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Homes Are Still Affordable

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"Homes are still affordable, and mortgage lenders are offering very competitive deals".

What planet is John Wriglesworth on?

On a 4x multiple and a 10% deposit I could only afford to borrow £110k!

So what are these very competitive deals then?

Higher multiples?

or is it 120% mortagages?

Either way I lose, and most probably would lose everything!

Link: The Negotiator

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Unfortunately the average muppet in the street is more likely to believe someone like Wriglesworth because it agrees with the current consensus.

They're not going to listen to someone like Mervyn King, after all what does he know?

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THIS IS LAST MAY!!!!

The ongoing market malaise has caused us to revise our house price forecast for 2005 from 3% to 0%. The year looks set to end as it began in terms of house prices, as flat as a pancake."
John Wriglesworth, Hometrack's Housing

Economist, comments:

"On the economic front, however, with new expectations of lower interest rates and ongoing rising incomes we expect a mild recovery in the second half of the year.

TB

He's still a tosser though ;)

Edited by teddyboy

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Yeah, this shouldn't be on the blog.

Still nice to be reminded that a year ago ""House prices are falling like drizzly spring rain, slowly and over most parts of the country."

We're over a year into this bust, and still people like TTRTR and KON can't see what's happening.

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Yeah, this shouldn't be on the blog.

Still nice to be reminded that a year ago ""House prices are falling like drizzly spring rain, slowly and over most parts of the country."

We're over a year into this bust, and still people like TTRTR and KON can't see what's happening.

I think it's because it's a rather slow bust, as busts go, it will build up steam in the coming year or two, it's got to the point where most people accept high house prices as a fact of life, to me that's the best signal in my book

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I think there is a difference between and slowdown & a crash.

Yes, it's called a brick wall! :P Unfortunately for many people buying at the moment though, it's masked by a nice soft looking hedgerow! :ph34r:

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I think there is a difference between and slowdown & a crash.

Also, we've had quite a good 6 months for London HPI & all I'm really interested in is London. I never did think outer regions were worth a look & IMO if there's any bubble, it's outside London.

funny how, now the writings on the wall, TTRTR was only ever interested in london... :D

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I think there is a difference between and slowdown & a crash.

Also, we've had quite a good 6 months for London HPI & all I'm really interested in is London. I never did think outer regions were worth a look & IMO if there's any bubble, it's outside London.

Indeed - Wandsworth has rocketed a full 0.5% in the past 6 months according to land reg. figures! :lol:

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John Wriglesworth!!

Theres a name who keeps a low profile these days. The Boomeister himself. Looks like his predictions from the last crash were just as dodgy.

The Sunday Times

SUN 05 DEC 1993

House prices up;In today's other papers

LEADING housing analyst John Wriglesworth, of investment bank UBS, is predicting

that house prices will rise 7% next year and transactions will increase by 10%,

The Sunday Telegraph reports.

The Sunday Times

SUN 19 JUN 1994

40 House prices falter;In Today's Other Papers

THE house-price recovery is running out of steam, according to one leading

analyst, John Wriglesworth of UBS. He had forecast that prices would rise 7%

this year but now believes the increase will be only 3.5%, reports The Sunday

Telegraph BUSINESS

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I think there is a difference between and slowdown & a crash.

Also, we've had quite a good 6 months for London HPI & all I'm really interested in is London. I never did think outer regions were worth a look & IMO if there's any bubble, it's outside London.

Any interesting little pebbles in that sand you've got your head stuck in TTRTR?

Billy Shears

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THIS IS LAST MAY!!!!

TB

He's still a tosser though ;)

The point I was making was his statement:

"Homes are still affordable, and mortgage lenders are offering very competitive deals".

nothing has changed since May 2005, homes are still unaffordable and the deals are still inviting financial ruin!

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When people take on to much debt and interest rates rise the inevitable happens:

"Indianapolis leads the nation, with one out of every 69 homes in foreclosure. Atlanta follows closely at 1 in 70 homes. Then Dallas — where the Edwardses live — at 1 in 99. Memphis is fourth at 1 in 101. Denver rounds out the top five at 1 in 105". source: As rates rise, home foreclosures surge

As a rough estimate, that's one home every block!

Is this an indicator of things to come here?

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"Homes are still affordable, and mortgage lenders are offering very competitive deals".

What planet is John Wriglesworth on?

On a 4x multiple and a 10% deposit I could only afford to borrow £110k!

So what are these very competitive deals then?

Higher multiples?

or is it 120% mortagages?

Either way I lose, and most probably would lose everything!

Link: The Negotiator

You can buy plenty of property for that sort of price, unless you're holding out for something in London, or are looking for a house and garden somewhere.

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There is a very big difference between affordability and the total amount that a lender will lend you.

Affordability infers some kind of ability to repay your loan (hopefully with some leeway built in for protection)... with the total a lender will lend you that isn't always the case.

I think Wriggly sees affordability as whatever you can beg, steal, borrow regardless of whether you'll be bankrupt within 2 days of completion.

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I think Wriggly sees affordability as whatever you can beg, steal, borrow regardless of whether you'll be bankrupt within 2 days of completion.

You mean I cannot afford to eat a £20 tin of beans for every meal for years on end? But I can afford that tin right now!

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Affordability infers .....

You mean implies.

I don't normally pick people up on how they write but this is one of those errors that just gets to me! A bit like people using 'anticipate' when they mean 'expect'. End of lecture.

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Unfortunately the average muppet in the street is more likely to believe someone like Wriglesworth because it agrees with the current consensus.

They're not going to listen to someone like Mervyn King, after all what does he know?

And even more unfortunate for bears is that the UK population is made up of 99.9% of average muppets.

That's the reason that there won't be a hpc. Average muppets as you call them will try to find a way to fullfill their dreams of home ownership.They may need to work extra hours or make sacrafices but in 5 years when their salaries have increased it will become easier.In 10 years they will be paying far less on their mortgages than they would do if they were still renting.

Not a lot different to when my Dad bought his house back in the 70's.

I'm not saying that everyone wants to buy but the average muppet doesn't expect anything other than for property prices to keep rising. Those that do want to own a home will probably find a way.

Indeed - Wandsworth has rocketed a full 0.5% in the past 6 months according to land reg. figures! :lol:

Probably £2,500+. Not bad for doing nothing for 6 months :D

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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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