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Charles_Darke

Finally Cracked

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I tried to hold out, but I can't any longer. I've waited and waited. Even now, on the brink of interest rate rises threatening to trigger a house price crash, I just can't hold out longer. Most parts of my brain tell me that it is wrong and it is not the sensible thing to do. I've tried to figure out what is compelling me down this road of potential financial and all I could come up with is:

1. I need a place to live. I want the security of having my own place and being able to feel settled. I've moved 5 times in the last 5 years and my current landlord can kick me out with 2 months notice.

2. I try to rationalise that I intend to live there for a few years and could ride out any crash (of course this makes no sense since I would rather not pay off negative equity for several years)

3. I just want to get it done and stop thinking about it. It's played on my mind a lot. I had a nightmare the other day about having bought a flat and then my gf was unexpectedly pregnant and had to give up her job etc. and we only had a one bed flat. I just want to bite the bullet and get on with life.

4. It's the best property I've found so far. It still compromises on location, size and price but others are worse. Just a sign of the way house prices have gone way out of hand.

I wish everyone good luck with their search. I just want to end mine now.

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London will keep most its prices anyway even if there were a HPC.

Indeed. Remember, no matter where you live, it's impossible for prices to fall there: it's only in other places that they'll fall.

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Interesting... an almost perfect example of what I was talking about a couple of weeks ago, the acceleration begins once the last 'hold outs' reach the point where they 'just want the pain to stop'.

Even if it means chewing off their own leg 5 minutes before the air ambulance arrives with the morphine.

You go for it, son. You can be 'the last fool'.

A coveted position previously reserved for thirdbrains like TTRTR or 'Property Gnu'.

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Yup. It's the borough flat. I saw a few more being built in the area for even more ludicrous prices although these have a better location:

http://www.tabard-square.co.uk/index.cfm?articleid=29

http://www.findaproperty.com/agent.aspx?ag...prop&pid=318237

I know an amazing amount of people preparing to buy within the next year some looking now. All buying in London.

It is the IO effect it is sucking more and more people in. I would love to see rates of between 7-8%.

Edited by since the beginning

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I tried to hold out, but I can't any longer. I've waited and waited. Even now, on the brink of interest rate rises threatening to trigger a house price crash, I just can't hold out longer. Most parts of my brain tell me that it is wrong and it is not the sensible thing to do. I've tried to figure out what is compelling me down this road of potential financial and all I could come up with is:

1. I need a place to live. I want the security of having my own place and being able to feel settled. I've moved 5 times in the last 5 years and my current landlord can kick me out with 2 months notice.

2. I try to rationalise that I intend to live there for a few years and could ride out any crash (of course this makes no sense since I would rather not pay off negative equity for several years)

3. I just want to get it done and stop thinking about it. It's played on my mind a lot. I had a nightmare the other day about having bought a flat and then my gf was unexpectedly pregnant and had to give up her job etc. and we only had a one bed flat. I just want to bite the bullet and get on with life.

4. It's the best property I've found so far. It still compromises on location, size and price but others are worse. Just a sign of the way house prices have gone way out of hand.

I wish everyone good luck with their search. I just want to end mine now.

Well said, just get on with life.

I vividly recall the last crash. One of my brothers got repo'd but life went on. A few years later he bought again and now has lots of equity. His lender Bristol & West found him 10 years later wanting £50000. They settled on £2500 even though he had reasonable income and equity.

Others I knew had neg - eq, but it didnt have any effect. Even those that had to move simply let the existing place or got hold of neg - eq mortgages that allowed them to carry over. AND DONT FORGET, THE ONE THEY MOVED TO WAS PROPORTIONALLY CHEAPER.

I know an amazing amount of people preparing to buy within the next year some looking now. All buying in London.

It is the IO effect it is sucking more and more people in. I would love to see rates of between 7-8%.

I started threads in early 2005 that IO was a key reason for the boom. Most bears on here thought it an idiotic comment. Has the bear postion altered?

I also claimed the then new Bankcruptcy rules were a new get out of jail card, releasing thousands of people form debt. A real pressure release valve I argued that would stave off recession.

Edited by dogbox

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1. I need a place to live. I want the security of having my own place and being able to feel settled. I've moved 5 times in the last 5 years and my current landlord can kick me out with 2 months notice.

Did you never think of getting a 2 year lease like we have?

The security of owning your own place - ********. The bank owns it matey.

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I live in SE1 and have my BTL's there

what is the square footage? From the add I suspect its less than 600 sqft...mad! For 350K

I looked round those apartments , they are not big and mostly you pay for the view (does your have a decent one?)

Tabard is WAY, WAY overpriced...this is a bull speaking

Even the overpriced Jam Factory looks good value compared to this, least the spec is decent

Edited by mercsl

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Guest Baffled_by_it_all

I'm not sure how the burden of high mortgage payments on a shoddy, overpriced newbuild flat equates with 'getting on with life'

I have much more disposable income now than I ever will when I own somewhere - particularly at today's prices. I'd be paying life insurance, income protection payments, buildings insurance and I'd be responsible for any major maintenance/appliance costs.

As for your landlord kicking you out with two month's notice - if you're buying a £450,000 flat you're hardly a DSS case. You live in the biggest city in the UK, you'd have a new place in a fortnight.

Congratulations on giving up. You've made the pain stop. Well, one kind of pain anyway...there's a whole new world of pain waiting for you.

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>Did you never think of getting a 2 year lease like we have?

Nope. But you might want to look at this gem: http://www.findaproperty.com/agent.aspx?ag...prop&pid=182400

£225k for a 9 year lease.

>I have much more disposable income now than I ever will when I own somewhere - particularly at today's prices.

Mortgage isn't too bad. I'd be paying more than my current rent (for the first few years) but since i'm currently saving anyway, it won't affect my day to day life since savings will go into mortgage instead.

>I'd be paying life insurance,

already got through employer

>income protection payments

skipping on this (yes, i'd be screwed if i were made redundant)

>buildings insurance and I'd be responsible for any major maintenance/appliance costs.

Appliances included are new and aren't that expensive to buy anyway.

>if you're buying a £450,000 flat you're hardly a DSS case.

I'm not. i'm buying a £275k flat. For £450k, i could buy the 3 bed penthouse in the same development.

>You live in the biggest city in the UK, you'd have a new place in a fortnight.

I'm not looking for any old place in london. I'm looking for somewhere no more than 20 minutes walk from more london place (next to city hall). About 12 months ago I was forced to move when the landlord renovated. It wasn't fun.

Edited by Charles_Darke

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Guest Baffled_by_it_all

Well you've clearly given it some deep thought...

...good luck!!

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Guest Winners and Losers

London will keep most its prices anyway even if there were a HPC.

Are you for real??? :blink:

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Guest Winners and Losers

Don't let that stop you.

Never worries TTRTR

:lol::lol:

well i'm a she for a start..

which is probably why i haven't the faintest idea what i'm talking about!! :D

;)

Me and Libi are girls too, but would never admit that we don't know what we are talking about. :unsure:

Wasn't taking the p*ss, but if you think London is immune you are living in la la land. ;)

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I know your sense of frustration, Charles. Good luck.

There's not actually that much I want in life apart from a modest home of my own that doesn't financially suffocate me. Couldn't give a monkeys about 99.99% of consumer goods.

I tend to save at the start of the month - ie. immediately transfer away everything I don't believe I'll need (can always transfer it back, although I've never remved anything from savings the savings for several years now). Despite a very modest salary, I'm still saving somewhere between 60 and 80% of it every month - used to live on £750 a month and had debt and - just about - did it and my tastes haven't got much more expensive since.

The odd thing is, while we could pay off most of our slightly older friends' mortgages, to us the saving are just inert pocket money, offering no real way to avoid paying a vast mortgage to buy a small house built for the Edwardian poor. Sure, being so frugal we could not doubt carry a vast mortgage but why exchange debt-free bliss for hardship?

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:lol::lol:

;)

Me and Libi are girls too, but would never admit that we don't know what we are talking about. :unsure:

Wasn't taking the p*ss, but if you think London is immune you are living in la la land. ;)

i'm only kidding about being an airhead just cause i'm female..

regarding london prices..i was just repeating what other people seem to think on here..though i have no idea in all honesty.

all i know is what i'm doing (saving) and leave the general economics to others

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Yup. It's the borough flat. I saw a few more being built in the area for even more ludicrous prices although these have a better location:

http://www.tabard-square.co.uk/index.cfm?articleid=29

http://www.findaproperty.com/agent.aspx?ag...prop&pid=318237

I used to live in Borough in an ex-LA flat, it was very nice. Great location. I sold up in late 2004. I think ex-LA prices have been roughly static since then.

As for the newbuild flats, I have no idea. Obviously the location is great but I have some doubts how quick further gentrification will be and how far it will go. The plans for Elephant and Castle look amazing but they are projected to take years to complete.

frugalista

edit: spelling

Edited by frugalista

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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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