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hotblack42

People are realising...

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The misgivings on here continue to seep into the mainstream (at least in the USA):

https://www.linkedin.com/feed/news/millennials-overspending-on-homes-2039290/

Plenty of evidence in comments that its not so much how you are positioned re property and land, but rather intelligence and financial literacy that determines how much people 'get it'.
Some who have done extremely well openly admit how ridiculous the situation has become and the risks of such frothy prices.
Particularly tragic are the comments from FTBs who fully understand the horrible risk they are taking, but feel they have no choice in the face of obscene rents.
     "People are doing risky things to try to get out of the renting trap. Rents that would have previously been $400 are now $1000 in my city, and show no signs of stabilizing. "

A couple of days ago even my "Rent is dead money" mother in law conceded that we cannot be sure that buying now and foregoing almost all else is the best course for some youngsters.  This is someone who has previously got very angry at any expression of doubt about buying property at any point at the cycle.  A major milestone in our family.

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49 minutes ago, hotblack42 said:

A couple of days ago even my "Rent is dead money" mother in law conceded that we cannot be sure that buying now and foregoing almost all else is the best course for some youngsters.  This is someone who has previously got very angry at any expression of doubt about buying property at any point at the cycle.  A major milestone in our family.

I've seen older converts like this, trouble is sometimes you think it's a major breakthrough in intergenerational understanding/empathy and then 6 months later they're back to their old can't-go-wrong-with-bricks-n-mortar ways. They've been fed that line for their entire adult life from almost everybody around them and the newspapers and TV make sure to keep the dose topped up. Very difficult for most people to resist that level of propaganda.

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Many parents would not advise their children to buy (in certain places).....those who do decide to buy (with help) have to understand that they will have to stick it out for a while.....there is a ladder but only a few rungs...or quite possibly only one rung. ;)

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7 minutes ago, Dorkins said:

I've seen older converts like this, trouble is sometimes you think it's a major breakthrough in intergenerational understanding/empathy and then 6 months later they're back to their old can't-go-wrong-with-bricks-n-mortar ways. They've been fed that line for their entire adult life from almost everybody around them and the newspapers and TV make sure to keep the dose topped up. Very difficult for most people to resist that level of propaganda.

+1

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1 hour ago, hotblack42 said:

The misgivings on here continue to seep into the mainstream (at least in the USA):

https://www.linkedin.com/feed/news/millennials-overspending-on-homes-2039290/

Plenty of evidence in comments that its not so much how you are positioned re property and land, but rather intelligence and financial literacy that determines how much people 'get it'.
Some who have done extremely well openly admit how ridiculous the situation has become and the risks of such frothy prices.
Particularly tragic are the comments from FTBs who fully understand the horrible risk they are taking, but feel they have no choice in the face of obscene rents.
     "People are doing risky things to try to get out of the renting trap. Rents that would have previously been $400 are now $1000 in my city, and show no signs of stabilizing. "

A couple of days ago even my "Rent is dead money" mother in law conceded that we cannot be sure that buying now and foregoing almost all else is the best course for some youngsters.  This is someone who has previously got very angry at any expression of doubt about buying property at any point at the cycle.  A major milestone in our family.

 

1 hour ago, hotblack42 said:

The misgivings on here continue to seep into the mainstream (at least in the USA):

https://www.linkedin.com/feed/news/millennials-overspending-on-homes-2039290/

Plenty of evidence in comments that its not so much how you are positioned re property and land, but rather intelligence and financial literacy that determines how much people 'get it'.
Some who have done extremely well openly admit how ridiculous the situation has become and the risks of such frothy prices.
Particularly tragic are the comments from FTBs who fully understand the horrible risk they are taking, but feel they have no choice in the face of obscene rents.
     "People are doing risky things to try to get out of the renting trap. Rents that would have previously been $400 are now $1000 in my city, and show no signs of stabilizing. "

A couple of days ago even my "Rent is dead money" mother in law conceded that we cannot be sure that buying now and foregoing almost all else is the best course for some youngsters.  This is someone who has previously got very angry at any expression of doubt about buying property at any point at the cycle.  A major milestone in our family.

All the foundations are sitting on good old sandy loose debt that must be topped up constantly, just needs to be starved for a short while. And by that it means 39 year old people living rent free with their parents, travel for two years, live in a crowded rental home with mates and make it work for a while, living on a near sinking boat, convert a big van to a cosy camper, I have become an expert at spotting them just about everywhere now.

This could all collapse in 6 months if a huge number of renters just roughed it for that short while,  you might get your Kirstie Allsopps preaching how immoral that is, but me and her have differing opinions of what is and is not moral, her property ramping for start and the sucking of life of young adults starting out in life.

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1 hour ago, hotblack42 said:

Particularly tragic are the comments from FTBs who fully understand the horrible risk they are taking, but feel they have no choice in the face of obscene rents.
     "People are doing risky things to try to get out of the renting trap. Rents that would have previously been $400 are now $1000 in my city, and show no signs of stabilizing. "

Read that from 2008 as prices have surged up.  Tragic and no choice, for individuals who buy houses.

They make the choice.  If they buy a house they think it's better risk and position, at whatever price they've paid, than renting.  You can't have it both ways.

End.

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Young people who do not have a ready flow of cheap money to pay rent with will just have to become more inventive.....there are ways around not paying another's mortgage and/or lifestyle when should be investing hard earned money into own future and the kid's futures not a stranger with leveraged debt that requires servicing and payment with your hard earned money.;)

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Its not rocket science, the quite secret, that after the end of the great depression in the ‘30’s... the house prices crashed. The net cause was QE. This ome will be worse because QE is a short term 2 year affair. The US wanted to start the cycle in 2015... but European economics was shagged... 2016 China had a melt down, Brexit and Trump... 2017 was a super inflation injector from tax cuts... Another tax cut looms... meaning American inflation is super charged... so the fed dot path is shifting upwards... normalisation has begun. 🤣

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10 hours ago, Sugarlips said:

Squatting? Is that still a thing?

Not that long ago squatting was made illegal in empty private homes......the law makers must have known that far many more homes would be left empty in places of high demand, investment owners often living overseas.....they must have predicted greater numbers of homeless people in the future?......

BTW. House sitting is not squatting.......it is being paid to care for another's home and or pets.......the wealthy have always in the past provided free accommodation in often very nice houses in nice places to trusted others ......... Inequality gap is widening again.😉

Edited by winkie

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On 28/07/2018 at 13:00, winkie said:

Young people who do not have a ready flow of cheap money to pay rent with will just have to become more inventive.....there are ways around not paying another's mortgage and/or lifestyle when should be investing hard earned money into own future and the kid's futures not a stranger with leveraged debt that requires servicing and payment with your hard earned money.;)

But think about the service the debthead LLs think they provide 🙄

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On 28/07/2018 at 12:59, Mossie said:

Read that from 2008 as prices have surged up.  Tragic and no choice, for individuals who buy houses.

They make the choice.  If they buy a house they think it's better risk and position, at whatever price they've paid, than renting.  You can't have it both ways.

End.

Like everything in life, you take a punt and hope it pays off. If it doesn't, you need to live with it. 

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1 hour ago, Saving For a Space Ship said:

Only in commercial property , It's illegal in residential now 

If a BTL portfolio is put in to a Ltd Company format to avoid the new tax regime does that mean that the houses are now commercial property instead of residential ??  And therefore are fair game for squatters to live in.  

Does anyone know what the definition of commercial property is ?

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12 minutes ago, Timbuk3 said:

If a BTL portfolio is put in to a Ltd Company format to avoid the new tax regime does that mean that the houses are now commercial property instead of residential ?

No, a change in ownership of a residential property is different to a change in its use classification.

https://www.planningportal.co.uk/info/200130/common_projects/9/change_of_use

 

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  • 302 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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