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lypsey

I Have Done My Small Part For Hpc

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This young lad who is 22 and earning 26k and was just about to move into a house worth 325k

http://boards.thisismoney.co.uk/tim/thread...;message=136602

I have persuaded him to think again . Hopefully another one to help the cause

Help your own cause maybe. But this may be his one and only chance of buying in London. It sounds as though he has done soem homework and is trying to find out more before taking the plunge.

I didn't have time to read the whole thread but if you have discouraged him from buying, are you in a better possition than him to speculate, ie you know all about Hackney.Or are you merely guessing because of evidence in a totally different part of the country.

If his Father wants to help him and is in a position to then that's up to him. If you honestly think you have helped him by discouraging him then fair enough. If it's because you don't want anyone to buy because it's "helps the cause" then that's plain selfish.

Edited some of my spelling mistakes :)

Edited by enworb

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Help your own cause maybe. But this may be his one and only chance of buying in London.

What a load of rubbish. How can "now be the only chance of buying". If a young graduate on a good starting salary is about to be priced out FOREVER, who the hell is going to buy these places??? If your answer is BTL then they are going to end up subsidising rents, cos if someone cant afford the mortgage, they cant pay rent that covers a mortgage either! If your counter arguement is that capital gain makes up the shortfall, well, that means they have to sell to a bigger idiot who is prepared to take an EVEN LOWER yield. This is a ponsi scheme and eventually MUST fail!

House prices cannot outstrip wage inflation forever or eventually we would all be living in houses (rented or bought) that would be 100 times gross salary. Under these circumstances an IR only mortgage with rates at 1% would take up the whole of someones gross salary!!!

This is simple maths.

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This young lad who is 22 and earning 26k and was just about to move into a house worth 325k

http://boards.thisismoney.co.uk/tim/thread...;message=136602

I have persuaded him to think again . Hopefully another one to help the cause

Good work. If that doesn't precipiate the housing crash, then frankly, I don't know what will. :rolleyes:

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It's an over-priced part of Hackney. Another area where the price has already been bumped up by the prospect of future developments (in this case, the E London line extension). What sonny boy doesn't realise is that he is crystallising the profit for the seller - the premium has already been priced in.

The same money will buy you a 3 bed house with garden in a leafy street where I live less than 2 miles away. This is where I would like to buy once circumstances are more favourable (ie houses are cheaper or my wage doubles!).

Of course, everyone has differenet priorities, but by being disinterested in the tube, I would be (at today's prices) saving myself around £80k! I think most of this is already lumped on top of the cost of that flat he's looking at.

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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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