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So I am giving in, that's it for me, We are renting for the rest of out life, it is cheaper than buying, no hassle if you get a good land lord, flexible, can invest sensibly for the establishments new world/green deal and make a plan for the future.

Buying a house is a road to misery now that much is clear.  massive debt, massive control, little future.

If you're not on the pyramid then forget it, even if you are chances are you can't afford to move up the pyramid unless your moving from a rich area to a poorer one.

Count do you regret that you sold to rent ?

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I'm really surprised it's taken people on this forum so long to realise that there will be no housing crash. The writing was on the wall years ago. The ultra low interest rates that were blatantly not going up each year should have been the giveaway clue.

Some people on this forum have not only wasted a lot of money on rent, but also time. Any house they do now buy will be at least 40% more expensive than what they could have had it for. People can blame nobody but themselves.

Protect yourself now.. did wonders for me. I could have easily interpreted it the wrong way.. but I came to the conclusion CG couldn’t say it directly or he would have got banned. 

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One of the signs of a peak is that everyone is optimistic.

At the height of the last house price boom banks were lending to people who really could not weather the slightest downturn.

During the dotcom boom everyone was buying "tech" and "internet" shares and people who said it was overvalued were ignored.

I have read that in previous crashes, such as 1929 much the same happened.

Like people borrowing for mortgages based on current job, and expecting to be made redundant soon, and banks being fine with that?

I still think there's significant moral hazard remaining from 2007

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The high standard of living will kill them. It'll probably get prohibitively expensive and then they'll feel like they are losing something.

I'm enjoying a low standard of living after retiring early. It's much less stressful. The secret is all about planning and preparation.

 

Yes, agree, life is split into sections, one leads into another each with it's own time span. A certain amount of work goes into each. Once achieved what set out to do can then move to the next time period........ different for different people, not always the same for all people, doesn't always work out the way planned for all people, so will cause a delay or even a brand new time plan.

What each individual thinks they need is down to their own expectations and perceptions, not everyone wants the same thing, not everyone has the same expectations or requirements.

That is why some can retire on less because they require less to live, the things they aspire to doing doesn't require as much money to do.......money and the amount of it does not bring happiness and contentment.......there is lot more to it than that.;)

 

Some people will never retire, they work throughout their life because they choose to work, it makes them happy.

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James Atkins-Quilter and his wife were also evicted from their home while expecting their first child.

It can cost more than £130,000 to train to become a commercial pilot, with new starters self-funding with loans.

.....and now he is working as a delivery driver for ASDA

Edited by shlomo
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James Atkins-Quilter and his wife were also evicted from their home while expecting their first child.

It can cost more than £130,000 to train to become a commercial pilot, with new starters self-funding with loans.

.....and now he is working as a delivery driver for ASDA

Respect to him........there are many that would say that job would be beneath them.;)

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Explains why i'm always so chipper on here, I STR in 2007, August, and bought back in March 2009, Bigger, much cheaper, and on a lifetime offset tracker mortgage, when my first payment came out in April 2009, they had slashed BOE IR and i was paying just 2.25%. Never went up. Ever. 

You make your own luck.

You didn't make your own luck. You were just lucky, as was I. Like you I STR in 2007 (having bought in 1998 and benefited from 100% plus inflation) and bought back in (at 2002 prices) a year later. I could not have timed it better but I had been thinking of doing it for years. At any other time I would have come unstuck. 

My mortgage was a lifetime tracker which is currently less than 1%. If I have any regrets it's not stretching myself financially in 2008.

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You didn't make your own luck. You were just lucky, as was I

Indeed.

The arrogance on here is on another level. He's the same with Bitcoin. It seems nobody has told him that he is just another pleb like everyone else, and good fortunes can very easily turn sour in a relatively short period of time, just like what happens in a casino.

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Luck or fortune.......could therefore say, anyone's luck could be put down to who they were born to, where they were born, when they were born, education, who they happen to bump into in life, how healthy they happen to be, what genes, what intelligence, wisdom, even down to what protection they have against covid viruses.....so many factors to take into account.;)

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You didn't make your own luck. You were just lucky, as was I. Like you I STR in 2007 (having bought in 1998 and benefited from 100% plus inflation) and bought back in (at 2002 prices) a year later. I could not have timed it better but I had been thinking of doing it for years. At any other time I would have come unstuck. 

My mortgage was a lifetime tracker which is currently less than 1%. If I have any regrets it's not stretching myself financially in 2008.

Explained up thread, Yes i did make my own luck, all decsions to sell in 2007, go STR, and wait until the right time to force a deal in 2008 and complete in 2009 was of my own doing and decision making, as i understood what was coming.  The only luck was the huge drop in IR after March 2009 when we completed, that i will except. As i have been here since 2004 you will probably find live posts of my situation at the time and somewhere will be me saying in 2007 that i have gone STR and the market will crash soon.

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Indeed.

The arrogance on here is on another level. He's the same with Bitcoin. It seems nobody has told him that he is just another pleb like everyone else, and good fortunes can very easily turn sour in a relatively short period of time, just like what happens in a casino.

lol. you saltyness is on another level. Still no got any Bitcoin, you will regret it when it is soon six figures , less than 13 month now. The difference between you and i is i make the right decisions at the right time to increase my wealth and lifestyle, you dont, you just bellyache on forums that life isnt fair and we should all live in a commie policy paradise. 

Not me, i plan to be a winner in life. semi retired, mortgage free asap, before 55 if it all goes to plan.

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lol. you saltyness is on another level. Still no got any Bitcoin, you will regret it when it is soon six figures , less than 13 month now. The difference between you and i is i make the right decisions at the right time to increase my wealth and lifestyle, you dont, you just bellyache on forums that life isnt fair and we should all live in a commie policy paradise. 

Not me, i plan to be a winner in life. semi retired, mortgage free asap, before 55 if it all goes to plan.

Since we came off the gold standard, the fiat currency had only been depreciating in value in real term. While the interest rate is at rockbottom, it will struggle to keep up with inflation. 

Those who has access to capital, would of course, pursue other asset classes to 'hedge' against this ever depreciating asset class. There is more than one way to skin a cat. The truth is, a. Cash is likely to continue to depreciate in value in real term. b. Our wages, is also likely not be able to keep in pace with the inflationary pressure (Core inflation plus food and housing cost) in the medium/ long term. c. More taxes is on its way d. The economic prospect, at least in the short to medium term, still looked dire. 

We need a strategy to hedge against these risk. It is never too late to plan for the future but we all need to take action now. 

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Different actions for different people, depending where they are on lifes path and what they want or are looking for at the end of it.......pay off debt, or take on certain debt, invest or drawdown, cut down on spending or spend on things that will add value.....stick or twist, stay or go.;)

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Since we came off the gold standard, the fiat currency had only been depreciating in value in real term. While the interest rate is at rockbottom, it will struggle to keep up with inflation. 

Those who has access to capital, would of course, pursue other asset classes to 'hedge' against this ever depreciating asset class. There is more than one way to skin a cat. The truth is, a. Cash is likely to continue to depreciate in value in real term. b. Our wages, is also likely not be able to keep in pace with the inflationary pressure (Core inflation plus food and housing cost) in the medium/ long term. c. More taxes is on its way d. The economic prospect, at least in the short to medium term, still looked dire. 

We need a strategy to hedge against these risk. It is never too late to plan for the future but we all need to take action now. 

I am aware of all this , and as when the USD decoupled from Gold by Nixon i was 2 years old, i had 16 years zero economic activity during this process, and only gained my 1st wealth in 1988 in the form of a £20.5 pcm ~Co-op Pension annuity that pays a fixed limp sum of £8k when i am 65, and an annual annuity of £2500 until i die. This first "lucky" investment will cost me 47 years of £246 p/a payments, £11562, which if i live anything after 67, will have cost me net £0 in investment vs return.

Then i acquired my first fixed non depreciating asset in 1996, and have kept buying them since, and even in periods of underemployment in 2009-2011 i worked the family finances to ensure all these assets were kept.

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lol. you saltyness is on another level. Still no got any Bitcoin, you will regret it when it is soon six figures , less than 13 month now. The difference between you and i is i make the right decisions at the right time to increase my wealth and lifestyle, you dont, you just bellyache on forums that life isnt fair and we should all live in a commie policy paradise. 

Not me, i plan to be a winner in life. semi retired, mortgage free asap, before 55 if it all goes to plan.

How do you know what my financial position is? I already am mortgage free, no need to work, not on benefits, and well under the age of 55. You see, unlike you, I don't need to have what you aspire to have "if it all goes to plan", because I am already there.

But anyway, we will all be laughing hard at you when in less than 13 months, bitcoin is nowhere near 6 figures. 

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Like you I STR in 2007 (having bought in 1998 and benefited from 100% plus inflation)

100% plus inflation must have been for a specific reason.  If you don't mind me asking, whereabouts in the country did house prices more than double in 1998?

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Why? The governement have already show their desire to extend and pretend. 

I am yet to understand the impact of the pandemic on house prices and the economy e.g. furlough, unemployment, QE, IR etc.

 

Selling prices are *NOT* increasing in my chosen area.

 

I'm waiting to see if the SDLT suspension is extended.

 

Houses in the usual range are not selling, unless reduced.

 

I have, sadly, have a substantial deposit (IH - HPI) in addition to personal savings so am not under pressure currently.  This could change as each year we haven't purchased decreases the length of any mortgage term. 

 

I have a reasonably secure job with pay increases to come.

 

I aim to have a better understanding of my better half's job security as this will impact not so much on whether we buy but what we may be able to afford to buy.

 

This is the first time that we have seriously considered buying a home I.e. can actually afford to buy and could jump in if the property offered value.  We are not awaiting a significant correction, a 15% reduction may do it.

 

If there are no falls on the horizon, we will seriously have to consider our next steps e.g. buy a place for the children (teens). I don't wish to have so much in cash doing nothing.  

 

Have to say, I stuck some in a PB last month and won £75.  It's better than the 0.1% of whatever the NS&I are reducing its rates to! 

 

*I understand the absolute impact upon people's lives when priced out as I've been there.  We got priced out in 2003 as we had double nursery fees and couldn't finance a mortgage too.   Our next 'opportunity' was 2010/2011 but I couldn't access my inheritance through the actions of others (not family).  Once resolved, we were priced out again! 

 

However, I am not complaining as my family and I have been so fortunate in so many ways. 

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How do you know what my financial position is? I already am mortgage free, no need to work, not on benefits, and well under the age of 55. You see, unlike you, I don't need to have what you aspire to have "if it all goes to plan", because I am already there.

But anyway, we will all be laughing hard at you when in less than 13 months, bitcoin is nowhere near 6 figures. 

You have a chip on your shoulder about something? What happened in 2019? And the job you had in May this year, did you get made redundant, sacked, quit, or are you furloughed?  

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The CV19 crisis has brought everything to a head.

We can all see clearly what the establishment are about.

Everyone screams house prices to fall 15%, bankers/government lower IRs, steal £900Bn and push them up 10%.

People losing their jobs, they keep them in houses they could never afford long term.

Prices falling, lower rates more QE. I fully expect them to pay idiots to borrow to buy their houses off them soon enough.

Helicopter money for the masses so they can pay the bankers.

Savings rates 0.

Mass totalitarian control.

Mass propaganda.

if people haven't understood what is going on then let me spell it out.

The government and bankers will not stop down this path regardless of what destruction it brings to the people, the currency and the country.

IIRC Boris Johnson said in a mansion house speech ( or similar) that he knew house prices were insane but they couldn't let them  fall.  This was several years ago now, maybe 4.

So I am giving in, that's it for me, We are renting for the rest of out life, it is cheaper than buying, no hassle if you get a good land lord, flexible, can invest sensibly for the establishments new world/green deal and make a plan for the future.

Buying a house is a road to misery now that much is clear.  massive debt, massive control, little future.

If you're not on the pyramid then forget it, even if you are chances are you can't afford to move up the pyramid unless your moving from a rich area to a poorer one.

I think this post sums it up well....

 

Trump Invective

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Joke. Housing in this country is a sick joke. I look at those i know with a nice house and think "yeah, I'd like a bit of that". Then I discover how much they paid! I just want it all to go away. Ignore housing as one would a troll, if one can. Mental health is more important. Leave the market to it. Fill life with something else.

 

The government have broken me so I am giving up. 

It's having a bad negative effect on peoples minds and their health, mine too.

I'll come back if anything changes, but it wont.

Bye

 

I can’t and wouldn’t tell you how to feel. Hopefully (for your sake) you find yourself wrong 😉

It is ridiculous the government is propping up prices like this. In the old days the rise and falls enabled those with half a brain (and the opportunity) to move up or into the housing market and everyone did fine. Falls were good...an opportunity. 

It’s been a long ride for many on here. I haven’t been a bear for 20 years indeed only really been on here since 2015/6. 

I think you are right and a ‘crash’ may never happen but in my area my son can buy for 2006 prices (allowing for normal inflation) and once this froth is off the top we are hoping for 2003/4 prices and he can live with that. It’s a lovely area with ‘notoriously high prices’ however some analysis has made me realise there is some reasonable value but it needs seeking out and perhaps a house that needs a robust but inexpensive refurbishment. 

If you live in an area (like many) where this isn’t possible then I understand and wish you the best.

Hopefully things will turn soon and you can reassess. 

In the meantime...good luck. You may have been wrong...but it doesn’t mean you were wrong 😉

 

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I can’t and wouldn’t tell you how to feel. Hopefully (for your sake) you find yourself wrong 😉

It is ridiculous the government is propping up prices like this. In the old days the rise and falls enabled those with half a brain (and the opportunity) to move up or into the housing market and everyone did fine. Falls were good...an opportunity. 

It’s been a long ride for many on here. I haven’t been a bear for 20 years indeed only really been on here since 2015/6. 

I think you are right and a ‘crash’ may never happen but in my area my son can buy for 2006 prices (allowing for normal inflation) and once this froth is off the top we are hoping for 2003/4 prices and he can live with that. It’s a lovely area with ‘notoriously high prices’ however some analysis has made me realise there is some reasonable value but it needs seeking out and perhaps a house that needs a robust but inexpensive refurbishment. 

If you live in an area (like many) where this isn’t possible then I understand and wish you the best.

Hopefully things will turn soon and you can reassess. 

In the meantime...good luck. You may have been wrong...but it doesn’t mean you were wrong 😉

 

When you say, "2006 prices allowing for normal inflation", I assume you mean that the house that was £200k in 2006 will now cost about £300k (according to me inviting the internet to tell me what £200k in 2006 would be worth now).  Average house in 2006 was about £165k and today its £225k. 

Just trying to get my head round the theory that normal inflation, which on my wages might result in me being about £12k better off in wages per annum since 2006 can in some way equate to the inflation on a property.

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When you say, "2006 prices allowing for normal inflation", I assume you mean that the house that was £200k in 2006 will now cost about £300k (according to me inviting the internet to tell me what £200k in 2006 would be worth now).  Average house in 2006 was about £165k and today its £225k. 

Just trying to get my head round the theory that normal inflation, which on my wages might result in me being about £12k better off in wages per annum since 2006 can in some way equate to the inflation on a property.

£165k in 2006, I would be looking to pay about £200/205k. I guess that’s 3x the salary rise ie the proportionate rise on the old 3x wages norm. Albeit the base price is a fair bit above 3x income in my sons case. 

My ‘inflation’ calculator is therefore a very ungenerous one. 

It’s not a right or wrong....it’s just the way I equate all prices as best I can. If we wait for 2003/4 prices to return in actual real prices then we may miss opportunities. 

In our case there is so much bandwidth in prices paid it’s unbelievable and very difficult to therefore not is locally we have a price issue or not. The 3 bed semi type we want is £200k - £280k depending on paint colour and wood burner additions. So we are looking at £200k

in 2004/5/6 these were £150k with the odd one going for £200k (with the latest paint colours of the day). So technically we will get one for almost the same price as some people actually paid in 2004/5/6 but the bandwidth protects us against future falls. It’s not a science rather if my son wants to buy them waiting for the froth to disappear (usually seasonally ebb and flows) and buying well, will at least give him some rationale for the generally higher prices we are seeing. 

House prices are ridiculous but it’s very regional as to how ridiculous they are. 

In our town in 2000 a 3 bed terrace was the same price as a small 2 bed flat in London. Now the flat is 3x as much. That’s fine if wages have increased in London by that much...but they are nowhere near.  So in London I guess it wouldn’t work without a proper crash. 

In any event i am not advocating buying and if he can’t get value he won’t buy. 

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  • 442 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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