BLOW FLY Posted July 5, 2014 Share Posted July 5, 2014 (edited) Would they pay £50k for a ford focus should the banks manage to do to the car market what they have done to housing? The banks have managed to do it to the car market though. That's why cars are so expensive these days. Only it's even better for the banks in the car market because they win with a depreciating asset + the interest. All the average Joe thinks about is whether or not they can make the monthly payments. Even car dealers themselves don't get it. When a dealer said to me recently it would cost 10k to change my car and I pointed out that really it was circa 20k when depreciation over 4 years was factored in he just stood there with a puzzled look on his face, lol. BF Edited July 5, 2014 by BLOW FLY Quote Link to comment Share on other sites More sharing options...
MattW Posted July 5, 2014 Share Posted July 5, 2014 The banks have managed to do it to the car market though. That's why cars are so expensive these days. Only it's even better for the banks in the car market because they win with a depreciating asset + the interest. All the average Joe thinks about is whether or not they can make the monthly payments. Very expensive. Hyundai was once considered a budget brand car. Their Ford Focus sized i30 hatchback currently costs from £14k to £23.3k! Quote Link to comment Share on other sites More sharing options...
zugzwang Posted July 5, 2014 Share Posted July 5, 2014 The banks have managed to do it to the car market though. That's why cars are so expensive these days. Only it's even better for the banks in the car market because they win with a depreciating asset + the interest. All the average Joe thinks about is whether or not they can make the monthly payments. Even car dealers themselves don't get it. When a dealer said to me recently it would cost 10k to change my car and I pointed out that really it was circa 20k when depreciation over 4 years was factored in he just stood there with a puzzled look on his face, lol. BF Auto-loan lending is the new subprime. Systemic dishonesty and risk-aggregation the rule once again. If you can fog a mirror etc. WASHINGTON — A U.S. financial regulator is growing worried about increasingly risky practices in the auto-lending market, an area of growth for banks. The Office of the Comptroller of the Currency, in a report released Wednesday, singled out concerns in the “indirect” auto lending market, in which banks buy up loans originated by car dealers. The regulator said it’s concerned about signs of loosening lending standards, including more loans to borrowers with weaker credit. “These early signs of easing terms and increasing risk are noteworthy,” the banking regulator said. Banks saw auto lending grow nearly 13% compared with a year earlier in the fourth quarter of last year and the OCC said it’s worried about growing losses in the industry. Average losses per vehicle have “risen substantially in the past two years.” The average loss on a defaulted auto loan rose to more than $8,500 in the first quarter of this year, compared with $7,400 a year earlier, according to a May report by Experian PLC.EXPGY +1.81% Auto lending has been a big area of growth for banks as demand for credit cards and other consumer loans has remained tepid. Quote Link to comment Share on other sites More sharing options...
Digsby Posted July 5, 2014 Share Posted July 5, 2014 Hopefully Jamie will find her way over here eventually. Welcome, if you are lurking. It's like watching the birth of a new HPCer isn't it? C'mon lil' duckling, you can make it, you're nearly home now. Just press the signup button and settle into our welcoming arms... Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted July 5, 2014 Share Posted July 5, 2014 The poster sounds like Venger, or someone from here posing as a GP. I don`t think a GP outside London would be renting, or concerned about £1000 p.m rent if they did. Whether the post is real or not, the crash IS coming, big style. Quote Link to comment Share on other sites More sharing options...
Venger Posted July 5, 2014 Share Posted July 5, 2014 (edited) The poster sounds like Venger, or someone from here posing as a GP. I don`t think a GP outside London would be renting, or concerned about £1000 p.m rent if they did. Whether the post is real or not, the crash IS coming, big style. It's not me, honestly. I would not get involved in other forum's discussion. Prefer such threads to run and run, without someone throwing in a reality post. It's more amusing and focuses my anger for what they deserve; hpc. Edited July 5, 2014 by Venger Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted July 5, 2014 Share Posted July 5, 2014 It's not me, honestly. I would not get involved in other forum's discussion. Prefer such threads to run and run, without someone throwing in a reality post. It's more amusing and focuses my anger for what they deserve; hpc. Yep, and HPC is what they are going to get. Mumsnet strikes me as full of people (on the property threads) that took a one way gamble, and are now realising that they are going to lose that gamble. Anyone with HPC views will just be ignored or shredded with panic tinged hate The time for posters over there to learn from this site has long passed, the ones who did learn stayed out of the Ponzi, the ones who didn`t loaded up on debt. Let`s tune in as they deal with the consequences. Quote Link to comment Share on other sites More sharing options...
ChumpusRex Posted July 5, 2014 Share Posted July 5, 2014 The poster sounds like Venger, or someone from here posing as a GP. I don`t think a GP outside London would be renting, or concerned about £1000 p.m rent if they did. Whether the post is real or not, the crash IS coming, big style. They may be bona fide, but everything in their story is utterly cliched, so you have to wonder whether it is a wind-up. Just don't be misled by being a GP. If they are young, they are unlikely to be a GP partner (which is where the big bucks are). If they are a young salaried GP, the wage is almost certainly under £60k. Obviously, still a good income, but £1000 a month would be a big chunk of the take home. Quote Link to comment Share on other sites More sharing options...
cybernoid Posted July 5, 2014 Share Posted July 5, 2014 Some rather silly vitriol over there against this forum. We want decent housing to be affordable without the need to get into enormous amounts of dangerous debt at emergency interest rates. For that to be possible prices simply have to drop. That bile is from a mother? If prices stay where they are what hope do their children have? Do they hate their kids or something? I think that other poster is genuine. You don't need to have experience of this forum to think that way! Amongst the smartest people our view is actually a majority view. Its just that there aren't many smart people around, see that thread for evidence. Quote Link to comment Share on other sites More sharing options...
Venger Posted July 5, 2014 Share Posted July 5, 2014 Yep, and HPC is what they are going to get. Mumsnet strikes me as full of people (on the property threads) that took a one way gamble, and are now realising that they are going to lose that gamble. Anyone with HPC views will just be ignored or shredded with panic tinged hate The time for posters over there to learn from this site has long passed, the ones who did learn stayed out of the Ponzi, the ones who didn`t loaded up on debt. Let`s tune in as they deal with the consequences. Agreed. Math is undefeated in history… hedge accordingly. With enough lessons on how bankers will act when they're strong enough to do so. I do have my doubts from time to time though about the hpc position, given all which is thrown to prevent it, and it's required a lot of patience. Pointless trying to persuade others about debt/risk/value though, I have found. People make their own decisions, and my decisions are not mortgaging up to pay quarter million pounds for a FTB type small run-down semi detached that's not been touched inside (wallpaper/carpets/kitchen units) since the 1960s in Stockport. An existing paradigm is seldom dispelled by evidence alone. As Keith Thomas has written, "Such systems of belief possess a resilience which makes them virtually immune to external argument." A people whose culture grossly misinterprets certain facts will not necessarily reason their way to a more encompassing worldview until forced to do so by the brunt of economic necessity or military defeat. Reason does not alter values. Quote Link to comment Share on other sites More sharing options...
The Preacherman Posted July 5, 2014 Share Posted July 5, 2014 They may be bona fide, but everything in their story is utterly cliched, so you have to wonder whether it is a wind-up. Just don't be misled by being a GP. If they are young, they are unlikely to be a GP partner (which is where the big bucks are). If they are a young salaried GP, the wage is almost certainly under £60k. Obviously, still a good income, but £1000 a month would be a big chunk of the take home. The story sounds real. If they're salaried then pay is £60k without a rise for the past 7 years. The partners are no longer earning the six figure drawings as practice budgets have hardly increased since 2008 but other costs have risen. Also they may be working part time.The story of her other halfs business is one we've heard so many time before. Live the dream whilst the goings good but the whole thing folds like a pack of cards when the boom ends. They're lucky they got out without bankruptcy. Quote Link to comment Share on other sites More sharing options...
winkie Posted July 5, 2014 Share Posted July 5, 2014 The GP can well be living next door to the postman.....all in this together. Quote Link to comment Share on other sites More sharing options...
TeddyBear Posted July 8, 2014 Share Posted July 8, 2014 Not an MMR thread but just noticed this one on there - couple loaded with public sector pensions, already got one BTL, wondering whether to get another with pension lump sum, you couldn't make it up - ..... http://www.mumsnet.com/Talk/_chat/2127145-Pension-versus-income-please-help-me-decide One idea is to put the lump sum, plus some more cash into another property to let. This would add some income and with any luck appreciate and hence alleviate the 5% inflation rate.I suppose I am being ridiculous to worry about not being able to 'manage' on £65K ish, when plenty of people would be delighted with that. Nevertheless as it would be a considerable drop from what we are used to, we need to adjust Quote Link to comment Share on other sites More sharing options...
btl_hater Posted July 8, 2014 Share Posted July 8, 2014 What the hell sort of job did they have to retire on that pension!? Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted July 8, 2014 Share Posted July 8, 2014 What the hell sort of job did they have to retire on that pension!?lollipop lady Quote Link to comment Share on other sites More sharing options...
Venger Posted July 8, 2014 Share Posted July 8, 2014 Not an MMR thread but just noticed this one on there - couple loaded with public sector pensions, already got one BTL, wondering whether to get another with pension lump sum, you couldn't make it up - ..... http://www.mumsnet.com/Talk/_chat/2127145-Pension-versus-income-please-help-me-decide One idea is to put the lump sum, plus some more cash into another property to let. This would add some income and with any luck appreciate and hence alleviate the 5% inflation rate. I suppose I am being ridiculous to worry about not being able to 'manage' on £65K ish, when plenty of people would be delighted with that. Nevertheless as it would be a considerable drop from what we are used to, we need to adjust Who is going to missell them on this occasion? "I was advised to buy BTL.." #LickingThePavementForTheVictims Quote Link to comment Share on other sites More sharing options...
olliegog Posted July 8, 2014 Share Posted July 8, 2014 (edited) at the bottom of page 1 - it states these are 'ordinary teachers pensions' - INDEX linked proposals have been mooted to restrict the tax free lump sum to £36k (more than most of us are entitled to) and I feel it would be a good move if these are the sort of lump sums public sector workers are getting. have they forgotten they also get ordinary state pensions as well? Edited July 8, 2014 by olliegog Quote Link to comment Share on other sites More sharing options...
LC1 Posted July 8, 2014 Share Posted July 8, 2014 Learning to 'manage' on a £65k pension, WTF?! 'Ordinary' teacher pension, again, WTF?! Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted July 8, 2014 Share Posted July 8, 2014 Some people never have enough. Quote Link to comment Share on other sites More sharing options...
FedupTeddiBear Posted July 8, 2014 Share Posted July 8, 2014 Learning to 'manage' on a £65k pension, WTF?! 'Ordinary' teacher pension, again, WTF?! Impossible. After 40 years of full time service, teacher retired recently will receive 1/2 salary per year. Each year's service in most "ordinary" public sector jobs gives pension of 1/80th salary if paying in 15% salary each month. Not as good as everyone seems to think. Assuming 40 years service, what "ordinary teacher" earns 130K??!! Quote Link to comment Share on other sites More sharing options...
Corruption Posted July 8, 2014 Share Posted July 8, 2014 Not an MMR thread but just noticed this one on there - couple loaded with public sector pensions, already got one BTL, wondering whether to get another with pension lump sum, you couldn't make it up - ..... http://www.mumsnet.com/Talk/_chat/2127145-Pension-versus-income-please-help-me-decide Im staggered, i live in a street full of early retired public sector parasite who buy new cars and have plenty of holidays a year and now i know how theyre affording it. Next door was in the army for 20 years and left due to bullying in her late 30s and gets the 1500GBP a month pension for life aswell as the huge handout for bullying. If you met her youll understand why we lost wars in Afghanistan and Iraq. Quote Link to comment Share on other sites More sharing options...
TeddyBear Posted July 8, 2014 Share Posted July 8, 2014 Impossible. After 40 years of full time service, teacher retired recently will receive 1/2 salary per year. Each year's service in most "ordinary" public sector jobs gives pension of 1/80th salary if paying in 15% salary each month. Not as good as everyone seems to think. Assuming 40 years service, what "ordinary teacher" earns 130K??!! I think it is both their pensions together? Him 43, her 22k?..Plus BTL income, state pension and part-time work. Quote Link to comment Share on other sites More sharing options...
disenfranchised Posted July 9, 2014 Share Posted July 9, 2014 Im staggered, i live in a street full of early retired public sector parasite who buy new cars and have plenty of holidays a year and now i know how theyre affording it. My godfather was retired early in his late 50's on health grounds (head teacher). He was / is genuinely quite unwell. His wife, however (a deputy head) is the archetypal public sector scab boomer. Lots of exaggerated health problems, totally ineffectual at job - put them in the position where the easiest option was to give her an early retirement on health grounds too. They drive about in a brand new 35 grand hybrid car, take holidays in China and Peru, and generally boil the piss of my whole family. Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted July 9, 2014 Share Posted July 9, 2014 I have no problem with the olds living it up, providing the door is open for younger people to repeat the experience when they get old. Doesn't seem very likely nowadays though. I do think it's extreme parasitism to go into BTL, when you have an index linked £50+K pension. Quote Link to comment Share on other sites More sharing options...
olliegog Posted July 9, 2014 Share Posted July 9, 2014 I have no problem with the olds living it up, providing the door is open for younger people to repeat the experience when they get old. Doesn't seem very likely nowadays though. I do think it's extreme parasitism to go into BTL, when you have an index linked £50+K pension. I think most olds are not living it up as you imply. most young people will not be able to 'live it up' when they get old either it is the rich 'old' who have the good life the rest of us struggle on and will never be a 'well-heeled' old Quote Link to comment Share on other sites More sharing options...
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