Uncle_Kenny Posted June 27, 2015 Share Posted June 27, 2015 Recently returned to the UK after a long stint overseas. Coincidentally my extended family where having a gathering at a local restaurant. During the meal, the conversation turned onto moving house. My home owning brother in law got quite agitated complaining about how badly he would like to move out of our home town but can't afford it. He readily admits to being "very very lucky" to buy a house when he did for a fraction of what it would cost him today, having no idea what sort of HPI would follow in the years afterwards. He gave an excellent description of 'why there is no ladder' as a regular on this forum would probably explain it. He then gave an estimate of the value of his house, hundreds of thousands as you might imagine, but added that "it doesn't mean anything". He then went on to mock those who love to brag about the money their houses are worth, the make believe riches that they will never be able to spend. The truth only recently dawned on him, so he reacted by 'blowing' the money he was saving up to move on a flash car instead. He felt genuinely upset, the house he bought as a youngster he will never be able to afford to move out of. Closet HPC'er? Quote Link to comment Share on other sites More sharing options...
Venger Posted June 27, 2015 Share Posted June 27, 2015 He may be able to afford to move out in a HPC. I say the value does mean a lot. STR. It's convertible to big cash. Bring some inventory to market. Quote Link to comment Share on other sites More sharing options...
Uncle_Kenny Posted June 27, 2015 Author Share Posted June 27, 2015 He may be able to afford to move out in a HPC. Absolutely. Declining house prices are actually a good thing if people want to move up the ladder. Quote Link to comment Share on other sites More sharing options...
Arpeggio Posted June 27, 2015 Share Posted June 27, 2015 The truth only recently dawned on him, so he reacted by 'blowing' the money he was saving up to move on a flash car instead. I decided to see how many of these you could buy with the difference in the average UK house price compared to germany based on the whole of the UK housing stock. http://www.topcarrating.com/2014-lamborghini-veneno-roadster.php the answer is 3.55 million. Average house price in the UK is £190,000 and there are about 25 million homes in the UK. Average German house price tends to be a third of the UK house price. 25 million x 190,000 / 3 x 2 = 3166666666666 Three trillion one hundred sixty-six billion six hundred sixty-six million six hundred sixty-six thousand six hundred sixty-six 3166666666666 / 40,000 = 79166666.66665 That is 79 million cars costing £40k each. Or 3.55 million of these http://www.topcarrating.com/2014-lamborghini-veneno-roadster.php (based on UK currency conversion) Quote Link to comment Share on other sites More sharing options...
Arpeggio Posted June 27, 2015 Share Posted June 27, 2015 F***ing Boomers Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 28, 2015 Share Posted June 28, 2015 Recently returned to the UK after a long stint overseas. Coincidentally my extended family where having a gathering at a local restaurant. During the meal, the conversation turned onto moving house. My home owning brother in law got quite agitated complaining about how badly he would like to move out of our home town but can't afford it. He readily admits to being "very very lucky" to buy a house when he did for a fraction of what it would cost him today, having no idea what sort of HPI would follow in the years afterwards. He gave an excellent description of 'why there is no ladder' as a regular on this forum would probably explain it. He then gave an estimate of the value of his house, hundreds of thousands as you might imagine, but added that "it doesn't mean anything". He then went on to mock those who love to brag about the money their houses are worth, the make believe riches that they will never be able to spend. The truth only recently dawned on him, so he reacted by 'blowing' the money he was saving up to move on a flash car instead. He felt genuinely upset, the house he bought as a youngster he will never be able to afford to move out of. Closet HPC'er? Does he realise in real terms his house hasn't made anything? Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted June 29, 2015 Share Posted June 29, 2015 It is scary how many people don't get it. I made £64k on my flat when I moved up the ladder in 2006 (I live in London so prices have risen since then BTW). I calculated that if prices had not gone up at all I would have paid £98K less for my house and so HPI had cost me £34K. I showed my colleagues (intelligent people) my sums and they couldn't get it. One of whom had only been in the UK a couple of years so you don't have to live here long to think like that. Someone doing the same move now would have to find an extra £50k looking at recent sale prices. Quote Link to comment Share on other sites More sharing options...
Venger Posted June 29, 2015 Share Posted June 29, 2015 It is scary how many people don't get it. I made £64k on my flat when I moved up the ladder in 2006 (I live in London so prices have risen since then BTW). I calculated that if prices had not gone up at all I would have paid £98K less for my house and so HPI had cost me £34K. I showed my colleagues (intelligent people) my sums and they couldn't get it. One of whom had only been in the UK a couple of years so you don't have to live here long to think like that. Someone doing the same move now would have to find an extra £50k looking at recent sale prices. Many of the boomers aren't trading up (although some do) so can sing about HPI all day, especially those who own outright. I'm not going to pay them compensation for 'not getting it' in the quest for HPI profits before trade up. Their own decisions. Not renter savers compo them out in collective responsibility forever win for the hpiers, with no market entry at lower pricers for renter savers, due to forever bailouts/stimulus for those who buy at ever higher prices. Quote Link to comment Share on other sites More sharing options...
Venger Posted June 29, 2015 Share Posted June 29, 2015 Some of us also have to think of ourselves, not be scared with concern about others debts, in the quest to protect boomers £TRILLIONS of equity. I'm not sat here like a plank for years, against anti-HPC stimulus policies, years on years of HPI++++, renting and saving, worried about any buyer paying mad prices. I'm positioned for HPC. a flyer from a local estate agent put through the door a few weeks ago. Quote Link to comment Share on other sites More sharing options...
Arpeggio Posted June 29, 2015 Share Posted June 29, 2015 Nice poster £5,000 off casino chips. I agree with what you are doing Venger, hope it drops out like a Boomers dentures at the bottom of a bungee jump. Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted July 1, 2015 Share Posted July 1, 2015 Nice poster £5,000 off casino chips. I agree with what you are doing Venger, hope it drops out like a Boomers dentures at the bottom of a bungee jump. BTW if you add in stamp duty the saving is even better. Quote Link to comment Share on other sites More sharing options...
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