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First-time buyers defy the doubters to drive house prices higher


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43 minutes ago, TheCountOfNowhere said:

Well, lets see where we are in 3 months.  The Shires round me look to have collapsed at the > 200K market now but in town there was no end of sold FTB/BTL type places last week.

It looked like it had gone proper mental again.

The bankers/banker agents need to find a home for that £170Bn.

Indeed

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3 hours ago, TheCountOfNowhere said:

@TheFCA Is the sort of advice given in this news article legal ?@TelegraphNews/@JohnCharcol

Good call.

There are VIs and there are swivel-eyed lunatics obsessed with keeping house prices high and mug punters borrowing insane amounts of money at any cost - as long as that cost is to someone else, obviously. Suggestions like that one suggest that Boulger is firmly in the latter camp.

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3 hours ago, Sawitcoming said:

Unfortunately FTBs are perhaps the most desparate and least informed. I don't expect it to dawn on them until there is a visible nominal HPC which there may never be. 

This is my experience. Close friends of mine - 200k borrowed over 35 (!!!!!!!) years at what must be 3.5 to 4 times joint salary. 

I can't see where they go from here. They are mortaged until retirement age, and dependent on both salaries. The house purchased was a basic 2 bed 60's type building and they even managed to SMASH the street price ceiling by 20%. 

Bonkers. I'm not sure how it is possible to see value in it. 

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2 minutes ago, Bronson said:

This is my experience. Close friends of mine - 200k borrowed over 35 (!!!!!!!) years at what must be 3.5 to 4 times joint salary. 

I can't see where they go from here. They are mortaged until retirement age, and dependent on both salaries. The house purchased was a basic 2 bed 60's type building and they even managed to SMASH the street price ceiling by 20%. 

Bonkers. I'm not sure how it is possible to see value in it. 

There will be no retirment as well especially if kids come along, as you can't pay a huge mortgage and adequately fund a pension (especially if you have student loans as well) these days with things the way they are and probably will be.

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The sad thing is that 200k is laughable in large parts of the country, especially the South.

The bonkers bit in this case not being the fact you borrowed such a sum, more the fact that you think you'll be able to buy a home with it. 

Any correlation between wages and house prices is long dead.

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1 minute ago, Tempus said:

The sad thing is that 200k is laughable in large parts of the country, especially the South.

The bonkers bit in this case not being the fact you borrowed such a sum, more the fact that you think you'll be able to buy a home with it. 

Any correlation between wages and house prices is long dead.

FFS I could buy 2 perfectly functional 2 bedders with a garden and offroad parking in my neck of the woods for that and after housing costs local wages still mean I've got 'loads-a-money' more than shit-hole-on-thames dwellers.

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57 minutes ago, Tempus said:

I suspect most will be thrilled to be buying something worth so much.

Heck, if only they'd have offered more, they'd could have made their property even more valuable.

you sound like a man after my own heart, you in the business too?

 

Some of the most valuable properties I own are the ones I bagged after a furious bidding war pushed the price way higher than I or anyone else had budgeted, the Agent kept calling me back with a counter offer, I went into the war room (what I call my home office when I'm snapping up houses to rent out) hunkered down for the best part of a week and kept on batting away rival bidders with more and more aggressive shows of dominance. Needless to say I bagged every single house I've ever entered a bidding war for.

 

Like I say, the price of my portfolio has been inflated greatly by my poor unlucky LOSING rival bidders. I often think of them when I'm looking at my spreadsheet seeing how much my props are worth.

 

 

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57 minutes ago, giggler000 said:

It only matters when the music stops, by then he's already back in Canada and likely in complete denial.

 He's got more than one house price bubble to answer for!

Quote

Canada’s economy is growing at the slowest pace in 60 years and the only thing holding us up is housing

Canada is in the midst of one of its weakest expansions ever, and only the housing boom keeps it from getting worse.

That’s one of the key takeaways from Friday’s GDP report. Two years since oil prices started plunging, Canada’s economy is almost completely reliant for growth on bank lending and the hot Vancouver and Toronto housing markets generating fees for brokers.

Real estate and financial services now account for 20 per cent of the economy, levels not seen in the data since the early 1960s. That could be a problem, with household debt at a record and policy makers scrambling to slow price gains that are making homes unaffordable for all but the wealthiest buyers.

20150627_BRD001_0.jpg

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3 hours ago, thewig said:

you sound like a man after my own heart, you in the business too?

 

Some of the most valuable properties I own are the ones I bagged after a furious bidding war pushed the price way higher than I or anyone else had budgeted, the Agent kept calling me back with a counter offer, I went into the war room (what I call my home office when I'm snapping up houses to rent out) hunkered down for the best part of a week and kept on batting away rival bidders with more and more aggressive shows of dominance. Needless to say I bagged every single house I've ever entered a bidding war for.

 

Like I say, the price of my portfolio has been inflated greatly by my poor unlucky LOSING rival bidders. I often think of them when I'm looking at my spreadsheet seeing how much my props are worth.

 

LOL. You sound like Dr Strangelove!

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16 hours ago, TheCountOfNowhere said:

Did anyone in 2012 believe we'd be sitting looking at that f**king madness ?

Never mind 2012, in 2009 I thought house prices would FINALLY (ha! I said "finally" in relation to 2009!) collapse.  Nope, instead it was interest rates that collapsed.... to historic lows (historic as in, never been below 2% since their inception in 1694).  Now in 2017, I just casually think "hmmm, wonder what the next prop will be?" (it helps I've gone "slightly mad" a la the Queen song).

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11 hours ago, LittlePig said:

It is entirely logical that as BTL demand (lending) softens FTB will step into the breach. The question is; are there enough FTBs able to pay loon prices to keep this bubble blowing?

Yeah

As BTL softens FTB have been saving and can finally afford the prices without getting outbid.
This will only act to lower prices and maintain prices at a slightly lower level than the BTL were buying at, it wont take long for the pent up FTB demand to be spent. Add to this that BTL will be starting to flood the market towards the end of this year and suddenly we start to see a seriously softening of prices.

All about margins. I am one of those FTB who has been outbid, now i can buy, but i wont. I can wait for another 6-12 months, and a lot will happen between now and then. I do have freinds buying at peak earnings multiples, but they will soon of all bought, and volumes increase.

All we need now is volumes on market to increase and its bums away

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