lostinrent Posted December 13, 2005 Share Posted December 13, 2005 One more year draws to an end .... No HPC No economic meltdown No mass unemployment No STR success stories "WHAT HAPPENED" still at a loss and lost in rent do you have a 2006 plan to buy ? IMO STR is a duff Quote Link to comment Share on other sites More sharing options...
doogie Posted December 13, 2005 Share Posted December 13, 2005 aWOOOOOOOOOOOOOOOOOOOOOOOOOOGa Quote Link to comment Share on other sites More sharing options...
Hopeful FTB Posted December 13, 2005 Share Posted December 13, 2005 Well, HPI has dropped from 20+% to about 2% in a year- that is quite a change- what would happen if next year is the same? Quote Link to comment Share on other sites More sharing options...
lostinrent Posted December 13, 2005 Author Share Posted December 13, 2005 Well, HPI has dropped from 20+% to about 2% in a year- that is quite a change- what would happen if next year is the same? "what if" .......... ohhh never mind Quote Link to comment Share on other sites More sharing options...
gilf Posted December 13, 2005 Share Posted December 13, 2005 No STR success stories Depends on what you call a success story.... I STR'd in late 2004 and released £65K, I cleared my debt and that allowed me to saved circa £1000 a month extra over the last year, house prices have dropped where I sold by around 0.5% - 1.0%, might not sound much but thats 0.5% - 1.0% I have extra over last year, the same can't be said of my old neighbour who wasn't able to sell his (almost identical) house next door. He as a home owner lost 3K over the course of the last year, I am £15K better off in the same time frame, a direct result of STR. No ifs, no buts, no whens. Just think how much better it's going to be when prices really do fall....... Quote Link to comment Share on other sites More sharing options...
AteMoose Posted December 13, 2005 Share Posted December 13, 2005 (edited) House prices are 2.5% down on last year accodring to hometrack, im still saving £500 a mounth Edited December 13, 2005 by moosetea Quote Link to comment Share on other sites More sharing options...
Yankee Posted December 13, 2005 Share Posted December 13, 2005 (edited) One more year draws to an end .... No HPC No economic meltdown No mass unemployment No STR success stories "WHAT HAPPENED" still at a loss and lost in rent do you have a 2006 plan to buy ? IMO STR is a duff In the small area where I hope to buy, asking prices are down 15% to 20% compared to this time last year. And for-sale properties are hanging around much longer. I also saw a developer take a significant hit on two houses he bought in 2004, fixed up, and then put on the market last fall. He just sold them (maybe--both are only "under offer") this fall. His last asking price was 10,000 pounds less than what he paid for them. A crash? Maybe not by your definition. But I see it as the beginning of one. Edited December 13, 2005 by Yankee Quote Link to comment Share on other sites More sharing options...
Fudge Posted December 13, 2005 Share Posted December 13, 2005 One more year draws to an end .... No HPC No economic meltdown No mass unemployment No STR success stories "WHAT HAPPENED" still at a loss and lost in rent do you have a 2006 plan to buy ? IMO STR is a duff 2006 IMO is going to be make or break, if house prices manage to hold we are in "new paradigm" territory and I for one will have to eat humble pie, until then I am confident 2006 is the year of the crash. Quote Link to comment Share on other sites More sharing options...
MarkyB Posted December 13, 2005 Share Posted December 13, 2005 yes, prices will drop... when, who knows? if fact who's really bothered, when they crash ill buy, CASH! I live rent free... Yes, RENT FREE! Ask me why a 28 year old would be able to live rent free... Because, my mom lives rent free!!! Why does my mom live rent free?... because she runs a pub!! So am I saving? Yes I am, and i'm gonna milk this for as long as I can! Enjoy ya mortgage, and ya debt trap... I'll enjoy Dollar, life, freedom, to not have neighbours to worry about! No repairs, ... with my 5.1 sound, having the cinema experience on my 10 year old telly! Drinking draught beer, using someone else's electric and gas for heating lighting!... The joys, the joys... While I watch my mate threating about selling their houses they can't afford, they were boasting about buying a year before!... its all very well having the capital, and the equity, but, just when are you EVER going to cash it in... Oh i forgot, you'll pass it on to your kids!... good on ya! is that before or after you lose it to the government when ya kids put ya in a home, when ya 90 years of age, and your wealth is used as payment of the "residential home costs"... pmsl, Oh yea, I forgot, I hope with all this money on ya mortgage and the investing in your property, you will have enough left for a pension plan, as property's you live in dont actually generate an income when you retire you know!!!... Spose you could sell it, and buy an annuity with the proceeds and RENT IT!!!!!!! Rant over!... threads like this wind me up a treat! Sorry to you guys who are struggling!... I feel for ya!... I would like to own a house, but im an accountant, and it just doesn't stack up to me at the moment to buy!... good luck! Quote Link to comment Share on other sites More sharing options...
murpaul Posted December 13, 2005 Share Posted December 13, 2005 One more year draws to an end .... No HPC No economic meltdown No mass unemployment No STR success stories "WHAT HAPPENED" still at a loss and lost in rent do you have a 2006 plan to buy ? IMO STR is a duff Ah well, you're right, we are all wrong. Better give up now and accept that the laws of economics no longer apply. How about changing the name of the site to something more in line with the new reality, high house prices forever maybe? A bit wordy and not so sharp as HPC, but hey. Oh and of course, make Kirsty and Rosie the poster girls of the site. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted December 13, 2005 Share Posted December 13, 2005 "what if" .......... ohhh never mind So your point is that there will be no crash? No-one said there would be one in 2005 - just that there will be one in the forseeable future. Its coming Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted December 13, 2005 Share Posted December 13, 2005 One more year draws to an end .... No HPC No economic meltdown No mass unemployment No STR success stories "WHAT HAPPENED" still at a loss and lost in rent do you have a 2006 plan to buy ? IMO STR is a duff Personally, I'm still working hard and investing and making a good return on my money (much better than property has over the last couple of years). As for the entire generation priced out of affordable housing. What can I say - SHAFTED! Welcome to brave new Britain! And I agree with you "WHAT HAPPENED" Quote Link to comment Share on other sites More sharing options...
Fancypants Posted December 13, 2005 Share Posted December 13, 2005 I've made about 30% on my STR funds since I sold earlier this year (gold of course). Meanwhile the prices in my old area have drifted downwards ... and the precipice awaits. an FTB speaks... another thing to consider about STR is that, while major indices may not yet be showing substantial falls, if you were to STR now, you would have to take a bigger hit to shift the bugger than you would have 12 months ago due to the glut of properties stuck forlornly on the market. Timing wise, late 04, early 05 will be seen to be the peak. Quote Link to comment Share on other sites More sharing options...
woody Posted December 13, 2005 Share Posted December 13, 2005 Its true that the crash hasn't happened in the way that everyone would like (mega-big and quick) but it is happening in the way that a lot of people expected - slowly in a way that is only obvious a few years later when looking back. most of us expected to see YoY falls by the end of this year which in some small ways has happened. The difficulty has been that most of the big, well accepted market indicators take a broad and meaningless view of the market missing out the more important detail of the local markets. Quote Link to comment Share on other sites More sharing options...
stu Posted December 13, 2005 Share Posted December 13, 2005 First post whooohoo... here goes I think this year has seen the market become flatter in a stable running out of steam kind of way. House price apreciation is comparable to inflation at the minute which in real terms mean house prices are not really moving one way or another. A few things worth discussing are the fact that Gordon Brown got economic growth wrong, what has happen with government finance is that their income is down so the deficeit has increased. Brown has tried to hold the North Sea to ransom by putting the opereating tax up to 20%. the North Sea can cope with this and has been proping up the UK economy for the last 25 years. However the North Sea reached Peak Oil back in 2000 and production has been shrinking by around 7% per anum since. Mr. Brown has a big hole he needs to fill and the tools to do it are disappearing, if he cannot turn the economy around to recover the growth he has already missed he will have to raise taxes and borrow more cash to pay the debts he has accumulated. Borrowing cash to pay debts is madness but don't rule it out. Next year could see things becoming tougher for everyone (on avereage), and if there's a big disaster or two it will mean folk pulling out of share markets and oil prices spiking. Another tense hurricane season for the US south coast is not a ridiculous thought, a volatile oil market will probably lead to a nuclear build (which = planning reforms), and Gordon Brown will begin sweating as his reputation as a great economic genius comes right under the spotlight at a time when he wants Tony's job. I'm not saying any of these things will happen, but they ought to be considered. As far as my own opinion on HPC, I don't think house markets crash overnight the way stocks can, after all everyone needs somewhere to live and selling a house often takes time. However I think we will see a sort of prelonged puncture as the whole thing deflates. Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted December 13, 2005 Share Posted December 13, 2005 an FTB speaks... another thing to consider about STR is that, while major indices may not yet be showing substantial falls, if you were to STR now, you would have to take a bigger hit to shift the bugger than you would have 12 months ago due to the glut of properties stuck forlornly on the market. I would certainly agree with that.Timing wise, late 04, early 05 will be seen to be the peak.I sold Q1 2005. I would have got a better price Q1 2004, before Mervyn King made his famous announcement (two weeks after I put the house on the market). Quote Link to comment Share on other sites More sharing options...
Fancypants Posted December 13, 2005 Share Posted December 13, 2005 As far as my own opinion on HPC, I don't think house markets crash overnight the way stocks can, after all everyone needs somewhere to live and selling a house often takes time. However I think we will see a sort of prelonged puncture as the whole thing deflates. welcome Stu! quite right - the crash is already happening - as we speak. From discussing this with my friends and acquaintances who are trying to sell their houses, this much is clear. They are getting undercut, pitifully few viewing (usually described as "timewasters") and are generally getting nowhere fast. The crash will only be reflected in the indices months after it has happened, and even then there will be widespread denial and premature bottom-calling in the media and the public at large. Stay on target! Stay on target! I sold Q1 2005. I would have got a better price Q1 2004, before Mervyn King made his famous announcement (two weeks after I put the house on the market). sorry, you're right of course. My comment was generic and intended to reflect a national picture. In the real outlying areas I suppose the peak has yet to be reached? Interestingly, the ODPM figures that show London as YOY negative already have attracted surprisingly little interest it seems. And they're a lagging indicator. So I'm already "in the money" so to speak. My savings have increased, and housing in my locality has got cheaper. Quote Link to comment Share on other sites More sharing options...
lostinrent Posted December 13, 2005 Author Share Posted December 13, 2005 yes, prices will drop... when, who knows? if fact who's really bothered, when they crash ill buy, CASH! I live rent free... Yes, RENT FREE! Ask me why a 28 year old would be able to live rent free... Because, my mom lives rent free!!! Why does my mom live rent free?... because she runs a pub!! So am I saving? Yes I am, and i'm gonna milk this for as long as I can! Enjoy ya mortgage, and ya debt trap... I'll enjoy Dollar, life, freedom, to not have neighbours to worry about! No repairs, ... with my 5.1 sound, having the cinema experience on my 10 year old telly! Drinking draught beer, using someone else's electric and gas for heating lighting!... The joys, the joys... While I watch my mate threating about selling their houses they can't afford, they were boasting about buying a year before!... its all very well having the capital, and the equity, but, just when are you EVER going to cash it in... Oh i forgot, you'll pass it on to your kids!... good on ya! is that before or after you lose it to the government when ya kids put ya in a home, when ya 90 years of age, and your wealth is used as payment of the "residential home costs"... pmsl, Oh yea, I forgot, I hope with all this money on ya mortgage and the investing in your property, you will have enough left for a pension plan, as property's you live in dont actually generate an income when you retire you know!!!... Spose you could sell it, and buy an annuity with the proceeds and RENT IT!!!!!!! Rant over!... threads like this wind me up a treat! Sorry to you guys who are struggling!... I feel for ya!... I would like to own a house, but im an accountant, and it just doesn't stack up to me at the moment to buy!... good luck! Mamma's boy, accountant , and proud to be a parasite - you make my skin crawl :angry: Quote Link to comment Share on other sites More sharing options...
Fancypants Posted December 13, 2005 Share Posted December 13, 2005 Mamma's boy, accountant , and proud to be a parasite - you make my skin crawl :angry: I bet his mother is very proud of him, and happy to have him around. I'm equally sure he doesn't care much for your opinion. Quote Link to comment Share on other sites More sharing options...
Catch22 Posted December 13, 2005 Share Posted December 13, 2005 (edited) I would certainly agree with that. I sold Q1 2005. I would have got a better price Q1 2004, before Mervyn King made his famous announcement (two weeks after I put the house on the market). count me in, but we "Oldies" have seen it all before We sold March 05 for asking, completed 1st July 05. Go around any new build sites and say your STR and they fall all over you, I keep telling the wife not to give out our phone number. But she just says "look I like all the attention OK" hee hee When everybody is of the mind that it's time to sell, no bugger will be buying [to any great degree] it;s that simple.....unless it's different this time. Edited December 13, 2005 by Catch22 Quote Link to comment Share on other sites More sharing options...
oracle Posted December 13, 2005 Share Posted December 13, 2005 One more year draws to an end .... No HPC ....erm,london down 5%,CPI=2.2%......means prices DROPPED 7.7% this year. No economic meltdown.....that's next No mass unemployment.....that's also next No STR success stories.....living rent free off the interest while prices fall is success. "WHAT HAPPENED"........oh like it's all over!!!!......I don't think so matey!! still at a loss and lost in rent .... do you have a 2006 plan to buy ?NO!! IMO STR is a duff Quote Link to comment Share on other sites More sharing options...
MarkyB Posted December 13, 2005 Share Posted December 13, 2005 I bet his mother is very proud of him, and happy to have him around. I'm equally sure he doesn't care much for your opinion. My mom is very proud of me, cheers... oh if you want me to rub it in a little more, just got 4% rise after 6months in the position, and a 3% bonus payable this month, oh yeah and some additional benefits in Kind... all the more beer buying potential. I love having a laf, hope ya love owning ya house!... I love getting something for nothing!... Cant wait for the Crash!... I feel sorry for my mates, but its not like I didn't warn them, and offered them to move in with me in a cheaply rented house. They decided against it, so at the moment, I very much QUIDS IN... Good luck making your repayments and earning your HPI... im not looking to make money, just looking or a good value home!... Im not going to be fueling the ridiculous prices at the moment! laters! Quote Link to comment Share on other sites More sharing options...
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