The Colour Posted February 2, 2006 Share Posted February 2, 2006 I have a mate who I am seriously worried about. He just bought a £190K 2 bed flat in Edgware on IO fixed for 3 years at about 1K per month. I told him not to do it. "Just rent for 12 months" I said. But he went ahead and did it. Last saturday night he told me that he wasn't earning enough to pay the 1K and he was starting to get worried himself. This chap is no genius, but he's not thick either. He basically let his wife (who fell in love with the flat) cloud his judgement. It's crazy when people you know just act so illogically. Quote Link to comment Share on other sites More sharing options...
Mags Posted February 2, 2006 Share Posted February 2, 2006 I have a mate who I am seriously worried about. He just bought a £190K 2 bed flat in Edgware on IO fixed for 3 years at about 1K per month. I told him not to do it. "Just rent for 12 months" I said. But he went ahead and did it. Last saturday night he told me that he wasn't earning enough to pay the 1K and he was starting to get worried himself. This chap is no genius, but he's not thick either. He basically let his wife (who fell in love with the flat) cloud his judgement. It's crazy when people you know just act so illogically. Might be an idea if he gets a lodger in the spare room. Quote Link to comment Share on other sites More sharing options...
?...! Posted February 2, 2006 Share Posted February 2, 2006 Yeah tell me about it. I have three mates who bought this year all in the £150-£200K mark. None of them have admitted a mistake, yet. All I said at the time is I wouldn’t buy now I think they’ll come down. They all bought anyway. I avoid the subject when around them, people get very aggressive/defensive when you start explaining things to them. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted February 2, 2006 Share Posted February 2, 2006 Emotions can cause the biggest heartaches of our lives. He's just about to learn this - especially when his missus walks away! Quote Link to comment Share on other sites More sharing options...
The Colour Posted February 2, 2006 Author Share Posted February 2, 2006 Emotions can cause the biggest heartaches of our lives. He's just about to learn this - especially when his missus walks away! Man that would be awful considering it was her continuously nagging him to get the house which made him get it... Quote Link to comment Share on other sites More sharing options...
THOR33 Posted February 2, 2006 Share Posted February 2, 2006 (edited) I have a mate who I am seriously worried about. He just bought a £190K 2 bed flat in Edgware on IO fixed for 3 years at about 1K per month. I told him not to do it. "Just rent for 12 months" I said. But he went ahead and did it. Last saturday night he told me that he wasn't earning enough to pay the 1K and he was starting to get worried himself. This chap is no genius, but he's not thick either. He basically let his wife (who fell in love with the flat) cloud his judgement. It's crazy when people you know just act so illogically. JUST TELL HIM TO DUMP HER COS SHE'LL BE THE FIRST NO DOUBT TO DUMP HIM! STUPID COW! Edited February 2, 2006 by THOR33 Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted February 2, 2006 Share Posted February 2, 2006 Man that would be awful considering it was her continuously nagging him to get the house which made him get it... Sure would! In most* cases, its the woman who wants the nest more than the man. *I did say 'most'!!! Quote Link to comment Share on other sites More sharing options...
r thritis Posted February 2, 2006 Share Posted February 2, 2006 He basically let his wife .. Now that's going too far - renting out your own wife just to pay the mortgage! Quote Link to comment Share on other sites More sharing options...
The Colour Posted February 2, 2006 Author Share Posted February 2, 2006 Now that's going too far - renting out your own wife just to pay the mortgage! Thats a good idea - maybe I'll suggest it to him Quote Link to comment Share on other sites More sharing options...
Sisyphus Posted February 2, 2006 Share Posted February 2, 2006 Now that's going too far - renting out your own wife just to pay the mortgage! Why? You young people are just not willing to make the necessary sacrifices. When I was young.... Quote Link to comment Share on other sites More sharing options...
apom Posted February 2, 2006 Share Posted February 2, 2006 Why? You young people are just not willing to make the necessary sacrifices. When I was young.... When you were young you had the prospect of wage inflation when things got too hard... Its a shame that won't happen today.. A great answer when some person makes that comment.. "It was hard for a few years, then wages would climb" Yup, thats wage inflation for you then... Have you read all of mervin kings comments on the subject?" lol Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted February 2, 2006 Share Posted February 2, 2006 He basically let his wife (who fell in love with the flat) cloud his judgement. I can just imaging what Dr. Bubb will say to that! Man that would be awful considering it was her continuously nagging him to get the house which made him get it... She won't see it like that though! I suggest he sends her out to work. If she's got a job already, she should get a second job. That'll teach the daft cow some responsibility. Quote Link to comment Share on other sites More sharing options...
Karen Posted February 2, 2006 Share Posted February 2, 2006 (edited) This chap is no genius, but he's not thick either. He basically let his wife (who fell in love with the flat) cloud his judgement. It's crazy when people you know just act so illogically. In my experience when things like this happen people blame the non-present spouse. I bet she is telling her friends he fell in love with the house. I bet they both signed the papers. The mortgage is more than they can afford. It was stupid on both their parts. Edited February 2, 2006 by Karen Quote Link to comment Share on other sites More sharing options...
RichM Posted February 2, 2006 Share Posted February 2, 2006 This story is a bit of a choker. Some friends of ours, up to their necks in debt as it is, did manage to sell their flat in W London - we thought they'd make a loss, but they actually "made" 20-30K - how much was down to their refurbishments I don't know, plus there's the costs of moving etc. I doubt it is more than a few K profit when it's all added up anyway. Plus they had to pay the mortgage for the last year or two, so probably no real profit when all's said and done. They've now bought a bigger place nearer us - either for less than they sold their last place, or for about 70K more!!! Either way they could be shafted - where we are isn't fabulous (SW8), but I guess it's been confirmed to them that property does indeed always go up. I am still fairly convinced that something bad is coming, but more and more of my peers are getting sucked into this and I don't know what to say to them Quote Link to comment Share on other sites More sharing options...
Goat Posted February 2, 2006 Share Posted February 2, 2006 I am still fairly convinced that something bad is coming, but more and more of my peers are getting sucked into this and I don't know what to say to them That's the point that really gets me. My friends are going to be badly hurt by the crash, I can see it coming but I can't sway them. Quote Link to comment Share on other sites More sharing options...
RichM Posted February 2, 2006 Share Posted February 2, 2006 That's the point that really gets me. My friends are going to be badly hurt by the crash, I can see it coming but I can't sway them. And of course, my friends who are already well off had flats bought for them years ago... It's all my lower middle class/"working" class mates who don't have much family money behind them who seem to think that the sensible thing is start their adult life borrowing 200K from the bank :angry: :angry: :angry: Quote Link to comment Share on other sites More sharing options...
LazyDay Posted February 2, 2006 Share Posted February 2, 2006 (who fell in love with the flat) It's crazy when people you know just act so illogically. Yeah, we all know that having any kind of emotional attachment towards the asset at the moment of trade (while buying or selling) is detrimental to one's wallet. I believe it’s called “endowment effect” in behavioural economics and constitutes one of the major reasons for the profit opportunities for market professionals. Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted February 2, 2006 Share Posted February 2, 2006 Interesting. Did anyone try telling people 15 years ago that their endowment would not pay out? Bet no-one woulda believed it. Yeah, we all know that having any kind of emotional attachment towards the asset at the moment of trade (while buying or selling) is detrimental to one's wallet. I believe it’s called “endowment effect” in behavioural economics and constitutes one of the major reasons for the profit opportunities for market professionals. Quote Link to comment Share on other sites More sharing options...
Levy process Posted February 2, 2006 Share Posted February 2, 2006 Last saturday night he told me that he wasn't earning enough to pay the 1K and he was starting to get worried himself. So, how did he manage to get a bank to give him a mortgage that he can't afford??? He didn't ...... LIE DID HE? Quote Link to comment Share on other sites More sharing options...
Ngugi Posted February 3, 2006 Share Posted February 3, 2006 At my work I feel like a profit of doom, complete with bible and sandwich board hung around my neck. There is seriously no-one who believes property will crash in 06. It is a wierd surreal feeling when I am convinced of the necessity of a HPC and no-one else sees the same thing - even when I email them the HPC forum web link. Just before christmas 2 of my colleagues bought FTB boxes for some huge price. One has a 40 year mortgage, car loan, council tax, etc. etc. - it makes me sad for his future because I did try to warn him off. He will be paying off loans until the day he dies. Quote Link to comment Share on other sites More sharing options...
Cuckoo Posted February 3, 2006 Share Posted February 3, 2006 (edited) I bought just before Christmas, best thing i've done. Yes, pricy but i got a bargain, if you look carefully enough you can find them. This website helped me gain the confidence to track properties and i eventually found one that had been reduced around 20% over 5 or 6 months due to the special circumstances of the seller and the market in general. If you do your homework you will find a deal. Not everyone who buys now or has bought recently is ill advised. After years of shall i , shan't i, i did take the plunge and am broadly happy with the result. Edited February 3, 2006 by Cuckoo Quote Link to comment Share on other sites More sharing options...
Goat Posted February 3, 2006 Share Posted February 3, 2006 I bought just before Christmas, best thing i've done. Yes, pricy but i got a bargain, if you look carefully enough you can find them. This website helped me gain the confidence to track properties and i eventually found one that had been reduced around 20% over 5 or 6 months due to the special circumstances of the seller and the market in general. If you do your homework you will find a deal. Not everyone who buys now or has bought recently is ill advised. After years of shall i , shan't i, i did take the plunge and am broadly happy with the result. Bargain eh? Can you tell us what, how much & where? Quote Link to comment Share on other sites More sharing options...
Mr Blek Posted February 3, 2006 Share Posted February 3, 2006 Most of my family and friends are going to be royally fecked when the crash happens. One of my uncles got a portfolio of 30 properties My friend is thinking of buying a house - refuses to believe there will be a crash. He's been taken in by the media 'soft landing', so I manged to persuade him to wait till the soft landing has happened and get a better bargain. Hopefully he'll be able to see then that the market is going down. Bargain eh? Can you tell us what, how much & where? Same here. Details please. Quote Link to comment Share on other sites More sharing options...
Brian Potter Posted February 3, 2006 Share Posted February 3, 2006 Even if prices dropped 20% or more where I live I would still hardly describe anything as a 'bargain' since its 40% plus over valued in the current market anyway. Quote Link to comment Share on other sites More sharing options...
Cuckoo Posted February 3, 2006 Share Posted February 3, 2006 In Dulwich, S. London. 2 beds, large lounge, dining room, utlility room, all in very good order. It was 20% off from the price originally asked for, at £200k. The owners had only made 2.5% / yr capital value gain since early 2001. Not demonstrating a huge boom in prices, or showing that , if you listen to some stats, much of the "gain", froth, whatever, having been eradicated already. The point i think i'm making is - the crash is already happening , happening around us. But because each house sale ,buyer and seller are different, in their personal situations, history, needs, etc you have to seek out your own personal "crash", deal, bargain. There won't be a flag flying from the Bank of England at a certain date saying "prices have crashed now, everyone buy now, its cheap". You have to go out and create it yourself to some degree, and for everyone, the time when it is right for them, will be different. Quote Link to comment Share on other sites More sharing options...
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