a straw man in at the end

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Appreciate your support.

from £269,999

update to follow 2014/15

actually, putting all the debate to one side, this is only a militant house price site after all, good luck to you whatever

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I graduated in 2001 and moved from Cheshire to Essex and then to Kent for work. I decided to rent because I thought the housing market was over-heating and I appreciated the flexibly of renting. Being able to relocate quickly was a key factor in getting my first job.

For eight years I shared a flat / house or rented a room. Although I had a few bad experiences with landlords the low cost of rent allowed me to save a substantial amount of money for a deposit. In 2009 I married, we moved in together and rented for a year. The rental property was quite expensive compared to my house share (marital home and all that). My wife had also been saving hard. So in 2010, with house price slightly lower than peak, we found our ideal home which offered excellent value for money – a 3 bedroom period property with a large garden 50 minute commute to London. An old couple had lived there for 30 years and the property needed updating but it was mostly cosmetic (my level of DIY). We knocked them down to £249,995 to save paying stamp duty as first-time buyers. With a 40% deposit First Direct gave us a mortgage which tracks the base rate plus 1.69% - so 2.19% over 15 years.

The premise of the decision was – money in bank earning no interest and wanting the freedom to make our home our own (without landlord hassle). We could cope with 15% interest rates and if interest rates remain low, worst case scenario re: house prices, the property will not deprecate quicker than we pay off the mortgage. Fortunately, as we speak, the property is worth a little more than we paid for it.

Good for you. If the post is genuine, then you did the right thing and you will be fine.

Lot of bitterness on here, but keep in mind that many posters have wasted almost a decade renting and waiting for prices to come down. It's hard to admit you are wrong when you have invested so much time and energy in a cause.

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Appreciate your support.

from £269,999

update to follow 2014/15

I've sold a house for 250K before, I asked 275....I fully expected to get 240...someone paid 250, previous best sale price 210 for similar in the area. I was very happy. The agent done me proud.

You need to ignore the asking prices ( not you obviously having already bought ) and work on price per square foot, that's what the agents do so why anyone would do anything else is beyond me.

Caveat emptor.

Edited by TheCountOfNowhere
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Good for you. If the post is genuine, then you did the right thing and you will be fine.

Lot of bitterness on here, but keep in mind that many posters have wasted almost a decade renting and waiting for prices to come down. It's hard to admit you are wrong when you have invested so much time and energy in a cause.

Remember some of us have sold at the peak, made a few quid in gold, got lots of money in the bank, rent houses for peanuts relativer to the cost of buying instead saving the residual, people remember the previous crash, remember when banks loaned sensibly, remember when interest rates were 15%, remember when there were no jobs, remember prices are down 30% in real terms from Peak prices and still falling YoY. Remember, there are plenty of V.I.s out there who are terrified of prices dropping, of rents dropoping, of affordable sustainable house prices.

Lastly, Remember...The Alamo. :P

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Good for you. If the post is genuine, then you did the right thing and you will be fine.

Lot of bitterness on here, but keep in mind that many posters have wasted almost a decade renting and waiting for prices to come down. It's hard to admit you are wrong when you have invested so much time and energy in a cause.

that'll explain the rude health of the banking system and the western economies then

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Remember some of us have sold at the peak, made a few quid in gold, got lots of money in the bank, rent houses for peanuts relativer to the cost of buying instead saving the residual, people remember the previous crash, remember when banks loaned sensibly, remember when interest rates were 15%, remember when there were no jobs, remember prices are down 30% in real terms from Peak prices and still falling YoY. Remember, there are plenty of V.I.s out there who are terrified of prices dropping, of rents dropoping, of affordable sustainable house prices.

Lastly, Remember...The Alamo. :P

That's all well and good, and good for you too. But the guy made a decision he is happy with, he needed a home for his family so he bought. Why are people so quick to trash his move ?

P.s I wouldn't like to have a lot of money in the bank. Not right now.

Pps And gold is a store of value, just like paper currency or property. What makes you so sure you are safe with that one ?

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that'll explain the rude health of the banking system and the western economies then

it's not guys like this who are to blame for that, it's the liar loans and the 120% LTV's etc etc

he made a sensible move, not heavily exposed, so what

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That's all well and good, and good for you too. But the guy made a decision he is happy with,

not sure about that otherwise why is he seeking validation?

Pps And gold is a store of value, just like paper currency or property. What makes you so sure you are safe with that one ?

FAIL

property has a dividend so is more an investment than a store per se

paper currency is a means of exchange and not intended as a store of value (otherwise central banks wouldn't deliberately encourage limited inflation)

and yes gold is a store of value, so it Is different, and no you can't compare it properly to houses as it's hard to hide a house

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