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3 millennials on a train


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HOLA441

3 girls, early/mid 20s, agreeing that they couldn't afford to buy, so best way to "get on the ladder" was to invest in BTL. Had I not been getting off at the next stop I might have tried to offer some words of wisdom....

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10 minutes ago, Grab_Some_Popcorn said:

3 girls, early/mid 20s, agreeing that they couldn't afford to buy, so best way to "get on the ladder" was to invest in BTL. Had I not been getting off at the next stop I might have tried to offer some words of wisdom....

Should have suggested they should just marry a rich old bloke

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26 minutes ago, Grab_Some_Popcorn said:

3 girls, early/mid 20s, agreeing that they couldn't afford to buy, so best way to "get on the ladder" was to invest in BTL. Had I not been getting off at the next stop I might have tried to offer some words of wisdom....

Unfortunately, that attitude is so ingrained in the psyche of the general population that a sizeable crash will be necessary to eradicate it once and for all. For that reason alone, a soft landing is not possible.

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I experienced this ignorance with my own sister last year - wanted to buy a BTL (priced out of owning). Did not understand yield, taxes, voids, responsibility for repairs, rent v loan requirements, insurance, eviciting non-paying tenants, responsibility for rehoming tenants if hosue becomes unlivable, etc.

People literally see BTL as "put down a deposit, house pays for itself, riches follow soon after".

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5 minutes ago, Grab_Some_Popcorn said:

Um, you've lost me!?!

And of course those would likely have been the words of the young ladies had the OP interjected and mentioned things such as " yield, taxes, voids, responsibility for repairs, rent v loan requirements, insurance, eviciting non-paying tenants,...."

People of this age are, sadly, merely a product of the education system their generation has been supplied with - compared with what I, and other of my age group a generation earlier, benefitted from. Critical thinking combined with essential life knowledge (such as understanding and calculating interest payments, etc) is not something they are exposed to.

Edited by anonguest
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9 hours ago, Oh Well :( said:

Unfortunately property is still the best investment. Even if the price drops you still have it.

Of course if Corbyn gets in and there is civil war, beans and shotguns would be the better options

Which can be like an allbatross around your neck. often because in a crash, you can't sell it. Which is a disaster if you have to move for work / divorce etc.

you are also a trapped target for skint Govs' / Banks

I remember an old hpc quote from an Ea " if  nothing is selling, there's no market " 

Edited by Saving For a Space Ship
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16 hours ago, Oh Well :( said:

Unfortunately property is still the best investment. Even if the price drops you still have it.

Not always, if you buy with a mortgage then the repayments + interest over 20+ years are significantly higher than the purchase price.

If the value falls significantly over a long period of time, then you can find the repayments, which are based on the higher price you paid, exceed the value of the house to the point where it makes financial sense to just go bankrupt, hand the house back and start again. In that scenario you do not "still have it".

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11 hours ago, Saving For a Space Ship said:

Which can be like an allbatross around your neck. often because in a crash, you can't sell it. Which is a disaster if you have to move for work / divorce etc.

you are also a trapped target for skint Govs' / Banks

I remember an old hpc quote from an Ea " if  nothing is selling, there's no market " 

If I get into crippling debt just to get on the ladder... And struggle to pay the mtg for next 25yrs as rates rise ... I'm hardly better off than if I'd waited for the inevitable crash.

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On 25/09/2017 at 8:06 AM, Bruce Banner said:

Unfortunately, that attitude is so ingrained in the psyche of the general population that a sizeable crash will be necessary to eradicate it once and for all. For that reason alone, a soft landing is not possible.

This.

High prices like this are a function of sentiment. Sentiment is a function of the positive rate of change of house prices. It follows that once house prices stop rising, if without further props, they'll fall, and overshoot on the downside.

I can't believe the hospital pass Osborne has left May.

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