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chronyx

E-mail from Lloyds

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On the day the pound took a bit of a dip, my friends at Lloyds sent me a nice message:

 

Quote

Whether it's splitting bills with a flatmate or asking a relative for a loan, we all need to talk about money from time to time. A few tips can help you speak with confidence.

They follow with:

Quote

 

1. Do your homework

If you want to borrow money, for example, be clear on what you need and why.

2. Try to bring a solution to any problem

In the case of a loan, show you've thought about how and when you'll pay it back.

3. Choose your moment.

Plan ahead. Schedule time in your diary so you have plenty of time to talk through your options.


 

 

There's definitely a feeling in the air...

(If I haven't got the money for something, I don't buy it, so Lloyds advice is as useful as a chocolate ringfence)

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They have a nerve giving advice - as do all the banks given that they were all totally dead in 2008. Largely as a result of their own bungling.

Edited by Errol

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7 minutes ago, Errol said:

They have a nerve giving advice - as do all the banks given that they were all totally dead in 2008. Largely as a result of their own bungling.

If I thought it would be read by someone with any comprehension of the situation I'd reply back with something along the lines of "Why don't I just ask for a huge bailout at 0.5% interest?"

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Today's comedy.  Smells like...fear.

Capture.PNG

Edited by chronyx

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1 minute ago, thewig said:

does ********

 

1 minute ago, thewig said:

Canal

:lol::lol::lol::lol: long walk up the dirt canal?

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365000 FTBs....1 person in 180 or so in UK.  Quite a select club to join....a club i expect they will have a lifetime regretting they joined...

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31 minutes ago, Wayward said:

365000 FTBs....1 person in 180 or so in UK.  Quite a select club to join....a club i expect they will have a lifetime regretting they joined...

Buy in haste, repent at leisure as I think the old saying goes.  I could Google it but where's the fun in that?

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On 10/08/2018 at 17:05, chronyx said:

If I thought it would be read by someone with any comprehension of the situation I'd reply back with something along the lines of "Why don't I just ask for a huge bailout at 0.5% interest?"

I hate to niggle but the bailout funding was far more expensive than that. It was actually quite expensive. I can't remember exactly what the rate of SLS funding was, but it wasn't cheap. 

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10 hours ago, Ah-so said:

I hate to niggle but the bailout funding was far more expensive than that. It was actually quite expensive. I can't remember exactly what the rate of SLS funding was, but it wasn't cheap. 

Fair enough, didn't know that!

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22 hours ago, Wayward said:

365000 FTBs....1 person in 180 or so in UK.  Quite a select club to join....a club i expect they will have a lifetime regretting they joined...

1 person in 180 became an owner during a year, but that's not a particularly meaningful statistic, or "club" to join. But if you include all owners it's far less select and the proportion is significantly bigger. Also children and students should be excluded, and probably those who only recently graduated or are on gap years etc. as they can't reasonably get a mortgage.

It's ambiguous though. Is that 365,000 people or households? If a couple become FTBs are they one or two?

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On 31/08/2018 at 22:35, Wayward said:

365000 FTBs....1 person in 180 or so in UK.  Quite a select club to join....a club i expect they will have a lifetime regretting they joined...

Homeownership_chart1.svg

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Looking at the graph, the average for 1985 to 2002 was about 500,000 FTB. Since then it’s been about 300,000 on average.

Given the population is about 850,000 for each of the years of age between about 20 and 40 (give or take) then we have moved From almost 60% of people buying houses to just over a third...

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19 hours ago, Kosmin said:

1 person in 180 became an owner during a year, but that's not a particularly meaningful statistic, or "club" to join. But if you include all owners it's far less select and the proportion is significantly bigger. Also children and students should be excluded, and probably those who only recently graduated or are on gap years etc. as they can't reasonably get a mortgage.

It's ambiguous though. Is that 365,000 people or households? If a couple become FTBs are they one or two?

My point was 1 in 180 bought first time at 2017 prices...it is important.  Most people that own house bought them first time for a fraction of what they cost in real terms in 2017...you buy first time in any of the recent years and you are joining a select and relatively very small club of people that paid a ruinous amount for your house....most did not. Those buying first time should understand this.

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29 minutes ago, Wayward said:

My point was 1 in 180 bought first time at 2017 prices...it is important.  Most people that own house bought them first time for a fraction of what they cost in real terms in 2017...you buy first time in any of the recent years and you are joining a select and relatively very small club of people that paid a ruinous amount for your house....most did not. Those buying first time should understand this.

Though I think many will struggle, I expect the struggle will likely be worse for many second steppers. I think most FTBs have not yet reached peak earnings. They should be in a better position to save and invest elsewhere, or make overpayments. Second-steppers who are a bit older and earning more, having reached their peak income, will finder it harder to cope and there is no benefit to them of falling prices, as they aren't expecting to buy a bigger house.

Edited by Kosmin

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4 hours ago, Kosmin said:

Though I think many will struggle, I expect the struggle will likely be worse for many second steppers. I think most FTBs have not yet reached peak earnings. They should be in a better position to save and invest elsewhere, or make overpayments. Second-steppers who are a bit older and earning more, having reached their peak income, will finder it harder to cope and there is no benefit to them of falling prices, as they aren't expecting to buy a bigger house.

I agree with that but remember FTBs are older than ever and therefore nearer to peak earnings than in the past.

Also second steppers may have a considerable gain from HPI under their belt.

My point remains...folk buying into current market for first time at today's prices is doing something extreme and will be in very rare company. 

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