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Realistbear

R I C S: Market Worst For Ftbs For 20 Years

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http://www.yourcounty.co.uk/businessnews/f...rs020906b1.html

Now is the worst time to be a first time house buyer in 20 years
, according to the Royal Institution of Chartered Surveyors (RICS), and the situation is only going to get worse!
While homeowners looking to sell property will welcome RICS' prediction of a
10 per cent rise in house prices over the next two years;
it's more doom and gloom for those still trying to scrape together the deposit for their first home.
Over the past ten years, the rise in house prices has been so pronounced that accessibility to the market is almost
300 percent worse today than in 1996
and currently as low as the weak levels experienced in 1980. A first time buyer couple will now have to save up to the equivalent of 74 percent of joint take home pay, to build up the £29,200 needed for up-front buying costs on a typical home, deposit and stamp duty. This equates to a substantial rise from the low point of 25.2 percent required in 1996.

If Gordon can keep the Miracle Economy going where IR rates drop, if borrowing remains cheap, unlimited and extended to marginal borrowers, if unemployment reverses itself and improves, if the trade deficit reverses itself and improves, if oil prices drop to $40bbl, if the US cancel the recession and the houseing crash in progress and if pigs fly.........................

Edited by Realistbear

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http://www.yourcounty.co.uk/businessnews/f...rs020906b1.html

Now is the worst time to be a first time house buyer in 20 years
, according to the Royal Institution of Chartered Surveyors (RICS), and the situation is only going to get worse!
While homeowners looking to sell property will welcome RICS' prediction of a
10 per cent rise in house prices over the next two years;
it's more doom and gloom for those still trying to scrape together the deposit for their first home.
Over the past ten years, the rise in house prices has been so pronounced that accessibility to the market is almost
300 percent worse today than in 1996
and currently as low as the weak levels experienced in 1980. A first time buyer couple will now have to save up to the equivalent of 74 percent of joint take home pay, to build up the £29,200 needed for up-front buying costs on a typical home, deposit and stamp duty. This equates to a substantial rise from the low point of 25.2 percent required in 1996.

If Gordon can keep the Miracle Economy going where IR rates drop, if borrowing remains cheap, unlimited and extended to marginal borrowers, if unemployment reverses itself and improves, if the trade deficit reverses itself and improves, if oil prices drop to $40bbl, if the US cancel the recession and the houseing crash in progress and if pigs fly.........................

Translation of RICS PR wibble: "Buy now before its too late"

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"If the housing market is to become more accessible, lenders must continue to offer generous funding levels, and the government should, out of necessity, promote a significant increase in the housing stock. The government must act to create more social housing and tackle the problem of NIMBYism in the countryside - by building affordable housing for key local workers. The financial pressures of up-front buying costs and rising energy prices will continue to create a 'have - and have not' property society."

What a load of rubbish.

The reason we have HPI is because lenders have been over generous with funding. The - opposite - of what this clown (chartered surveyor) is parroting.

More levels of funding = Rampant house price inflation.

Lower levels of funding = Speculators exit the market as capital appreciation is no longer there.

Edited by Pluto

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Yeah its certainly tough to be a FTB now, but then life is always gonna be tough, I was quite determined and knew what I wanted, check out my FTB story, and got there with a lot of work. I was simply fed up with renting and wanted the security of owning my own place, once youve been forcibly evicted on a landlord's whim the idea of raising your kids in a rented house is just not viable! The economic factors werent so important, losing money isnt that scary for me, at the end of the day if prices come down it just means I can move up the ladder easier, a big deposit will protect me from negative equity. Id say if anyone else is trying to buy their first house, do it if thats what you want, money isnt everything in life, to me the security of a stable home is worth any price!

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Yeah its certainly tough to be a FTB now, but then life is always gonna be tough, I was quite determined and knew what I wanted, check out my FTB story, and got there with a lot of work. I was simply fed up with renting and wanted the security of owning my own place, once youve been forcibly evicted on a landlord's whim the idea of raising your kids in a rented house is just not viable! The economic factors werent so important, losing money isnt that scary for me, at the end of the day if prices come down it just means I can move up the ladder easier, a big deposit will protect me from negative equity. Id say if anyone else is trying to buy their first house, do it if thats what you want, money isnt everything in life, to me the security of a stable home is worth any price!

Precisely , its exactly what i did too. You can do it if you really want to . Buying for the first time is tough and takes years to save if you have no money to start with, esp when prices are high. But its great when you've done it, i wouldnt go back renting for a second.

People should realise this. Also many people get help with their first house purchase from relatives, most people i know were given money to start off with, so yes the RICS is right to say its not that easy to get on the ladder but of course the reality is most people have family who can help with that first deposit , its the way things are. But don't be bitter, just save your pennies!

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Yeah its certainly tough to be a FTB now, but then life is always gonna be tough, I was quite determined and knew what I wanted, check out my FTB story, and got there with a lot of work. I was simply fed up with renting and wanted the security of owning my own place, once youve been forcibly evicted on a landlord's whim the idea of raising your kids in a rented house is just not viable! The economic factors werent so important, losing money isnt that scary for me, at the end of the day if prices come down it just means I can move up the ladder easier, a big deposit will protect me from negative equity. Id say if anyone else is trying to buy their first house, do it if thats what you want, money isnt everything in life, to me the security of a stable home is worth any price!

How can you move up the ladder easier if prices come down? Or is your house immune to coming down in price? That's pretty impressive.

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How can you move up the ladder easier if prices come down? Or is your house immune to coming down in price? That's pretty impressive.

Owns a 200K house next rung 400K (difference 200K)

Prices slip by 25%

Owns 150K house next rung 300K (difference 150K)

Now you have to find 50K less. Obviously this is assuming that both houses fall the same!

Edited by OzzMosiz

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Owns a 200K house next rung 400K (difference 200K)

Prices slip by 25%

Owns 150K house next rung 300K (difference 150K)

Now you have to find 50K less. Obviously this is assuming that both houses fall the same!

usually the cheaper the more it rises in good times and falls in bad times. Which makes senses as people usually buy they best they can afford.

I think that is very tough for FTBs now the problem is NIMBY liberalism. Lots of people want unlimited immigration (or vote for the big 3 that want this) and don't want housing built near them.

Then again most FTBs voted Tory (who want unlimited EU immigration) or Lib Dem or Labour and so are partially for this state of affairs so can't complain. They could have voted UKIP but didn't :)

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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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