No Hpc: What Will Be The Consequences For You?

[Guest]

i would turn to crime and fraud and borrow insane amounts of money on btl with a view to not really caring at all. i wouldnt give a sh1t. if it went t1ts up after that id just split the country.

Why not, fred? Put your name down for a flat, and you make £20,000 right away.

I'm surprised more people aren't doing it.

[CaptainClamp]

You know, that's not such a bad idea. Do you think I can get a BTL mortgage on an eight-hundred-foot long yellow submarine?

It should really be a self build.

[laurejon]

Currently it is cheaper to rent than to buy today. That does not indicate that Landlords are going to go out of business as of course they paid 2000 prices so probably less than 100k for a three bed semi that now rents for 1200pcm.

So if renting continues to be the cheaper option then I will stick with it. However it is obvious that there will at some time be a crash, even if its ten years away. I am banking on late 2007, as are most analysts.

Simple mafs, renting remains the cheaper option today. However that will change some time, just when is anyones guess.

The longer the Chancellor continues to finance a non existent economy from borrowed money, the more we are going to have to pay back in the future.

[right_freds_dead]

the more we are going to have to pay back in the future.

the more YOU will have to pay back in the future.

You know, that's not such a bad idea. Do you think I can get a BTL mortgage on an eight-hundred-foot long yellow submarine?

is that some sort of HUGE sandwich ?

with bacon tomato and lettuce.

Edited April 3, 2006 by right_freds_dead

[padders]

Instead of working really hard this year to pay for a big mortgage I am going to work somewhat hard to go travelling for a number of months instead. I am in no rush anymore to buy a house (or flat) - my sentiment has certainly changed from a year ago.

[BillyShears]

People will learn it is okay to rent, and get on with their lives

So long as rents do not skyrocket, it will be seen increasingly as the smart option.

There are better things to do with your money than throw it away on overpriced property

I'm renting, and I think I'm getting on with my life. Hopefully today or tomorrow I'll go to the bank (how old fashioned of me) and move accumulated funds out of my normal account into something better. But because my house costs > £100 pcm less than I budgeted for when I moved up here, I'm also transferring a sum of money to my partner's account so that she can book a holiday of some sort. I think this sort of thing will meet DrBubb's definition.

Billy Shears

[winkie]

Think of it as:

Rent to win.

Buy to lose.

[lampkin]

Leave the country. I work in IT and my girlfriend is a nurse so there are probably better prospects out there anyway, will probably end up leaving this country either way. My parents are leaving after retiring at 55 and 60 (Mum and step dad). They said they couldnt afford to retire in this country...Guess what sector they work in?

[Pete95]

People will learn it is okay to rent, and get on with their lives

In some cases its ok to rent, but its not in many.

If you want some stability, and to start a family, then really you need to buy. Imagine putting kids into a local school, then your landlord saying hes decided to sell the house youre renting for an amount you cant afford? You'd be forced to try and get somewhere in that area to rent because its near the school your kids in.

If theres no crash I'll do what a few mates have already done - move abroad. A couple have got to Oz, and one to New Zealand.

It just annoys me so much that the UK could be such a great place, its just being ruined by immigration and a government engineered asset bubble to fuel consumer spending, and hence keep the economy on song.

Edited April 4, 2006 by Pete95

[Scipio_Africanus]

What if the sun doesn't rise tomorrow morning? What if the Pope isn't a catholic? What if there's an alien invasion? What will be the consequences for you?

[BillyShears]

If you want some stability, and to start a family, then really you need to buy. Imagine putting kids into a local school, then your landlord saying hes decided to sell the house youre renting for an amount you cant afford? You'd be forced to try and get somewhere in that area to rent because its near the school your kids in.

The one time this happened to me, we walked up to the local shops, and had arranged a viewing of the house we moved to (within easy walking distance of the school) in about half an hour. And we ended up moving there too. This time could be more difficult if it happens again as there are fewer houses to rent around here. But my son's school is on two major bus routes (one each side) and hence that increases options.

But also while my son's school is OK, if we had to move, I'd be strongly considering the areas with even better schools.

One person's problem is another person's opportunity.

Billy Shears

[padders]

I don't care as nearly as much as I used to either way now. It's got to the point now that owning as really going to be a lot more price efficient than renting to make it work locking myself to one place. Right now I am going to rent (interest on my savings pays most of that) and go on some nice holidays. Much better idea.

[non-FTBer]

The one time this happened to me, we walked up to the local shops, and had arranged a viewing of the house we moved to (within easy walking distance of the school) in about half an hour. And we ended up moving there too. This time could be more difficult if it happens again as there are fewer houses to rent around here. But my son's school is on two major bus routes (one each side) and hence that increases options.

But also while my son's school is OK, if we had to move, I'd be strongly considering the areas with even better schools.

One person's problem is another person's opportunity.

Billy Shears

Absolutely.

I wouldn't be surprised if my landlady was to sell up some time soon.

I've got a 6 month old boy and if we were thinking about when he's school age then we plan to be living 20 miles away from where we are now in any case, as the schools are far better.

So if the landlady decides to turf us out then we'll just move into the area with better schools sooner.

The way I see it is that I could buy now in a good catchment area for a school, but I would be paying silly prices.

Or I could rent and save loads of money while houses at best stagnate (around here they're falling anyway - 5% YoY).

I think I'll rent.

Even if I got turfed out of a rental at some point then I could choose that point to buy (if I had to) rather than now.

[Property Dreamer]

What if the sun doesn't rise tomorrow morning? - No further problems

What if the Pope isn't a catholic? - Irrelevant

What if there's an alien invasion? - Cool

What will be the consequences for you?

[aussieboy]

Yes I read that as a young teenager, hadn't quite taken enough drugs yet. The Leif Erikson would be quite pleasant alright, though probably very difficult to dock.

Must revisit Illuminatus soon, I think one of my housemates has it (advantages of renting number 3,254)

Perhaps he left it in the toilet? Disadvantages of renting number 4,233 : )

[E Powell]

Even though I am a debt free OO.

I will claim political assylum - as the Whites in this country are

being persecuted by the white liberals in London.

[Bagehot]

thanks. alas i suspect the average Brit will not be happy to rent and will buy at any cost.

[DonnieDarker]

No crash?

Shake my head...join the rat-race and press on buying a 2 bed flat in the best possible location in my leafy suburb/district of London.

Not worry about the value of my property and instead try and work hard at overpaying the mortgage, investing/saving elsewhere and having some fun with the place that I can rightly call "Home".

Hogwash to the 'but you dont own it until you have finished paying the mortgage" brigade. I will own that flat and I will paint it whatever damn colour I like!

[Adam]

I'll keep saving and renting until the price of a house is equal to or less than the amount of pleasure I get from owning the debt associated with it.

At the moment I get immense pleasure from denying myself an enormous tv (i'd rather just see an optician), seeing my savings account grow, gambling small time on stocks/gold and knowing that tomorrow I could just wake up and decide to f*ck off to live somewhere civilised instead.

There's more to life than big houses, big cars and big debts.

[goldeneye977]

Guys.

Frankly I think a HPC is not going to happen. At best, the prices will remain what they are now currently for several years. All the talk about HPC is just wishful thinking from people who missed out on the RE boom. I think if you buy a house that you intend to live in for another 8-10 years, you should be fine - HPC or otherwise. If you buying just for investment's sake, then you should not buy now.

The thing is, this is a global boom and is too strong to just go down under. Many govts will do whatever they can to prevent this boom from busting since their economies depend upon it.

I myself missed out on the boom several years ago. I was all set to buy a house but all the talk about the housing boom etc got into my head and I decided to not buy it. Now the house is may beyond my income. I'll have to settle for far less.

[Time to raise petrol prices]

Guys.

Frankly I think a HPC is not going to happen. At best, the prices will remain what they are now currently for several years. All the talk about HPC is just wishful thinking from people who missed out on the RE boom. I think if you buy a house that you intend to live in for another 8-10 years, you should be fine - HPC or otherwise. If you buying just for investment's sake, then you should not buy now.

The thing is, this is a global boom and is too strong to just go down under. Many govts will do whatever they can to prevent this boom from busting since their economies depend upon it.

I myself missed out on the boom several years ago. I was all set to buy a house but all the talk about the housing boom etc got into my head and I decided to not buy it. Now the house is may beyond my income. I'll have to settle for far less.

So what you're saying is that property prices will never dip again, ever?

Forget for a moment the emotional infuriating consequences of this ridiculous bubble. Why on earth should the last hundred years of economic data be turned on its ear, and suddenly the housing market (and the wider economy) stop moving the way it always has done? Even the mass head-burying-in-the-sand of an entire nation can't stop the market crashing if it really wants to - that's the beauty of markets - pure herd mentality.

Edited for spelling.

Edited April 4, 2006 by Time to raise petrol prices

[SeenItAllBefore]

Nobody, not even the Halifax’s Chief Economist thinks that prices are going to rise much in real terms, if at all, from now on so if there’s no crash it doesn’t matter. Most who rent in the UK now do so for less than the cost of the interest on a mortgage, if they save the difference between their rent and a repayment mortgage they will be accumulating capital faster than if they buy now, avoid all the other costs of ownership and also have the flexibility to move as they wish. If the capital they save is invested in asset classes that actually grow in the future they get richer still compared to their contemporaries who have bought property.

Personally I can’t see how the market won’t crash at some point, at least in the medium term. UK households just can’t keep on absorbing the extra £120-150 billion debt necessary to keep the transfer of housing stock down the generations going every year. At some point they will gag on the repayments the economy will turn down, unemployment will spike and the crash will play out. Maybe this process has already started.

I'd recommend taking a serious interest in alternative investments and forget the property obsession. As an asset class it's likely to stink for a couple of decades from now on.

[Foobar]

Consequences...? Haven't you been listening to Blair there are no more consequences in this country any more, or he's certainly doing a good job living like there aren't any. Collectively we keep sucking it up.

The consequences of not having a house price crash are here for me already. I'm priced out and will continue to be, not much I can do about that except save and dream of a day when I have my own one bed new build box by Feltham young offenders prison.

On the optimistic side without wallowing in self pity (as is all too easy), this is an education, a life lesson. It preciptitates a certain philosophical way of thinking. It's pushed me through all sorts of emotions, from jealousy (yep I'll admit it), anger, hate, misery, depression and finally to a sort of equilibrium where I'm not happy with the situation but happier with myself. It's taken alot to control some of those emotions and I've seen them in many others here and understandably so, I sympathise.

It makes you realise how you value yourself is powerfully influenced by what others do, think and expect; we are social creatures afterall. This means when people judge you, by the house you own and the car you drive and the things you wear, it does have an effect if you are at all human. People do it all the time and if they're not, you're doing it to yourself.

I've found consolation here amongst people in a similar boat (and not) and then found a slap in the face from others smugly relishing the inequality and opportunity to profit from it. I don't wish them ill: to each his own, if that's what's good for them, who am I?

Point is the consequences for me are that it's forced a revaluation of what's important. It's given my middle class home owning values a good smack in the teeth and knocked them out of me. It's made me think about achieving something worthwhile rather than accumulating equity. You can't really accumulate anything, life is this moment and in a blink this moment is gone and onto the next or not, it's all vanity?

If the HPC doesn't come and 'prices only ever go up' great, it will truly be some kind of miracle. With any luck I'll be jamming along somewhere getting in the groove and feeling life's rythm (can you tell it might be something musical?)

Bl**dy hell I think I just swallowed a self-help book! Right that's enough I'm going to whistle for it now

ps Those who are about to post that this is soft as sh8t, don't bother, I've got over that one already and just think about it.

[camem']

3 years? naaaaaaaaaaaaaaaaaah. Not up north. 3 yrs ago houses were flying of the shelves. As in flying of the shelves-flying of the shelves, not as in "flying of the shelves". Sep 2004 Mammas UP until Super Merv saves the day in August '05. Proper Bo. You won't get hot action like this on TV, you know. Real life only.

You just gotta be more positive about this negative thing.

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phew, spelling entropy stable again - that one was a little close for comfort

[Elizabeth]

No Eliz, we need a BUZZWORD:

May I suggest....

"Privately Managed Subsidized Living" (PMSL)

No. Britain is protected from rising rates by the Gordon Brown Reality Distortion Field (pat pending).

Shall I start the thesis now?

The New Rentier Class (NRC) emerged in the early 21st Century out of the chaos of an entirely unregulated private housing market, massive shrinkage in public sector housing (much of which was transferred to the private rental market through subsidies initial sales to occupiers and quick sell on to realise windfall profit), and curiously conflicting policies relating to land use and the new building development. The NRC enjoy PSML due to interest rates protected by the GBRDF ™...