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Where's My Mate Benjamin Today? We Were Right!

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:lol: The world's greatest newspaper does it again:

Record property prices are set to soar for at least

10 years in a massive boost for home owners.

They will see the value of their property increase by

around £20,000 every year, pushing the average home to

almost £400,000 by 2016, experts predicted last night.

Huge numbers of Middle Britain families will become paper millionaires.

The prediction is a welcome fillip for home owners worried by economists’ fears that a worldwide recession would bring the housing boom to a halt and plunge millions into the nightmare of negative equity – where their mortgage is higher than the value of their home. But property experts are confident the UK housing market can ride out any storm and continue to prove the safest bet for investors.

Russell Jervis, managing director of Spicer Haart estate agents, said the prospects for the property

market remained very healthy.

“Bricks and mortar has consistently proved itself as one of the best investments there is,” he said.

“I see prices rising throughout this decade and perhaps even further. Why not? Demand is outstripping

supply, interest rates are low and people are always going to want somewhere to live.” And property economist John Wriglesworth agreed. “There’s as much chance of Elvis being spotted on the moon as a housing slump in the near future,” he said.

“All the pointers show homes increasing in value over the next few years at least. Employment is high, interest rates are low, other economic factors are stable. Buying a property today will reap dividends in the future.”

http://www.express.co.uk/news_detail.html?sku=238

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Russell Jervis, managing director of Spicer Haart estate agents, said the prospects for the property

market remained very healthy.

:lol::lol::lol::lol:

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"There's as much chance of Elvis being spotted on the moon as a property slump in the near future"

He used this line two years ago (and, to his credit, has been proven largely correct over that period), but it is eerily reminiscent of the shoeshine boys telling big investors which shares to buy in early autumn 1929... :lol:

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Yesterday in the Express there were 2 pages saying that youngsters needed to get 35-40 year mortgages.

This paper is the s***

Ramp Ramp Ramp

Wish housing was regulated like Financial Advise.

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These f*** heads at the Express didn't predict the crash of 89-96 did they? How the f*** can

the predict house prices accelerating over the next 10 years.

I so want a huge recession now. I don't care if it means I lose my job!

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:lol::lol::lol::lol:

Are there any Express readers who take the paper seriously?

They probably do when they run out of bog paper. For a serious read, the express isn't even as good as VIZ....

i'm here, pissing myself with laughter. hmmm, need to put some serious thought to tomorrow's headlines. i wonder.......

edit: found this http://www.miniclip.com/games/blair-the-motivator/en/

hehe..pretty funny.... :)

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They probably do when they run out of bog paper. For a serious read, the express isn't even as good as VIZ....

I think Closer is a more intellectual read.

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These f*** heads at the Express didn't predict the crash of 89-96 did they? How the f*** can

the predict house prices accelerating over the next 10 years.

The curious thing is that four years ago they were full of headlines proclaiming an imminent crash. Anyone remember?

Maybe having been shown up to be such charlies that time, they're puffing things the other way. Let's see if they're just as wrong :D

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Page 21 of the Express on Sunday contained a piece about self-certified mortgages and the nascent scandal there. I can't find a link on their website, but here's the text of the article.

"Loan scandal sparks crisis

Buyers offered mortgages

up to 10 times their salaries

By Kirsty Buchanan

DEPUTY POLITICAL EDITOR

DESPERATE house hunters are falling prey to fly-by-night brokers pushing high-interest mortgages where no proof of income is needed.

Thousands of buyers are being encouraged to borrow more than they can afford through a self certified mortgage of up to 10 times their salary.

Self-certification was introduced 18 years ago for self-employed people with erratic earnings. But the number of applications has shot up by 27 percenti n the past four years

Charles Smailes, president of the National Association of Estate Agents, said: “These mortgages are the repossesslons of the future; If interest rates go up or the housing market falls, those are the people who will be caught out

“When the market is going up in leaps and bounds you get all these fly-by-night agencies setting up who take advantage in a fairly unscrupulous manner You could argue the participants are responsible for their own downfall but you can see

why through desperation, they fall foul of these practices” Some online brokers boast •‘No proof of income? No problem.” They offer deals even to those with county court judgments against them and those in arrears.

One Sunday Express reporter went to an on-line broker and within a day had an “in principle” mortgage offer of 10 times her salary

Rather than asking how much she earned, the broker worked out how much she would need to claim to be earning to buy her dream home. She said: “The monthly repayments start at £733 for the first 36 months, then go up to £946. I would scarcely be able to afford it now and in 36 months’ lime I would get into serious difficulty.”

Most self-certified mortgages require borrowers to put down a significant deposit, typically 15 per cent, and charge above average interest rates. A number do not

require any statement of income. The lenders undertake an “affordability test” instead to see if a borrower is likely to be able to meet the repayments. A recent survey by the Financial Services Authority concluded that there was no systematic fraud but there were “significant failings” in affordability checks.

Critics have called for a crackdown on sharp practice and more affordable homes to remove the temptation to over-borrow.

David Orr of the National Housing Federation, said: “Crisis is an over-used word but I make no apology for using it. Up to 80,000 new affordable homes a year are needed to stop our housing time- bomb exploding”

The Council of Mortgage Lenders says it has strengthened anti-fraud systems since the FSA review A spokesman said: “Lenders will reject any application that does not pass stringent anti-fraud controls.”

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Yesterday in the Express there were 2 pages saying that youngsters needed to get 35-40 year mortgages.

This paper is the s***

Oooh yes, I read this in the gym bar (just to emphasise that I would never buy this sh1te)...the article was despicable - it basically consisted of 4 case studies of young idiots who had recently ruined their lives by getting huge-term mortgages. Each person interviewed stated "I think young people nowadays are just resigned to get into huge debt" or somesuch piece of fatalistic, stupid nonsense - this sentiment was repeated FOUR times in the article (just to hammer it home!). Another classic piece of SH!T was one of the interviewees stating that "if I knew how much extra we are paying with a 40 year mortgage than a 25, I would probably cry".

WTF!!!!!>!!??!!! You mean you DON'T KNOW!?!?!?!?!? WTF!?!!?!?!??

But for me, the best was another stating that "It's all about getting the monthly repayments down by 50-100 quid...that pays for a nice meal or a couple of nights out"

Speeeeeechless!! F**king despicable!

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I so want a huge recession now. I don't care if it means I lose my job!

Why stop there? <_< Why not lobby a few rogue stakes to nuke London; that should bring the price of houses down nicely. Of course, the capital will be uninhabitable and millions will die, but a small price to pay for cheaper housing, eh?

I really can't believe that people on here actually want a recession. The cries of desperation on here are getting increasingly shrill.

Anyone still doubt why this site is viewed as an economic doomsday cult?

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Why stop there? <_< Why not lobby a few rogue stakes to nuke London; that should bring the price of houses down nicely. Of course, the capital will be uninhabitable and millions will die, but a small price to pay for cheaper housing, eh?

I really can't believe that people on here actually want a recession. The cries of desperation on here are getting increasingly shrill.

Anyone still doubt why this site is viewed as an economic doomsday cult?

Can you not see what a disaster this housing bubble is for the economy and for people too? Do you really think everything is OK and will be in the future?

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Anyone still doubt why this site is viewed as an economic doomsday cult?

It is true that a lot of stupid/mis-judged/ill-informed comments are made on this site, but you have to admit that the quality of the underlying argument is fairly good.

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It is true that a lot of stupid/mis-judged/ill-informed comments are made on this site, but you have to admit that the quality of the underlying argument is fairly good.

Yes, I agree; the quality of the debate (and the depth of knowledge of the posters) is generally excellent. But the site has attracted more than its fair share of head-bangers. Also I accept that the logic of a house price crash is (based on the evidence posted here) very hard to ignore. My point is that as we have got it wrong so far, is it time to reassess our views and ask why?

Mags - I take your point; the housing boom has been damaging to many people. But looking at it another way, the era of low interest rates and consumer spending helped the UK to grow throughout the downturn that blighted other countries in Europe earlier this decade. I am not suggesting that consumer spending should increase perpetually, but it was a vital temporary solution to keep the UK ticking over. Also, manufacturing would have spluttered to a halt without low interest rates; it is unfortunate, however, that the boom in house prices was a consequence.

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Why stop there? <_< Why not lobby a few rogue stakes to nuke London; that should bring the price of houses down nicely. Of course, the capital will be uninhabitable and millions will die, but a small price to pay for cheaper housing, eh?

I really can't believe that people on here actually want a recession. The cries of desperation on here are getting increasingly shrill.

Anyone still doubt why this site is viewed as an economic doomsday cult?

Recession now or depression later, you decide which you want. Manufacturing is being obliterated by rising costs. There will be nothing left to drag us out of the pit if the money men carry on in the current vein.

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Mags - I take your point; the housing boom has been damaging to many people. But looking at it another way, the era of low interest rates and consumer spending helped the UK to grow throughout the downturn that blighted other countries in Europe earlier this decade. I am not suggesting that consumer spending should increase perpetually, but it was a vital temporary solution to keep the UK ticking over. Also, manufacturing would have spluttered to a halt without low interest rates; it is unfortunate, however, that the boom in house prices was a consequence.

I do appreciate what you are saying, but the consequences of sacrificing the nation's housing for the sake of manufacturing have been too great for the country to handle. It was a gamble that simply hasn't paid off. Having practically a whole generation, possibly two and more, priced out of owning a home (when in a healthy economy they would have been able to buy) will cost the nation greatly when these people hit retirement and have to continue to pay rent they can ill afford. The social costs will be immense as every tax payer foots the bills of the nation's landlords. A few years of jolly consumer spending, debt accumulation and an artificial 'boom' in manufacturing will do nothing to cover the costs. The I'm alright Jack brigade will find themselves living in the stuff of nightmares as they cling on to their ill-gotten gains while others around them struggle, after a life time of real work, to keep a roof over their heads. Something has to shift - and all the signs are that it will - but the damage done by worshiping at the altar of manufacturing and low interest rates has been far worse for society in the long run than most are willing to contemplate. We have become a nation of ostriches.

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Also, manufacturing would have spluttered to a halt without low interest rates; it is unfortunate, however, that the boom in house prices was a consequence.

Youre assuming here that low interest rates ecourage manufacturing/busineses to invest - this is clearly no longer the case. It only encourages consumers to borrow and spend more.

Businesses have been sitting on large amounts of cash reserves as they saw no point in investing in Brown's miracle, which has allowed them to absorb rising costs/inflation. Now that the business 'fat' has been trimmed, they are now starting to lay off workers, and soon they will be forced to put up their prices.

You cant escape inflation, just move it around for a while till an economy is forced to deal with it

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You cant escape inflation, just move it around for a while till an economy is forced to deal with it

Absolutely. Just like any major issue facing a country. It has to be dealt with. At the moment we're not actually dealing with anything.

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Yes, I agree; the quality of the debate (and the depth of knowledge of the posters) is generally excellent. But the site has attracted more than its fair share of head-bangers. Also I accept that the logic of a house price crash is (based on the evidence posted here) very hard to ignore. My point is that as we have got it wrong so far, is it time to reassess our views and ask why?

Mags - I take your point; the housing boom has been damaging to many people. But looking at it another way, the era of low interest rates and consumer spending helped the UK to grow throughout the downturn that blighted other countries in Europe earlier this decade. I am not suggesting that consumer spending should increase perpetually, but it was a vital temporary solution to keep the UK ticking over. Also, manufacturing would have spluttered to a halt without low interest rates; it is unfortunate, however, that the boom in house prices was a consequence.

errrr, I'm confused. We've had the low interest rates and manufacturing IS spluttlering to a halt. Have I missed something about our manufacturing base?

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Youre assuming here that low interest rates ecourage manufacturing/busineses to invest - this is clearly no longer the case. It only encourages consumers to borrow and spend more.

JP1, a very common misconception. Manufacturers are competing with property developers/retail for land, it is a lot more profitbale to shut down and ship abroad to create some more lovely brownfield sites.

The chances of a new manufacturer starting up and competing in the world econmy with curret levels of rents/rates/startup costs and attracting staff at a globally competitive rate (when they need more money than nearly every other country in the world to simply live) are becomming almost non-existent.

Edited by OnlyMe

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The social costs will be immense as every tax payer foots the bills of the nation's landlords. A few years of jolly consumer spending, debt accumulation and an artificial 'boom' in manufacturing will do nothing to cover the costs. The I'm alright Jack brigade will find themselves living in the stuff of nightmares as they cling on to their ill-gotten gains..

You seem biased & looking for a scapegoat in the form of landlords. One major problem is that not enough dwellings have been built to cope with demand. You can't blame people for attempting to achieve financial freedom by getting up off their backsides also taking risks into the bargain and being subject to (large amounts of) tax - That's just what business generally is about

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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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