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TheBlueCat

Nimbys Told To Get Lost

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http://www.cambridge-news.co.uk/News/House-building-in-Cambridge-green-belt-backed-by-council-as-new-local-plan-sent-to-Government-20140214120859.htm

OK, about 10 years too late, but it's good that only 1 councilor voted against this.

Expansion of Cambridge is vital to prevent a generation being priced out of the city, according to councillors who approved a new local plan for submission to the Government.

Cllr George Owers, who represents Coleridge, said a vocal campaign group could not have a “veto” on the city’s future

But other councillors argued development was vital to prevent house prices – already 12 times’ average wages – spiralling further out of control

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Good.

However I hope the homes are both better designed and more affordable than those thrown up in Trumpington.

£500k for a tiny terraced house with a scrap of garden, "snapped up by canny investors" and rented back to locals for £1300 a month is not a solution.

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All of these new homes will be snapped up by cash/massive buyers almost immediately. And then rented out. lol.

I've just been googling about this...apparently also a big driver in prices in US and Aus..............boomers crowding out ftbs. So if they can't stop it being built they are bloody well going to buy it.

http://smh.domain.com.au/real-estate-news/baby-boomers-continue-to-squeeze-out-firsttimers-20140113-30qx1.html

Edited by crashmonitor

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All of these new homes will be snapped up by cash/massive buyers almost immediately. And then rented out. lol.

Most of the new ones in Trumpington already have been.

I know someone who bought one (100% cash) to rent out.

He went into the sales office and said "I'm a cash buyer, what can you do for me in terms of a discount" and they said "Almost everyone we have buying is paying 100% cash - so nothing"

A few weeks later the prices had been put up 15%.

I went to look round his flat, it is a nice enough 2-bed flat overlooking a roundabout. £310k.

Now rented out for £1000 a month so 3.8% income before costs. You can buy Sainsbury shares that pay 4.8% dividend.

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Most of the new ones in Trumpington already have been.

I know someone who bought one (100% cash) to rent out.

He went into the sales office and said "I'm a cash buyer, what can you do for me in terms of a discount" and they said "Almost everyone we have buying is paying 100% cash - so nothing"

A few weeks later the prices had been put up 15%.

I went to look round his flat, it is a nice enough 2-bed flat overlooking a roundabout. £310k.

Now rented out for £1000 a month so 3.8% income before costs. You can buy Sainsbury shares that pay 4.8% dividend.

Having saved the banking system the money never actually disappeared or got destroyed from the last boom. We now have a situation where there is money swashing around looking for a limited supply of assets and a refuge from zirp. And we get this nonsense of half a million pound terraced homes in Cambridge.

You stop this by having normal interest rates.

Edited by crashmonitor

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I've just been googling about this...apparently also a big driver in prices in US and Aus..............boomers crowding out ftbs.

Sounds like a good opportunity. Tell the Boomers that new developments will give them a chance to invest in BTL. At least some houses might actually get built that way.

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Now rented out for £1000 a month so 3.8% income before costs. You can buy Sainsbury shares that pay 4.8% dividend.

Ah but then they reply Sainsbury shares are risky. There is no risk whatsoever with bricks and mortar.

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I've just been googling about this...apparently also a big driver in prices in US and Aus..............boomers crowding out ftbs. So if they can't stop it being built they are bloody well going to buy it.

http://smh.domain.com.au/real-estate-news/baby-boomers-continue-to-squeeze-out-firsttimers-20140113-30qx1.html

The issue and cause is the relative inequality of earnings. Due to the high inequality that the boomers themselves have engineered, the system now rewards much higher wages to older workers vs younger. That enables older-boomer workers to easily outbid the younger for housing.

The solution is of course a more equal society.

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Do these ridiculous house prices not have negative impact when it comes to the various Cambridge based research centres attracting the best global talent? It's not like most academics (bar professors) are paid that much- certainly not enough to afford one of these houses (without a mega mega mortgage).

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Do these ridiculous house prices not have negative impact when it comes to the various Cambridge based research centres attracting the best global talent? It's not like most academics (bar professors) are paid that much- certainly not enough to afford one of these houses (without a mega mega mortgage).

Just did a quick Rightmove search.. if you are prepared to move 10-15 miles away then you can get a 3 bed semi for perhaps £180k near Ely (Bargain!). So you could see a pattern of people renting in Cambridge then moving out..

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Sounds like a good opportunity. Tell the Boomers that new developments will give them a chance to invest in BTL. At least some houses might actually get built that way.

+1 Let them take the risk.

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Do these ridiculous house prices not have negative impact when it comes to the various Cambridge based research centres attracting the best global talent? It's not like most academics (bar professors) are paid that much- certainly not enough to afford one of these houses (without a mega mega mortgage).

It's a major issue and one reason the University is building a lot of its own accommodation to rent out to staff. When I first lived in Cambridge 25 years back everyone I worked with in the tech firms lived in the city, these days new arrivals there tend to be commuting in from the middle of nowhere in the Fens.

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Indeed, we need the correct legal and tax legislation in place also.

.....yes, recent development of well priced affordable housing to 1st time buying occupiers only sold......within a few years all were resold at going market rates to anyone who could pay the price....poof all affordable homes now unaffordable. ;)

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Just did a quick Rightmove search.. if you are prepared to move 10-15 miles away then you can get a 3 bed semi for perhaps £180k near Ely (Bargain!). So you could see a pattern of people renting in Cambridge then moving out..

That pretty much is the experience for scientists in Cambridge.

Young-ish people move to Cambridge and live in house shares which are around £400-£500 a month for a room. As a post-doc you'll earn £25-33k a year. If you do really well and have your own group then around £40k (but you'll usually be mid-30's by the time you reach this stage).

Then if they do want to buy there are two choices, mortgage yourself to a crazy degree and live in one of the cheapest suburbs (do a Rightmove search and you'll find ex-council place start at £250k) or move to Haverhill/Ely/St Ives and have a long journey to work in terrible traffic.

Ideally there would be mass-transit from the surrounding towns, they've built the "guided busway" which is decent enough but it doesn't serve a particularly wide area e.g. not to Cambourne.

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Is anybody else expecting a deluge of nimby propaganda after the floods recede. Something along the lines of not building anything for fear of diverting flood waters onto established towns, villages, farmland and sacred dog walking areas?

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Is anybody else expecting a deluge of nimby propaganda after the floods recede. Something along the lines of not building anything for fear of diverting flood waters onto established towns, villages, farmland and sacred dog walking areas?

I suspect that Nimbyism is sometimes the reason that some houses end up being built in stupid, vulnerable locations though.

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Ah but then they reply Sainsbury shares are risky. There is no risk whatsoever with bricks and mortar.

Also - 'Yeah, but I have to pay income tax on the dividends and any capital gain is taxed as well, so it's not worth it'

(As opposed to BTL which is untaxed in everyone's mind, even if not in actuality)

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Do these ridiculous house prices not have negative impact when it comes to the various Cambridge based research centres attracting the best global talent? It's not like most academics (bar professors) are paid that much- certainly not enough to afford one of these houses (without a mega mega mortgage).

Apart from the other english speaking countries, most the third world countries our proffesional immigrants come from have absymal housing stock, so even shite uk housing is acceptable to them. One of my doctors, a pakistani one, lives in some dilapidated ex-council thing surrounded by sofas in the front gardens. (he was new, and being the neurotic type i am, I wanted references before seeing him!)

Anecdotally, Ive seen similar in arson crime reports, (probably no doubt assisted by the general crappyness and unfireproofed houses)

is this the kind of house befitting a top 5% earner?

https://www.essex.police.uk/news_features/features_archive/2012/october/fatal_fire_in_harlow.aspx

fatal-fire,-480.jpg

or this?

http://www.breakingnews.ie/ireland/man-appears-in-uk-court-accused-of-murdering-dublin-doctors-family-607575.html

leicesterWoodHillFire_large.jpg

And then theres the poles, sleeping a dozen to a flat, or in tents.

That HK cage city isnt that far away, we are being turned into a slum.

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Is anybody else expecting a deluge of nimby propaganda after the floods recede. Something along the lines of not building anything for fear of diverting flood waters onto established towns, villages, farmland and sacred dog walking areas?

Is all that is in my 3 local papers. NO MORE HOUSES THINK OF THE FLOODING

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