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First time buyers at record highs


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HOLA441

http://news.sky.com/story/first-time-house-buyers-reach-10-year-high-halifax-10726696

"

The number of first-time buyers is estimated to have reached 335,750 in 2016, according to Halifax.

It is the highest figure since 359,900 in 2007, and marks the third consecutive year that the number has topped 300,000.

"

 

" In London, a first-time buyer's deposit is over £100,000 "  How ?

 

"First-time buyers in London put down a 25% deposit on average in 2016, amounting to £100,445 " How ?

 

"high employment levels and Government schemes have helped TOTALLY F**KED first-time buyers. " 

 


WHAT THE F**K IS GOING ON !!!!!!!!!

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HOLA446
2 minutes ago, are said:

One recent first time buyer in my office based in the midlands, two currently looking in earnest intending to buy. 27, 22 and 30 respectively. It's testing my resolve to be honest.

You can see the graph...why would you buy ?

You'll never see a price rise, you'll never rmake any money, you have the potential for bankruptcy.

Can you not add up ?

 

C15tcqVXUAAEpeI.jpg

 

 

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Hmm usual suspects of least affordable areas on the Halifax top ten lunatic asylums such as Cambridge and Hackney.

Some reasonanly nice areas below historic price to earnings ratios such as Easy Ayrshire (where a newish family home comes in at about 140k) and a stately home sets you back about 700k,

http://www.rightmove.co.uk/property-for-sale/property-45479916.html

 

http://www.rightmove.co.uk/property-for-sale/property-58700057.html

Edited by crashmonitor
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HOLA4411

Do these FTBs expect the value of their new homes to go up...?  They might go up a little in the short term but really in the medium and long term how will it be possible to maintain this grotesque distortion?  It is not 'different this time'...prices will collapse and these FTBs are going to be in a terrible mess....it is evil. 

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HOLA4412

My nieces and nephews are all buying houses in their early twenties in Midlands. All ten years my junior. Feels like getting a good degree and moving to the east and South East to try to better myself (with the encouragement of my parents) has really put a grenade under my finances tbh.

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HOLA4413
18 minutes ago, TheCountOfNowhere said:

So the government have helped 300,000+ plus people into the bottom of the housing pyramid  to support prices.

They will do everything to stop prices collapsing now, they will not throw these people to the wall.

 

Will they ?

Of course not! That why the Term Funding Scheme has been introduced. It's an air money replacement for HtB/FLS.

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HOLA4414

Hi Count. Heard them discussing that Halifax report this morning on Today http://www.bbc.co.uk/programmes/b088sh82 (at 2:46:45).

It really beggars belief that the rise in FTB purchases back up to levels shortly before the crash is being greeted as something like good news.

Presenter says, as question, "these numbers would indicate that that some of the concerns ... about affordability are wrong"...

Person says "we think it's some time before we see any increase in IRs but when it does happen"... they will rise "quite slowly".

That's alright then, if things start looking like they did just before the last crash this is no cause for concern, definitely not to be construed as any sort of indicator of too much lending. You can almost hear the next 10 years of cries that nobody saw it coming.

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11 minutes ago, Wayward said:

Do these FTBs expect the value of their new homes to go up...?  They might go up a little in the short term but really in the medium and long term how will it be possible to maintain this grotesque distortion?  It is not 'different this time'...prices will collapse and these FTBs are going to be in a terrible mess....it is evil. 

My son's in those numbers, he bought recently. His view is that he's going to hold onto it for a long time so any short-term fluctuations don't matter. Also, he bought in the Midlands and is no longer paying 1k a month for a room in a shared flat in a shit part of London, so he doesn't see it as a terrible mess if there is a drop as he was always 12k a year "down" anyway.

Of course there is an alternative view, which is that the UK is in long term decline and housing stock will cost less in the future than it does now. That's what I think but then I have been awful with predictions over the years.

 

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HOLA4417
28 minutes ago, TheCountOfNowhere said:

 

" In London, a first-time buyer's deposit is over £100,000 "  How ?

 

Help.....Help from anywhere, usually help from borrowing equity from another property that value has increased from thin air.....more debt being created to further create more inflation.....When a home was purchased 30 odd  years ago and now many years completely free of debt or very small LTV ( 50k at 2% interest not hard to repay, when interest was 8% or more when taken out, some still have 0.85% above base rate loans ongoing, why pay that debt off)  quite easy to borrow a hundred thousand or so from something that has increased ten fold, valued now at half a million pounds or more.......;)

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HOLA4418
4 minutes ago, Fully Detached said:

Good, leave them to it.

The more FTBs chucking 100k deposits into an unproductive asset and a lifetime of debt servitude, the less people I've got to compete against when I want to spend my money on other things.

Wow, you are really to be commended on your glass-half-full thinking, that's the spirit, how very cheering.

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HOLA4419
Just now, winkie said:

Help.....Help from anywhere, usually help from borrowing equity from another property that value has increased from thin air.....more debt being created to further create more inflation.....When a home was purchased 30 odd  years ago and now many years completely free of debt or very small LTV ( 50k at 2% interest not hard to repay, when interest was 8% or more when taken out, some still have 0.85% above base rate loans ongoing, why pay that debt off)  quite easy to borrow a hundred thousand or so from something that has increased ten fold, valued now at half a million pounds or more.......;)

An awful lot of help from parents and I really don't get it, I would never let my mum and dad re-indebt themselves in a dodgy market for my sake, what are children thinking?

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HOLA4420

I'm assuming they care counting the HTB equity loan as part of the deposit , because I don't see where else people are finding 100k for a deposit.

The only other explanation is the the increase in prices as seen FTB's going to parents etc who are taking the equity gains from their property to fund their kids places

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HOLA4421
27 minutes ago, TheCountOfNowhere said:

So the government have helped 300,000+ plus people into the bottom of the housing pyramid  to support prices.

They will do everything to stop prices collapsing now, they will not throw these people to the wall.

 

Will they ?

But Carney has done everything he can to warn first time buyers of the potential affordability risks ;)

He mentioned it in 2013:

https://www.theguardian.com/business/2013/nov/29/mark-carney-bank-of-england-home-buyer-warning

..and then once again in 2016:

http://www.telegraph.co.uk/property/buy/carney-advises-mortgage-prudency-what-should-prospective-buyers/


 

The warning calls have been made loud and clear (to anyone listening) over the last year or so ...they'll cut the casualties loose.

 

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HOLA4422

Got to say every time I take a peak at Cambridge property it gets more extreme.

What half a million gets your first time buyer

* Unmodernised boomer home with hand rails

* Two bedder straight onto street.

Offers OVER 485k (now you have been told)

 

http://www.rightmove.co.uk/property-for-sale/property-63930818.html

 

 

 

Edited by crashmonitor
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HOLA4423
15 minutes ago, North London Rent Girl said:

Hi Count. Heard them discussing that Halifax report this morning on Today http://www.bbc.co.uk/programmes/b088sh82 (at 2:46:45).

It really beggars belief that the rise in FTB purchases back up to levels shortly before the crash is being greeted as something like good news.

Presenter says, as question, "these numbers would indicate that that some of the concerns ... about affordability are wrong"...

Person says "we think it's some time before we see any increase in IRs but when it does happen"... they will rise "quite slowly".

That's alright then, if things start looking like they did just before the last crash this is no cause for concern, definitely not to be construed as any sort of indicator of too much lending. You can almost hear the next 10 years of cries that nobody saw it coming.

The rate of change and the speed of IR changes are way out of the BoE control now.

The level of debt and UK budget deficit means that both indivuals and UKGOV will struggle to attract buyers of their debt.

The UK is not the same UK from 10 years.

We are now a heavily indebted economy.

 

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HOLA4424
30 minutes ago, crashmonitor said:

Hmm usual suspects of least affordable areas on the Halifax top ten lunatic asylums such as Cambridge and Hackney.

Some reasonanly nice areas below historic price to earnings ratios such as Easy Ayrshire (where a newish family home comes in at about 140k) and a stately home sets you back about 700k,

http://www.rightmove.co.uk/property-for-sale/property-45479916.html

 

http://www.rightmove.co.uk/property-for-sale/property-58700057.html

Im off to Ayr to live

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HOLA4425
5 minutes ago, North London Rent Girl said:

Wow, you are really to be commended on your glass-half-full thinking, that's the spirit, how very cheering.

Not really - it's just I realised long ago that if I didn't see value in houses at the prices they were then, I certainly wasn't going to see value in them at ever higher prices. Once you get to that point, you just stop looking and start nosing around at other things. I still shake my head in utter disbelief when I see stats like this one.

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