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Shamus

It's The Silly Season Again! (in The South) - Prices Rising

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Got home after another week of work and saving the pennies. Me and the missus feel like FTBers at the moment. Moved down from Gloucestershire last year to the Poole area. So STR'ed by the change of situation. Knew we had to get another £30k saved to buy a similar house to the one we had before. So have been keeping our heads down and saving. Earning only slightly more than before. Bills have been going up so reducing our earnings to what they were before.

Looking at the property paper tonight and everything is going crazy...

A lot less volume than over the last few months - meaning people are buying again in droves.

Movement in the lower priced properties, back up another £20k than what they were before Xmas.

Advert for FTBer flats in Ferndown (old peoples part of Poole) advertising flats from £179,950 to £205,000.

Desperate plea from Letting Agents for more property to let, not enough. Fees are being reduced to get more on their books.

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I think part of the problem is that people gave it time from last summer to now to see what was going to happen, so no housing price crash so far = confidence riding high so let's go out and borrow more and more.

Also there are a lot of people put off from selling up and moving as they see little point and don't want to add to their mortgages greatly - this is limiting supply and driving up demand again.

It would be nice to discuss the typical buyer profile. Who is buying these properties?

I think is is just a small % of the population who are causing this situation with their BTL mega empires!!

Someone help me am I going mad?? Maybe Brainclamp is right about his rentier society though!!

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It would be nice to discuss the typical buyer profile. Who is buying these properties?

I think is is just a small % of the population who are causing this situation with their BTL mega empires!!

Well, one of my best friends is just about to buy a small place. About 4 more weeks and he'll be moving in. In his own words, it's a small 2 up 2 down terrace, north facing tiny patio, in a less than desirable street, in an out-of-the-way and not very pleasant place in London. He is about a 15 minute walk from the tube, and he's not far off being as far out of town as he can get. He was a bit annoyed that he had to pay over the asking price to get it. Apparently he lost the last two places he made offers on. We are talking around £220K here.

He's in his late thirties, bought a place when he was very young, and got shafted on that one. I am very worried he is making the same mistake all over again. He earns well above the national average, has a substantial deposit, and is one of the few friends I had who used to earn over 100K a year (he doesn't anymore since the tech collapse).

Right up until the time he bought I had conversations with him about the housing market. Now that won't do any good, so I'll just have to shut up about it with him and see what happens. I want prices to fall, but it will depress me to see him get burned again. Of course, he might be right, and then I'll be the stupid one. I suppose if you can afford to buy, it's all about risk, and prices will have to fall a long way before he's in negative equity.

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Strange isn't it? People seem to get shafted time and time again...

Listen carefully, true story...

Mate of mine who bought in late 80's and stretched his finances to the limit to buy a run down crap hole of a mainsonette on the "nicer end" of the Brixton Road - then eventually gave up and posted the keys back in the early 90's.

He told me at the time "Never buy property - it's dead money" :lol:

He's rented ever since.

Until now that is. That's it folks, he's waited until the peak of the biggest property bubble in UK history so as not to "miss the boat".....

Poor sod is an alcoholic now, so I won't make my usually sarky comment.... ;)

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  • 302 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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