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TheCountOfNowhere

I've Just Made 150K This Year On My House....

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Seen an acquaintance today from London, they said they are moving out of London soon, since they've made £150k since they bought their house 12 months ago ( obviously this is their valuation and not actually based on a sale ).

They didn't even bat an eye lid, seems this is normal !!!

They said this will help them buy something somewhere nice and cover all their costs.

I couldn't be bothered bursting their bubble but for me it was another sure sign the london bubble is about to collapse.

THERE IS NO BUBBLE MR CARNEY !!!! B*******T

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Seen an acquaintance today from London, they said they are moving out of London soon, since they've made £150k since they bought their house 12 months ago ( obviously this is their valuation and not actually based on a sale ).

They didn't even bat an eye lid, seems this is normal !!!

They said this will help them buy something somewhere nice and cover all their costs.

I couldn't be bothered bursting their bubble but for me it was another sure sign the london bubble is about to collapse.

THERE IS NO BUBBLE MR CARNEY !!!! B*******T

During the hey day of the last bubble (pre-2008), when people were similarly constantly boasting how much they had 'made'. I would always retort with a quizzical look/response along the lines of "Oh. So you're moving are you? I didn't know. Where you going....".

At which point they would feel obliged to explain/clarify that they weren't moving or selling up.

At which point I would then cut back in, before they finished, with a rather 'oh so what's the big deal' sort of response along the lines of, "So in that case you haven't actually made anything at all? Have you?"

Which would then usually be followed up from them with, "Errrr......"

Edited by anonguest

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I've hear similar stories recently but from those who rent theirs out. As much as I'd love to see the bottom fall out of the market, I simply don't see it happening. At least, not without some major world event or rapid interest rate hikes/sterling crisis.

* Hopes & Prays *

And my (already low) rent went up 25 quid a month.

Something doesn't add up.

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Quote from The Economist, which although recognising that Britain's house prices are well overvalued against both long run average rents and incomes, gets to the uncomfortable truth that the NIMBYs have so far at least won the fight,

Prices in Britain increased at their fastest rate for three years in October, fuelling fears of a housing bubble (and subsequent crash), particularly in London where prices increased by 12%. Although by our measure housing is overvalued against both rents and income, Britain did not suffer a housing crash on the scale of America’s, largely because supply is so tight. Britain’s government scrapped house-building targets in 2010. Projections of new-household formation suggest 290,000 new homes will need to be built every year through to 2031. But in the 12 months to March 2013 housing completions fell to 135,000, their lowest level since records began in 1949.

We did manage to build 300,000 homes a year for most of the 1930's, despite a much smaller population, if we did it then we can do it again. But first we need a political party with the courage and vision to stand up to NIMBY lobbying.

.

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Quote from The Economist, which although recognising that Britain's house prices are well overvalued against both long run average rents and incomes, gets to the uncomfortable truth that the NIMBYs have so far at least won the fight,

We did manage to build 300,000 homes a year for most of the 1930's, despite a much smaller population, if we did it then we can do it again. But first we need a political party with the courage and vision to stand up to NIMBY lobbying.

.

Most nimbys are boomers, nobody wants to take on the boomer nimby vote. We should build, but all the parties are paralysed with fear of losing an election if they take them on.

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I've hear similar stories recently but from those who rent theirs out. As much as I'd love to see the bottom fall out of the market, I simply don't see it happening. At least, not without some major world event or rapid interest rate hikes/sterling crisis.

Thing is, this just shows how much of a Ponzi scheme it all is, really. The guy who "made" £150k has probably loaded up the proverbial "greater fool" with £150k of additional debt. That person will hope to do the same to someone else... until the point where the debt load becomes too great to bear.

Even if you're earning £50k in London, at some point it's going to reach the point where you'll be stretching your finances to breaking point just to get a foot on the so-called "ladder" (if it hasn't already reached that point).

If the first rung of the ladder you're about to climb looks decidedly fragile and held together with sticking plasters and some dodgy pieces of string, would you feel comfortable setting foot on it? :D

That's the London housing market, that is.

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Seen an acquaintance today from London, they said they are moving out of London soon, since they've made £150k since they bought their house 12 months ago ( obviously this is their valuation and not actually based on a sale ).

They didn't even bat an eye lid, seems this is normal !!!

They said this will help them buy something somewhere nice and cover all their costs.

I couldn't be bothered bursting their bubble but for me it was another sure sign the london bubble is about to collapse.

THERE IS NO BUBBLE MR CARNEY !!!! B*******T

And if they do sell, and splash the cash of their 'windfall', they will corrupt the market where they buy their idyll, pricing out someone on a local salary. I'm surrounded where I live by many of these hard working people who have all done the right thing.

Edited by LiveinHope

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I've hear similar stories recently but from those who rent theirs out. As much as I'd love to see the bottom fall out of the market, I simply don't see it happening. At least, not without some major world event or rapid interest rate hikes/sterling crisis.

* Hopes & Prays *

Yeah,right, all the S.E. will be making £100K year on year on their houses....might as well give up work and just sit in your house for 5 years then retire.

Anyone that can't see that this is not sustainable is deluded.

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The housing shortage would explain why the streets are lined with homeless people :rolleyes:

I know seven 25-35 year olds who live with their parents. Most of them have full time jobs.

My girlfriend and I rent the ground floor of a 2-up 2-down in Walthamstow which was originally built for one family but has now been split into flats. I have co-workers who are raising young children in flats like ours.

There is a housing shortage in London/SE.

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Soon they'll all be oligarchs - if they aren't already.

The UK has so much to thank the Coalition and Labour for.

Edited by billybong

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I know seven 25-35 year olds who live with their parents. Most of them have full time jobs.

Wish I did. Someone I know (30) just bought. £219,000 for a 2 bed bungalow in Horsell. Needs gutting entirely (Long term smoker) . He can re-wire it luckily, but having wet C.H. fitted too.

Basically bought walls, roof, front door.

Edited by chronyx

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When i came to sell my first place ( 1 bed flat) i felt sick when the EA told me it had trebled in price because i realised that it just meant i had to borrow more for the next place(3 bed eot). Having a basic grasp of mathematics is probably not good for ones health here in ponziland .

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If there is a housing shortage, how come there are so many empty homes?

Because they're no longer "homes" they're "financial assets" :angry:

This is exactly why we need a Land Value Tax, it's disgraceful that anyone is going homeless when there are so many empty properties out there essentially just sitting around on someone's asset sheet. The Dutch tried to combat this exact practice with a libertine approach to squatting but unfortunately the movement apparently turned violent and the law was recently repeeled:

While the practice started in the sixties, with tens of thousands of people looking for a place to live squatting became popular in Amsterdam and other big cities during the seventies and early eighties. At the time many landlords deliberately kept their buildings empty and refused to carry out necessary upkeep, speculating that the lots the houses stood on would sell for more money than they could get if they rented or sold the homes.

To combat this practice, which led to a dearth of affordable rental property, a 1971 court ruling said that squatting was tolerated if a building had not been used for a period of twelve months and the owner could not demonstrate that he planned to “soon” start using the building again. The property would be returned to the owner only after a civil procedure.

http://www.dutchamsterdam.nl/911-amsterdam-squatting-banned

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Prices in Britain increased at their fastest rate for three years in October, fuelling fears of a housing bubble (and subsequent crash), particularly in London where prices increased by 12%. Although by our measure housing is overvalued against both rents and income, Britain did not suffer a housing crash on the scale of America’s, largely because supply is so tight. Britain’s government scrapped house-building targets in 2010. Projections of new-household formation suggest 290,000 new homes will need to be built every year through to 2031. But in the 12 months to March 2013 housing completions fell to 135,000, their lowest level since records began in 1949.

.

The pound also dropped 25% against the USD.

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Wish I did. Someone I know (30) just bought. £219,000 for a 2 bed bungalow in Horsell. Needs gutting entirely (Long term smoker) . He can re-wire it luckily, but having wet C.H. fitted too.

Basically bought walls, roof, front door.

I don't get the prices in Horsell. The schools are rubbish and all the houses are massively over priced IMHO.

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I don't get the prices in Horsell. The schools are rubbish and all the houses are massively over priced IMHO.

The bankers do and the boomers do and the politicians do and the estate agents do.....they are at the top of the housing pyramid.

The rest of the home buyers are fodder, buying and paying more just to support the unearned equity/interest/fees/votes.

People really need to wise up, there is not housing ladder it's a housing pyramid.

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The question to ask is "So how much of it have you spent?"

:)

I will wait and see what the actual outcome of any prospective house move is. Even if they do sell/trade up/across they are just digging a massive hole for themselves.

I've had a 3 couples from the same group of friends telling me (since new year ) how well their house price was doing and they were going to up-size now they had more equity and the market was booming.

HPC people....it's taken longer than we ever thought but we have most definitely returned to normal............

bubble-lifecycle.gif

Edited by TheCountOfNowhere

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