Jump to content
House Price Crash Forum
Converted Lurker

43% Of First Time Buyers Have Nearly Given Up

Recommended Posts

Bradford & Bingley's third annual First Time Buyer Report (based on the UK's biggest survey of first time buyers), reveals that just when many parents should be enjoying a golden retirement thousands are raiding their savings and having to contribute to their children's mortgage to help them get on the property ladder. Some are even putting off retirement and re-mortgaging; whilst others are making changes to their lifestyle.

http://firstrung.co.uk/articles.asp?pageid...1841&cat=47-0-0

Share this post


Link to post
Share on other sites

its no longer an acheivable dream.

its become a worthless nightmare with no financial benefit over long term rental.

+ a whole lot a risk.....perhaps binge drinking and living for today is better choice.

Share this post


Link to post
Share on other sites

Bradford & Bingley's third annual First Time Buyer Report (based on the UK's biggest survey of first time buyers), reveals that just when many parents should be enjoying a golden retirement thousands are raiding their savings and having to contribute to their children's mortgage to help them get on the property ladder. Some are even putting off retirement and re-mortgaging; whilst others are making changes to their lifestyle.

http://firstrung.co.uk/articles.asp?pageid...1841&cat=47-0-0

given up..along with any thoughts of having a family before they are 40 too

Share this post


Link to post
Share on other sites

many parents should be enjoying a golden retirement thousands are raiding their savings and having to contribute to their children's mortgage to help them get on the property ladder. Some are even putting off retirement and re-mortgaging; whilst others are making changes to their lifestyle.

So this pyramid scheme that transfers the wealth from the young to the old (well from the young to the banks) ends up with anyone stupid enough to have kids having to give all the money back to the young before they die, rather than afterwards?

Will MEWing to pay your kids deposit become an inheritance tax avoidance scheme?

Share this post


Link to post
Share on other sites

But are these FTB's who have thought about giving but are now sat in a Bradford & Bingley somewhere filling in a questionaire having given up giving up?

"Whilst 43% of first timers we talked to have at some stage thought about giving up buying they have all since bought, or are looking to buy this year."

Share this post


Link to post
Share on other sites

It's worse than that.

At first it was a transfer of wealth from young to old. Now it's become a transfer of wealth from all ages to the money lenders. When parents starting remortgaging to 'help' their children they are unwittingly starting the transfer of their properties back to the banks.

When everything goes belly up it won't just be the last in FTBers who end up complaining.

Yes, it is different this time. The problem is, Joe Public hasn't rumbled the scam yet.

A recursive Ponzi scheme.

Share this post


Link to post
Share on other sites

At first it was a transfer of wealth from young to old. Now it's become a transfer of wealth from all ages to the money lenders. When parents starting remortgaging to 'help' their children they are unwittingly starting the transfer of their properties back to the banks.

What I want to know is this...

Suppose I borrowed ten times my salary to buy a house, with my parents acting as guarantors... who would be responsible for the debt if my parents died before the mortgage was paid off? Would their house automatically become the property of the bank so they could sell it to cover the proportion of my debt that my parents were guaranteeing? Like you say, it all seems like a massive scam to me.

Fortunately for me my parants haven't enough money themselves to help me, so I have to wait whether I like it or not, but that could all end up being for the better.

Share this post


Link to post
Share on other sites

Shock horror !!! UK house prices fall 35% !!! Could this happen , well how about it HAS happened in the last 2 years since the june 2004 peak . As measured in ounces of gold it takes to buy the average UK house - the amount has fallen from 689 ozs to 450 ozs. This made sound ludicrous to some but I believe it is a valid measure of how nominal prices mask inflationary tendencies that even governments are trying to pretend don't exist. They print money endlessly - people , banks, corporations and Governments balloon their balance sheets and nominal prices of everything rise - it is no surprise that houses can always go up. But relative prices are important - houses crashed in 1974 by 40% in real terms but barely moved lower in nominal terms . Most people aren't equipped to cope with real prices because there is no analysis , information or transparency available. Also to take advantage you need to be able to transfer money between the main asset classes - Property,Equity,Bonds,Gold and Cash.

Share this post


Link to post
Share on other sites

So this pyramid scheme that transfers the wealth from the young to the old (well from the young to the banks) ends up with anyone stupid enough to have kids having to give all the money back to the young before they die, rather than afterwards?

Will MEWing to pay your kids deposit become an inheritance tax avoidance scheme?

A very effective one. Not only will inheritance tax be avoided, but when it all goes t*ts up and equity disappears in a puff of sentiment, it'll be a way of avoiding inheritance as well.

Billy Shears

Share this post


Link to post
Share on other sites

Shock horror !!! UK house prices fall 35% !!! Could this happen , well how about it HAS happened in the last 2 years since the june 2004 peak . As measured in ounces of gold it takes to buy the average UK house - the amount has fallen from 689 ozs to 450 ozs.

Shame then that folk are paid in Pounds Sterling, isn't it? :rolleyes:

Edited by Bingley Bloke

Share this post


Link to post
Share on other sites

Suppose I borrowed ten times my salary to buy a house, with my parents acting as guarantors... who would be responsible for the debt if my parents died before the mortgage was paid off? Would their house automatically become the property of the bank so they could sell it to cover the proportion of my debt that my parents were guaranteeing? Like you say, it all seems like a massive scam to me.

That's a very interesting question. Would the bank insist that part of the debt in the child's house be paid off by selling the parent's house? What would happen if the house was willed 100% to someone else? What is to stop parents acting as guarantors for one child, then gifting their possessions to another. What happens if the parents need to sell the house to finance care or other expenses. Do banks insist that guarantor parents are in a certain age range and not near retirement?

I would presume that any contracts would include clauses covering these situations. Anyone seen any sample guarantor contracts?

Billy Shears

Share this post


Link to post
Share on other sites

That's a very interesting question. Would the bank insist that part of the debt in the child's house be paid off by selling the parent's house? What would happen if the house was willed 100% to someone else? What is to stop parents acting as guarantors for one child, then gifting their possessions to another. What happens if the parents need to sell the house to finance care or other expenses. Do banks insist that guarantor parents are in a certain age range and not near retirement?

I would presume that any contracts would include clauses covering these situations. Anyone seen any sample guarantor contracts?

Billy Shears

I've just been thinking some more...

I imagine that my parents' house will be inherited by me and my brother 50:50. If my parents allowed 50% of their house's value to be used to guarantee a mortgage of mine, and property fell 40%, then not only would I be in negative equity on the property I was living in, but also on the half of my parents' house that was being used to guarantee my mortgage. If my parents died, house prices crashed, and I lost my job, not only would I have some serious negative equity on my own home and no means of paying it, but I'd also have the same on half of my parents' house... either that or they'd sieze the other half to cover it, thus stripping my brother of his inheritance.

The more I think about this the dodgier it looks!

Edited by Bingley Bloke

Share this post


Link to post
Share on other sites
Guest Bart of Darkness

Tsk, do these whinging first time buyers think they've got it bad compared to 10 years ago? They need to become more proactive in order to "get on the ladder".

Take an extra job in the evening (drug pushing has always given fairly good returns).

If you have a wife or teenage daughter send her out on the game several nights a week (although be prepared to bitch slap her if she tries to cheat you out of your cash)

Kidneys fetch good prices on the open market.

Young children can be sold into slavery (after all, do you really need more than one? Let's be realistic here)

Use lie-to-buy loans, that's what they're there for (if they were illegal, surely the police would have done something about them by now?)

What a bunch of whining losers!

Share this post


Link to post
Share on other sites

Tsk, do these whinging first time buyers think they've got it bad compared to 10 years ago? They need to become more proactive in order to "get on the ladder".

Take an extra job in the evening (drug pushing has always given fairly good returns).

If you have a wife or teenage daughter send her out on the game several nights a week (although be prepared to bitch slap her if she tries to cheat you out of your cash)

Kidneys fetch good prices on the open market.

Young children can be sold into slavery (after all, do you really need more than one? Let's be realistic here)

Use lie-to-buy loans, that's what they're there for (if they were illegal, surely the police would have done something about them by now?)

What a bunch of whining losers!

Get your facts right..FTB`s are too busy whining to have kids, once they`re old enough they`ll be too old and have to spend the rest of the inheritance on IVF :blink:

Edited by Converted Lurker

Share this post


Link to post
Share on other sites

as eddie cocrahns posher brother once said..."whom cares. come along everyone..."

id rather be doing the monster mash dance and a skrewdriver concert than buy a house. i would rather walk to the end of the wigan pier and load my pockets up with coal before buying some over priced ponce cage birdwalk dogwalking niimby choice playground of gutless wonder.

give me a half opened packed of individual mornflakes. a wet blanket and a spoon crafted from a discarded muller corner yoghuuuurt tub. thats home. right there. there where the alloy pan and salavia stiff pillow weeps int he wind.

then id eat two danone one a days for extra life expectancy.

or eat a packet of dates before swimming the channel.

id rather hitch a lift in mike smiths poncy helicopter, and goad him into showing off.

Share this post


Link to post
Share on other sites

Shame then that folk are paid in Pounds Sterling, isn't it? :rolleyes:

More of a shame (over the last year or so) that they aren't paid in real Pounds Sterling :lol: . Silver has gone up even more than gold in percentage terms.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.