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What happened to the STR folk from 2007?


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Long time reader here

I hope they did buy back in the end, because prices are NEVER EVER going back to 2007 levels and IR are  NEVER EVER going to rise significantly in all our lifetimes.

Why post this now? Because its important to remember what people believed would happen and what really did happen over the last 15 years.

IMO, we are just about to start a hyper period of Rentier Capitalism whether we want it or not - so buy a house now - and thank me in 20 years time.

 

Its just a viewpoint - feel free to disagree

 

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Long time reader here

I hope they did buy back in the end, because prices are NEVER EVER going back to 2007 levels and IR are  NEVER EVER going to rise significantly in all our lifetimes.

Why post this now? Because its important to remember what people believed would happen and what really did happen over the last 15 years.

IMO, we are just about to start a hyper period of Rentier Capitalism whether we want it or not - so buy a house now - and thank me in 20 years time.

 

Its just a viewpoint - feel free to disagree

 

Maybe they are doomed with eternal regret?

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Maybe they are doomed with eternal regret?

Only if they didnt take the 30% discount on offer from December 2008 to March 2009.  I did. STR 2 bed in August 2008, bought 5 bed newbuild in 2009 , at 30% off identical houses on the estate sold for new in late 2006/ 2007. 

Sold that house for a 52% gain in 2016. Bought a brexit discount distressed sale that has gone up i value £100k since. Still here, no struggling, very happy. 

Been here since 2004 and it's all here in my post history, you will find details of the 2007-2009 STR buy back part somewhere around my Q1 /Q2 2009 posts. 

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There is never any point trying to time the market unless you can clearly see the top or the bottom. A house should be a home and not an investment so always buy the right place for you within your means at the earliest opportunity and ignore the subsequent rises or falls.

I think that interest rates will rise and will rise significantly within our lifetime. I'm just not going to guess whether that is in 3mo, 6mo, 1yr, etc.

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There is never any point trying to time the market unless you can clearly see the top or the bottom. A house should be a home and not an investment so always buy the right place for you within your means at the earliest opportunity and ignore the subsequent rises or falls.

It's not a bad rule of thumb to just buy when you can afford. But it is an investment, so there's nothing wrong with acknowledging this and comparing to the alternatives. Also, when thinking about timing, it's not the top or bottom which is important, but the alternatives. If you STR or postponed buying, and kept your money in cash earning close to 0%, then it makes sense to focus on the absolute level of prices. But if you invested in another asset you could be better off if house prices rose (if the the other asset outperformed them) or worse off if house prices fell (if the other asset fell further).

Leverage, taxes and transaction costs complicate matters, but in recent years I think a balanced portfolio has outperformed UK residential property quite significantly.

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A house should be a home and not an investment so always buy the right place for you within your means at the earliest opportunity and ignore the subsequent rises or falls.

+1

Do your saving. Get that LTV down as much as poss. Do your what-if stress test scenarios. Do absolute tonnes of market research - on a granular level (crime maps, flood risks, insurance costs, visit at every time of the day and night etc) and when you spot good value, nab it and don’t look back. 

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Long time reader here

I hope they did buy back in the end, because prices are NEVER EVER going back to 2007 levels and IR are  NEVER EVER going to rise significantly in all our lifetimes.

Why post this now? Because its important to remember what people believed would happen and what really did happen over the last 15 years.

IMO, we are just about to start a hyper period of Rentier Capitalism whether we want it or not - so buy a house now - and thank me in 20 years time.

 

Its just a viewpoint - feel free to disagree

 

I bought in 2013 with a 60% discount on 2007 prices. 

Why I'm telling you this now... its important to remember what I believed would happen and what did happen over the last 15 years 

 

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For what it's worth, not a lot!

HPC was my housing 'authority' (still is), so we STR in Jan 2008, and to downsize.

Initially in 2008, and 2009 the interest on our 'house' pot paid the rent, then the financial crisis killed interest rates!

Struggled on until 2014, then bit the bullet again, and bought a small 3 (2&1/2!) bed, new build.

Very pleased with the first 6 years, no DIY, no maintenance bills so far, very energy efficient, only down side is parking spaces for visitors.

But after 3 previous houses from 1972 to 2008, new kitchens, new bathrooms, rewires, and 100's of other projects, this new build ticks all our needs, especially regarding it's economy of ownership. 

Still regard HPC as a necessary site for varied and valuable views. Retired, we both look at 'Rightmove' and 'Zoopla' most days, now following the price drops, occasionally dream about a bigger home (more bedroom space), then consider how little this one costs to heat, and the dream is no more.

 

I do miss the BIG, BOLD, script of a certain contributor of the 2006-2008 years, still respect his views of all those years ago.

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I bought in 2013 with a 60% discount on 2007 prices. 

Why I'm telling you this now... its important to remember what I believed would happen and what did happen over the last 15 years 

 

We bought a big place in 2013 after holding our nerve through the crash, less attractive property was 50% more expensive at the top of the boom.  Again, I am saying this as at the top of the 2007 market there was the same sentiment as now, people were thinking houses would hit a million and those without property would be the underclass.  

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What about Van here (sold in 2004 mind you but kind of overplayed his hand):

No doubt if he came back on the forum he would be able to show that he invested his equity rather well (might even have some Bitcoin).  Prices were a bit below what he sold for five years later but since then obviously it has been upwards (although he claims great timing, if he had timed it that well he would have received, not the average price in 2004 £155k, but the average price just before the correction in 2007 of £185k.  Not to forget he only had his equity to invest and not the value of his house.  Anyway he is worthy of mention because he was so convinced that he was the last person to sell before the impending crash.

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What about Van here (sold in 2004 mind you but kind of overplayed his hand):

No doubt if he came back on the forum he would be able to show that he invested his equity rather well (might even have some Bitcoin).  Prices were a bit below what he sold for five years later but since then obviously it has been upwards (although he claims great timing, if he had timed it that well he would have received, not the average price in 2004 £155k, but the average price just before the correction in 2007 of £185k.  Not to forget he only had his equity to invest and not the value of his house.  Anyway he is worthy of mention because he was so convinced that he was the last person to sell before the impending crash.

He then goes on to say "How do I feel about it? To be very honest, I feel a slight sense of intellectual superiority".

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Sold mammys place in 2006 banked for 2.5 years earning 7% interest.bought place 250k less than last one sold in late 2008.

Gone from 640k to 1.5m

Shame she never bought another with cash left over and I should have bought too.

 

Where?......buying n a different currency is diversity?;)

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Sold mammys place in 2006 banked for 2.5 years earning 7% interest.bought place 250k less than last one sold in late 2008.

Gone from 640k to 1.5m

Shame she never bought another with cash left over and I should have bought too.

 

If I understand this correctly, you sold a place worth about £900k in 2006!   That's a nice position to be in.  Pity you didn't sell it a year later just before the correction.  Lucky also you didn't follow the advice of Van up this thread a bit.

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What about Van here (sold in 2004 mind you but kind of overplayed his hand):

No doubt if he came back on the forum he would be able to show that he invested his equity rather well (might even have some Bitcoin).  Prices were a bit below what he sold for five years later but since then obviously it has been upwards (although he claims great timing, if he had timed it that well he would have received, not the average price in 2004 £155k, but the average price just before the correction in 2007 of £185k.  Not to forget he only had his equity to invest and not the value of his house.  Anyway he is worthy of mention because he was so convinced that he was the last person to sell before the impending crash.

That is quite a thread.

The certainty of the bears, the politeness of the uber bull and the quiet prediction of the Northern Rock Collapse. And even the trolling was funny instead of annoying. All just on the first page. I miss those days (I was lurking back then - didn't join till 2007.

Anyway, I was an STR. I thought things were mad before the millennium, but knew the market could stay irrational for a long time, particularly when when most of the market participants were mental. So I sold my little flat in 2002 (!!!) and bought a boat on a residential mooring (still affected by HPI, but less so - I saw it as a hedge).

Then I quit my job in the property market in 2005 and burrowed into the public sector. In late 2007 I sold the boat in a panic and moved into rented. We finally bought back in 2010 - a little cottage that needed everything doing but was too small to attract even the smallest of developers. As a direct result of (my interpretation of) this site, I went from an ex council 1 bed flat to a 2 bed cottage in a nice village in a decade.

But to be honest, I could have done much better than that (without getting lucky on the housing market) if I hadn't spent so much on booze and fags and chasing girls and getting married.

Like I said, I got lucky.

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That is quite a thread.

The certainty of the bears, the politeness of the uber bull and the quiet prediction of the Northern Rock Collapse. And even the trolling was funny instead of annoying. All just on the first page. I miss those days (I was lurking back then - don't join till 2007.

Anyway, I was an STR. I thought things were mad before the millennium, but knew the market could stay irrational for a long time, particularly when when most of the market participants were mental. So I sold my little flat in 2002 (!!!) and bought a boat on a residential mooring (still affected by HPI, but less so - I saw it as a hedge).

Then I quit my job in the property market in 2005 and burrowed into the public sector. In late 2007 I sold the boat in a panic and moved into rented. We finally bought back in 2010 - a little cottage that needed everything doing but was too small to attract even the smallest of developers. As a direct result of (my interpretation of) this site, I went from an ex council 1 bed flat to a 2 bed cottage in a nice village in a decade.

But to be honest, I could have done much better than that (without getting lucky on the housing market) if I hadn't spent so much on booze and fags and chasing girls and getting married.

Like I said, I got lucky.

Yes Timm, you were always one of the more reasonable posters (even if you did insult me) 😉

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Only if they didnt take the 30% discount on offer from December 2008 to March 2009.  I did. STR 2 bed in August 2008, bought 5 bed newbuild in 2009 , at 30% off identical houses on the estate sold for new in late 2006/ 2007. 

Sold that house for a 52% gain in 2016. Bought a brexit discount distressed sale that has gone up i value £100k since. Still here, no struggling, very happy. 

Been here since 2004 and it's all here in my post history, you will find details of the 2007-2009 STR buy back part somewhere around my Q1 /Q2 2009 posts. 

I'm glad you've done well. I like success stories.

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Str 2008.  Bought forever home 2012.  

Redundancy twice during this time with 7k redundancy, pushed us to the edge, parents helped with food parcels for a while it was that tough (had a young preschool age family before redundacies). Bought a failing business (was a huge risk), built up business slowly with a lot of work. 

 Saved and saved and saved to get a 30% deposit.

House bought 2012 Bought 450k (in surrey)

Worked our arses off to be Mortgage free in 2019.

House Now valued 700k+ which is mental. Have done approx 150k of work making it exactly as we want, work wasn't needed but we made the house exactly what we want. 

Honestly still want a house price crash ( reason I'm still here).  

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Depends where they were based and what they did with the money.

In my region, house pries are still at the same selling at the same nominal price as 2004.

The LR house price graph is a thing of wonder - its not showing a market.

A few STR sold up, mainly driven my personal events - dviroce etc - moved to work elsewhere, onshore and offshore, then returned a few ~5 years later and bought similar or better houses for less money.

The ones who sodl up in sterling, worked in a stronger currency - EU or OZ$ - have come back much wealthier.

Looking at London prices, which have been falling for a fair few years, I have a feel that a London/SE 2007 STR might come out on top soon.

 

 

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Yes Timm, you were always one of the more reasonable posters (even if you did insult me) 😉

I'm sorry about that - was it a long time ago?

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Only if they didnt take the 30% discount on offer from December 2008 to March 2009.  I did. STR 2 bed in August 2008, bought 5 bed newbuild in 2009 , at 30% off identical houses on the estate sold for new in late 2006/ 2007. 

Sold that house for a 52% gain in 2016. Bought a brexit discount distressed sale that has gone up i value £100k since. Still here, no struggling, very happy. 

Been here since 2004 and it's all here in my post history, you will find details of the 2007-2009 STR buy back part somewhere around my Q1 /Q2 2009 posts. 

How much is the house you sold in 2016 worth, I bet it would cost £100k more now so even if you had kept that house you would be quids up

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