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The Pop And The Plan?

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So, everyone is calling the top, if it's true, it's been a long wait, but what's your plan when house prices crash? How much will they crash by? When they go, will it be a scramble or a slow decline and where will you be buying when they bottom out?

A relative of mine bought a 3 bed terrace near Limehouse today at double the price of 2007 at £625000, opposite a low rise council block and on the road of a very rough pub, it is a 5 min walk to the dlr thou... It's simply insanity.

The above home is not my plan for a hpc though... I'd be happy to see 50% inside the m25 esp in the crazy crapholes like Catford and Plumstead. (Sorry to those who live there but prices have gone bonkers there too)

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No one knows the future, but I can't see any pressures that will drive interest rates up by any significant amount. Inflation is low, the recovery is faltering at best, China may well have a hard landing, and you have examples like Sweden of the risks of increasing interest rates too fast too soon. So even though some interest rises are likely after the election I'd guess they'll be tiny and well spaced out, so it wouldn't surprise me if we got to 2020 with base rates still below 2%. In addition we still have the grotesque situation that 250,000 new households are formed each year in this country, but we're only building a little over 100,000 new homes.

So what is it that will initiate a crash? Plus if you look back over the long term records there's not much evidence of nominal price crashes as opposed to real price crashes, where it's inflation that does all the price correction work.

On the other hand there's no disputing that we're hard up against absolute affordability limits, and for large parts of the country renting makes far more financial sense than buying. So I'm not expecting much more in the way of house price increases.

The most likely prognosis is sideways drift for many years to come.

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I often wonder what will kick it off. Events, dear boy, events, as old Harold Mac said... I was wondering in summer 2007 what on earth would stop the insanity and lo, the banks went into meltdown.

Who knows? Ukraine is looking very messy - thugs are taking over, but maybe all that will do will make the UK's relative stability look even more attractive.

Oh for a crystal ball...

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Unless you're sitting on masses of cash I think if we have a proper crash the plan will be sit and wait a few years before the banks sort out their balance sheets and start lending again, then buy somewhere at whatever the prices are then. I can't imagine mortgages will be forthcoming for a while if prices have just dropped 50%.

Edited by terryturbojr

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i'm with silver surfer

we'll probably have a sideways drift in nominal terms unless there is a major economic crisis

maybe new cold war with russia could plunge europe into recession when they cut off the gas supply?

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I've been going round my head in circles about this too. There's just no way a crash (more than 5-10% fall) could happen given the huge demand, and even if it did (because everyone always says "this time it's different") it doesn't matter because prices will rise again (because that always follows a crash). So if prices fall, people will hold on to their property unless they HAVE to sell, until prices start to rise. So they'll be further constraints on supply while the rest of economy, including real wages, probably grows, and then prices will grow again.

But, as someone who is buying a flat in Brixton now and has a minute-by-minute internal debate about whether there'll be a crash or whether prices will probably just stagnate, I HATE this whole saga. I want somewhere to live, I can afford and am ready from a lifestyle perspective, and I would be more than happy if prices didn't rise when I buy, as long as they don't fall. This is seriously the least fun thing I have ever done in my life

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I've been going round my head in circles about this too. There's just no way a crash (more than 5-10% fall) could happen given the huge demand, and even if it did (because everyone always says "this time it's different") it doesn't matter because prices will rise again (because that always follows a crash). So if prices fall, people will hold on to their property unless they HAVE to sell, until prices start to rise. So they'll be further constraints on supply while the rest of economy, including real wages, probably grows, and then prices will grow again.

But, as someone who is buying a flat in Brixton now and has a minute-by-minute internal debate about whether there'll be a crash or whether prices will probably just stagnate, I HATE this whole saga. I want somewhere to live, I can afford and am ready from a lifestyle perspective, and I would be more than happy if prices didn't rise when I buy, as long as they don't fall. This is seriously the least fun thing I have ever done in my life

Totally agree. The constant prolonging by the government does no favours at all for people who want somewhere to live rather than something to invest in.

I also agree that it is hard to see prices dropping (or even stopping growing!) whilst this current fervour to buy is in full swing. The only thing that can stop that is limiting mortgage lending. It doesn't matter how much someone wants to buy a house if the banks won't allow them to borrow the amount of money needed to afford it.

Even then it will take ages to fall because the investors and BOMAD buyers will prop things up for a while, but wihout new money coming in from the banks these prices can surely only last so long?

If the banks do start to enforce affordability criteria and only lend 4x income that will require A LOT of £150k earners just to buy the 2 bed flats out here in zone 6 that are starting to hit £600k, let alone the much more expensive ones further in.

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I've been going round my head in circles about this too. There's just no way a crash (more than 5-10% fall) could happen given the huge demand, ..

I don't know about London, but everywhere else I can't see this media obsession of "demand". When prices are rising and people think they will see capital gains (nominal capital gains) of 10-20-30 percent in a few years of course there is "huge demand" for houses. Jeez, if I thought for a moment that this capital growth was true I'd buy a house too.

The (many) people that want HPI like to talk about demand, pent-up demand, or better still the great myth the "housing crisis". It's an odd crisis if you ask me. No tent cities, no shanty towns, no masses of homeless people protesting outside Downing Street. Ah, they all say, it's immigration. Is it now? Are there half a million Romanian Gypsies bashing down the doors of Winkworths clutching huge rolls of grubby 500 Euro notes demanding to know where they can pick up a nice flat?

I've no doubt at the height of the Tulip bulb mania there was huge demand for bulbs. But that demand, much like the demand for housing is driven by the belief of speculative gains.

I (like many people here) rent. I (like many people here) would prefer to buy. Am I part of the huge demand? Or (like many people here) have I thought it through and figured out owning a house is a mug's game at current prices and I will stay renting for the time being? A nice house round here is - say - 350 to 400k If you assume a 20% fall plus add in stamp duty and legal fees that is just too much to risk losing. We will move within 5 years at most (best guess) so add into that mix selling costs and we are talking what, one, two years rent?

IMHO the "huge demand" we are told about every day in the papers will simply fade and die as the sentiment turns.

The crash - more accurately, the correction - will come as the speculative gains belief is removed from the market. I've no idea any more than anyone else what event will trigger that, but the trigger event will come at some point. Either that or you will have to wait for the boomers to die off in about 20 years time. There will undoubtedly be a correction then as so much property comes to the market all at once.

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I don't know about London, but everywhere else I can't see this media obsession of "demand". When prices are rising and people think they will see capital gains (nominal capital gains) of 10-20-30 percent in a few years of course there is "huge demand" for houses. Jeez, if I thought for a moment that this capital growth was true I'd buy a house too.

The (many) people that want HPI like to talk about demand, pent-up demand, or better still the great myth the "housing crisis". It's an odd crisis if you ask me. No tent cities, no shanty towns, no masses of homeless people protesting outside Downing Street. Ah, they all say, it's immigration. Is it now? Are there half a million Romanian Gypsies bashing down the doors of Winkworths clutching huge rolls of grubby 500 Euro notes demanding to know where they can pick up a nice flat?

I've no doubt at the height of the Tulip bulb mania there was huge demand for bulbs. But that demand, much like the demand for housing is driven by the belief of speculative gains.

I (like many people here) rent. I (like many people here) would prefer to buy. Am I part of the huge demand? Or (like many people here) have I thought it through and figured out owning a house is a mug's game at current prices and I will stay renting for the time being? A nice house round here is - say - 350 to 400k If you assume a 20% fall plus add in stamp duty and legal fees that is just too much to risk losing. We will move within 5 years at most (best guess) so add into that mix selling costs and we are talking what, one, two years rent?

IMHO the "huge demand" we are told about every day in the papers will simply fade and die as the sentiment turns.

The crash - more accurately, the correction - will come as the speculative gains belief is removed from the market. I've no idea any more than anyone else what event will trigger that, but the trigger event will come at some point. Either that or you will have to wait for the boomers to die off in about 20 years time. There will undoubtedly be a correction then as so much property comes to the market all at once.

Good post. If the coming correction is anything like previous ones, there will be the period when housing becomes a very dirty word when it comes to investment. I'd expect to wait a bit longer for that to happen this time because we have never had such a sustained rise in prices as this.

In London, there was only a slight dip in 2007-8 and other than that prices have been marching upwards from 1997 to 2014 with nominal gains of 5-600% in a lot of places. Anyone under 30 now will only have ever known rising prices unless they took an unhealthy interest in property prices during their primary school years!

That is a whole generation that has grown up watching houses being used as cash machines and no experience of anything ever going wrong. I think even the first falls will be greeted with the expectation that they are a 2007-style blip rather than anything else. Bigger falls might frighten some into thinking about the fundamentals, but a lot still won't bother.

As you say, the demand is there at the moment, but how much of this is made up by people who want to own a house for the traditional reasons and how much is made up of those who just want to buy one to make a quick buck?

Either way, if the mortgage and BOMAD funding is not there to fund these prices, people can 'demand' as much as they like, but they won't be able to actually buy one without a price drop.

I think that the 'supply' argument is the same. Who cares if the government build an extra million houses next year? With mortgage funding as it is, they'd just go to the same people at the same prices. There might be a bit of a hit if a lot of houses are built in one locality, but it wouldn't have a material effect on prices whilst this market is like this.

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I think that the 'supply' argument is the same. Who cares if the government build an extra million houses next year? With mortgage funding as it is, they'd just go to the same people at the same prices. There might be a bit of a hit if a lot of houses are built in one locality, but it wouldn't have a material effect on prices whilst this market is like this.

I agree.

I do see a lot of "the government building houses". I would just take the opportunity to remind people (esp. the planning reform enthusiasts) that the government doesn't build houses (any more). In years gone by government (local authorities) built council houses. Those days have gone.

If government - central or local - relax planning regs then it is not immutable that houses will be built. House builders only construct when there is profit in it. Short of forcing them to build or paying them to build they will only undertake construction if they think there is a buck in it. What we have seen so far with the main builders is they like to build big expensive "executive" homes and hate to buiild high density stuff and in particular social and or "affordable" housing. Ergo relaxing planning laws totally will mean big and very expensive houses built and all the available land where people actually want to live built up by big expensive houses, not the sort of stuff most people want to buy. In particular low density "executive" homes will not affect the overall supply much as they will be in much smaller numbers than high density housing. Not many people want to buy a crappy little flat - they are sold to the BTL mob.

I also see a lot of people deluding themselves about buying a bit of land and self build. Do you really think that land prices will stay low if this comes off? Surely after reading this site for a week or two any person with half a brain can see the game is rigged and the house buyer is the patsy. The people struggling to buy are just the sort of target the housebuilders want to take advantage of. Them and the lenders. Like lambs to the slaughter.....

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No one knows the future, but I can't see any pressures that will drive interest rates up by any significant amount. Inflation is low, the recovery is faltering at best, China may well have a hard landing, and you have examples like Sweden of the risks of increasing interest rates too fast too soon. So even though some interest rises are likely after the election I'd guess they'll be tiny and well spaced out, so it wouldn't surprise me if we got to 2020 with base rates still below 2%. In addition we still have the grotesque situation that 250,000 new households are formed each year in this country, but we're only building a little over 100,000 new homes.

So what is it that will initiate a crash? Plus if you look back over the long term records there's not much evidence of nominal price crashes as opposed to real price crashes, where it's inflation that does all the price correction work.

On the other hand there's no disputing that we're hard up against absolute affordability limits, and for large parts of the country renting makes far more financial sense than buying. So I'm not expecting much more in the way of house price increases.

The most likely prognosis is sideways drift for many years to come.

The hundred and fifty thousand new households are not sleeping in the streets though are they?

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Unless you're sitting on masses of cash I think if we have a proper crash the plan will be sit and wait a few years before the banks sort out their balance sheets and start lending again, then buy somewhere at whatever the prices are then. I can't imagine mortgages will be forthcoming for a while if prices have just dropped 50%.

Why not? More people can afford to buy = more people paying interest to the banks?

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I don't know about London, but everywhere else I can't see this media obsession of "demand". When prices are rising and people think they will see capital gains (nominal capital gains) of 10-20-30 percent in a few years of course there is "huge demand" for houses. Jeez, if I thought for a moment that this capital growth was true I'd buy a house too.

The (many) people that want HPI like to talk about demand, pent-up demand, or better still the great myth the "housing crisis". It's an odd crisis if you ask me. No tent cities, no shanty towns, no masses of homeless people protesting outside Downing Street. Ah, they all say, it's immigration. Is it now? Are there half a million Romanian Gypsies bashing down the doors of Winkworths clutching huge rolls of grubby 500 Euro notes demanding to know where they can pick up a nice flat?

I've no doubt at the height of the Tulip bulb mania there was huge demand for bulbs. But that demand, much like the demand for housing is driven by the belief of speculative gains.

I don't buy the housing shortage arguement either. I've yet to meet anyone who's in the position to buy a home, but is homeless on the streets due to all this demand. Another way of looking at it is to ask if prices crashed in 2008 and the early 1990's due to 20-30% of the population being wiped out by a deadly virus.

Credit, credit, credit.

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So, everyone is calling the top, if it's true, it's been a long wait, but what's your plan when house prices crash? How much will they crash by? When they go, will it be a scramble or a slow decline and where will you be buying when they bottom out?

To save myself from massive dissapointment, and to make sure my plan is viable, I've worked it around there being no HPC. So my outlook is more of "No pop and the plan".

Everyone's situation is different, but I'm fortunate enough to be able to save a reasonable amount of money every year (very cheap long term rental situ, a tad above average London earnings etc). No BOMAD support, boyfriend is in low paid journo work, so all funding has to come from me. It's not easy, it means going without a lot of stuff (that I probably didn't need anyway) but I have a doable solution. I'm 45, I want to get out of corporate work in 10 years and take retirement then at the earliest point. This is a combination of wanting to do something more fulfilling but also if HPI continues as it is in London, then my motivation to work any longer than I have to in The Smoke, has gone. It's pointless. To do this I need my mortgage paid off, that's the mortgage I don't have on the house I can't afford anywhere near my work! I've decided to focus my efforts on buying outright in Suffolk/Norfolk where I could have a house that I'd be happy with (rather than a pokey flat for 2 in some dodgy part of London with a 25 year mega debt - no thanks). I've run the figures inside out and I've looked at the price of the type of house I'd like, added 5% YOY HPI, and I save the appropriate amount of cash each month. In effect I'm paying a massive 10 year mortgage but to the Bank of ME, earning interest, dividend payments etc off of that too. I've been suitably pessamistic and calculated against savings rates at 2.5% for 10 years.

Although the Halifax figures this morning at 3.9% HPI on the month, wasn't encouraging. So if I get to the end of 10 years and house prices are completely out of my reach then I'll have a stash of cash big enough that it could pay my rent anywhere I choose. Unless of course we have "Help to Rent" and people living in campsites... Ok, then there's France maybe...

So the plan is earn Smokey London money, save save save, and leave asap. Which isn't so bad at all.

Edit: It would be interesting to hear from more of us in the Greater London thread about your plans. After Worried1's spectacular SE London, double in price in one year flat, posted on the main board, it's fair to say that as a region, we're royally shafted here.

Edited by Starla

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To save myself from massive dissapointment, and to make sure my plan is viable, I've worked it around there being no HPC. So my outlook is more of "No pop and the plan".

Everyone's situation is different, but I'm fortunate enough to be able to save a reasonable amount of money every year (very cheap long term rental situ, a tad above average London earnings etc). No BOMAD support, boyfriend is in low paid journo work, so all funding has to come from me. It's not easy, it means going without a lot of stuff (that I probably didn't need anyway) but I have a doable solution. I'm 45, I want to get out of corporate work in 10 years and take retirement then at the earliest point. This is a combination of wanting to do something more fulfilling but also if HPI continues as it is in London, then my motivation to work any longer than I have to in The Smoke, has gone. It's pointless. To do this I need my mortgage paid off, that's the mortgage I don't have on the house I can't afford anywhere near my work! I've decided to focus my efforts on buying outright in Suffolk/Norfolk where I could have a house that I'd be happy with (rather than a pokey flat for 2 in some dodgy part of London with a 25 year mega debt - no thanks). I've run the figures inside out and I've looked at the price of the type of house I'd like, added 5% YOY HPI, and I save the appropriate amount of cash each month. In effect I'm paying a massive 10 year mortgage but to the Bank of ME, earning interest, dividend payments etc off of that too. I've been suitably pessamistic and calculated against savings rates at 2.5% for 10 years.

Although the Halifax figures this morning at 3.9% HPI on the month, wasn't encouraging. So if I get to the end of 10 years and house prices are completely out of my reach then I'll have a stash of cash big enough that it could pay my rent anywhere I choose. Unless of course we have "Help to Rent" and people living in campsites... Ok, then there's France maybe...

So the plan is earn Smokey London money, save save save, and leave asap. Which isn't so bad at all.

Edit: It would be interesting to hear from more of us in the Greater London thread about your plans. After Worried1's spectacular SE London, double in price in one year flat, posted on the main board, it's fair to say that as a region, we're royally shafted here.

I’d say that is as good a plan as any. Buying outright is the key part, because who know what will happen when (if?) we get the pop?

Realistically, London should fall harder than the provinces and come back into line, but will that be the case? That SE London flat that I was talking about was worth £195k to someone last year. Say you could buy an equivalent place in Suffolk for £100k, so broadly half the price. Now the SE London place is £380k(!), and the Suffolk one hasn’t really moved, what is the ‘real’ differential – almost 4x or 2x?

Go back 15 years, and I doubt SE20 was worth much more than 1.5x Suffolk values. Living in less salubrious parts of London has definitely become more fashionable since then, but who is to say we won’t get the exodus to beyond the M25 that happened in the 70s and 80s? Back then. your standard Guildford detached house that is now £600k would have been worth much more than an unwanted Islington townhouse that would now be north of £2m.

If you buy outright, you get to bypass all of the worry associated with whether your new places falls in value or not.

I am not sure of my own plan now. The reason that I was looking at SE London on Zoopla to start with is that it is definitely getting better, and I was thinking I might make the switch from SW to SE when the time was right. What has actually happened is that gentrification has been relatively slow and prices have surged ahead. The area is still not somewhere I would fancy living, but now seems to have a price more than I would be prepared to pay for SW London!

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A relative of mine bought a 3 bed terrace near Limehouse today at double the price of 2007 at £625000, opposite a low rise council block and on the road of a very rough pub, it is a 5 min walk to the dlr thou... It's simply insanity.

No; your relative is simply insane.

I will watch many of the beg and cry for people to buy these properties of them - same for older outright owners and btlers.

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To save myself from massive dissapointment, and to make sure my plan is viable, I've worked it around there being no HPC. So my outlook is more of "No pop and the plan".

This is a combination of wanting to do something more fulfilling but also if HPI continues as it is in London, then my motivation to work any longer than I have to in The Smoke, has gone. It's pointless. To do this I need my mortgage paid off, that's the mortgage I don't have on the house I can't afford anywhere near my work! I've decided to focus my efforts on buying outright in Suffolk/Norfolk where I could have a house that I'd be happy with (rather than a pokey flat for 2 in some dodgy part of London with a 25 year mega debt - no thanks). I've run the figures inside out and I've looked at the price of the type of house I'd like, added 5% YOY HPI, and I save the appropriate amount of cash each month. In effect I'm paying a massive 10 year mortgage but to the Bank of ME, earning interest, dividend payments etc off of that too. I've been suitably pessamistic and calculated against savings rates at 2.5% for 10 years.

I'm not sure I could go on, without conviction in future hard hpc. Although do have moments of weakness and wonder where we will end up, if this madness continues.

Similarly I take worse view positioning with my finances - for I won't break and buy in this market, just on principle against measures they've taken such as QE/HTB1+2, and because I'm hopefully of MMR and so many other things which suggest future tightening.

Do you ever allow yourself to dream, at all, of what you'd do if we get hpc? Would it be a different future option than Suffolk/Norfolk?

The Halifax figures just noise on low volume, in my opinion, and a final fling before MMR and other things feeding through.

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I am not sure of my own plan now. The reason that I was looking at SE London on Zoopla to start with is that it is definitely getting better, and I was thinking I might make the switch from SW to SE when the time was right. What has actually happened is that gentrification has been relatively slow and prices have surged ahead. The area is still not somewhere I would fancy living, but now seems to have a price more than I would be prepared to pay for SW London!

It's the Tolworth effect. The gentrification has been relitively slow is a polite way of saying the area is still shocking, and somehow now the prices are too. I gave up on London some time ago as the price v's quality equation just doesn't stack anymore. I think the most basic consideration is "would I want to live here?" regardless of what happens in the future with prices. Hard to comment any further as the London madness has defied the laws of space and time.

I'm not sure I could go on, without conviction in future hard hpc. Although do have moments of weakness and wonder where we will end up, if this madness continues.

Similarly I take worse view positioning with my finances - for I won't break and buy in this market, just on principle against measures they've taken such as QE/HTB1+2, and because I'm hopefully of MMR and so many other things which suggest future tightening.

Do you ever allow yourself to dream, at all, of what you'd do if we get hpc? Would it be a different future option than Suffolk/Norfolk?

The Halifax figures just noise on low volume, in my opinion, and a final fling before MMR and other things feeding through.

Absolutely I consider a hard HPC, every fundemental points towards one, except the curveball of continued goverment interference. I was 20 in 1989 and 26 in 1995 when I joint-bought a house at the bottom, so I've witnessed first hand what could/should happen and how to be prepared and play it out. You would have thoroughly enjoyed it! Venger heaven.

The trick is to be able to "go on" regardless of what happens in the housing market and have a plan that means you get where you want to be in your life. For me it's all about financial independance and exiting corporate work and to achieve that I either need a bought outright home or enough cash that I can rent for eternity from the capital and my pension. All house price increases represent to me is an extra year needlessly spent at work when I should be snowboarding off a mountain (for example) or being able to do a lower paid dream job. In the event of an HPC would I change my plan from Suffolk, Norfolk? Possibly, but my family live in East Anglia. In my case, with the figures I'm working with, saving and investing cash plus the annual returns works out exactly the same cost over 10 years as if I mortgaged a house there now and it went up 5% YOY, with the additional costs of mortgage interest, fees, stamp duty, maintenance, repairs etc etc. That's using my worst case low interest rates, no HPC scenario.

I do think there will be a HPC though, as the scouts say, be prepared.

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Absolutely I consider a hard HPC, every fundemental points towards one, except the curveball of continued goverment interference. I was 20 in 1989 and 26 in 1995 when I joint-bought a house at the bottom, so I've witnessed first hand what could/should happen and how to be prepared and play it out. You would have thoroughly enjoyed it! Venger heaven.

The trick is to be able to "go on" regardless of what happens in the housing market and have a plan that means you get where you want to be in your life. For me it's all about financial independance and exiting corporate work and to achieve that I either need a bought outright home or enough cash that I can rent for eternity from the capital and my pension. All house price increases represent to me is an extra year needlessly spent at work when I should be snowboarding off a mountain (for example) or being able to do a lower paid dream job. In the event of an HPC would I change my plan from Suffolk, Norfolk? Possibly, but my family live in East Anglia. In my case, with the figures I'm working with, saving and investing cash plus the annual returns works out exactly the same cost over 10 years as if I mortgaged a house there now and it went up 5% YOY, with the additional costs of mortgage interest, fees, stamp duty, maintenance, repairs etc etc. That's using my worst case low interest rates, no HPC scenario.

I do think there will be a HPC though, as the scouts say, be prepared.

Only ever known you to post good sense Starla.

I wish you well.

Your attitude to these unbalanced economic circumstances, and challenges, reminded me of something, and it just clicked. Something in one of my sci-fi books.

Smart careful planning, to try and account for all circumstances, even outcomes which continue to worsen against our projections and expectations - well those circumstances where we still have some control of our choices.

'The capacity for rapid adaptation. Strength in depth; redundancy; over-design. You know, the Culture's philosophy.'

- The Player of Games. Iain M Banks.

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Some of these posts remind me very much of my experiences of living in London in 2006. A mini-crash had occurred in mid 2005, and then prices started taking off again before the crisis of 2007/8. It was a deeply depressing time as my saving rates couldn't keep up with the price increases (I too was going for buying outright).

I'd say the situation was far worse now though. For example, one thing that kept me going was having fairly cheap rent - and seeing the interest on my savings gradually grow to cover more than half of it. That's obviously not possible now, and the price increases are utterly insane.

I'd only urge any potential buyer to take a step back, and a long hard look at what they want from life. Paying £500K for a flat in grotty Hackney is life changing - and not necessarily in a good way. It's a heck of an opportunity cost. The interest you'll pay is considerably more than most will accumulate in their pensions, for example.

Edited by StainlessSteelCat

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. ...

I'd only urge any potential buyer to take a step back, and a long hard look at what they want from life. Paying £500K for a flat in grotty Hackney is life changing - and not necessarily in a good way. It's a heck of an opportunity cost. The interest you'll pay is considerably more than most will accumulate in their pensions, for example.

If only most people were that intelligent there would be no HPI in the first place.

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If only most people were that intelligent there would be no HPI in the first place.

Exactly.

And if there has to be any HPI, it would be against a similar rise in capital liquid savings.

Yet we have to suffer and pay for the debt freaks and the HPI lovers - the victims.

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Some of these posts remind me very much of my experiences of living in London in 2006. A mini-crash had occurred in mid 2005

Definitely. I keep telling the "London can't go down" crowd how London has been ugly several times over recent years...2005 I felt like the only buyer around at times, some amazing properties were just sitting on the market for so long. I saw one recently offered for almost triple what it was at back then! (Tower bridge area)

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  • The Prime Minister stated that there were three Brexit options available to the UK:   218 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


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