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Obscene house prices do my nut because...

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I'm at a junction in my life (40) whereby I need to stop drifitng in my career, and find something I enjoy doing. But my salary (local average + 30%) doesnt even buy a 3-bed semi. Any kind of a career change will involve a pay cut (I presume) so I will be further away from being a FTB.

So I either stay in a godforsaken job earning goodish money, or take a pay cut and pay for MASSIVE HPC.

 

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I will add to this, as it will provide good catharsis. 

Obscene house prices do my nut because ..... there are business projects I am unable to pursue due to needing to keep savings in the bank, due to lack of security of tenure, there are things I have not purchased due to having to move constantly and needing to be able to fit my life into a van, which in turn has deprived other businesses in the economy of  my money, in my more downbeat moments I look around and think "I have worked two jobs since I was about sixteen, whilst earning a degree in a technical field and started one soon to be two companies ( my first even finished up with a small profit ) and I would have been much better off just getting into as much debt as possible as soon as I left school and buying a clapped out flat in south east London". 

Like you, ( I am a little younger but not by too much ) if not for high house prices, I would be able to afford to put all my time into my side job ( self employed ) , rather than having 8 hours a day taken by the job that pays more ( full time employed ) and potentially create jobs and opportunity for myself and for others as a result. 

The only people high house prices benefit, are those who would prefer to sit around doing nothing and earning at the expense of others, inherently corrupt politicians and criminally incompetent financial institutions, the amount of businesses that have and will go under as an indirect result of pursuing HPI ramping policy, is shameful and it is more shameful that the voting populace have allowed this. 

The final reason, for me personally, is that around the end of this year, I am moving to another country, primarily due to lower housing costs and while this has always been my plan since a young age, I have immense guilt as I know I will be leaving loved ones behind who at times, will need me, but essentially I know that this is the last chance, as soon enough I will be too old to qualify and staying in the UK without a house price crash of great proportions, is just not an option for me and my partner.

To me this is not a left/right issue ( which is why I steer clear of debate threads ), this is a fundamental human need, being exploited by a minority of selfish, greedy, lazy, unimaginative people, who only pursue this irresponsible/amoral investment activity/political manipulation, because they are unable or unwilling to learn, how to do anything else. 

The only smarts that such property investors have, is the smarts, to have been born at the right time and then the ability to rig the game against their own children to ensure their comfortable lifestyle, with dangerously leveraged credit.

For those, who have just purchased one home ( at a ridiculous price ) in the event of a massive crash, I would say, it would be an important life lesson about trusting your own intuition, because, I refuse to believe, that there is anybody who if you said "picture what you would buy with half a million pounds" would instinctively picture a clapped out semi in a London suburb, I suspect it would be closer to a small mansion with a swimming pool .... and they would be correct. 

Or to sum up the above in one phrase.

"no single raindrop believes it is responsible for the flood". 

I hope things work out for you Popcorn and for everyone who just wants one roof over their own and their families head.

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28 minutes ago, Grab_Some_Popcorn said:

I'm at a junction in my life (40) whereby I need to stop drifitng in my career, and find something I enjoy doing. But my salary (local average + 30%) doesnt even buy a 3-bed semi. Any kind of a career change will involve a pay cut (I presume) so I will be further away from being a FTB.

So I either stay in a godforsaken job earning goodish money, or take a pay cut and pay for MASSIVE HPC.

 

I've been thinking about this for awhile, it's only good money if you can buy what you need.  Like me, even with a good salary I can't buy either then its not really that good, sure I could buy a new car, a load of food, a large tft t.v. like all the townies in B&M, an inflatable bouncy castle is the nearest i'm gonna get to a home though.  Something else is wrong when on good wage you can't buy the things you need IMHO

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We also have very average standards for holidays (camping) , cars (8yr old estate). We have plenty of books and Lego/crafts for the kids but we travel light having rented for 20 yrs. Still ...

Was out around Arundel lake yesterday trying to identify trees, and sliding down muddy slopes. Luckily the kids too young to think about economics. The way things are going my house deposit will be passed to them in 2032!

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It does my nut because it's just so bloody unfair.

I'm stuck in a bind in that I can afford a much bigger property but refuse to buy it because financially and in some sense morally I know it's a really bad thing to do.

I also having to constantly fend off the wife who wants to move with cries of 'the crash is coming'. She's supportive, thinks it's all nuts but still keeps sending me links to RM!

I try not to let it get me down but it does. We're seriously looking at emigrating as for me house prices are ruining everything about the UK. 

It also does my nut in as everybody I speak to about it agrees it's all awful but looks at me like I'm nuts when I say it doesn't have to be this way.

Thats why I read this site 5 times a day so I know I'm not alone in my thinking ?

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2 hours ago, Grab_Some_Popcorn said:

I'm at a junction in my life (40) whereby I need to stop drifitng in my career, and find something I enjoy doing. But my salary (local average + 30%) doesnt even buy a 3-bed semi. Any kind of a career change will involve a pay cut (I presume) so I will be further away from being a FTB.

So I either stay in a godforsaken job earning goodish money, or take a pay cut and pay for MASSIVE HPC.

 

You make it sound as if coercing you into working lots of hours in a job you resent and paying lots of tax isn't part of 'their' plan.

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It does my nut in because I've seen community after community ruined by prices that favour one generation over another.

I spent a whole day yesterday wandering around a village not far from where I grew up. I remember the village as it was, back in the early 1990s. Lively, with a small local builder, shop, pub, large children's playground and a large tennis court. The fields in the middle of the village also served as an area to hold the annual sports day.

What I saw yesterday was a complete obliteration of those memories. The younger generation have gone.

The fields are overgrown.

The school: shutdown.

The builder: gone.

The pub: derelict.

Shop: converted into a house.

Large children's playground: overgrown tree and bramble-strewn wasteland along with the accompanying tennis court. The farm in the middle of the village was in a state of dereliction, with trees growing out of the barns. I left here feeling a sense of pure sadness and despair. I've seen this so much over the last 10 years. 

Yet there are still people trying to sell houses here for £225k+. 

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Because, after returning to my home area, it leads to exchanges like this with my mum:

"We didn't get the [225k] bungalow in the end" (offer rejected - I know this isn't the best example in terms of price)

After describing where it was...

"Ooh remember your hairdresser? She used to live there"

Good to know my masters engineering degree wasn't a massive fckn waste of time.

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1 hour ago, btd1981 said:

Because, after returning to my home area, it leads to exchanges like this with my mum:

"We didn't get the [225k] bungalow in the end" (offer rejected - I know this isn't the best example in terms of price)

After describing where it was...

"Ooh remember your hairdresser? She used to live there"

Good to know my masters engineering degree wasn't a massive fckn waste of time.

Most poignant post I've read in a while and certainly one of the most depressing.

im still stuck in renting hell. My str plan isn't going well 

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4 hours ago, Dean said:

..pursuing HPI ramping policy, is shameful and it is more shameful that the voting populace have allowed this. 

 

2 hours ago, Bunfight said:

... It also does my nut in as everybody I speak to about it agrees it's all awful but looks at me like I'm nuts when I say it doesn't have to be this way.

Cause too many people are not that well educated in such matters and don't seem to question MSM propaganda and it's false messages. Step one to restoring our captured democratic system, educate all and enable accurate constructive debate.

 

 

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...my family and I work hard- but we only have our temporary rented home until our landlord decides to "make a change". It's a living Hell.

...and with no stake in life it makes Everything Pointless. 

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What is making these prices obscene is the main thing that I find difficult to accept.

Basically the foolish and reckless are being given the best ride, they borrow to the maximum possible limit and are blissfully getting on with everything set up in their favour (zero IR, government props, high mortgage to income ratios). While the cautious and sensible are being left behind with savings literally evaporating as the years go on.

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Ok i'll play.

Because i cant come home - without crippling debt and all that it entails.

I left for Oz in 2003, i enjoy it here, but inevitably there are pluses and minuses, i still miss old freinds and family and my folks are getting old now, i have a toddler and another on the way, it feels unfair to deny the kids their grandparents and vice versa - skype is great, to a point.

I know there are many flaws in the following and this is a bit apples v oranges but having lived in both places, they are similar in terms of transport, safety, conveniences, beaches etc, just one place is hot, the other is cold (ish) hopefully it makes a relevant point:

Heres a basic 3 bed semi near where i grew up:

http://www.rightmove.co.uk/property-for-sale/property-49767801.html

Median annual wage in Bournemouth GBP24,810* (AUD$40,440) so the house is 15.31 x gross salary (!?!?!)

And here is an example of a basic house where i live currently:

https://www.realestate.com.au/property-house-wa-merriwa-125752506

Median annual wage in Perth AUD$88,327 (GBP54,000) so the house is 3.22 x gross salary 

Btw AUD$285,000 is around GBP 175,000 at current exchange 1.63 (Pound is very weak)

*Source: http://www.payscale.com/research/UK/Location=Bournemouth-England%3A-Dorset/Salary

**Source: https://www.livingin-australia.com/salaries-australia/

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The reason why people get angry or frustrated is because a basic human need has been turned into an investment asset.

The younger generation have a stark choice.

They can either try to better themselves and get a career in the face of an ever-aging workforce (boomers not retiring) and advancement of AI. Have massive student debts, they'll most likely never pay off, and severely watered down pension schemes that the age will move so they'll never get. A life of renting to private landlords and never being able to afford the security of their own home or having children.

Or they can realise the game early on. Work 16 hours a week in a made up job, have children and get their partner to say that they don't live with them even though they do. Get maximum tax credits and get a house and bills paid for. One person I know has even got paid £200k+ by the council for her to move out!

You cannot blame people for doing the latter. Its the system that needs to change. It will take the system to collapse for the government to take action and that fate is in the hands of the younger generation.

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6 hours ago, whome_yesyou said:

What is making these prices obscene is the main thing that I find difficult to accept.

Basically the foolish and reckless are being given the best ride, they borrow to the maximum possible limit and are blissfully getting on with everything set up in their favour (zero IR, government props, high mortgage to income ratios). While the cautious and sensible are being left behind with savings literally evaporating as the years go on.

This. It's not capitalism, even though the elite argue that it is. I'm sickened by it.

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41 minutes ago, sideysid said:

. One person I know has even got paid £200k+ by the council for her to move out!

 

Wtf! Details please ?

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Among others:

- the criminal misallocation of resources into an industry that destroys value immensely.

- the generational impoverishment

- the focus on "what's my house worth"

- the yawning gap between salaried work - for most - and an average home, thus destroying professional motivation

 

I could go on. 

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11 minutes ago, stuckmojo said:

 

- the criminal misallocation of resources into an industry that destroys value immensely.

- the generational impoverishment

And this is why sustained zirp is not a reasonable option. Simply put, if there's another 'unexpected' financial crisis then the economy simply isn't resilient or broad based enough to weather it. Dropping IRs further, nirp etc, would simply worsen this; outside the previously tested parameters the central bankers model won't necessarily work. 

Edited by Si1

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23 minutes ago, Si1 said:

This. It's not capitalism, even though the elite argue that it is. I'm sickened by it.

 

Technically its free market capitalism but its unmanaged and shows the harm unregulated markets do - and the worse harm badly regulated markets can do...  That then leads to

11 minutes ago, stuckmojo said:

- the criminal misallocation of resources into an industry that destroys value immensely.

- the generational impoverishment

- the yawning gap between salaried work - for most - and an average home, thus destroying professional motivation

(I'm ignoring the house prices one as that was equally true in the 80's).

What is also missing is the lack of incentive to work full stop - if you aren't interested in buying a house tax credits give you zero incentive to work full time....

 

 

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2 minutes ago, Houdini said:

 

Technically its free market capitalism but its unmanaged and shows the harm unregulated markets do - and the worse harm badly regulated markets can do...  

No, it's over managed. QE, htb, bank bailouts, NIMBYism. Etc.

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2 minutes ago, Si1 said:

And this is why sustained zirp is not a reasonable option. Simply put, if there's another 'unexpected' financial crisis then the economy simply isn't resilient or broad based enough to weather it. Dropping IRs further, nirp etc, would simply worsen this; outside the previously tested parameters the central bankers model won't necessarily work. 

Missed that one - as we all (on here) know but few others do the really big current problem is that the 2008 recession wasn't allowed to kill all the old zombie companies to let new ones form. Instead the zombies are damaging the survivors whilst there is no ammunition to soften the landing in the next recession. And recessions are inevitable - something or other will always create one..

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1 minute ago, Houdini said:

Missed that one - as we all (on here) know but few others do the really big current problem is that the 2008 recession wasn't allowed to kill all the old zombie companies to let new ones form. Instead the zombies are damaging the survivors whilst there is no ammunition to soften the landing in the next recession. And recessions are inevitable - something or other will always create one..

Yes. William Hague had repeated this a few times. Central bankers, and particularly the BoE, seem complacent that they have an answer to everything, and nothing can happen which they don't have an answer for. They remind me of Gordon Brown in his heyday. Group think.

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Obscene house prices do my nut because...

 

They're going to cause (along with zirp/qe) an even bigger more painful crisis further down the line which could take us all with it. All so some leveraged f#ckwits could get excited about interior decoration.

Edited by Si1

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6 minutes ago, Si1 said:

Obscene house prices do my nut because...

 

They're going to cause (along with zirp/qe) an even bigger more painful crisis further down the line which WILL take us all with it. All so some leveraged f#ckwits could get excited about interior decoration.

ftfy. The only question is when and I suspect its sooner than the Government and BoE hope for.... 

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  • 293 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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