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classixuk

We Have Reached A New Price Plateau

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Ok, I'm a bull.

I believe that property will never go down in price and that it will only go up from here on in. Historically low interest rates and a government that just will not let a HPC happen = No HPC. Houses are more affordable now than they will ever be.

Now I have covered that I would like to ask some advice of the forum members.

I am Mr Average wage living in the average priced home (and average prices are rising with no sign of a HPC according to the news I read).

Of course, being Mr Average, I also have 2.4 children (2 went to UNI, 1 left school with a GCSE in R.E.) I would like some input into which child should get my house when I pop me clogs? Because affordability is now as good as it will get, obviously two of my children will unfortunately have to face the prospect of "missing the boat" forever, whilst one lucky offspring becomes a homeowner.

Don't get me wrong, I did think of splitting the equity three ways, but that means none of my children will ever be able to afford a house as great as mine. Once they've split the equity on their homes between their children what would be the point anyway? It will be as if my home was a fairy tale castle seeing as it will never again be as affordable as it is today at our historically low interest rates.

So which one of my children will become a homeowner and which two should I damn to rental hell and firmly deny the chance of being on the property ladder?

OR, should I suggest that all 3 of my children and their future partners + kids share my 3 bed semi?

That is the problem facing bulls like myself today.

Many thanks in advance for your replies,

A quite drunk but nonetheless inspired Classixuk.

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The post seems ironic, but anyway, lets take it as a real and true post.

I see a big issue/House affordable , more than ever, yes ok....I agree

But holdon, three kids and none will have a house :blink: Tell me the logic! If there is one!

As far as I am concerned, I am sure the crash will be there, we are at a turning point

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Well seeing as you believe that prices only ever go up I shouldnt worry about it.

There will be such a large tax bill to pay it wont be worth fiighting over.

In fact with the hassle involved in such a situtation the question should be who are you going to lumber with the house and all it's problems.

Have a nice day.

Dames :)

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I believe that property will never go down in price and that it will only go up from here on in. Historically low interest rates and a government that just will not let a HPC happen = No HPC. Houses are more affordable now than they will ever be.

Are you feeling OK classixuk ? I'd suggest you get a hangover cure sorted out.... :D

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and a government that just will not let a HPC happen = No HPC

your confidence in blairs government to 'not let it happen' amuses me :lol:

Houses are more affordable now than they will ever be.
eerrr how did you work than one out then ?? ;)

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"But what experience and history teach is this--that peoples and governments never have learned anything from history, or acted upon principles deduced from it. Each period is involved in such peculiar circumstances...that its conduct must be regulated by considerations connected with itself, and itself alone" (Hegel).

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Well I hope I will be healthy enough to go S.K.I.ing, and I hope my parents do aswell. IMO your life is your own responsibility, nobody owes anyone a living.

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Classix, I likeyour line stating that a Govt would not let interest rates rise so therefore there will never be a housing crash.

Just take a short stroll through recent history. Devaluation of the pound in the sixties, ramapant inflation in the seventies, recession in the late 80's and house price crashes in the 90's. Ihave just highlighted a few "minor" economic problems that this country has faced over the last forty years. Is Blair's Govt so clever that they can control everything and yesterday was just so passe.

Blair and Brown can only spin, manipulate and lie up to a point. Just like the Iraq war, this country has finally woken up to the truth and is finally refusing to accept the crap this Govt. spouts on a regular basis.

"This Govt. will not let a housing crash happen"

Wake up and smell the roses mate.

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Funny, this. In today's market my mother's house is worth ca £750k. I have a brother and a sister. Split four ways, between Gordie and the three of us, I'll end up with about £190k. Feckin' great. When I posted this - I said I find it "infinitely depressing", not actually alluding to the money but to having to deal with the house and all its contents - I got a "what are you moaning about?" reply (hi CO).

Yes - put it in perspective. 1/4 of a big four-bed house in the Home Counties won't buy you a one-bed flat in the same area. In housing terms I'd be better off if the house was worth £250k, and other properties pro-rata. The truth is that inheritance, in the present market, is the ONLY way I'll ever be able to buy. The fact that actuarially, I'm likely to be waiting so long that'll I be nearer 70 than 60, is another matter.

And before anybody gets steamed up about this, please realise that I've had the "one day you'll inherit" thrown at me since I was 15, and I've had it put to me pretty aggressively "well HPI is OK for YOUR generation because YOU'LL inherit". Truth is that these sorts of houses are now so valuable that only a city banker, top commercial lawyer, city trader or successful company owner can buy them; yet they're not exactly rare. Every city in the UK has a big enclave of these sorts of big detached family homes.

Here's what will happen Classix. You drop off the perch. Kids sit down with the accounts and realise they've got a massive death duties bill to pay. The house has to be sold. Because they're all living in poky little shoeboxes, they have to get rid of the house contents. Chances are you've inherited stuff from your parents, grandparents, etc. All the stuff the kids have grown up with. But they can't keep it as they have nowhere to store it. Most probably some of the furniture is simply too big for their rabbit hutches.

So all that stuff you've kept for decades in the loft and the spare rooms, your kids will have to sort through and, sadly, dispose of. All that emotional baggage that you haven't had to deal with because you've got the space. The kids have to strip your house, get rid of pretty much everything, and sell it - whatever the state of the market. Meanwhile they go to the bank and persuade it to lend them a massive amount of money at usurious interest rates, against the probate valuation, so they can pay the death duties (which, so I'm told, have to be paid before the house is sold).

The house gets sold. They cash up and realise that they can trade in their poxy one-bedders for a recently built two bed luxury appartment, built on the site of a nice big four-bed family home the developers demolished to create a brownfield site.

Everybody's happy, then.

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You have many options:

1. sell the house and go on holiday, so you enjoy the fruits of your life

2. give the house to charity

3. Keep all of them in the house, you have an extended family

4. Shoot two of them so that the third one can inherit the house- but he may end up giving up the house to pay the inheritance tax

5. donate the house to labour party so that Gordon can continue with his popular economic policies.

and I hope you did not get a head ache from your drinks :D

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You are on the horns of a dilemma. Doesn't that say it all? There IS no solution to home ownership. Assuming prices continue to rise your kids will need to rent or emigrate.

HOWEVER the fact that there is no solution in your scenario suggests strongly that the scenario you paint is unlikely to hold true ie. prices will fall to reflect reality. No? :(

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Guest muttley

OR, should I suggest that all 3 of my children and their future partners + kids share my 3 bed semi?

That is the problem facing bulls like myself today.

Are your children named Goneril,Regan and Cordelia?

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Assuming the post is genuine....

Leaving the house to one child will create a lifetime of resentment amongst your children and their families. Is this the legacy you want to leave?

Split it three ways and have done with it.

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Well the vodka has now worn off with sleep and my 2.4 children dilemma is once again the problem of Mr Average! :D

Next time I meet a property bull with kids though who blathers on about property only going up in price and "buy now or you'll never get the chance", I will definitely look him straight in the eye and ask, "In that scenario, how does it make you feel knowing that just one of your 2.4 children will ever be a homeowner?"

Kind of puts it all into perspective (the fact they're talking BS).

:lol:

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The rise in house prices for the most part has been locked in now, we are not going to see anything less than 2003 prices going forward. For those wanting year 2000 prices and earlier you are going to need a tardis.

Areas I suspect will see some decent falls are places you would not want to live in anyway (mostly up north)

Edited by mercsl

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Could you split the house 3 ways which would provide each child with a deposit. Each child then takes out a mortgage and after 25 years (or whenever they decide) they each own their home.

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The rise in house prices for the most part has been locked in now, we are not going to see anything less than 2003 prices going forward. For those wanting year 2000 prices and earlier you are going to need a tardis.

Areas I suspect will see some decent falls are places you would not want to live in anyway.

If so then, The only way is up: Wages.

Up Up and away: Interest rates.

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The rise in house prices for the most part has been locked in now, we are not going to see anything less than 2003 prices going forward. For those wanting year 2000 prices and earlier you are going to need a tardis.

Areas I suspect will see some decent falls are places you would not want to live in anyway (mostly up north)

Yep, I sort of agree.

I think it unlikely that we will see 2000 prices, but we will see at least 2002/2003 prices again.

That is around 15 - 20% in my area and is well worth waiting for. Problem is though Merc, when the slide starts, it could easily "push on" in the same way it "pushed on" upwards.

Edited by BubbleTurbo

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  • 337 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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