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Anti_Claus

Here’S To 10 Years.

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I started reading this website back in '06 before buying our first house. Something along the lines of house prices are so painfully high surely they have to fall (relative to income).

Well, the repayments have fallen thanks to 5% being knocked off of interest rates. NOBODY seen that coming, even the bulls!

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I started reading this website back in '06 before buying our first house. Something along the lines of house prices are so painfully high surely they have to fall (relative to income).

Well, the repayments have fallen thanks to 5% being knocked off of interest rates. NOBODY seen that coming, even the bulls!

Late '05 for me. Looking for explanations as to why on a better-than-average wage I could no longer afford local prices. Events have followed a fairly predictable track since then, I think, up to and including Osborne's undeclared conversion to Keynesianism.

Simply, it's a 2nd Great Depression, not a cyclical recession, that will endure for decades and impoverish us all. My suspicion that it can only end in a default/hyperinflationary bust for the likes of Japan and the UK remains undiminished.

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I probably read for a few months before joining. I still haven't bought residential. I have a small mortgage against a commercial property that is running at 1% over base. Thankfully my savings are earning 3%+ so that mortgage will be staying for the time being.

The clock is ticking and I can probably hold out for another year. I'll let everyone know when I buy as that is when we will have a decent crash :/

Edited by Anti_Claus

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Hi everyone, long time lurker, occasional poster. I'd just like to thank this website for teaching me so much about the way this country works.

By way of explanation, I started lurking in 2005 when I came to London as a postgraduate student in London and couldn't afford to rent anywhere. Even then, it was clear that housing was incredibly overvalued. In the last ten years, through an amazing chance, I have bought, and I worked my socks off to more or less pay off the loan (it's a lucky interest free tracker). I really didn't want to buy, but I had a modest inheritance from a grandparent which I wasn't expecting (enough for a flat deposit) and I thought it was the best thing to do with the money.

I've been incredibly lucky. I must say that I really struggle with this. The returns to labour and (mostly inherited) capital are skewed. I've had a good graduate career, but only found myself on the right side of this dreadful situation through luck - I hadn't counted on inheriting anything, and I was surprised to get the credit on a single salary. Under reasonable assumptions, I should either have been wiped out in the credit crunch, or suffered severe pain through higher IRs.

I'm confused as to my next step. I will never earn enough to buy the next property on the fictional 'ladder'. I can't see my income magically increasing by a significant factor. I have worked for a year or two abroad, and the temptation to leave again become a rentier is strong. I couldn't afford to buy anything larger, without a significant and expensive commute, and massive stamp duty hit, and I certainly couldn't afford a family home.

I can't help but think that the results of poor housing policy over the last ten years have been deliberate. As an owner, I've enjoyed a standard of living disproportionate to my earnings. The value of any other investment (I have none, not even a pension) would have been devastated. We have such a lot of problems in this country, and I cannot see any way through it.

Thanks to the regular posters for their wisdom and good humour. I've learnt such a lot.

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Late '05 for me. Looking for explanations as to why on a better-than-average wage I could no longer afford local prices. Events have followed a fairly predictable track since then, I think, up to and including Osborne's undeclared conversion to Keynesianism.

Simply, it's a 2nd Great Depression, not a cyclical recession, that will endure for decades and impoverish us all. My suspicion that it can only end in a default/hyperinflationary bust for the likes of Japan and the UK remains undiminished.

Won't Keynes be spinning in his grave about current policies being attributed to him? I thought he was more spend money on infrastructure to create jobs etc. not just funnel larger amount of taxpayer's cash to the financial sector.

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Won't Keynes be spinning in his grave about current policies being attributed to him? I thought he was more spend money on infrastructure to create jobs etc. not just funnel larger amount of taxpayer's cash to the financial sector.

I always thought he was a complete proponent of make work schemes...he didn't really care if they offered value or not, or advanced the human cause. Another myopic obsessive in the vain of Krugman who'd employ everyone to dig holes and fill them in if it meant full employment.

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I found this site in about 2005 after doing a Google image search for a UK house price graph.

This is more or less what showed up:

youarehere.gif

I then knew that I'd found a community of kindred spirits :)

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Same here, found it in 2005 and lurked for a few years before registering. I sent a link to it in 2006 to a mortgage owning mate, he sent me this:

If you go to a website called housepricecrash.co.uk, then of course
everything is going to be polarised towards pessimsm. If houses prices
crash then the whole economy is ******ed and so is your business, so we are
all in the same boat.

If you went to a website called lifeisntworthliving.co.uk then I'm sure
you could also show me some graphs to say we may as well all commit suicide
and back that up with evidence of people on the forum saying they believe that
too.

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I think the lifeisntworthliving.co.uk point is why I bought, even though I knew something was very iffy about the whole thing. At the end of the day, you've got to live somewhere. If I had put my modest inheritance into the stock market, it would have got mullad either by the systematically rigged lending practices or the credit crunch and associated insolvencies.

We have real problems in this country and I despair that ten years on nothing has been done.

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Same here, found it in 2005 and lurked for a few years before registering. I sent a link to it in 2006 to a mortgage owning mate, he sent me this:

Ours is a voice of hope. High house prices harm everyone.

The whole economy is not ***ed if prices fall, it is much improved. Houses are an unproductive sponge on the real economy. Its all very obvious. Was life better or worse ten years ago? How many young people are just spunking their income now because there is just no point in saving for a flat now? The transient renting life is not a choice for so many, how is that a good thing?

Your responder is an idiot. But a typical member of joe public, sadly. Which is why we're in this mess to begin with.

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I found this site in about 2005 after doing a Google image search for a UK house price graph.

This is more or less what showed up:

youarehere.gif

I then knew that I'd found a community of kindred spirits :)

House prices against wages would have been more interesting. The graph is sloping upwards due to wages increasing faster than inflation.

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Are you still friends with him or is that a silly question!

Well he was a good friend but he ended the friendship after I refused to lend/give him money when he got in a mess. He already owed me a chunk so I had to say no. Quite a bright chap but with a gambling/optimist streak that was his undoing.

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I think the lifeisntworthliving.co.uk point is why I bought, even though I knew something was very iffy about the whole thing. At the end of the day, you've got to live somewhere.

Schucks

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