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Between 1999 and 2004, average house prices in the region have almost doubled, while average incomes have risen by only 15 per cent during the same period.

Don't panic, we've having a SOFT LANDING.

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What about don’t trust anyone on an Internet forum

I’m a 16-year girl and would like to meet other young girls as friends

......and I've got some puppies I'm sure you'd like to see...... :blink:

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The hazards of property ownership

And don't trust anyone who says 'trust me' (especially not the BBC)

The sad thing is, many of these FTBs were too young to remember the last crash and are entering the market with 'houses only ever go up' firmly implanted in their brains. In the past few days I have heard younger people (25-30s) coming out with the classics: rent is dead money - I might as well buy now, If I don't get on the ladder now I'll never be able to, I've borrowed 40 grand from my parents...etc.

For some people, the fate that awaits them is merely payback for their ignorance and failure to do their research. I doubt you'd see too much sympathy for a stock-market speculator who lost a bundle...

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The sad thing is, many of these FTBs were too young to remember the last crash and are entering the market with 'houses only ever go up' firmly implanted in their brains. In the past few days I have heard younger people (25-30s) coming out with the classics: rent is dead money - I might as well buy now, If I don't get on the ladder now I'll never be able to, I've borrowed 40 grand from my parents...etc.

For some people, the fate that awaits them is merely payback for their ignorance and failure to do their research. I doubt you'd see too much sympathy for a stock-market speculator who lost a bundle...

yep most just don't believe a crash is possible, merely because they've never ever experienced one!

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......and I've got some puppies I'm sure you'd like to see...... :blink:

Puppies you say – I don’t know if I should trust you

Are you sure you’re not 35 years old bald and 18 stone? (the HPC average)

All right – I’ll meet you as long as they’re Labradors – I just love their long ears

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The sad thing is, many of these FTBs were too young to remember the last crash and are entering the market with 'houses only ever go up' firmly implanted in their brains. In the past few days I have heard younger people (25-30s) coming out with the classics: rent is dead money - I might as well buy now, If I don't get on the ladder now I'll never be able to, I've borrowed 40 grand from my parents...etc.

For some people, the fate that awaits them is merely payback for their ignorance and failure to do their research. I doubt you'd see too much sympathy for a stock-market speculator who lost a bundle...

Listen it's taken me 2 years to realise that the house you buy to live in is not and should not be regarded as an investment/savings pot and that it is everything outside that (isas, shares, commodities, cash) that makes up your savings.

I reckon a frighetningly high % of the population would consider their home to be their primary form of saving.

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Guest Charlie The Tramp

If I don't get on the ladder now I'll never be able to, I've borrowed 40 grand from my parents...etc.

For some parents they can say goodbye to that money.

First-time buyers 'borrowed £1.36bn from family and friends'

FIRST-TIME buyers have collectively borrowed £1.36 billion from family and friends in the last two years to get a foot on the property ladder, a survey has revealed.

But nearly a third of the 881,000 people who purchased their first property during that period admitted they had no intention of ever repaying the money, according to the poll by Sainsbury's Bank.

Friends and family forked out an average of £1,552 on helping first-time buyers set up home, while more than 26,000 were loaned between £20,000 and £40,000 by generous relatives and pals, the survey found.

Intention

However, most first-time buyers are in no rush to repay their sizeable loans, with 31% admitting they had no intention of ever paying their friends or family back, the study showed. Another 28% believed it would take three years to repay the largely interest-free debt, with only 21% claiming they would cough up the money within the year.

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For some parents they can say goodbye to that money.

absolutely right. But if my child came to me asking for money to buy a house right now, I'd refuse.

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I'm hoping to buy in London where moderate rises/levelling off is predicted. I might be more cautious if I was looking elsewhere but then, at the end of the day, if you are a young couple hoping to start a family you will always want to own your house first and with the clock ticking, many people are simply not going to wait for years on end for a HPC. Factors like that override everything, IMHO.

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I'm hoping to buy in London where moderate rises/levelling off is predicted. I might be more cautious if I was looking elsewhere but then, at the end of the day, if you are a young couple hoping to start a family you will always want to own your house first and with the clock ticking, many people are simply not going to wait for years on end for a HPC. Factors like that override everything, IMHO.

Why not rent? Spend the extra money on the kids and quality family life, wait tillthe prices come down and then buy.

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Listen it's taken me 2 years to realise that the house you buy to live in is not and should not be regarded as an investment/savings pot and that it is everything outside that (isas, shares, commodities, cash) that makes up your savings.

I reckon a frighetningly high % of the population would consider their home to be their primary form of saving.

Actually a house can be used as a very tax-efficient piggie bank. But only if you overpay on your capital-repayment loan and have a borrow back feature.

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Why not rent? Spend the extra money on the kids and quality family life, wait tillthe prices come down and then buy.

Is that really your picture? If so, I have some puppies that I would like you to look at as well.

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For some parents they can say goodbye to that money.

My parents have done that for my sister. I think they may be saying goodbye.

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What about don’t trust anyone on an Internet forum

I’m a 16-year girl and would like to meet other young girls as friends

can i see your puppies? :blink::blink::blink::blink:

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My parents have done that for my sister. I think they may be saying goodbye.

I'd be interested to hear how you feel about that.

Personally I will not take any money off my parents for a property as I would rather save it myself but I suspect that my parents may opt to "help out" one of my two younger siblings (not till after the crash if they have any sense).

frugalista

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Why not rent? Spend the extra money on the kids and quality family life, wait tillthe prices come down and then buy.

There is no way I'm going to start a family in rented accomodation, knowing I would have to move at the whim of a landlord, which would be a major upheaval if I had young children/babies (schools, friends, upheaval, hassle). I don't want that sense of instability to raise a family in.

Plus, there is no guarantee that prices will fall. I have been surfing websites like this for years and the so-called impending crash has been put back and back repeatedly. I am not waiting forever for something that may never happen.

Plus, the difference between renting and the mortgage we have been offered is remarkable small (considering we are making the leap from a tiny flat to small house)

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I'd be interested to hear how you feel about that.

Personally I will not take any money off my parents for a property as I would rather save it myself but I suspect that my parents may opt to "help out" one of my two younger siblings (not till after the crash if they have any sense).

frugalista

I'm not resentful about it. I'm glad for her. My parents did help me though uni of which I am very grateful (my sister didn't go to uni). But when she bought (2002) I wasn't interested in buying. My parents have offered the same to me, but turned it down. They know i'm bearish on house prices.

They would want the money back when she sells, but I have explained if prices rise how could she? If prices fall, do you get your stake back? Or do you take some of the loss? (I was never around when they made the agreement).

But I think it is screwed up that the young have to rely on their parents! So, i'm supposed to take away their retirement? That simply is not sustainable. If it's not sustainable, it won't be sustained!

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There is no way I'm going to start a family in rented accomodation, knowing I would have to move at the whim of a landlord, which would be a major upheaval if I had young children/babies (schools, friends, upheaval, hassle). I don't want that sense of instability to raise a family in.

Personally I don't see it as a problem per se. 60% of continental Europeans find renting acceptable. Presumably many of them have young families. I think the trick is to try and suss out your prospective landlord and figure out if they are likely to want to sell up while you are there. A new, amateur landlord is perhaps more likely to sell than an established long term landlord with many properties. Another trick is to negotiate longer leases, by offering the incentive of rent payments up front or whatever. I have never been turfed out by a landlord selling up. I've negotiated leases for longer than 18 months without any rent increases. I also negotiated a landlord installing a dishwasher and a new toilet. I also negotiated a lease where the landlord only keeps as a deposit my last month's rent. Everything is negotiable.

Plus, there is no guarantee that prices will fall. I have been surfing websites like this for years and the so-called impending crash has been put back and back repeatedly. I am not waiting forever for something that may never happen.

There is no guarantee that you will be able to maintain your income. There is no guarantee that you will be able to afford your mortgage over the next few years (unless you get a 10 year fix which few people do). There is no guarantee that you would be able to sell your house if you wanted to move. Nothing is guaranteed. You have to weigh it up for yourself.

frugalista

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  • 301 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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