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munimula

Does Anyone Else Experience This?

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Spoke to mum last night and she'd watched Kirstie & Phil peddling their wares on tues night. My mum actually believes that prices are too high and yet she was taken in by all the predictions and the programme made her question that perhaps prices will keep going up afterall. I pointed out the Oxford BTL example was a yield of only 4.6% but things like this just don't register.

The sad thing is that I think my mum represents the susceptibility of the general public to all this VI spinning.

My dad also quoted recently that average house prices 'will be £1M by 2030' (old Express headline)

And I've been trying to put my sister and boyfriend off buying in Bristol but the latest I've heard is that they want to buy now because rented accomodation is so bad. They've been looking at a budget of only £500 for rented so it's not surprising and they would have to pay at least £800 for IO mortgage so how are the two comparable!!?? He's 35 and I've tried explaining tha buying a small 2-bed now as they want to start a family soon is completely useless.

It's no wonder that we are were we are but because we are here due to general inability of joe public to think for themselves it is likely that the usual herd push has caused this bubble and because descisions have been made without little thought other than 'Kirstie and Phil said so' it is extremely likely it will eventually pop as all 'herd push' bubbles do

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Guest Winners and Losers

Spoke to mum last night and she'd watched Kirstie & Phil peddling their wares on tues night. My mum actually believes that prices are too high and yet she was taken in by all the predictions and the programme made her question that perhaps prices will keep going up afterall. I pointed out the Oxford BTL example was a yield of only 4.6% but things like this just don't register.

The sad thing is that I think my mum represents the susceptibility of the general public to all this VI spinning.

My dad also quoted recently that average house prices 'will be £1M by 2030' (old Express headline)

And I've been trying to put my sister and boyfriend off buying in Bristol but the latest I've heard is that they want to buy now because rented accomodation is so bad. They've been looking at a budget of only £500 for rented so it's not surprising and they would have to pay at least £800 for IO mortgage so how are the two comparable!!?? He's 35 and I've tried explaining tha buying a small 2-bed now as they want to start a family soon is completely useless.

It's no wonder that we are were we are but because we are here due to general inability of joe public to think for themselves it is likely that the usual herd push has caused this bubble and because descisions have been made without little thought other than 'Kirstie and Phil said so' it is extremely likely it will eventually pop as all 'herd push' bubbles do

Krusty and Filth need to be nuked.

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Guest Winners and Losers

what happened to the pooch?

I'm trying to conceal my true identity. :ph34r::unsure:

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My mum actually believes that prices are too high and yet she was taken in by all the predictions and the programme made her question that perhaps prices will keep going up afterall. My dad also quoted recently that average house prices 'will be £1M by 2030' (old Express headline).

Your parents have never lost money buying their own home.

No one ever does.

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It's no wonder that we are were we are but because we are here due to general inability of joe public to think for themselves it is likely that the usual herd push has caused this bubble and because descisions have been made without little thought other than 'Kirstie and Phil said so' it is extremely likely it will eventually pop as all 'herd push' bubbles do

Ah, but what will the "herd push" do on the way down?

Billy Shears

Your parents have never lost money buying their own home.

No one ever does.

You mean that flat described in another thread that sold for 100K less than last purchase price achieved such a high rent that the owner is quids in even after the capital depreciation? In a few years?

Billy Shears

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You mean that flat described in another thread that sold for 100K less than last purchase price achieved such a high rent that the owner is quids in even after the capital depreciation? In a few years?

I said no one ever lost money buying their own home.

That goon lost money selling one.

Do you see?

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Your parents have never lost money buying their own home.

No one ever does.

Really? Try telling that to the guy I bought my place off (2000)

He said he couldn't let it go any cheaper as that was what he paid for it 11 years previously (1989).

11 years ...........same price not exactly a winner was he.

The house I bought in 1999 I paid £500 less for than it was bought for new in 1989! 4 owners in 10 years must have been losers.

This is fact not "expert predictions" real life fact.

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Ah, but what will the "herd push" do on the way down?

That's my point, I get so desperate talking to almost anybody about house prices, nobody seem to see it but the lack of understanding seems to come from a complete lack of the understanding of economics. They don't know why house prices will continue going up but because they are told they will with predictions like 40% on telly then that is what they will probably do.

I think that it is important to appreciate how much the current prices are due to the unthinking herd and therefore how quickly prices could fall when the herd starts running the other way.

Sometimes I feel like I'm that guy in One Flew Over the Cuckoos Nest stuck in that ward

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Yes I have a friend who has been away for a year and has just got a job in London. He is going to rent for 6 months and look to buy. I tell him he's crazy but he won't listen. Hes got 50k saved up for a deposit and I can see it going up in smoke. It's only when my friends start talking about house prices falling (we're all late 20's) that I know it's happening.

A house next door to me (Sheffield) has gone on for 135k, it was bought in 2000 for 45k. I have seen a stream of people coming to look at it. :(

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Guest Charlie The Tramp

He said he couldn't let it go any cheaper as that was what he paid for it 11 years previously (1989).

He forgot the 11 years interest he paid on his mortgage as well.

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When you actually happens to you it just.......................your lost for words

My girlfreind has decided to keep the house she has just inherited and rent it out. I had suggested she sell and gave easily understood financial reasons why she should do so, but as it is her perogative she made the decision to keep and rent.

Trying to justify her decesion to me later she said she could get, what I believe, slightly more than the market would fetch and that her friend told her that any agents costs would be given back to her in tax.????

I tried to explain how business/tax works, I have run one for a long time, and that all costs are offset against profit, and yes, the less you earn the less tax you pay but this not a good thing. She didnt understand (or wouldnt) saying no her freind says that the money is "given back" in tax.!!!!!!

She is now angry that I am not giving any other advice or want to talk about it, but i know if i interfer i will just get really angry. (probably end up strangling her and her freind)

I know, she couldnt be very bright you think, but you dont know what they do for a living.

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Guest Winners and Losers

(probably end up strangling her and her freind)

This forum is full of nutters. :rolleyes:

RFD and Masked Tulip love that kind of talk. :ph34r::unsure:

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My dad also quoted recently that average house prices 'will be £1M by 2030' (old Express headline)

Didnt he stand back and realise how ridiculous that statement sounds ?

Also in the Phil & Kirsty programme, when they were saying some areas had "crashed and burned" Didnt that ring any bells with anyone ?

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Sometimes I feel like I'm that guy in One Flew Over the Cuckoos Nest stuck in that ward

So which of us is Chief, who eventually gets out of the madhouse? Is TTRTR Nurse Ratchett? Who is McMurphy? Hmm ... given my login name I'm not sure I want to follow this analogy.

Billy Shears

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When you actually happens to you it just.......................your lost for words

My girlfreind has decided to keep the house she has just inherited and rent it out. I had suggested she sell and gave easily understood financial reasons why she should do so, but as it is her perogative she made the decision to keep and rent.

Trying to justify her decesion to me later she said she could get, what I believe, slightly more than the market would fetch and that her friend told her that any agents costs would be given back to her in tax.????

I tried to explain how business/tax works, I have run one for a long time, and that all costs are offset against profit, and yes, the less you earn the less tax you pay but this not a good thing. She didnt understand (or wouldnt) saying no her freind says that the money is "given back" in tax.!!!!!!

She is now angry that I am not giving any other advice or want to talk about it, but i know if i interfer i will just get really angry. (probably end up strangling her and her freind)

I know, she couldnt be very bright you think, but you dont know what they do for a living.

She's right. There are a large range of tax breaks out there for BTLers including the holiday home scheme, so if she has a job she will save in personal taxes. Thats what buyers are up against.

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My Dad is the same, bought his house for £140k back in 1986. Very nice house, 4 bedroom, 2 bathrrom, 2 living rooms great kitchen, big garden etc. A really nice house. Unfortunately parents divorced and i moved in with my GF, sister moved in with her BF and so its just him and my younger brother there. Now wants to rent it out to "prefessionals" and buy a cheap flat with some of his equity to live in while the "professionals" pay his Mortgage. Trouble is, as i 've tried to tell him many times, the flats in our area are just as expensive as the houses! still thinks that property will only ever go up. worried he might get caught in a flat that will plummet in value.

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Also in the Phil & Kirsty programme, when they were saying some areas had "crashed and burned" Didnt that ring any bells with anyone ?

Selective hearing

I pointed out that the No.1 recommendation was Oxford which reportedly (Halifax) saw prices go down 9% in 2005. Still didn't register.

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Really? Try telling that to the guy I bought my place off (2000)

He said he couldn't let it go any cheaper as that was what he paid for it 11 years previously (1989).

11 years ...........same price not exactly a winner was he.

The house I bought in 1999 I paid £500 less for than it was bought for new in 1989! 4 owners in 10 years must have been losers.

This is fact not "expert predictions" real life fact.

.....AND ITS ABOUT TO HAPPEN ALL OVER AGAIN - EXCEPT THIS TIME IT'LL BE LONGER AND WORSE!

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So which of us is Chief, who eventually gets out of the madhouse? Is TTRTR Nurse Ratchett? Who is McMurphy? Hmm ... given my login name I'm not sure I want to follow this analogy.

Billy Shears

Chief represents all the wood-be FTBs that give up and leave the UK

Nurse Ratchett - that would have to be Gordon Brown

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Your parents have never lost money buying their own home.

No one ever does.

My answer to this is best worded by Seamaster himself.

"My advice to the original poster is to re-read the above a few times as an object lesson in which posts on here can be safely disregarded.

Once you understand that there is a difference between fact and opinion, you are well-equipped to wade through the dross here to find information worth basing major financial decisions upon".

Seamaster

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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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