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Ftbyers Buy Now - Dont Wait Any Longer.


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In 2004 when I before I bought my home, I asked people should I buy now or wait until a crash. Everyone told me to wait.

I dont like doing what I am told, so I bought my home for £195,000. I got a survey done for my will and the report came in yesterday, the house is valued at £265,000. Thats an increase of £70,000 equity. Taking into account any future crash or correction, even if it was to happen today I would lose £70,000 thats not mine until I sell anyway, i would not lose any money on the purchase price.

My advice to FTB is you can wait and keep on waiting and the house prices are just going to keep rising. Others on here will disagree as I expect them too, thats their point of view. My view is based on the evidence around me.

Now that interest rates are on hold, expect prices to keep on climbing, are you being left behind on affordability.

I know for fact I cannot afford to get a mortgage for the house I live in, if I bought it at todays prices. Thats one decision I made that paid off.

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In 2004 when I before I bought my home, I asked people should I buy now or wait until a crash. Everyone told me to wait.

I dont like doing what I am told, so I bought my home for £195,000. I got a survey done for my will and the report came in yesterday, the house is valued at £265,000. Thats an increase of £70,000 equity. Taking into account any future crash or correction, even if it was to happen today I would lose £70,000 thats not mine until I sell anyway, i would not lose any money on the purchase price.

My advice to FTB is you can wait and keep on waiting and the house prices are just going to keep rising. Others on here will disagree as I expect them too, thats their point of view. My view is based on the evidence around me.

Now that interest rates are on hold, expect prices to keep on climbing, are you being left behind on affordability.

I know for fact I cannot afford to get a mortgage for the house I live in, if I bought it at todays prices. Thats one decision I made that paid off.

you are an asshole

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In 2004 when I before I bought my home, I asked people should I buy now or wait until a crash. Everyone told me to wait.

I dont like doing what I am told, so I bought my home for £195,000. I got a survey done for my will and the report came in yesterday, the house is valued at £265,000. Thats an increase of £70,000 equity. Taking into account any future crash or correction, even if it was to happen today I would lose £70,000 thats not mine until I sell anyway, i would not lose any money on the purchase price.

My advice to FTB is you can wait and keep on waiting and the house prices are just going to keep rising. Others on here will disagree as I expect them too, thats their point of view. My view is based on the evidence around me.

Now that interest rates are on hold, expect prices to keep on climbing, are you being left behind on affordability.

I know for fact I cannot afford to get a mortgage for the house I live in, if I bought it at todays prices. Thats one decision I made that paid off.

All together now:

AAWWWWWOOOOOOOGGGGGAAAAAAAAAA :lol:

That has got to be one of the worst posts I have ever seen. Do you really think that is gonna make people with a brain go out and get mortgaged up to the max for 25 years or more??

Fool.

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The decision has been taken from most of us at this point - though I agree that asset prices will continue to rise

Buying at this point would be financial suicide for many - the only people to benefit would be the bankers when we defaulted on our loans

IIRC that's how the fiat system works - everyone can't pay back the principal+interest (there isn't enough money in the system) - some of us HAVE to default to keep the system rolling

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All together now:

AAWWWWWOOOOOOOGGGGGAAAAAAAAAA :lol:

That has got to be one of the worst posts I have ever seen. Do you really think that is gonna make people with a brain go out and get mortgaged up to the max for 25 years or more??

Fool.

If they want a home. Yes !

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I know for fact I cannot afford to get a mortgage for the house I live in, if I bought it at todays prices. Thats one decision I made that paid off.

So there you have it. You've said yourself you wouldn't be able to afford it now. Lots of us haven't been able to afford a place for quite some time. What a pointless post.

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Buying at this point would be financial suicide for many - the only people to benefit would be the bankers when we defaulted on our loans

Not buying at this point, they will look back in 2 years when prices will be even higher and affordability will be off the chart, and say "I wish I bought in 2007".

I couldnt afford to buy my house if I came today, not to even think of what it will be worth in 2 years time. I dont think prices will crash enough to make me regret my decision to buy in 2004.

The door is closing on affordable house if it is not already shut. Look at "Homeless", A bitter, angry sad little man, hoping the BNP will come to the rescue and save him from being pricedout. :lol:

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the bears in this forum are getting more and more despondent and quite understandably.........This is the nature of bubbles in asset markets.......When no-one expects a correction (when the last bear turns bull) it will come!

Silly things start happening prior to a peak such as people who should know better telling priced-out FTBs to buy abroad to ''get on the ladder''............

Another thing is how when people (especially the VIs) compare the current situation with the past they conveniently ignore the effect of MIRAS......

CTT and CO will know the exact figures but in the 1970s the basic rate of income tax was 33% and in the 80s it was 25%..........Interest-only mortgages weren't really available then but MIRAS had the effect of making 1973s 15% IRs effectively 10%..........and the 15% of the late 80s only 11.25%....1981 similar........

Also you have to remember that the 15% IRs were only there for very short periods.....Most of the 70s and 80s i think Irs were about 9 or 10% which is almost as low as now after allowing for MIRAS

Edited by Michael
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The door is closing on affordable house if it is not already shut.

Yeah, right. No productive worker in the UK will ever be able to afford to buy a house at any point in the future.

Now I presume you're going to tell us who's going to buy houses that no-one can afford to buy and who's going to buy the houses when they come to sell. And what they're going to do when a generation of kids get fed up with being priced out of the market and decide to riot in the streets and burn them down.

Oh, no, I didn't think you would.

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i would just like to add, this fellow has had 80 odd posts in which 90% have been insulting, ignorant or plain trolling bull.

check and see for yourselfs.

come on mods do your job

i can see a new avater coming your way nomoney

why call yourself nomoney anyway is this becuase your struggling to pay your mortgage?

Edited by homeless
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Everyone is entitled to their opinion - no one really knows what's going to happen to house prices in the next 10 years. Maybe you will have to spend £1m in a few years time to buy a studio flat in a council tower block in Dagenham. Alternatively there may be a stock market crash or a dirty bomb in the City which brings on a deep recession and a fall in asset values.

Either way it doesn't help potential FTBs on average salaries now who need seven times salary mortgages just to buy a one bed flat in a crummy area.

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Its a case of cause and effect. The housing bubble has been growing bigger because of the availability of easy, low rate credit. The reason why we have not seen a house price crash yet is because the finance companies and banks have introduced counter measures such as different mortgages that can be paid at lower rates but over longer periods and the buy to let market replacing first time buyers. Please feel free to correct me, but I doubt there were as many BTLers in the last crash.

In June the Home Information Packs will roll out and be compulsary, this means the few buyers around will be able to sum up a house before making that offer.

There are a lot substandard housing around, noone else has to tell you that, but the deffects on the house will be a good area for buyers to haggle over the price forcing it in one direction DOWN.

It only takes a few knocks and as "Charlie the tramp" has said already its a pack of cards.

You posted this 4 days ogo :rolleyes:

Ole! :P

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The decision has been taken from most of us at this point - though I agree that asset prices will continue to rise

Buying at this point would be financial suicide for many - the only people to benefit would be the bankers when we defaulted on our loans

IIRC that's how the fiat system works - everyone can't pay back the principal+interest (there isn't enough money in the system) - some of us HAVE to default to keep the system rolling

To keep the system going someone has to borrow money from a bank who magics it from nothing, this money, ultimatly, as it works its way through the system will pay any outstanding interest, if however there is an overall reduction in borrowing, either individual for housing or consumption or for capital investment then we will end up in the situation as you described, not enough money to make the system work, we are not in that situation yet. This is the boom and bust that is deliberatly built into the system, this is also why it doesnt matter which side of politics is in power, the outcome will always be the same, repeated every few years.

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Its time to make spread your wealth no matter if it is 50p or £5 million. I think we are in for a rocky financial ride soon and the housing market is just the start of it. I am old enough to remember the last recession and that was sucked, I am not going through that again.

And you posted this 2 days ago :rolleyes:

Ole! :P

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the bears in this forum are getting more and more despondent and quite understandably.........This is the nature of bubbles in asset markets.......When no-one expects a correction (when the last bear turns bull) it will come!

Silly things start happening prior to a peak such as people who should know better telling priced-out FTBs to buy abroad to ''get on the ladder''............

Another thing is how when people (especially the VIs) compare the current situation with the past they conveniently ignore the effect of MIRAS......

CTT and CO will know the exact figures but in the 1970s the basic rate of income tax was 33% and in the 80s it was 25%..........Interest-only mortgages weren't really available then but MIRAS had the effect of making 1973s 15% IRs effectively 10%..........and the 15% of the late 80s only 11.25%....1981 similar........

Also you have to remember that the 15% IRs were only there for very short periods.....Most of the 70s and 80s i think Irs were about 9 or 10% which is almost as low as now after allowing for MIRAS

When I bought in 1975 the mortgage IR was 11% with tax relief of 33% this equated to 7.7%. The relief was capped, and over the years up to its demise, it pretty much withered on the vine, since the cap was not raised in line with HP inflation.

Of course, since starting tax rates were 33%, one could argue that take home pay was less than today, when the starting tax rate is 10%.

The best indication of relative affordability I've seen is on this graph, which allows for MIRAS.

http://www.wenty.co.uk/reference/zak312.html

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Not buying at this point, they will look back in 2 years when prices will be even higher and affordability will be off the chart, and say "I wish I bought in 2007".

This is really pointless - it does not make the blindest bit of difference whether prices multiply by 10 in the next 2 years, that is not going to suddenly make people able to purchase today! If they cannot afford it, they cannot afford it. Simple. What happens in the future cannot change the past.

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I am an asshole, but I am not a homeless asshole.

No you are a debt ridden asshole. Who probably will never have kids because buying a house at an over inflated house means cannot

afford them to feed any offspring.

Edited by E Powell
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When I bought in 1975 the mortgage IR was 11% with tax relief of 33% this equated to 7.7%. The relief was capped, and over the years up to its demise, it pretty much withered on the vine, since the cap was not raised in line with HP inflation.

Of course, since starting tax rates were 33%, one could argue that take home pay was less than today, when the starting tax rate is 10%.

The best indication of relative affordability I've seen is on this graph, which allows for MIRAS.

http://www.wenty.co.uk/reference/zak312.html

are you trying to say houses were as expensive then as now?

what are we all doing then?

we must be spunking our money on ipods.

I think time is clouding your judgement, just becuase its nice and easy for you now, but the ftb ffigures speak for themselves.

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some of us HAVE to default to keep the system rolling

no, as long as fiat expands constantly no one has to default.

on top of that, that statement also relies on the banks/bankers hording their money, when in fact it is likely they will spend it on something

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