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The Worst Sort Of Journalistic Hype

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http://www.telegraph.co.uk/property/propertynews/10350347/Shock-horror-young-British-couple-buy-home.html

Sorry, but this is no longer a property ladder. It’s the North Face of the Eiger in FitFlops. How are any normal people meant to clamber up? So, cue trumpet fanfare and town crier: “O yay! O yay! Young British couple manages to buy own home!”
I managed to persuade Amy to find out more about Help to Buy. She and James talked to a local developer and were told that a downpayment of 5 per cent would be enough: the Government would make up the rest. Their monthly repayments of £1,100 would be less than they both waste at present on rent and there would be no interest charge for the first five years.

I wonder whether the author of that article will pay compensation to the couple for her high-pressure selling of the HTB scheme when the interest rates rise?

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£300k for a 2 bed place, and they're happy?

But they're on the ladder now. In 5 years they'll move to a 3 bed and a 4 bed 5 years after that. They don't need to trouble themselves with wages or capital repayment, the ladder will take care of it all.

A real return of 2.8% don't forget and the initial catch up to trend is just the icing on the cake. In fact I think they should start looking at the next rung now. Its never too soon.

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But they're on the ladder now. In 5 years they'll move to a 3 bed and a 4 bed 5 years after that. They don't need to trouble themselves with wages or capital repayment, the ladder will take care of it all.

A real return of 2.8% don't forget and the initial catch up to trend is just the icing on the cake. In fact I think they should start looking at the next rung now. Its never too soon.

I suppose there has been 6 years of awful falls to catch up with. That lady knows her stuff, an Estate Agent told me so himself.

Edited by The B.L.T.

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How is £1,100 pm less than £650 pm. Oh and even at £1,100 pm, they still have plus bills and petrol. I hope we're not going to have people at HPC playing the sympathy card for these buyers into 2020. It was bad enough some people giving every excuse to the 2005-2007 buyers during 2008-2010. 'They just wanted a home'.

Six months ago, Amy told me she was trapped in a vicious circle. On an above-average income, but paying rent of £650 a month, plus bills and petrol, she was finding it hard to save a fraction of the deposit she and James would need for a flat.

,,,Their monthly repayments of £1,100 would be less than they both waste at present on rent and there would be no interest charge for the first five years.

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They have bought in to the MSM message. Every other advert on TV is for HtB and how it is cheaper to buy than to rent and if there is a problem Cameron is there to help. 5 % down and the payments are less than the current rent why would they not buy especially as prices will rise by 25% over the next few years and double in ten years. Carney has promised interest rates will not rise and the economy has recovered and so they don't want to miss out ... years of pent up demand.

Silly Cam Carney will not be on the menu for the entire time these people need to dine out on it though.

The media ramping is incessant at present.

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For essentially a 1 bedroom LEASEHOLD flat.

Why? Honestly why? they would have been better off renting for the £650pcm.

nuts, they'd be half a grand a month better off renting. although the woman journo thinks the mortgage is cheaper than renting! but she's basing the figures on them both renting a property each -why do that? this piece needs to be printed off and framed as in a few years i'm sure they'll try and delete it all / deny all knowledge as it's so BAD and propoganda to the highest level.

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They have bought in to the MSM message. Every other advert on TV is for HtB and how it is cheaper to buy than to rent and if there is a problem Cameron is there to help. 5 % down and the payments are less than the current rent why would they not buy especially as prices will rise by 25% over the next few years and double in ten years. Carney has promised interest rates will not rise and the economy has recovered and so they don't want to miss out ... years of pent up demand.

And the sad thing is that the government has manipulated the market and prices in London are well above the 2007 peak and they are now trying to manipulated the market in the rest of the country and with taxpayers money they have very deep pockets and will probably succeed. HtB 1 and 2 are just the start and there is nothing they will not do to get property prices rising as they have no choice. The UK economy is house prices.

given that though, when you know the game is rigged, is it wrong to buy?

were essentially seeing a socialist policy to maintain the status quo of high prices.

as you say, someone buying in london even at the 2007 peak will have been better off buying even at that peak because the system is manipulated, so ignoring if you think that prices will fall for one second, if you knew that you would be better of in say 5 years time even though you think prices are ridiculous, would you buy?

for example with help to buy, i and everyone else thinks is a bad policy, but at the same time i also think it will push up house prices.

Edited by mfp123

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I don't know Cambridge at all well. There's 2 bed flat rentals, with parking, from £750pm which look well situated for jobs in the area. This rental at £825pm.

A well presented 2 bedroom ground floor maisonette to rent in Cambridge with easy access to Cambridge City Centre, Science Park, A14 & M11. The property features good size living room, fitted kitchen with washer dryer, fridge-freezer, oven & hobs. Double bedroom, further good size single bedroom & family bathroom with shower over bath.

Obviously not blingy newbuild. The telegraph's pic is David Wilson homes, plot 105, but perhaps it's a the stock pick. I've found one of their developments with all the big circular Help To Buy plaques by the doors on the walls, as in the telegraph photo.

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I'm currently typing this from my friends leasehold nightmare flat in EN4. North London.

He "bought" it 5 years ago for £155k. Value today £150k, maybe....

Still owes RBS the £145k he borrowed with a liar loan. In that time, the Boiler has been replaced for £2.5k.

The freeholder is also regularly chipping away via his solicitors letter, for an £18k share of roof and window repairs.

He knows he's ******ed, i don't know what his exit strategy is, but i came back tonight and saw a receipt for Virgin Active on the table for £96 pm. Maybe thats for him and his new wife.

After all he just spent his entire £25k life savings on a wedding.

He's a staunchish lefty, but maybe hes hoping Osborne will float him off the rocks.

He hasn't cleared a bean of the loan in 5 years btw. Despite a following wind of low IRs.

Still my cost of earnings, when in town, is roughly 10%, thanks to the £30 a night i pay him on my Pikey Oddyssey. :rolleyes:

There's possibly millions already in this position, and maybe millions more who have this ear worm in their head now about getting on the ladder.

They are being led to financial oblivion by puff pieces like this.

She should be ashamed of herself.

Edited by shindigger

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They have bought in to the MSM message. Every other advert on TV is for HtB and how it is cheaper to buy than to rent and if there is a problem Cameron is there to help. 5 % down and the payments are less than the current rent why would they not buy especially as prices will rise by 25% over the next few years and double in ten years. Carney has promised interest rates will not rise and the economy has recovered and so they don't want to miss out ... years of pent up demand.

And the sad thing is that the government has manipulated the market and prices in London are well above the 2007 peak and they are now trying to manipulated the market in the rest of the country and with taxpayers money they have very deep pockets and will probably succeed. HtB 1 and 2 are just the start and there is nothing they will not do to get property prices rising as they have no choice. The UK economy is house prices.

They certainly haven't stinted on the advertising budget for HTB2, have they? Anybody would think they were doing it for the buyer not the lenders. Can't say I've seen the distinction addressed anywhere in the MSM.

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I hope we're not going to have people at HPC playing the sympathy card for these buyers into 2020. It was bad enough some people giving every excuse to the 2005-2007 buyers during 2008-2010. 'They just wanted a home'.

Are you saying that these people should suspect that the Uk Government itself is complicit in a scheme to persuade them to take on more debt than is wise?

I am shocked by such thinking- clearly Osbourne and Co only have the best interests of these people at heart.

Seriously though- can you really blame people who have been raised on HPI propaganda from birth from buying into a scheme that carries the United Kingdom treasury stamp of approval?

Of course it's the right thing to do- the bloody Prime minister himself said so!

This has to be a new low even for the Tory party- peddling unsustainable debt to the gullible in order to win power- what a truly sleazy thing to be doing.

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http://www.telegraph.co.uk/property/propertynews/10350347/Shock-horror-young-British-couple-buy-home.html

I wonder whether the author of that article will pay compensation to the couple for her high-pressure selling of the HTB scheme when the interest rates rise?

Love it. These two specimins they pulled are circa my age, and live in the same place. somehow , having also wasted three years at uni, having gone on a year long holiday and also only ever earnt less than 30k per annum I had saved a hundred grand by her age. renting, commuting as well. how come both of them together haven’t even scraped 10???

Edited by Frugal Git

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Love it. These two specimins they pulled are circa my age, and live in the same place. somehow , having also wasted three years at uni, having gone on a year long holiday and also only ever earnt less than 30k per annum I had saved a hundred grand by her age. renting, commuting as well. how come both of them together haven't even scraped 10???

ipods

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Seriously though- can you really blame people who have been raised on HPI propaganda from birth from buying into a scheme that carries the United Kingdom treasury stamp of approval?

They are adults. They can sign up to whatever scheme they want to. All the Htb / First Buy and Newbuy buyers of recent years don't and won't ever be offering every excuse, week after week, for how non-owning savers have been cheated. So it balances out. They make their decision and we make ours. They're winning and feeling clever about it.

Too many times the buyers claim they're smart. Why should I worry about them, or be concerned if the schemes don't work out how they expected them to? They're my competition and they're outbidding me, and preventing price correction with their eagerness to pay high prices. What did they graduate in? How to take on massive debt via schemes? Not my fault they don't know the first rules in life, you'd know if you'd ever spent a day in your life, such as you can't trust politicians. It's not like you can't find example after example of that in recent years.

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But they're on the ladder now. In 5 years they'll move to a 3 bed and a 4 bed 5 years after that. They don't need to trouble themselves with wages or capital repayment, the ladder will take care of it all.

A real return of 2.8% don't forget and the initial catch up to trend is just the icing on the cake. In fact I think they should start looking at the next rung now. Its never too soon.

Little Amy and James Junior are going to be sleeping in a bunk-bed in that tiny bedroom into their teens.

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were essentially seeing a socialist policy to maintain the status quo of high prices.

Socialist??

A socialist housing policy would be 'Compulsory purchase at a fixed rate of land from large landowners for the building of several million decent homes for the working class, to be available at rents sufficient to repay the government investment (but no more)'

Not 'Collude with the rentier class to push up asset prices and maximise the debt burden on the working class'.

Note: My definition of 'working class' is 'Those who need to work for a wage, especially in non-protected professions'.

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Banker: So you're after a mortgage? I'd be delighted to help. Can I ask first if you have any other debts?

*Amy Thinks*: Hmm, well there's the money we borrowed from mum for the deposit, and the money James borrowed from his brother for the stamp duty, plus James' student loans (and maybe car payments and credit cards)

Amy: No

Banker: Excellent. That's the affordability check completed. Let's get started on the paperwork.

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