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dothemaths

How I Won The Housing Market (Without Really Trying)

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I bought a two-bed flat for £32,750 in 1985 and sold my home of 20 years for £660,000 in 2014. The next generation is not so lucky. How did the property market get so unfair?

http://www.theguardian.com/society/2015/feb/05/how-i-won-the-housing-market-without-really-trying

First comment: "Cheap credit. Collateralised debt. Government policy."

Managed to say in 6 words what the author missed with 5,000.

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Also what the Guardian author fails to point out is that £32K was actually a fairly large sum to spend on a property in 1985. You could buy a semi-detached where I grew up for about £18K at the time (and those places are about £150K now). Plus it sounds like she had two places she owned.

Typical handwringing with no sense of irony. The author is still trying to grab more than she needs through a buy to let as well as a 2BR flat after selling her two houses for top dollar - and then wonders why house prices are so high.

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Buying a home in 1985 was just that, buying a place to live....nothing about an investment, it was for old age security, peace of mind that one day it will be paid for and would then any pension would not have to go towards paying rent or debt....to achieve that the value at that time would not matter, a fully paid for home is a fully paid for home.

No one who is living in an unencumbered home cares what the value is if all other homes are of same relevance... No one who bought then expected a small home to rise in value as it did...high house prices do not benefit owner occupiers.....only investors, flippers,BTLers,bankers and money lenders......it all changed when BTL mortgages came about and it was made possible to extract equity from one property to put as a down payment on another...which before the mid 80s nobody could do....the only way it was possible to remortgage was to release money for home improvements of said property......the rest is history.

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I bought a two-bed flat for £32,750 in 1985 and sold my home of 20 years for £660,000 in 2014. The next generation is not so lucky. How did the property market get so unfair?

http://www.theguardian.com/society/2015/feb/05/how-i-won-the-housing-market-without-really-trying

29 years shurely

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I bought a two-bed flat for £32,750 in 1985 and sold my home of 20 years for £660,000 in 2014. The next generation is not so lucky. How did the property market get so unfair?

http://www.theguardian.com/society/2015/feb/05/how-i-won-the-housing-market-without-really-trying

There seems to be a rash of these sorts of article recently - one from the Torygraph as well. Hubris.

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Not much to say about the article itself but did The Guardian actually send photographers to each of those properties to take a picture?

nah, she is a reporter.

There is no news, so they talk to each other and invent things.

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I remember posting a couple of years ago about tom and Barbara from the good life ( yes i know they are fictional characters ), in 2010 their house would have been worth £1M, now maybe £2M, hey, why not, £3M.

So, when, the good for nothing lazy hipp bas*ards gave up their jobs in 1975 after having paid off their house, all they had to do was "get by" until 2014 when they could retire to the algarve on whatever pension he paid ( final salary ) and his £2m and still leave their children ( if they had any ) a massive inheritance.

To say the housing market is a con/pyramid scam/ponzi is an understatement.

It's like some upper/middle class scam that's taken 30 years to come to fruition.

Collapse is inevitable.

Still at least tom and Barbara are fine

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Its a 'bash the nasty tories for expensive housing' piece in a lefty rag. At the same time overlook the contribution of the other lot.

Apparently young people today are priced out of housing because of the tories. It must be true because her flat went up from 33 to 57k in a decade. My quick scan didnt see any blame laid at Gordons feet for the increase in the price of her house from 92k in 94 to 660k today. The tories alone are to blame for young people being priced out of expensive housing. Simple as that.

Labour are blameless. Nasty tories.

The worrying thing is some people believe this sh!t.

ETA: She obviously doesnt want to see prices fall, the nasty party did that in the late 80's, she 'lost' £25 grand and many of her generation of winners were 'trapped'.

The more i read her confused ramblings, the more the bitch makes me angry.

Edited by Caveat Mortgagor

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In the past high interest rates and the fear of higher rates put people off buying....but saving for a deposit was easier, savings were worth something then.

The real winners in all this are those that bought cheaply at high interest rates and also then got the extra giveaway of extra low interest rates and pay rises to wipe the debt out at a stroke.

High prices and low interest rates along with deflation will not be as generous....right time, right place, right action.....those days have gone now.

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Its a 'bash the nasty tories for expensive housing' piece in a lefty rag. At the same time overlook the contribution of the other lot.

Apparently young people today are priced out of housing because of the tories. It must be true because her flat went up from 33 to 57k in a decade. My quick scan didnt see any blame laid at Gordons feet for the increase in the price of her house from 92k in 94 to 660k today. The tories alone are to blame for young people being priced out of expensive housing. Simple as that.

Labour are blameless. Nasty tories.

The worrying thing is some people believe this sh!t.

They are both the same....economically there is very little between them...there are stronger forces in play.

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http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

Inflation calculator

1994:£32750 is now worth: £58,222.95

1985: £32750 is now worth: £91,948.90

House prices need to and can return to this level !!!!

This will get you:

"What would a lump sum today have been worth in previous years?"

£18,421.64

It's systematic THEFT of peoples incomes and savings.


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I have been watching 'Building the Dream' recently (glutton for punishment I suppose) and it is episode after episode of boomer couples building stupidly big houses for two people paid for through previous HPI.

The presenter always gushes about how (if they stick to their massive budget) they will have 'saved' about £100k by spending £500k on a property that should be valued at £600k. The couples typically then go on to overspend above their massive budget, complaining about how much work it is to build their stupidly big house. All the while, their children are probably living in slave boxes. Never mind, eh?

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I have been watching 'Building the Dream' recently (glutton for punishment I suppose) and it is episode after episode of boomer couples building stupidly big houses for two people paid for through previous HPI.The presenter always gushes about how (if they stick to their massive budget) they will have 'saved' about £100k by spending £500k on a property that should be valued at £600k. The couples typically then go on to overspend above their massive budget, complaining about how much work it is to build their stupidly big house. All the while, their children are probably living in slave boxes. Never mind, eh?

I have been watching 'Building the Dream' recently (glutton for punishment I suppose) and it is episode after episode of boomer couples building stupidly big houses for two people paid for through previous HPI.The presenter always gushes about how (if they stick to their massive budget) they will have 'saved' about £100k by spending £500k on a property that should be valued at £600k. The couples typically then go on to overspend above their massive budget, complaining about how much work it is to build their stupidly big house. All the while, their children are probably living in slave boxes. Never mind, eh?

More jobs for cleaners, gardeners, cooks, bottom wipers and carers.....maybe they can give their kids a job?...technology or outsourcing can't touch the valuable jobs of the future.

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I bought a two-bed flat for £32,750 in 1985 and sold my home of 20 years for £660,000 in 2014. The next generation is not so lucky. How did the property market get so unfair?

http://www.theguardian.com/society/2015/feb/05/how-i-won-the-housing-market-without-really-trying

i could show you properties bought for 300k in 2013 and sold in 2014 for 600k , :lol: 29 years is slow going

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Loose monetary policy for nigh on most of 40 years has resulted in a massive transfer of wealth to London and the SE.

It exists in a semi-perma credit bubble whereby businesses that couldn't survive anywhere else can afford to charge prices that make them viable.

There was only one very short period where the water went out temporarily under the Tories and we found out what it was built on.

The tide always turns.

No boom/fraud lasts forever.

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There are a few nice points in there, but it all goes to s**t in the end when the tired 'lack of supply' argument is cited. She seems like a boomer who can admit things have gone wrong, so why can't she see that it is not a lack of supply, but a 'fake' level of demand created by speculation and greed. There doesn't seem to be a massive swell in the numbers of homeless people, purely in the numbers of people who don't actually own their own home. A completely different problem, I'd have thought.

I liked the comment about the EA who said “If you’re not selling through us, we owe you nothing.” That type of thing makes me want a crash even more just to put these pompous little s**ts out of business.

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i could show you properties bought for 300k in 2013 and sold in 2014 for 600k , :lol: 29 years is slow going

Yep...did a two story extension, sun room and installed gold taps.

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They are both the same....economically there is very little between them...there are stronger forces in play.

I dont disagree. I think the point i didnt make was that labour are going to paint themselves as the solution to the problem they exacerbated, and we should believe this because the tories are nasty.

It does seem as if 'affordable housing' will be a big part of their manifesto for the coming election. Even though letting the market correct so that housing becomes affordable is the last thing from their minds. The so called conservatives dont seem to think its an issue. (Part) Home ownership is their mantra.

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Also what the Guardian author fails to point out is that £32K was actually a fairly large sum to spend on a property in 1985. You could buy a semi-detached where I grew up for about £18K at the time (and those places are about £150K now). Plus it sounds like she had two places she owned.

Typical handwringing with no sense of irony. The author is still trying to grab more than she needs through a buy to let as well as a 2BR flat after selling her two houses for top dollar - and then wonders why house prices are so high.

Not huge, I bought my first house in September 1985 for 18k. I reckon 32k was about 3 times average earnings, I was certainly well below average earnings at the time, about 6k pa.

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How did the property market get so unfair?

NuLabour and their banking and property development pals - then the Conservatives (with the Libdems) and their banking and property development pals.

Help to Buy, Funding for Lending et al.

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I dont disagree. I think the point i didnt make was that labour are going to paint themselves as the solution to the problem they exacerbated, and we should believe this because the tories are nasty.

It does seem as if 'affordable housing' will be a big part of their manifesto for the coming election. Even though letting the market correct so that housing becomes affordable is the last thing from their minds. The so called conservatives dont seem to think its an issue. (Part) Home ownership is their mantra.

One thing that really turns people off politicians is childish back stabbing and hypocritical nitpicking.....they are all guilty of it...blame ,blame, blame...grow up children, the way you are acting you are not fit to govern, go back to school.....honesty is the best policy, what is the real housing agenda? the electorate are not stupid and they can remember what was done and said in the past.....elephants never forget....blamers, liers, bullies, cheats and those who withhold the truth never win...... ;)

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