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If You Were To Appear On Location Location Location What Would You Say?


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I (vaguely) know someone who appeared on this show, it is so heavily edited that what you say doesn't make any difference.

The show was recorded after they had exchanged contracts, so the whole 'looking at other houses' and 'making offers' was a complete farce.

I wouldn't be surprised if some of the 'house tours' are actually a composite of more than one house.

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I'd have a budget of £500,000 and at the end tell them I need to secure a 100% mortgage (more if I can) with a wage of £15k. But it's OK because house prices only ever go up and any arrears I'll pay off when I come to sell. If I need to cover arrears during my time there I'll use credit cards.

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But the majority of people in this country believe this to be true and get upset when they can't borrow more. As long as I can remember the mantra has been to get the biggest mortgage so you could make more ... and sadly over the last three decades they have been correct.

My guess is that no-one in their 60s or 70s (esp London and SE) would be been able to buy their house today and TPTB are doing everything they can to keep the game going.

That advice been perpetuated for years by the very ones who benefit the most from those taking on ever larger mortgages, lower down the housing ladder. Older owners who have the better houses.

Turns out it was those who forecast it was unsustainable who have been made to pay the price, and Global QE $£Trillions/0.5% to kiss it all better for those at risk of losing some of their hyper-inflated equity gains at the top, all in the name of the victims who had over-borrowed.

You can tell a real man by the size of his mortgage

When I first got married, I was terrified to discover that parents, friends and various in-laws measured the success of their nearest and dearest by the size of their mortgage. 'My Paul is doing well. He's just taken out a £75,00 mortgage.' Lenders calculate how much they will lend you on the size of your income, so I suppose that a larger mortgage tends to suggest a higher income.

There was a psychologist, I think it was Eric Berne, who suggested that for the working person in Western culture, a mortgage had become almost a genetic drive. He asserted that we are so conditioned to believe in the status of a mortgage - a burden we take up after the wild oats and fun of youth are over - that we carry it with pride to our grave, or at least until our useful working life is over.

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You can tell a real man by the size of his mortgage

When I first got married, I was terrified to discover that parents, friends and various in-laws measured the success of their nearest and dearest by the size of their mortgage. 'My Paul is doing well. He's just taken out a £75,00 mortgage.' Lenders calculate how much they will lend you on the size of your income, so I suppose that a larger mortgage tends to suggest a higher income.

There was a psychologist, I think it was Eric Berne, who suggested that for the working person in Western culture, a mortgage had become almost a genetic drive. He asserted that we are so conditioned to believe in the status of a mortgage - a burden we take up after the wild oats and fun of youth are over - that we carry it with pride to our grave, or at least until our useful working life is over.

Great quote, where is it from?

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Great quote, where is it from?

Hi rtid - thanks - it wasn't in any deep intellectual economics text-book, but from a guerilla-business start-up book I am very fond of.

Go it Alone: The Streetwise Secrets of Self-employment

- Geoff Burch.

http://www.amazon.co.uk/Go-Alone-Streetwise-Self-employment-Capstone/dp/1841124702

It was the first release 1997... which I probably read in 2000/01. It was released in 2003 - perhaps with a few tweaks and updates. Although yet another book which led me to choose debt-limitation, business- and saving, over big debt, excess, hpi.

Chapter 'Beware Of Smiling Bank Managers Bearing Gifts' outlines consequences for those who over-expanded in to the 1980s boom, treating debt as an irrelevance. Choosing to take on the debt banks sold them. Banks sell debt. No one forced to take it on. We mostly all want a home, but some don't want to have jumbo mortgages. Turned out very different for many (not all) over-borrowers in 2008-09.

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Can you sue?

HPC might be delayed, but I am still in position against those 'sympathy victims' who pushed up house prices ("just wanted a home") paying big big crazy prices, and those who think all their hpi is locked in. :)

Suspect you're closer to the reality of things with your 'anything could set it off' (hpc etc), occasional post.. even if that's cloaked in "but it could also be ages away" - than your more relaxed position that the markets/economy can continue to run as it currently does.

I used to think like you but I've come down the other way now. People have little choice. They are not as obsessed and knowledgable as people here. They are basically being driven into a corner. Either suffer the travails of amateur landlords and short term tenancies or buy an outpriced home.

For many who want stability for their young families they feel they have no choice.

The issues are so big and can take so long, it has gone into the 'don't worry too much about it' box for me. I can still complain with the best of 'em, but it is best to get beyond being upset or angry all the time...it ain't healthy. Whatever will be, will be. There are certain things that 'should' happen, but as you say, it could involve simply the democratic arithmetic thru' demographics changing - and that could be a very long time and involve things getting a whole lot worse first in terms of the proportion of housing owned and abused by landlords.

Remember when Bill Gross referred to the UK sitting on a bed of nitroglycerine? Well he was wrong, it was more like sitting on an unexploded second world war bomb.

The twin deficits can keep running and running for many years as various hard assets are sold off, but at some point, we know not when, that bomb becomes exceedingly unstable and the slightest unforeseen thing could set it off at any moment.

Edited by Venger
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The issues are so big and can take so long, it has gone into the 'don't worry too much about it' box for me. I can still complain with the best of 'em, but it is best to get beyond being upset or angry all the time...it ain't healthy. Whatever will be, will be. There are certain things that 'should' happen, but as you say, it could involve simply the democratic arithmetic thru' demographics changing - and that could be a very long time and involve things getting a whole lot worse first in terms of the proportion of housing owned and abused by landlords.

Whatever will be, will be? Bit wet isn't it?

It is worth staying upset/angry for many non-owning renters in this housing market, in a controlled way. I personally prefer to tap into it, for focus. Ever more people annoyed and upset with the situation might be a force for political change - or perhaps simply more renters continue to save and withhold spending from the economy to create a change.

I mean for those who refuse to give in and take on a jumbo mortgage for your so called 'stability' on an overpriced home.

It seems to me you're deliberately on a personal wind-up, when asking if I can sue an author, who many years ago influenced readers to avoid excessive debt, vs your position that buyers have no choice but to pay ever higher prices. I think my response here to that is measured.

That's why I originally omitted the source of the quote, because it goes back in time, and outlines how long other buyers 'victims' have been outbidding, pushing up house prices, whilst I was being highly productive/ earning/renting/saving, trying to advance my own family's position. Thought someone would get a dig in. Those over-indebted owners going on to be mostly saved by QE/0.5% and many other measures... for now. Then reflation on top.

Go back to being relaxed about the situation, whilst I hope we're on the brink of change.... whilst oldies complain they can't get mortgages despite all their housing wealth, QE ended in US, Carney saying no more easing from this point but looking at tightening.. shrinking the state, and so on.

Finally? I'm always angry and don't mistake me for having much sympathy.

I have tried to think about who sets the moral agenda and how we've ended up on the wrong end of that. Also I'm sure, but don't understand how, that we are contributing to the situation (although not in the way gf3 used to claim). Our behaviour is enabling the whole shebang. Don't ask me how though.

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