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Bhoy

Paying too much off plan

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A couple of friends of mine have paid £340,000 for a house off plan in north Oxfordshire (small market town).

They didn't negotiate a discount for buying off plan, but did receive £7000 off of the stamp duty (which they were told was £8000)

They paid the deposit on a credit card.

 

People aren't thinking house purchases through and a crash wont happen.

Not in the mood for being called a troll. Been viewing this forum since 2009 and it's the same old thing. There will be no crash.

 

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19 hours ago, Bhoy said:

A couple of friends of mine have paid £340,000 for a house off plan in north Oxfordshire (small market town).

They didn't negotiate a discount for buying off plan, but did receive £7000 off of the stamp duty (which they were told was £8000)

They paid the deposit on a credit card.

 

People aren't thinking house purchases through and a crash wont happen.

Not in the mood for being called a troll. Been viewing this forum since 2009 and it's the same old thing. There will be no crash.

 

Own choices.  Your £340,000 home buyer friends don't think a crash will happen you claim.

And you've viewed 'this forum' (HPC) since 2009.  How much % are London prices up since 2009?

You also don't think a crash will happen, so what the heck point are you making?

Individuals have their own minds and they make their own market choices.

Buyers do think house purchases through, they just have different market views from the Superior Control Squad.

Just because house buyers of today paying these prices have different views to you/me others (including buyers from 2009 who bought at much lower prices than values today in my area, vs my 7-8 years £80,000 more rent paid to a BTLer with 5 homes, doesn't make them brainwashed, innocents or victims. 

They have to have something about them to be in position to sign up to pay £340,000 in the first place.   They must have income of some sort to be in position to pay for the mortgage.   

£340,000 and you claim they are not thinking things through when buyers make purchases?

Sorry but it's one of the most important decisions in life.  People have their own minds.  Risks exists.  No one single individual knows everything.   We have to take our positions in a world of risks.  No one drags people to viewings of homes with prices of £340,000.   We can't have a market where there is no downside to paying too much, and we can't have a market where owners are held up as brainwashed victims, to always position that they need protecting if if if if there is ever any correction... which neither your buyer friends nor yourself think is going to occur anyway. 

_________________

HPI annual extremes in my area 2000-2007.

2007-2009. Credit Crunch... a few houses selling at lower prices, bringing wider values down a little bit, but most owners sat tight, and thinking value falls didn't apply to their own home.  Some HPCers claiming owners as the greatest innocent victims 'who didn't know what they were doing / just wanted a home / media and advertising addled minds.'

2009. Major policy response years begin.  Rates cut, QE £HundredsBillions, FLS and more.

2010. BTLers begin to come back and buy properties on market that I couldn't afford (with some voices on HPC still claiming owners as the great innocents with no minds of their owns/victims).   HPI+ begins to come back hard.

2013 HTB announced.... HPI ZOOOOOOOM UP years from that point, and BTLers going even harder into the market.

Years and years and years of those on HPC positioning that owners are brainwashed, that buyers don't think things through when they pay £350,000+ for homes (and claiming them not capable) vs ever more HPI.

It's a market.  You/they think no HPC.  We take our positions.

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41 minutes ago, TheCountOfNowhere said:

Off plan...now there's a phrase from 2006....

Makes me think of all those unfinished houses in Ireland after their prices tanked.  I wonder what happens to your deposit if the builder becomes insolvent?

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Stamp duty £8000 doesn't sound right,   5% of diff between £340k and £250k is 90k x 5% = 4.5k

So they've been lied to buy the builder, or were liable for extra stamp duty for second home/BTL???

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On 10/6/2017 at 10:49 AM, Bhoy said:

 

People aren't thinking house purchases through and a crash wont happen.

Not in the mood for being called a troll. Been viewing this forum since 2009 and it's the same old thing. There will be no crash.

 

Surely people not thinking and paying too much makes a crash more not less likely?

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  • 295 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% +
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      • Even
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      • up 5%



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