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renter1

Felt Stupid For First Time

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Was at a gathering yesterday with friends and family. A group of us had the same mentality 3 years ago 'not buying, crash will happen etc' but gradually they have all come around to the 'it is never going to happen' mentality and have bought.

The topic of house prices cam up and the fact I haven't yet bought, they laughed and things like 'where is your crash', 'you will never buy at this rate' etc

I am being judged by the fact i have not chosen to buy, never mind the fact in the last 3 years I have worked hard on my career and earn far more than them but because they own thier ow home I am made to feel like a second class citizen.

I am feeling like a minority and just hope I dont end up with egg on my face and that there is a turn around in the market.

The question in my head is, is there a point we will all just have to admit it will not happen and buy - how long do you wait - my friends have already reached that point, bought and laughed at me.

Can I just point out i still think there will be a change in prices but am loosing the energy to argue with these people and am starting to doubt my own philosophy

????????

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You have sad friends and family if they actually laugh at, and mock you for not buying. I don't mean to offend you by that. I think you are doing the correct thing. Your time will come, possibly rather soon. (though i know you've been thinking that for a few years already)

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Was at a gathering yesterday with friends and family. A group of us had the same mentality 3 years ago 'not buying, crash will happen etc' but gradually they have all come around to the 'it is never going to happen' mentality and have bought.

The topic of house prices cam up and the fact I haven't yet bought, they laughed and things like 'where is your crash', 'you will never buy at this rate' etc

I am being judged by the fact i have not chosen to buy, never mind the fact in the last 3 years I have worked hard on my career and earn far more than them but because they own thier ow home I am made to feel like a second class citizen.

I am feeling like a minority and just hope I dont end up with egg on my face and that there is a turn around in the market.

The question in my head is, is there a point we will all just have to admit it will not happen and buy - how long do you wait - my friends have already reached that point, bought and laughed at me.

Can I just point out i still think there will be a change in prices but am loosing the energy to argue with these people and am starting to doubt my own philosophy

????????

It's sad that there are so many numpties willing to jump in and buy at such extortionate prices hence we have had no crash.

Why are there so many people willing to hand over £200K for a 1-bed flat that cost £50K less than 10 years ago? It's not a f**king collectors item

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Was at a gathering yesterday with friends and family. A group of us had the same mentality 3 years ago 'not buying, crash will happen etc' but gradually they have all come around to the 'it is never going to happen' mentality and have bought.

The topic of house prices cam up and the fact I haven't yet bought, they laughed and things like 'where is your crash', 'you will never buy at this rate' etc

I am being judged by the fact i have not chosen to buy, never mind the fact in the last 3 years I have worked hard on my career and earn far more than them but because they own thier ow home I am made to feel like a second class citizen.

I am feeling like a minority and just hope I dont end up with egg on my face and that there is a turn around in the market.

The question in my head is, is there a point we will all just have to admit it will not happen and buy - how long do you wait - my friends have already reached that point, bought and laughed at me.

Can I just point out i still think there will be a change in prices but am loosing the energy to argue with these people and am starting to doubt my own philosophy

????????

Totally agree. I have more 'net worth' than many of my friends, but they have their £200K houses and are driving around in Z3's on HP and I just feel totally poor compared to them. Just seems that being debt-free doesn't let you keep up with the neighbours.

Unless you live life 'for the day' though, its a long-term affair, so don't become short-sighted and give up if you still believe in the logic of things going pear-shape in the future.

Keep using your earning productively and wait for the Miracle Economy to show its true colours!

Good luck, AFP.

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You have sad friends and family if they actually laugh at, and mock you for not buying.

Have you met up with them since the interest rates went up?

Watch them squirm when you talk about interest rates rising and who knows how high they could go :lol:

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I considered STR about 2 years ago when our property was worth around £200,000. Just been valued at over £300,000.

Not saying there will not be a correction of some sort, but I am glad I didn't STR.

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every generation thinks that they will avoid the problems of their ancestors.

..and every generation is subsequently proved wrong. history is a lesson ignored.

i know how you feel, but try to remember that even if house prices and wage

growth were index linked - there is still a huge gap in mentality from this

generation to the previous one.

your parents would have still become asset rich without such high house price

increases because they usually ran their lives in such a way that their debts

were paid down through time. today, people have no intention of paying down

debt - they think HPI will erode that debt without ever needing to service it.

in fact, people now tend to do the opposite of what would be sound financial

strategy. rather than use the affordability that low interest rates provide to

increase payments and shorten the life of the debt term - they withdraw equity

from their houses, effectively short selling their only asset which is actually

increasing. this is clearly a losing strategy and will be proved so.

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Guest Bart of Darkness

Don't sound like very nice friends to me! :unsure: By the way, which EA do you work for then?

:lol:

You have sad friends and family if they actually laugh at, and mock you for not buying. I don't mean to offend you by that. I think you are doing the correct thing. Your time will come, possibly rather soon. (though i know you've been thinking that for a few years already)

You can't chose your family fair enough, but those "friends" sound like nasty c*nts to me.

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I am being judged by the fact i have not chosen to buy, never mind the fact in the last 3 years I have worked hard on my career and earn far more than them but because they own thier ow home I am made to feel like a second class citizen.

That pretty well sums things up.

It´s a pretty t!ts-up (or should that be t!ts-down) society if the ultimate objective is to own a home and exclude everyone else.

A flourishing society is one where people are productive and innovative - with bright talent rising up the career ladder.

Innovation today is a home makeover and productivity a trip to the local DIY shop.

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It's not a f**king collectors item

Some properties are exactly that. Have you not noticed how the rich and famous collect houses these days, just to beat the competition to a nice pad with a good postcode.

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I considered STR about 2 years ago when our property was worth around £200,000. Just been valued at over £300,000.

Not saying there will not be a correction of some sort, but I am glad I didn't STR.

What will you do if prices start to slide?

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It may be a waste of time to argue with those that have accepted

the No-Crash-yet-means-No-Crash-ever mentality. zThey gave up on thinking long ago.

You could say:

+ Look what I have done with the money that I saved by renting (and metion commodity investments, if you have those- chances are they have outperformed property,

Dr B

Margin loans for most investors are not easy to come by and so to get into commodities it'sa pure equity play. A BTL mortgage can provide easily accessible gearing. Many of the discussions to date comparing yields (like this one with commodities... again) have not taken gearing into account and have been very misleading.

If gearing, even at a modest level (~2:1 D:E) is taken into account, property has had a rather better year compared with ungear performance. Add to that the volatility on other markets, and I suspect that property is as much on the efficiency frontier for an investor as any of the other investment classes that have been touted here.

Just depends on your risk profile.

Edited a wee bit for clarity

Edited by Lionel Richtea

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I wouldn't bother about family's opinions. Even despite last article from Money Week (no crash...yet).

The answear lies in fundamentals.

1.UK has huge trade deficit. So, generally, whole country is consuming more than selling (goods, services). Trade deficit is euqal to circa 5-6% of GDP. Even deficit euqal to 3% is seen as dangerous.

Of course, such deficit means, that the country has to borrow.

2. Salaries growth in the UK is barerly higher than inflation. So, house prices inflation has no support in real incomes.

3. Present stability in UK house prices has basis only in poor lending standards. Some lenders even borrow 7x salary - what was impossible couple year ago.

4. Repossesion/insolvency statistics are skyrocketing.

5. Points 3 and 4 are really devastating when taken together. Despite soaring bad credits, lenders are prone to lend more with smaller security...

Obviously, there is no basis for any inflation of house prices, moreover, sooner or later those prices have to drop violently.

Bank of England will try to postpone this crash (I have to admit, BoE is much better in this job than FED), but it is impossible to disagree with fundamentals for long time. Than longer present situation will persist, than severe crash will occure.

Usually crash is a bit later than its predictions -for instance Duncan timed Asia crash on 1993, crash occured in 1997.

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Chin up. It will all fall apart like a cheap suit. Only question is when. With IR rises coming up sooner rather than later I'd say.

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I considered STR about 2 years ago when our property was worth around £200,000. Just been valued at over £300,000.

So you paid £500 for an impartial survey. No? It was an EA. So it simply MUST be worth £300k then. :angry:

And who valued it in 2004 also? Where is it? Not many have risen 50% in 2 years - if any!

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thanks for your words of support. It all makes sense - in fact the crash shouls already have happened.

Can the Boe keep up the balancing act forever? What if they just continue to put up slighlty and drop again for another few years - What else could be a big enough trigger?

Oh and I don't work for an estate agent :lol: - fortunately im educated and not a glorified secondhand car sales person although I can't help but think that would have been a profitable career over the last few years!!

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I considered STR about 2 years ago when our property was worth around £200,000. Just been valued at over £300,000.

Not saying there will not be a correction of some sort, but I am glad I didn't STR.

I STR'd nearly 2 years ago, the property sold for £165k, one up the road sold recently.... for exactly the same price. In that time my money in the back has grown (let alone the amount of money I was able to free up and save by being debt free)

Not saying there will not be a correction of some sort, but I am glad I STR'd before it was too late.

Edited by gilf

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If you dont think there will be a correction why did you STR and now on this site?

You're reading into his words. He didn't give his opinion on corrections, he merely pointed out that he's not saying there will be a correction (similarly, he is also not saying there will not be a correction).

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trickster - where is your house that has gone up by 50% in two years?

I sold in August 2004. The buyers since sold again in May 2006 - for exactly the same price. And this is Scotland where the market is supposedly roaring ahead. Like everywhere, there are ceilings even with easy lending like it is today.

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  • 331 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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