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Guest muttley

Your "eureka" Moment?

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Some people I know, who I do not respect and who I regard as overpaid chavs announced they were getting into BTL. These people are very uneducated and unself-aware.

They dont read books (because they know everthing already?!) they eat microwave food and decorate their houses "off the telly". They comprehend nothing except satisfying their own material cravings - clothes, cars, "exotic" holidays and back to clothes again.

They are, in essence, morons.

For me, it was a very clear signal that only monied mugs were left and it was time to get out.

So I did.

EDIT - they bought a one-bed new build in some commuter town outside london.

Edited by needle

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Mine was the realisation that my house had gone up 200k in the last four years.

My worst moment is the memory of selling three BTL properties in 2000

Ouch :( Could be worse though :)

For me .. being on a higher than average wage and just about being able to afford a grotflat in councilskankville.

All will be well :) anyways would love to stay and chat but i gotto go to work.

Edited by theChuz

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Three moments in particular:

1) Standing in the grottiest, most horribly-presented mid-terraced house I have ever seen, with rags, sorry, carpets still on the floor from the 1950s, the windowframes completely rotten, the garden a sight, and the old bat of an owner glaring at us as if we were something that had crawled out from under a stone. This joke of a house was up for somewhere in excess of £130k, and we had seen a whole series of similar crap places in dire areas. It was about this point I thought to myself "Are we ever going to see a house that's even remotely any good for a normal price?"

2) My landlord deciding to sell his BTL flat - for twice what he paid for it - having done nothing whatsoever to it, or even having gone anywhere near it, in three years.

3) Sitting and having a good long think about how anyone could afford such places on average salaries, how anyone buying a property for BTL could possibly make a profit at current prices (2004), how much take-home pay would go on mortgages, and realising the more I looked at it from every angle that it just didn't make any sense.

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When I realised that during my first four years of work I had earned only the same money as the flat I bought a few months after I had started my job. And when I further realised I was paying 23% tax and 11% NI on my salary earnings and that I hadn't and wouldn't pay a penny on my tiddly flat's capital gains. I thought - "that's not right and it certainly can't be sustainable".

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Guest Charlie The Tramp

When I read this, something that has never happened before and worse than my own predictions since studying this debt bubble the past 4 years.

Bad Debts Rising

This natural curb on both inflation and interest rates, caused by the straight-jacket of high levels of borrowing, should not allow us to be complacent, however. The level of bad debts is rising steadily. At the time of writing it is estimated to be in the region of 20%. In other words, the banks are losing about £20 for every £100 they lend. Given that the money that they lent was created out of thin air in the first place, it is money that they can afford to lose. It just means that their profits are a few billion pounds less each year than they would otherwise have been.

Clicky

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Eureka moment - when I moved into the flat I'm renting from friends, and thought, Gosh, this is a bad investment of theirs (subsidence, broken window-frames, really bad conversion of a victorian terrace) - I'm glad I haven't bought it and I hope they didn't pay over about 100k for this, because that really would make it overpriced!!

And then finding on Nethouseprices that they paid 180k for it :o and couldn't possibly charge a rent that would cover the mortgage :o but that they were depending on capital gains in the future.....

Edited for typos

Edited by Zaranna

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Left uni in 2000, looked at buying a flat for £65k in Ivybridge, Devon, got posted to the United States, came back 6 months later and the flat I was looking at was priced out of my range as it had risen by about 20%. Moved to Bristol where there wasn't a hope in hell of me getting anything until my salary had gone up a little. So I waited but house prices took off with double digit rises from 2001 - 2004. Not everywhere was instantly unaffordable. People on my salary bought initially in slightly worse areas. Then they bought in slightly worse areas but took a lodger in to help pay bills. Then the slightly worse areas became unaffordable. Then the same thing happened in the worst areas. Then they because unaffordable too. Then people started borrowing deposits off their parents. Then people started borrowing deposits off their parents and taking lodgers in. Then people started taking out self cert mortgages and lying about their salary. Then people started taking out self cert mortgages and lying about their salary to get an interest only mortgage. All this time the BTL frenzy has become a craze sweeping the nation. I have watched it unfold before my eyes over the last 5 years so there wasn't really a Eureka moment. Same thing happening in the USA when I lived there by the way.

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after i saved a whopping 40k over time, only to find that ordinary 2/3 bed semi local houses had risen an even more whopping 100k in 2-3 years. 55k now £155k. like £100k was nothing.

made my saving pointless.

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Guest Cletus VanDamme

What was the moment that you realised something was wrong with the current housing market?

Back in 2000, when we first thought about buying. Had rented a flat in 1997, current value at the time was about 90K, so we though, 'OK let's start saving and buy somewhere near here'. By the time we had saved up the deposit, 3 years later, prices had more than doubled in our road - similar flats (conversions in some really nice 4 storey Edwardian terraces) were now priced at 190K. And that was back in 2000!

Same flats are now priced at 270K.

We ended up buying an ex-council house in 2000 in a pretty downtrodden area for 125K

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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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