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Guest Daddy Bear

What Is The Average Age Of The Bears On This Site?

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46. For those under 30 and any one who may have selective memories about the market in the1980's/90s. Here is my personal experiance of property ownership in the Dorset area (this is main home not including investment property).

1984 FTB earning £8k pa (in those days to get a mortgage as a FTB you had to demonstrate to the Building Society you could save over time and they had a strict 2.5 x salary). I'd saved £6k over the preeceeding 4 years. I bought a one bed architect designed duplex flat with a 14 x 14 south west facing roof garden, price £25k mortgage £17.5k. Moved in and daren't turn the lights on for fear of how big the bills would be.

1988 sold flat for £46K to a someone from Birmingham who wanted a Holiday home. The market was steaming up with monthly price rises, even with mortgage rates of 8 to 9%.

1988 Bought a 110 year old 3 bed terrace house with a south west facing yard, no parking and needing a little work. Paid £62k with a massive mortgage of £43k.

1988 put it on the market (without having done any work) for £85k . A solicitor offered me £83k I turned the offer down.

In the mean time the market turned down.

in 1989/90 I put the property back on the market for £68k (the work now done) couldn't sell it. I took the property off the market got married and we had a child.

1992/3 We put the property back on the market for £55k it took a year to sell at £49k. We rented for 3 months and bought a 3 storey 4 bed 3 bath neo georgian town house in a gated community of 22 properties in the heart of a conservation area. Price £92k. The same house next door was purchased off plan in 1990 for $230k. The speculator that bought it never moved in it was repossesed by the Halifax BS and sold for £85k in 1992.

An example of how bad Financil institutions are at calling the bottom of property crashes is this.

The developer of these houses went belly up (as they all did) Barclays Bank owned 18 of 22 properties (4 were sold by the developer for between £210 to £230k). An investment company offered Barclays £150k per house in 1990/91 and the turned it down because in their opinion the market had stabalised. They then preceeded to sell them throughout 1990/91/92/93 for between £120 and £92K each.k

I new lots of pepole arround the country Cornwall, yorkshire, birmingham and london it affected everyone. Many of my friends handed in the keys or we repossesed. Just my experiance.

Pablo silver or lead.

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46 - bought my third house in early '89 - very bad timing.

Despite a decent deposit still wound up in negative equity for a few years. Fortunately I could afford the repayments. A job move meant I had to let it out and move into rented accomodation.

Once it had recovered its value I sold it as I couldn't be doing wih the hassle of letting, a little too soon for the peak of this cycle as it turns out. But building a very nice deposit (even had a reasonable endowment payout as it was taken out in 1980) and looking forward to affording the"house of our dreams" in a couple of years.

Determined to time the next purchase better than the last one. Not looking to make a killing, our priority is to find a nice house to live in. So when the gap between what we can afford and what we aspire to reaches zero we buy!

Regards

The other BP.

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52.

The last crash was good for me as an OO. I was finally able to afford to move to my present house, in a great area that was out of the question pre 1989. I sold and bought in 1994, not far off the bottom of the market. I could not afford to move here now, all other things being equal.

I predicted a crash in about 1988 - No-one agreed with me at the time!

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33. Vaguely remember the last crash.

Mostly TV shots of streets with hundreds of For Sale signs. Student at the time - remember getting huge amounts of interest on grant (frozen the year or so before). Living on sacks of tatties and beans (had heard students had lots of debt - terrified me so economy overdrive. Saved £300 out of grant in the first term). Bought parents their first video recorder (2nd hand toploader) to go with their b/w TV.

Also remember baked beans going down to 5p a can (previously around 20p) as the supermarkets had a price war. Don't remember buying anything except books and food (and cycle bits - keen mountain biker in the glory days before suspension).

Mountain biking near Fort William the day Major/Lamont pulled out of the ERM. Saw the headline in the paper. No idea what it meant - only that the Tories were screwed. Happy days.

Oh and rent was £25/week (North Wales). Now paying £55/week (London). Ha ha.

Edited by greencat

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56.

I have vivid memories of the last crash. I had to sell in 1990. As a seller I had to accept a much lower value than the ones similar houses were getting 18 months earlier. As a buyer I successfully put pressure on sellers to come down to realistic levels. Incidentally part of the psychology of the last point was to argue that "we're all in the same boat". That seemed to work well in what was still a failry early stage of the crash. Later I think sellers became more desperate.

I also have vague memories of the crash in the mid seventies. I was young and renting then but I do remember older colleagues just not being able to sell.

It is partly these memories that mean I just won't take the plunge back into buying at the memoment. In the early 1990s I say stagnant nominal, ie falling real, prices and I don't intend to repeat the experience. Actually this time I think it will be much worse.

I am actually astonshied that many people of my own age seem to have forgotten about prices going down as well as up. However, you have to remember that unless they are actually buying or selling in a crash people are not very aware of falling prices. They don't make such good dinner party and pub boasting - so many even of my age will might have gone through the crash without realizing that it was happening.

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Guest Charlie The Tramp

I also have vague memories of the crash in the mid seventies. I was young and renting then but I do remember older colleagues just not being able to sell.

I remember it well, with the BoE base rate averaging 11% through 1976 and the HPI a negative minus 13%

many people were a little nervous not knowing what was then going to happen. I grabbed the opportunity to move from my FTB 2 bed maisonette to a 4 bed newish detached house in the Greater London area. Sold for 9.2k and purchased for 17.95k.

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27

This is better than a poll 'cos it's good to see who's aged what, not just out of nosiness but it's good to see a number of twenty-somethings who aren't stupid, and older guys who must speak from experience as well as opinion!!

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Snap, sold 1 bed maisonette for 12K and bought 4 bed Edwardian detached for 25K.

50 , bloody 50. I only left school last week.

Got out of the market in 89 by the skin of my teeth , sold and went to work in South Africa. Not really aware of what was going on to be honest. Just lucky

Similair story this time round. Sold up and left UK or Canada in June 2004. Difference this time round is that I was very aware of the market. Since then we have returned to the UK and are renting

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25

And I really would like to be buying a place now. I always imagined I would leave uni, get a job and buy a house straight away - but Im unwilling to get myself into such a high level of debt that it could quite easily become financially crippling should there be a change in my circumstances or the economy.

Just have to keep waiting and saving....

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TimD = FTB = 33

I remember it well, my parents just managed to sell their house and move right at the top of the market, it was many years before the price went back upto its original price. I remember lots of worried people ringing into radio phone ins for advice on debt and negative equity. Weren't people taking out 5 x salary motgages then as intrest rates were at an all time low?

Cheers,

Tim.

Edited by TimD

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33. Vaguely remember the last crash.

Oh and rent was £25/week (North Wales). Now paying £55/week (London). Ha ha.

£55 per week in London sounds very reasonable - whereabouts?

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I was 29 two weeks ago.

What is interesting from this thread is that there is quite an age range of the "Bears". Not just a bunch of twentysomethings who are narked about the fact that they can't get on the ladder and would have a vested interest in talking the market down.

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  • 316 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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