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Telegraph - Uk Housing Market Is Stuck On The Second Step


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http://www.telegraph.co.uk/finance/personalfinance/houseprices/9919021/UK-housing-market-is-stuck-on-the-second-step.html

The group's problems are compounded by falling house prices pushing a quarter of respondents into negative equity. Since the typical second stepper bought their first home in the peak year of 2007, the average price paid by first-time buyers has dropped by £20,095.

Typical financially illiterate journo drivel.

Plus we are now hearing that the over-leveraged first time owners are looking to be bailed out via the banks.....

At least the comments (as usual) are more realistic

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if there is a 'property ladder' there must be a 'second step' otherwise (perish the thought) some may not get that detached 4 bed house with 2 en-suites and an airy kitchen/diner with range cooker that is the 'heart of the home' - they will live in a normal semi/terraced house that they will pay off in 25 years and be happy/contented there. :rolleyes:

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if there is a 'property ladder' there must be a 'second step' otherwise (perish the thought) some may not get that detached 4 bed house with 2 en-suites and an airy kitchen/diner with range cooker that is the 'heart of the home' - they will live in a normal semi/terraced house that they will pay off in 25 years and be happy/contented there. :rolleyes:

There is a ladder, definitely.

Its just diffrent for everyone....and, just as in life, not everyone climbs it....ENTITLEMENT means we all do, as is our right.

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So they're saving that the average "step on the housing ladder" is six years, the same amount of time that I've been in my current rental house. I thought that one of the arguments in favour of buying was to "put down roots and get on with your life".

That sounds like communist talk damn you. My grandfather used to SHOOT the foreigners like you you commy scum. I'm warning you!

(more reactionary nimby entitled drivel....)

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Ha...stuck on the second step, what about those that can't reach the fist step. :wacko:

you can re-express that as

"BOMAD wasted their ammo in 2006 and now there's nothing left to shoot - tough sh*t you entitled little second step w*nkers"

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Ha...stuck on the second step, what about those that can't reach the fist step. :wacko:

The thing is... Their struggle getting to the second step is fantastic for those of us who have avoided the first step altogether. Very happy for my rental place to be my first step. And I've avoided the stamp duty and crazy legal fees.

I've (almost) got my 20% deposit for my second step place without the need for the capriciousness of the housing market in helping me there.

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The thing is... Their struggle getting to the second step is fantastic for those of us who have avoided the first step altogether. Very happy for my rental place to be my first step. And I've avoided the stamp duty and crazy legal fees.

I've (almost) got my 20% deposit for my second step place without the need for the capriciousness of the housing market in helping me there.

+1

and I expect that will be +1000.

If the second steppers don't have the deposit because their first place dropped in price, and it's considered too small, why won't I just buy a second stepper place since they will want my cash.

Average age of FTBers is heading to mid 30's = kids en route, so why buy an overpriced shoe box? The fun and games ensue.

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The thing is... Their struggle getting to the second step is fantastic for those of us who have avoided the first step altogether. Very happy for my rental place to be my first step. And I've avoided the stamp duty and crazy legal fees.

I've (almost) got my 20% deposit for my second step place without the need for the capriciousness of the housing market in helping me there.

every step is pushed to max leveraged value by financialisation.

If its hard for FTB, itll be hard for everyone else. There is no reason on Earth why the competition at the higher values is any less.

just about every £1 gain in value at all levels is down to financial extra leverage.

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The thing is... Their struggle getting to the second step is fantastic for those of us who have avoided the first step altogether. Very happy for my rental place to be my first step. And I've avoided the stamp duty and crazy legal fees.

I've (almost) got my 20% deposit for my second step place without the need for the capriciousness of the housing market in helping me there.

Very shrewd...I hope most people who own a home they have grown out of now understand that to move onwards and upwards means paying the debt down thus creating their own equity for themselves not a magic one created for them just by living in it doing nothing productive......those days have gone now....time to wake up and smell the coffee. ;)

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The second step on the housing ladder is only likely to be possible if you had a windfall or pay rise. With wages static, for most people the housing ladder is a thing of the past.

The alternative is to lend ever increasing salary multiples, extend the mortgage term and for the boe to reduce rates, all of which has of course been exhausted. So it is now the day of reckoning.

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Same churnalism in The Guardian, with lots of whiney cases. Why can't people accept they've screwed up and live with it instead of expecting a bail out either from family or the state.

http://m.guardian.co.uk/money/2013/mar/10/trapped-negative-equity-first-time-buyers

Tom Green and his wife, Keira, bought a flat in Solihull, near Birmingham, in February 2008 as the property market reached its peak. "We took on a 125% mortgage from Northern Rock – at that time it was sold as 'your property will increase in value, so it's no problem'," he says. However, just a couple of months later the market collapsed. "It's a big flat and there were just the two of us, so we decided to stay put and wait it out. We thought after a couple of years things would pick up," he says.

Instead, five years on, Tom Green thinks it is still worth less than the £122,500 they paid. They have watched as the neighbourhood has become less desirable and nearby properties have hung around on the market for years. "There are no first-time buyers left – they've all vanished, certainly at the level we want to sell at."

Back in Solihull, the Greens have family reasons for moving, as well as financial ones. They had a child in November, and rather than live in a second-floor flat with no lift, they moved in with Tom's parents. "If we sold now we would lose £10,000-£15,000 and we would need to find another £5,000 in fees – the last five years would have been a waste of time and money," he says.

Fortunately, the property was easy to let and since the start of the year they have had a tenant. "We realise we are lucky to be able to live with my parents while we save money and in 12 months we will be in a much better position."

...

Tom Peirson and his family are among those who are squeezed into a smaller space than they would like, but can't find the way to buy a bigger home.

Peirson, a firefighter, and his wife, Emma Jane, who runs a hairdressing salon, live with their two daughters in a two-bedroom home near Brighouse in Yorkshire. It is worth less than the £82,000 they paid in November 2005 and has been on the market since their youngest daughter was born four years ago.

He says: "We had an offer last year but they pulled out," he says. "We've just had another offer, but it's for less than we owe and, with all the other costs, we are not sure that we can afford to buy anywhere.

"If you are a young couple and can live at home you may be able to raise a deposit, but we are really struggling."

...

Psychiatrist Clare Gabriel (not her real name) lives in a two-bedroom flat in Glasgow with her husband and two children and runs a business from there. It cost £155,000 in 2005 and was recently valued at £120,000. "We have tried trading in with developers but they won't touch our flat," she says. The couple are trying to get their lender's permission to rent out their home so they can use Scotland's Mi new home scheme to buy somewhere bigger. "It is difficult because we want to live where there are decent schools and that means prices start at £265,000 ... Even if we did succeed we'd be taking a risk having two mortgages."

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Same churnalism in The Guardian, with lots of whiney cases. Why can't people accept they've screwed up and live with it instead of expecting a bail out either from family or the state.

http://m.guardian.co.uk/money/2013/mar/10/trapped-negative-equity-first-time-buyers

First couple-125%, no sympathy. Choosing a path that required 25% HPI just to maintain the deposit over five years is not responsible behaviour.

Second couple-7 years into a 82k mortgage and unable to trade up? Perhaps they earn very little but it seems implausible that they would not have cleared a good fraction of that by now. Should be 20% (edit, more like 13-15%)through the balance at least. Besides, how are they goin to repay the trade up mortgage if they are struggling with this one? Four years on the market too.

3rd couple- once bitten, twice a mad for it extrovert. Talking about dropping a quarter of a mill on a place on a two mortgage basis, deary me.

Edited by cheeznbreed
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