B O M A D In Crisis!

[Killer Bunny]

Sensational.

and

http://order-order.com/2014/09/16/banking-on-mum-dad/

From the MOST influential political blog in the UK (fact).

[JustAnotherProle]

Funny though, satire like this is a litmus test of the greater public opinion

Edited September 16, 2014 by JustAnotherProle

[Killer Bunny]

Opps wrong thread

Eh?

[JustAnotherProle]

Eh?

Sorry Bunny, having issues with the edit functions today

Edited and fixed!

Edited September 16, 2014 by JustAnotherProle

[Fully Detached]

Like it.

"Having a grumpy teenager in the house is bad enough. Having a grumpy 40 year old in the house is even worse".

[Venger]

Shelter is wrong about the affordable homes / building them.

Too many family homes being hogged by older couples living alone. Need a HPC to see them downsize, selling family homes at lower prices, with the threat to the wealth a HPC brings, and the money they think locked into their homes for the future MEW... or to go buy cheaper homes outside of the suburb commute. Last week saw a repo, last bought in 2011 for bubble price, more rural-ish area , on market for £100,000 less than the buyer paid in 2011 (and still too expensive).

2012: http://www.housepricecrash.co.uk/forum/index.php?/topic/184053-borrowing-from-the-bank-of-mum-and-dad-expect-them-to-charge-you-interest/

BOMAD running out of money. Just a third (31pc) of relatives offered cash as an outright "gift", while almost a fifth said they had asked for part-ownership of the property to collect their money when the home was eventually sold on, HSBC said.

45% of all FTBs in 2010 received financial assistance from the ‘bank of mum and dad’. The decade in the run up to the financial crisis saw a huge transfer of wealth from younger home buyers to older generations through the mechanism of rising property prices, and taken together the over 60s now own nearly half of all net assets in the UK.

[Sour Mash]

Sensational.

and

http://order-order.com/2014/09/16/banking-on-mum-dad/

From the MOST influential political blog in the UK (fact).

Has to happen eventually - not only have ludicrous house prices cleaned out the wealth of the younger generation they are surely close to hoovering up the accrued wealth of the preceding generation(s) too, who have unwisely chose to perpetuate the vicious circle of ever higher prices by 'helping' out their children and grandchildren.

At some stage we'll probably see property ownership going back to being the preserve of the wealthy with most people forced to rent in increasingly dodgy conditions.

[Eddie_George]

Not to worry, more liquidity for BOMAD will be provided by the pension changes that come into effect in April ..... just in time for the election.

[zugzwang]

Has to happen eventually - not only have ludicrous house prices cleaned out the wealth of the younger generation they are surely close to hoovering up the accrued wealth of the preceding generation(s) too, who have unwisely chose to perpetuate the vicious circle of ever higher prices by 'helping' out their children and grandchildren.

At some stage we'll probably see property ownership going back to being the preserve of the wealthy with most people forced to rent in increasingly dodgy conditions.

There is no wealth. Just Stalinist levels of capital inefficiency. The inevitable consequence of which will be an almighty depression followed by a re-inflationary default. Everyone holding assets denominated in sterling faces being wiped out.

[Bruce Banner]

Not to worry, more liquidity for BOMAD will be provided by the pension changes that come into effect in April ..... just in time for the election.

When many of us will be voting UKIP.

Funding for Lending, Help to Buy, Changes to pension rules......... Will LibLabCon stop at nothing to buy votes with house price inflation?

[Venger]

Has to happen eventually - not only have ludicrous house prices cleaned out the wealth of the younger generation they are surely close to hoovering up the accrued wealth of the preceding generation(s) too, who have unwisely chose to perpetuate the vicious circle of ever higher prices by 'helping' out their children and grandchildren.

At some stage we'll probably see property ownership going back to being the preserve of the wealthy with most people forced to rent in increasingly dodgy conditions.

That's now. What we'll see is the Government (any Government will follow what the banks want) turn on older complacent homeowners, and want to write fresh debt, in volume against crash house prices. Get ready for the biggest hpc there ever was.

It's not just a high price hold, and the banks are getting ever close to being able to handle HPC, given all the rush of buyers who have been paying stupid price chasing yield... especially older owners treating money as an irrelevance '£100Ks not earning anything in the bank - Timak's parents-in-law' buying investment property, and in the process, probably settling someone else's mortgage at the bank. Banks just lapping up last of the super dumb complacent money now.

June 11, 2014

Broadbent identified risks in the UK's housing market as the greatest threat to the country's economic outlook. He went on to say that the Bank will not directly intervene on house prices, but is instead only interested in "the rate of growth of mortgages, which is today very low".

- (Broadbent - Deputy Governor Bank of England.)

________

Daily Mail

Average UK house price to hit £780,000 by 2040, says leading think tank

Kilo Charlie, My World, 9 hours ago

We purchased a property in 1983 for £72,000.........today it's worth £650,000 plus. It's certainly possible and quite likely.

Sam, Bucks, 3 hours ago

Bought house in ,74 for 16k added extention about £8k now valued at £480k you do the maths?

Home Loans In 2013 Half Their 2007 Peak, Says Cml - 21 Jan 2014

Pent Up Housing Demand - Gradually Exhausting Itself - 13 Mar 2014

Landlord Possession Claims Surge - 09 May 2014

________

The UK might have a reputation as a nation of mortgage slaves – interest rates are often reported as if that's the case – but that's not the reality. The ONS figures reveal 9.2 million UK households had property debt in 2008/10 – that's 37.3% of the total. Many outright owners will be people who took a mortgage out in Britian the 1960s, 70s and 80s and are now reaping huge financial rewards. (Guardian and Daily Mail - 2013.)

[cock-eyed octopus]

When many of us will be voting UKIP.

Funding for Lending, Help to Buy, Changes to pension rules......... Will LibLabCon stop at nothing to buy votes with house price inflation?

All parties buy votes. That's how democracy works.

[Sour Mash]

There is no wealth. Just Stalinist levels of capital inefficiency. The inevitable consequence of which will be an almighty depression followed by a re-inflationary default. Everyone holding assets denominated in sterling faces being wiped out.

If it came down to having sterling wealth to the value of £x or a owning a house outright with the same value of £x , I know which one I'd choose if the economy was collapsing.

[Patfig]

When many of us will be voting UKIP.

Funding for Lending, Help to Buy, Changes to pension rules......... Will LibLabCon stop at nothing to buy votes with house price inflation?

I am waiting for a zero % mortgage fixed for 25 years with government paying the 20% deposit on my behalf

[R K]

There is no wealth. Just Stalinist levels of capital inefficiency. The inevitable consequence of which will be an almighty depression followed by a re-inflationary default. Everyone holding assets denominated in sterling faces being wiped out.

doesn't make sense. You're welcome.

[eric pebble]

I have to say...... I am completely astonished at how the whole hpi thing didn't collapse in 2007... Yes - I know - it's all rigged --- sigh............

I have just given up hope now, I'm afraid.

[Untoward]

Sensational.

and

http://order-order.com/2014/09/16/banking-on-mum-dad/

From the MOST influential political blog in the UK (fact).

Even more sensational is Guido not accepting comments on that piece. That Blog is out of control (In a great way) with outrageous and slanderous comments at the best of times.

[Venger]

If it came down to having sterling wealth to the value of £x or a owning a house outright with the same value of £x , I know which one I'd choose if the economy was collapsing.

Sterling wealth for me; the returns against UK housing are going to be so compounded on zirp savings.

And it's a Global Tightening. Some people don't understand that it's savings/money, that is being run down, in shorter supply, and credit tougher to qualify for (inc BTL recently, by many accounts.)

I'm positioned for the biggest HPC of all time; it's going to be excellent for future generations, the banks, and the economy. Less so for complacent older owners, yield chasing more recent BTLers/investment property buyers, and the mobfants who buying 2 bed £500,000 today, already counting their future HPI which in 10 years will see them buy a better house whilst 'renters ruined' or 'left behind', refusing to expect any real HPC as London so so special.

[Killer Bunny]

Even more sensational is Guido not accepting comments on that piece. That Blog is out of control (In a great way) with outrageous and slanderous comments at the best of times.

It has become a very anti anything but CONUKIP and it can be most irritating when it denigrates LABLIB using tittle tattle

[Sancho Panza]

Shelter is wrong about the affordable homes / building them.

Too many family homes being hogged by older couples living alone. Need a HPC to see them downsize, selling family homes at lower prices, with the threat to the wealth a HPC brings, and the money they think locked into their homes for the future MEW... or to go buy cheaper homes outside of the suburb commute. Last week saw a repo, last bought in 2011 for bubble price, more rural-ish area , on market for £100,000 less than the buyer paid in 2011 (and still too expensive).

Quite.Instead of carpeting over huge chunks of the country,why not let the market set the price of credit,stop running 6% fiscal deficits (that we can't afford)and see what happens to demand.

There is no wealth. Just Stalinist levels of capital inefficiency. The inevitable consequence of which will be an almighty depression followed by a re-inflationary default. Everyone holding assets denominated in sterling faces being wiped out.

Sums it up beautifully.

[R K]

Quite.Instead of carpeting over huge chunks of the country,why not let the market set the price of credit,stop running 6% fiscal deficits (that we can't afford)and see what happens to demand.

Sums it up beautifully.

?? This is nonsense Sancho. Surprised at you.

You seriously believe there isn't a problem with the supply side of housing in the UK?

Build 1-2 million additional homes, including for rent managed by responsible prof. landlords, and let's see whether it's credit or supply.

My money's on the insane, broken, land market.

EDIT: If you don't believe it's supply rather than credit that's the issue you only have to look at the oversupply of 2 bed exec flats in Northern cities in particular. Prices fell 50%, more in some cases. Why? They got built resulting in over supply. Ditto Spain. Ditto Ireland. Ditto US. The problem is self-evidently supply of new housing particularly in areas of high demand.

Edited September 16, 2014 by R K

[Venger]

?? This is nonsense Sancho. Surprised at you.

You seriously believe there isn't a problem with the supply side of housing in the UK?

Build 1-2 million additional homes, including for rent managed by responsible prof. landlords, and let's see whether it's credit or supply.

My money's on the insane, broken, land market.

We need some new housing, but we don't need any 'affordable housing' being built/controlled by the VI, already holding land at super high values.. requiring HTB to make it affordable at painful prices. Restrict credit, allow the market to reprice/set credit as Sancho Panza.... then more plots become available anyway at lower prices for more individual developers. Loads of plots around here, plans for mansions on them. We don't need any more mansions, but few homes on same site. And we need the plots to come down from £500,000 to £1m each (with pp for just one mcmansion).

It's help and interference that is the problem, for lack of building, and for stupid high prices... but it's coming to an end... too many people wealthy on paper (house values)... not many people with any money (savings in the bank).... and credit tightening up and stimulus coming to an end, with possibility of rate rises too.

Got a link somewhere showing how many small developers have gone out of business in recent years.. unable to compete given land values and the scheme to favour larger developers. Also, they build rubbish quality imo. Who wants that? Ageing population... we need more retirement villages, or which there has been a surge in building.. (density - on site, with shops and facilities) - except the new units are priced quite high, in expecation older owners still cash out their family homes for lot of money.

With a true free market, homes would be getting larger, better and cheaper in relative terms, in response to the demands of the consumer. This is not happening. New properties are about half the size they were in the 1930s and they have become so expensive that millions are now being delayed or excluded from homeownership.

The housing market is virtually the only sector where this is happening. Imagine if we, in the UK, were driving cars that were worse than they were in the 1930s. Relying on free market forces will not work so long as builders, lenders and private sector landlords can exploit the existing dysfunctional market. Things could even get worse.

[Untoward]

Sterling wealth for me; the returns against UK housing are going to be so compounded on zirp savings.

And it's a Global Tightening. Some people don't understand that it's savings/money, that is being run down, in shorter supply, and credit tougher to qualify for (inc BTL recently, by many accounts.)

I'm positioned for the biggest HPC of all time; it's going to be excellent for future generations, the banks, and the economy. Less so for complacent older owners, yield chasing more recent BTLers/investment property buyers, and the mobfants who buying 2 bed £500,000 today, already counting their future HPI which in 10 years will see them buy a better house whilst 'renters ruined' or 'left behind', refusing to expect any real HPC as London so so special.

I share your Pain Venger but I am not so sure. It is obvious that LibLabCon will stop at absolutely nothing to keep fantasy prices afloat. It has completely dominated Political strategy for 15 years and unless Scotland vote YES on Thursday (For starters), the leaches will continue to give their paymasters and the sheep in this Country what they want. What really saddens me is how uneducated, inactive and subservient the general populace are. They don't get it, they do not understand that their shrinking, expendable income is down to this one issue. Ever increasing house prices. It is just accepted by the public and fed to them via Government policy, loose lending and a fully compliant and culpable media. Despicable Bastards the lot of them.

It is beyond obvious that high house prices are bad for almost all Family Structures, as increasing house prices turn the economy and us into floating zombies. Do BOMAD enjoy handing over tens of thousands of pounds to their Children, who then presumably struggle to repay the mortgage on the sh1t heap they could not raise a deposit for? And as for upsizing, people cannot afford the bills associated with moving, let alone the additional mortgage. The Nation is sleepwalking into major financial and social problems that I believe will be disastrous for this Country.

On a personal note, I recently got a promotion and am now earning double the National Average Wage. However, rather than being able to afford the equivalent house I currently rent, I am having to look to the sticks for an acceptable (to me) home for myself, Wife and baby (On the Way). She is getting itchy feet as you can imagine and I really do not want to rent forever. I have worked my T1ts off in a skilled job for a long time and seethe when I see lazy, unskilled people in far better positions than myself, simply because they were born before I was or they took unsustainable (At the time) risks.

This is f@cking torturous, like Japanese water torture.

[Venger]

It is beyond obvious that high house prices are bad for almost all Family Structures, as increasing house prices turn the economy and us into floating zombies. Do BOMAD enjoy handing over tens of thousands of pounds to their Children, who then presumably struggle to repay the mortgage on the sh1t heap they could not raise a deposit for? And as for upsizing, people cannot afford the bills associated with moving, let alone the additional mortgage. The Nation is sleepwalking into major financial and social problems that I believe will be disastrous for this Country.

On a personal note, I recently got a promotion and am now earning double the National Average Wage. However, rather than being able to afford the equivalent house I currently rent, I am having to look to the sticks for an acceptable (to me) home for myself, Wife and baby (On the Way). She is getting itchy feet as you can imagine and I really do not want to rent forever. I have worked my T1ts off in a skilled job for a long time and seethe when I see lazy, unskilled people in far better positions than myself, simply because they were born before I was or they took unsustainable (At the time) risks.

This is f@cking torturous, like Japanese water torture.

Absolutely agree, except I'm keeping the belief the Government of the day will have no choice but to buckle to the market. Government has forgotten how to be hard, but it will have to be again.... and keep in mind, there's a substantial, but more quiet, voting block in favour of HPC. In the early 90s crash... the old people (homeowning voters) didn't win the day against HPC.

The young took the opportunity for hpc to upsize to nice homes at much lower prices (except for those who had been sucked in to the bubble) - overriding the complacent older owners, who lost the most value given they held the higher end homes at the time. I know people in their 50s who say the 90s HPC was the best thing that happened for their families.. including a lovely woman in London.. gave them opportunity to upsize.

So you have the scars of HPI war too, and the suffering of insane policies. Please be cautious. I expect the crash to initially manifest itself 'in the sticks'. Already seeing one or two dramatic signs of that, which could become much more widespread if credit becomes tougher to qualify for. Try to maintain some belief in hpc? It's hpc or nothing for me, and my family. These prices are lunacy.

Edited September 16, 2014 by Venger

[Eddie_George]

I actually think you'll find that the trick of selling shiny northern flats to 'distant' southern investors has been replicated in London on a grand, global scale. Except a lot of the investors haven't even set foot in the country to inspect their shiny, new, rent-seeking boxes.

Except many aren't rent-seeking, they're left empty. Only there to launder dodgy money from China