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BubblesBurst

Ftb Family Dilemma

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A dilemma! Having just heard that a close relative and their partner are in the process of purchasing a house, young couple very early twenties, both FTBs and earning way below the national average.

Their offer of 10k below asking price was accepted on a 2 bed semi with garage.

"They got it at a good price, a bargain" I was told (by a non HPC believer) after I suggested that waiting another year wouldn't be such a bad idea as property prices were dropping.

"Property won't drop here, maybe in London, not here" But didn't you just say that they got it for 10k less than advertised ? what if it was 15k less next month I enquired. Trying in vain, like preaching to the 3 wise monkeys, only to be warned off with "don't you go spoiling it for them, don't interfere, they are so happy and they've got a foot on the ladder". All I wanted to do was suggest taking a look at this website!

I feel it's a duty to educate people and at least show them the other side of this rose tinted media fed property propaganda they've just commited buying into for the next 35 years at £650 a month, every month all 420 months.................

"fixed for 5 years" Oh well that's all right then.

I tried..........

A quick check on House Prices found the following.......

Same style house, same road....

Sold June 2001 £69,000

Sold again Aug 2003 £122, 000

Sold again Feb 2005 £145,000

Ok, so they are £20,000 better off than if they'd bought last february but what would it be next year ?

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Not a lot you can do unfortunately, not worth falling out over :(

Hopefully they'll learn from this and are young enough to get back out of any negative equity that may happen in the future.

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...

"Property won't drop here, maybe in London, not here"

...

I find it hilarious that those (non HPC believers) that I speak to who live out of London say the above.

Those I speak to who live in London say "Prices won't fall, not in London they won't, maybe outside"

:lol:

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I find it hilarious that those (non HPC believers) that I speak to who live out of London say the above.

Those I speak to who live in London say "Prices won't fall, not in London they won't, maybe outside"

:lol:

Everyone has some excuse for why prices won't fall in their particular area. It's hilarious.

frugalista

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damned if you do (perhaps), and damned if you don't (perhaps).

Well intentioned though it may be, and many of us here are bears at the moment, what would happen if you talked them out of it, only to find that prices went on to plateau for a few years till prices/earnings ratio came back in line with historical average, and then HPI went on from there?

They would have lost a significant amount ofcash, and you would be to blame in their minds.

Give them your point of view, but credit them with the intelligence to be able to do their own research and make their own minds up. Just don't force it down their throats. A couple of comments should suffice... if they're amenable to alternative opinions, that should be sufficient.

Edited by xian

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damned if you do (perhaps), and damned if you don't (perhaps).

Well intentioned though it may be, and many of us here are bears at the moment, what would happen if you talked them out of it, only to find that prices went on to plateau for a few years till prices/earnings ratio came back in line with historical average, and then HPI went on from there?

They would have lost a significant amount ofcash, and you would be to blame in their minds.

Give them your point of view, but credit them with the intelligence to be able to do their own research and make their own minds up. Just don't force it down their throats. A couple of comments should suffice... if they're amenable to alternative opinions, that should be sufficient.

I agree and good luck to them if they are sussed enough to have fixed for 5 yrs and can meet repayments then for a young couple securing a place with 2 beds and a garage........well that aint bad......and don't know the property but perhaps it could be extended, build over garage etc...none of that is an option if they carried on renting........and they secured a discount.......

Edited by beenhearingthisforyears

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A dilemma! Having just heard that a close relative and their partner are in the process of purchasing a house, young couple very early twenties, both FTBs and earning way below the national average.

I hate it when this happens. If they haven't bought yet then I suppose you could say something but I doubt very much anyone is going to listen. By all means direct them to this site, but don't hold out too much hope that there is anything you can do.

Just had a friend from uni days get back in touch with me.

The first thing he wanted to tell me was that he has just managed to buy a one bedroom house!

I think he was expecting congratulations but I carefully avoided the subject, I'd love to direct him here but I don't think it will do any good. After all I would be expecting him to STR on the basis of what he reads here and although others may have done that, I think it is unreasonable for me to expect HPC to have such a big influence on someone.

Someone at work said that they thought house prices were in for a big fall but that they hate waiting to buy so I directed them to this site.

They weren't impressed thinking that it was really heavy on economics and stuff, lots of doom and gloom and stuff. Why doesn't everybody love HPC?

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Chatting to my friends mate today. He's just bought a second house on IO. He was saying how all his friends have 2+ homes and he was getting pressured as they are a good investment. I could tell the poor guys heart wasn't really in it - he'd just done it because of peer pressure.

So I took him through everything. If he must do it, I told him, cover your ass and get one of those 10 year deals going whilst he could. The problem was, one of his VI friends was with him and kept on saying 'I was talking crap". Those are fighting words to me.

So I showed him the graph on the homepage of HPC. The look on his face was incredulous. It finally dawned on him that we were heading for a crash. You know what they say: 'a picture speaks a thousand words'. From now on, that's the graph I'm going to point everyone to as I can't be arsed getting into arguments anymore.

No doubt by tomorrow some other VI will have convninced them otherwise, but I really did hate to see the look on guys face when he realised that buying a house on his pay was suicidal. Take home pay of 12k, already one mortgage to pay off, second mortgage of 85k hopefully paid of with BTL. I told him he wasn't going to be living, just the walking dead.

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Guest Winners and Losers

I tell as many people as I can that a crash is coming. I don't care what they think. I gain enormous comfort in the fact that if it does happen, they might think 'hey, I remember that person saying something, they were right'. If there is another crash it will be teaching people a lot of big, painful lessons this time.

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I tell as many people as I can that a crash is coming. I don't care what they think. I gain enormous comfort in the fact that if it does happen, they might think 'hey, I remember that person saying something, they were right'. If there is another crash it will be teaching people a lot of big, painful lessons this time.

I really appreciate everybodys responses on this one. Perhaps I am interfering to much and pushing to hard what I firmly believe is truly happening. I am already labelled a doom monger, too late to rectify that.

A realist, a house owner with forsight and a lot of researched figures to prove my point, that's how I see it.

When it is finally recognised in the papers, the bbc news, the local pub and the hairdressers, I don't think anybody will actually remember us for our early prophesies.

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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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