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Crisis looming as 600,000 stuck in unsellable homes - BBC Newsnight


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Leaving aside the safety issues, we know that many people were "persuaded" into buying overpriced property, by media, VIs and the government. We've warned about this consistently on this site; indeed it's almost its raison d'etre. A huge shame that the guilty parties will escape unpunished from the consequences.

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6 minutes ago, Warlord said:

Yes @PeanutButter history is littered with bubbles bursting the world over... but this time  we're different right,? London some how a special exception to this 300 years of history and of bubbles going pop. LOL  ... the trolls on here are in for a shock,.

 

Tokyo and before that New York were similarly dominant global cities and saw eye watering crashes in the past.

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On 02/09/2020 at 19:43, Si1 said:

Tokyo and before that New York were similarly dominant global cities and saw eye watering crashes in the past.

And they learned from it:

https://www.rethinktokyo.com/home-loan-japan-mortgage-guide

Acceptable loan amounts

As a rule of thumb, Japanese banks will allow you to borrow around eight times your annual income. No more than 25% of your monthly gross income should be expended on mortgage repayments. For example, if your mortgage is JPY 125,000 per month, your income will need to be at least JPY 500,000.

Loan lifetime 

The lifespan of a mortgage in Japan is between 1-35 years. In general, applicants between 20 and 69 years old will be accepted, but you should plan to have your loan fully paid by the age of 75-80 years old to be eligible for your chosen time span.

Interest rates

You can choose between fixed and floating (also called variable) interest rates. Japan currently offers historically low interest rates, with rates for 10-year fixed mortgages generally available under 1% for the initial set period. Variable loans are currently even lower; for example, MUFJ bank offers 0.65% for a floating loan. The rate is not fixed and could go up, but with the current economic climate, many homebuyers seem to expect these rates to last for the foreseeable future. In 2018, more than half of mortgages taken out were variable to take advantage of those rates.

 

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On 9/2/2020 at 7:43 PM, Si1 said:

Tokyo and before that New York were similarly dominant global cities and saw eye watering crashes in the past.

Although ye olde tokyo example often is given without context of how mad that speculative bubble was... 

Prices tripled in 6 years and at one point the land around the imperial palace was nominally worth more than the whole state of california. 

 

Yes flats in croydon are pricy but hardly the same league. 

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5 hours ago, MARTINX9 said:

A sad lesson for those affected.

Your 'dream home' really shouldn't be a flat on 8th floor in a tower block in Lewisham, Newham, Croydon or Hounslow!

That's the problem. The owners will probably want to sell at some point, in order to buy a "dream home."

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On 02/09/2020 at 10:37, Trampa501 said:

Leaving aside the safety issues, we know that many people were "persuaded" into buying overpriced property, by media, VIs and the government. We've warned about this consistently on this site; indeed it's almost its raison d'etre. A huge shame that the guilty parties will escape unpunished from the consequences.

Yes.

By it being cheaper to buy than rent, as landlords had no actual obligations.

That meant, the cheapest shitholes suddenly gained value.

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3 hours ago, captainb said:

Although ye olde tokyo example often is given without context of how mad that speculative bubble was... 

Prices tripled in 6 years and at one point the land around the imperial palace was nominally worth more than the whole state of california. 

 

Yes flats in croydon are pricy but hardly the same league. 

Yes, Japan's bubble isn't comparable. I think at the height it accounted for 30% of global property by value!

More striking is that Japan is at very insular and was even more so back then. With London and New York of foreign money is spooked that can cause problems. 

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10 hours ago, MARTINX9 said:

A sad lesson for those affected.

Your 'dream home' really shouldn't be a flat on 8th floor in a tower block in Lewisham, Newham, Croydon or Hounslow!

......and not forgetting the leasehold houses with ground rent that doubles exponentially, when the price to purchase freehold jumped way beyond expectations...that was sold to offshore investors.....your home their investment.;)

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15 hours ago, Sour Mash said:

OMG - those poor people.  We have to help them out.

 

No should have got it right first time......then they would not be in the situation they find themselves in to make others wealthier off the back of their pain.;)

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6 hours ago, winkie said:
22 hours ago, Sour Mash said:

OMG - those poor people.  We have to help them out.

 

No should have got it right first time......then they would not be in the situation they find themselves in

Same as the people who could have bought 2008-2013 and did not 

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14 hours ago, richmondtw said:

 

 

Same as the people who could have bought 2008-2013 and did not 

Nothing to do with it.......our laws and regulations should be in place to protect people having inflammable cladding being put around their homes without knowledge......houses sitting on their own ground should not be sold as leasehold, and if in the rare case they are, the ongoing costs, the cost of buying the freehold in future if required, implications, key facts should be explained clearly a binding contract.......not the freeholder selling to another freeholder and all matters can change......rule of law is something we are proud of in this country, consumer protection..........anyway nobody should use a lawyer recommended to them by the building company, asking for trouble..;)

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On 02/09/2020 at 09:37, Trampa501 said:

Leaving aside the safety issues, we know that many people were "persuaded" into buying overpriced property, by media, VIs and the government. We've warned about this consistently on this site; indeed it's almost its raison d'etre. A huge shame that the guilty parties will escape unpunished from the consequences.

+1

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  • 416 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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