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Buying & Selling Property In Brexit’S Housing Crisis

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Nice find. Well worth watching the whole thing, but in particular the bits on BTL and not being able to raise rents at 4:15 and on Help to Buy at 4:50.

But he was wrong about interest rates and he was wrong about Boris making his chums poorer.

He was right about HTB though! Insanity that the taxpayer is on the hook for 40%.

Edited by Crumbless

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Good find. Really could do with him explaining to a wider audience the insanity of HTB. Here's another video:

h

Good watch, Sadiq Khan comes across as your typical NuLabour power hungry turncoat, he's already backtracked on 50,000 houses to be built.

This Danny bloke wrote a good article in the Guardian

https://www.theguardian.com/commentisfree/2016/may/10/how-to-fix-housing-crisis-sadiq-khan-london

Edited by Crumbless

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So if you buy a house for 500k with 40% htb, it falls 45% to 260k and it is sold, does that mean the government pays the bank 200k. That sounds like 200k if give away money QE..

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So if you buy a house for 500k with 40% htb, it falls 45% to 260k and it is sold, does that mean the government pays the bank 200k. That sounds like 200k if give away money QE..

Exactly.

But if you had a friend who also bought a place for 500K and after 5 years sold it to you for 260K and you bought his for 260K then everyones a winner, except the taxpayer.

Insane to think the government are gifting people such sums to buy half a million pound property, thats more than most will earn in 20 years. It really does show working is not worth it anymore,

Edited by Crumbless

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Exactly.

But if you had a friend who also bought a place for 500K and after 5 years sold it to you for 260K and you bought his for 260K then everyones a winner, except the taxpayer.

Insane to think the government are gifting people such sums to buy half a million pound property, thats more than most will earn in 20 years. It really does show working is not worth it anymore,

Pure insanity.

Are their published figures of take up of the scheme?

Is the pot limited?

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Pure insanity.

Are their published figures of take up of the scheme?

Is the pot limited?

Not sure, i'd sooner go to jail than London so haven't looked.

This DT article gives some detail.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/12016433/Autumn-Statement-2015-London-Help-to-Buy-mortgage-scheme-explained.html

I love this bit, it truly does highlight the fckn insanity of this, it makes US subprime look like good lending practice. And is clearly just a bail out for developers.

However, just because the limit extends up to £600,000 doesn’t mean it is suitable to buy a £600,000 property with a 5pc deposit.

Even with a 55pc mortgage, on a £550,000 property, a buyer would still need a household income of around £75,000 to secure the £302,500 mortgage (based on a four times salary multiple)

With the minimum 5pc deposit, they would still owe £220,000 to the Government too, on which the interest would become problematic if not mostly paid off in five years.

That would require paying off £44,000 a year of the Government loan on top of monthly mortgage payments likely to be around £1,200.

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He's probably right about the 50% falls too now considering even Greater London is up 30-40% in just three years now. Would not be surprised if all these 3 bed semis that have started popping up in zone 5 for 3/4 of a million dropped 50% and did not reach these prices again for a couple of hundred years.

This is from his website re. Amsterdam epic bubble.

Prices on Herengracht fell by a third between 1738 and 1751, and then they fell again and again. As Neil Monnery, who documented all this so succinctly in his 2011 book, put it: prices would reach their 1740s levels once more in 1778 and then not again for 250 years.

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He's probably right about the 50% falls too now considering even Greater London is up 30-40% in just three years now. Would not be surprised if all these 3 bed semis that have started popping up in zone 5 for 3/4 of a million dropped 50% and did not reach these prices again for a couple of hundred years.

This is from his website re. Amsterdam epic bubble.

Prices on Herengracht fell by a third between 1738 and 1751, and then they fell again and again. As Neil Monnery, who documented all this so succinctly in his 2011 book, put it: prices would reach their 1740s levels once more in 1778 and then not again for 250 years.

The tragedy for me is that the lucky barstewards who sold up in London at spectacular gains recently did do at the expense of the taxpayer thru htb london. Disgraceful.

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So if you buy a house for 500k with 40% htb, it falls 45% to 260k and it is sold, does that mean the government pays the bank 200k. That sounds like 200k if give away money QE..

Yes, it'[s criminal. The bankers and the builders have been gifted billions from us !!!

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Mr B was just talking to a neighbour (German) whose house is SSTC. She told him she had planned to rent it, but after the Brexit vote decided to sell instead. Got a buyer in a week, price was (to quote her) 'not greedy' for the area.

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It is bearish. There is a new thread with Bloomberg link titled 'Rics Price-Growth Index Falls To Lowest Level In Three Years'

Edited by Fairyland

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It is bearish. There is a new thread with Bloomberg link titled 'Rics Price-Growth Index Falls To Lowest Level In Three Years'

Depends on your definition of bearish. Low growth is still growth.

They are predicting short term stagnation, but only that yoy growth slows to 3%, but that stlll means rising prices.

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