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dubsie

Why A House Price Crash Isn't Going To Happen

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I purchased a house 12 months ago after years of waiting for a price fall. I was extremely worried at first but its becoming very clear that houses remain a safe option if you plan to live in it and you're not after a quick buck.

The problem is that there is a growing gap between the wealthy and poor. The rich can afford housing and the poor have no chance. This gap is really a gap between the professions and the un-skilled, if they could balance this gap just a little I'm sure it would settle the housing market.

For example a head teacher in a secondary school can earn up to 95k per annum....and a teacher can earn up to 46k (Super Teacher Status), GP in excess of 100k. These salaries can buy a pretty good house in the midlands. However, in the same school support staff might only pull 10k a year....you're not buying anything with 20k and certainly not 10k.

While I think GPS and Head Teachers are worth this sort of money, BUT the money has to come from somewhere. Is it really fair to expect the poorest to pay taxes at current levels to pay these sorts of salaries for jobs that rely on dedication to the profession and not the salary.

You can take any industry and any public service and you will find the same sort of wage differences. I think the government needs to act by increasing the pay of the lowest earners or it needs to build a load more social housing.

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since when is a head teacher educated?

as well as many other so called professionals there jobs are little more than filling in pre-set forms and selling on the phone.

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since when is a head teacher educated?

as well as many other so called professionals there jobs are little more than filling in pre-set forms and selling on the phone.

..and hitting small boys with a cane... Oh sorry, that's been banned...

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you are talking about professionals a small percentile of the workforce- of course they can buy a reasonable but overpriced home

what about the rest of the population the just above average, average and below average? - the semi skilled, skilled and non skilled?

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Nah, the unskilled can get off their backsides and get skills that pay a decent wage. They haven't a right to a good salary anymore than I do. It's not a hrd thing to do, in the UK the government bends over backwards to help people.

Just takes a decision, a bit of guts and a little vision.

:)

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I purchased a house 12 months ago after years of waiting for a price fall. I was extremely worried at first but its becoming very clear that houses remain a safe option if you plan to live in it and you're not after a quick buck.

Another one who hasn't heard of economic cycles.

I won't disagree with people who buy a house they can reasonably afford for themselves and their families.

But I'll wish them a lot of luck for the future.

They will most certainly need it.

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..and hitting small boys with a cane... Oh sorry, that's been banned...

You're kidding! No-one told me! Sorry Shaker. :P

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How does that statement explain why there will not be a house price crash,

maybe you think GP's and head teachers will buy all the houses to home their staff and subsidise their rent, as the receptionists and teachers wil certainly not be able to afford a rent that would cover the mortgage.

I don't think your statement is untrue, it just doesn't expalin how it will not lead to a crash, if anything it is a sign that it must crash

Dr X is not going to pay £1500 a month for a mortgage to house his receptionist on 10K (who could only afford £500 pm on rent)

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Seriously, if you earnt £100k would you be happy owning a small detached house in the average town/village? If I were on £100k I would expect to buy a very good house - I would be in the elite earning bracket after all.

And for BTL? It's all about return on investment. Would I invest in something that wouldn't make money? Nope, and I didn't. The people getting BTLs today are those who remortgage their own home (bought years ago) for a deposit. Do you think people will continue to do this if house prices were stagnent for a while, or (god forbid) show year on year falls?

Prices will eventually return to sane levels, either by a crash or stagnent market for several years. I just don't buy the stagent argument (for long periods) simply because of homeowner greed.

The only inconvenience is the timing. Well, no-one's perfect!

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i dont think dubsie needs to worry about prices falling. it is irrelevant if it is just a home to live in - just need to worry about keeping her/his job is more important

ok - so you wont feel that feel good factor in the morning "my house is now x+30% more" but who honestly needs it?

Edited by notanewmember

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you are talking about professionals a small percentile of the workforce- of course they can buy a reasonable but overpriced home

what about the rest of the population the just above average, average and below average? - the semi skilled, skilled and non skilled?

Even skilled workers can pack 60k per annum if they work hard enough and semi skilled rely on two incomes. Anything lower than 30k household income you have no chance of buying anything.

Money really has losts its value when it comes to property.

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Yawn ..... the same old, same old ..... we could buy a house, easily the point is we won't because we have other things that we need to pay for as well as the mortgage.

It's the desperation to get on the ladder and no thought for the other costs involved in home ownership or even how they are going to pay back the loan at all in the case of IO mortgages which will cause the crash, it's a case of when not if.

I know of Dr's by the way who are living off their credit cards so it's not all rosy in that garden either.

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Yawn ..... the same old, same old ..... we could buy a house, easily the point is we won't because we have other things that we need to pay for as well as the mortgage.

It's the desperation to get on the ladder and no thought for the other costs involved in home ownership or even how they are going to pay back the loan at all in the case of IO mortgages which will cause the crash, it's a case of when not if.

I know of Dr's by the way who are living off their credit cards so it's not all rosy in that garden either.

You are up late terrified? Arent you exhausted from the Spring Bounce?

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Nah, the unskilled can get off their backsides and get skills that pay a decent wage. They haven't a right to a good salary anymore than I do. It's not a hrd thing to do, in the UK the government bends over backwards to help people.

Just takes a decision, a bit of guts and a little vision.

:)

You're talking to a Oftec registered heating engineer, but i have respect for people who work in the service sector....at the end of the day its an honest days work and they should be paid well for it. At least there working and contributing.

We all have the right to a salary that refects our job description and the cost of living.

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Now i'm with child again there won't be much bouncing going on around here I can assure you :P

:lol::lol::lol:

What a relief. How convenient.

:lol:

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As soon as the line went blue I dashed to my local EA's with CV in hand to ensure if anyone was going to pay me maternity pay it was going to be them :lol:

Yeah, well, no offence, but they'll take anyone on. I'd love to be the infiltrator, lucky you!

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None taken, it is great fun I haven't sold a thing but then neither has anyone else and I overheard Mr Manager today talk to Area Manager Twit telling him how busy we are, we've taken on 7 new properties - true and that we have lots of viewings booked - I don't think so.

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None taken, it is great fun I haven't sold a thing but then neither has anyone else and I overheard Mr Manager today talk to Area Manager Twit telling him how busy we are, we've taken on 7 new properties - true and that we have lots of viewings booked - I don't think so.

:lol::lol::lol:

You are class terrified.

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None taken, it is great fun I haven't sold a thing but then neither has anyone else and I overheard Mr Manager today talk to Area Manager Twit telling him how busy we are, we've taken on 7 new properties - true and that we have lots of viewings booked - I don't think so.

The fact is that wage inflation for the middle to top earners means that people can still buy houses at 2006 silly prices. Housing market is slow but in no way about to crash....people just need to get used to only making a 1000 a year rather than 50,000 a year. The housing boom had to end sometime.

A new build project I've been fitting out in Matlock is already completely sold out....cheapeat so called starter home was 189,000. I really couldn't believe how many young couples there are with that sort of money.

The problem starts when interest rates go up....but can you see that happening in the next 5 years????

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I purchased a house 12 months ago after years of waiting for a price fall. I was extremely worried at first but its becoming very clear that houses remain a safe option if you plan to live in it and you're not after a quick buck.

The problem is that there is a growing gap between the wealthy and poor. The rich can afford housing and the poor have no chance. This gap is really a gap between the professions and the un-skilled, if they could balance this gap just a little I'm sure it would settle the housing market.

For example a head teacher in a secondary school can earn up to 95k per annum....and a teacher can earn up to 46k (Super Teacher Status), GP in excess of 100k. These salaries can buy a pretty good house in the midlands. However, in the same school support staff might only pull 10k a year....you're not buying anything with 20k and certainly not 10k.

While I think GPS and Head Teachers are worth this sort of money, BUT the money has to come from somewhere. Is it really fair to expect the poorest to pay taxes at current levels to pay these sorts of salaries for jobs that rely on dedication to the profession and not the salary.

You can take any industry and any public service and you will find the same sort of wage differences. I think the government needs to act by increasing the pay of the lowest earners or it needs to build a load more social housing.

great .. more homes then we have ever seen before per head of capita..

but only a few can afford to buy.

don't worry, we can rent of people who buy the homes on a higher IR then we would have to pay, they can make a profit and we can afford the rent.

But we can't afford to buy ourselves.

Have you noticed the high paying jobs are all public sector ;)

bless you...

It is clear that the government wants to blow a large amount of smoke up your bottom..

Please stop bending over to make it easy

its the economic cycle.

It can only exist if it still surprises the vast majority of the people.

It does still exist.

and again for the billionth time people will be surprised.

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great .. more homes then we have ever seen before per head of capita..

but only a few can afford to buy.

don't worry, we can rent of people who buy the homes on a higher IR then we would have to pay, they can make a profit and we can afford the rent.

But we can't afford to buy ourselves.

Have you noticed the high paying jobs are all public sector ;)

bless you...

It is clear that the government wants to blow a large amount of smoke up your bottom..

Please stop bending over to make it easy

Yes they all seem to be public sector jobs and in my opinion 90k for a head teacher is too much. A head teacher should be paid well but should also want to do the job because they value education. If the only thing that keeps them there is money...then they should go and work in the private sector.

Doctors also, 250k is stupid. No wonder the NHS is skint. A nurse only earns 20-30k and probably works just as hard.

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The fact is that wage inflation for the middle to top earners means that people can still buy houses at 2006 silly prices. Housing market is slow but in no way about to crash....people just need to get used to only making a 1000 a year rather than 50,000 a year. The housing boom had to end sometime.

A new build project I've been fitting out in Matlock is already completely sold out....cheapeat so called starter home was 189,000. I really couldn't believe how many young couples there are with that sort of money.

The problem starts when interest rates go up....but can you see that happening in the next 5 years????

No the fact is that young people can borrow the money to buy these starter homes, they just can't pay it back.

I have a cousin who is already borrowing money from his Mum to pay the mortgage because his wife got pregnant a year before they were planning and they are now on the verge of going under. So many people are signing on the dotted line because they are scared of not getting on the ladder but they haven't actually thought about how they are going to pay for any repairs or have what we call the oh ****** fund for when the clutch goes etc etc, they then get out the credit cards and it gets messy.

You should only be spending a third of your income on housing, be it renting or buying and there's a good reason for that, you need a margin for the unexcepted.

As for wage inflation my husband got a 3.2% rise this year and school fees went up 7% and nursery fees went up 5% so in that one area of our life alone we are worse off.

A 1% increase and things speed up and get nasty but it isn't vital.

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Behind the insolvency statistics

The insolvency statistics for the final quarter of 2005 caused quite a stir when they were released at the beginning of February.

Individuals

The press picked up on the continuing and almost exponential rise in the level of personal insolvencies. In 2005 67,580 people either went bankrupt or entered into an individual voluntary arrangement. This was an increase of 45% on the previous year. This understates the true picture in that the quarterly number increased from 13,600 in the first quarter of 2005 to 20,500 in the last quarter. All looks set for another record breaking year in 2006.

It is interesting to look at the split between bankruptcies and IVAs: whilst bankruptcy numbers are growing steadily the number of IVAs showed an increase of 117% between the last quarters of 2004 and 2005. This huge rise in the number of IVAs is to some extent surprising:unless a person has a particular reason to avoid bankruptcy, such as a need to continue working in the financial sector, it is likely that the bankruptcy regime will be easier in terms of both level of contributions out of income and the period for which those contributions have to be made than is the case in IVAs. Whilst a bankrupt's income is vulnerable for a three year period it is usual for IVAs to run for five years.

It is perhaps encouraging that debtors are keen to maximise the return to creditors through the IVA process. It may also reflect the reality that homes can sometimes be protected in an IVA when they would be lost in bankruptcy.

The personal insolvency numbers clearly reflect growing distress and over borrowing both on unsecured loans and on mortgages. Re-possessions also showed a dramatic increase during 2005.

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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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