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I've Lost £150k Waiting For This Crash!


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Guest Charlie The Tramp

I will tell you a sad story of a great loss.

The wife and I found a period property in Suffolk in 1996 asking £90k. We could have purchased it for cash.

It had a drive under and through to the courtyard with additional outer buildings and stables, you could hear the sound of the horse`s hooves on the cobblestones from the arrival of the coach from London on its way through to Gt Yarmouth.

After careful thought and the possibility of high maintenance costs we decided against it.

It was sold in 2004 for £600k. :(

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Had we stolen a few grand in 2002, my then girlfriend, now wife, could have bought a one-bed in London. It would have gone up about 70k (from 130K) in the intervening period.

We couldn't have held on to it, as it was too small to have a baby in. Owning it would not have helped us buy a bigger place as yes, the rungs between ladders have grown too much. I guess 50-70K would be fun to have in the bank, but then we don't have to time to muck about property speculating as we have proper jobs and community commitments.

The idea that house prices will go up about 250% then fall about 5% is a complete nonsense. If they never fall in this "new era" then this country is completely screwed and we'll take our skills and shove off elsewhere. But I can't see that happening as BTl is no longer workable, IRs are going up, and people are waking up to what a complete sham HPI has been.

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Guest DissipatedYouthIsValuable
I CAN DO BETTER THAN YOU - I've lost 9 squillion quid waiting for the stock market to crash booodeeehoooo

NahNahNah Nah Nah

I had the last breeding pair of dodos in my outside toilet until 1989. I thought they were Welsh chickens. I ate them for Easter....

Just think what they'd have been worth?

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Guest Bart of Darkness

I think this thread could form the basis of a HPC.co.uk version of "Sliding Doors".

In one version, Realty Cheque (played by Nick Frost) buys in 2002, and now has £130k of equity to show for it. He MEWS for lots of luxury trinkets, including a gym membership for his wife. Here she meets hunky Lothario Dave (Orlando Bloom) and decides to run off with him. Realty Cheque is taken to the cleaners in the divorce and loses his house. He retains custody of his 7 year old son who asks dad "why don't you own your own house?" Realty Cheque slaps him.

In the alternate version, Realty Cheque doesn't buy the house. He sees its value increase over the years, not realising that prices can down as well as up. He goes on an internet forum and blames perfect strangers for his own actions. His 7 year old son asks him "why don't you own your own house?" Realty Cheque slaps him.

the_slap_final2.jpg

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I'm pleased this post has caused such a reaction.

There are some benefits for us not buying, so it's not all negative.

We only pay £450 a month rent for a 2 bed ground floor flat, in an area where people pay a 20% premium on property prices to be in the school catchment area. I can walk home from a night on the tiles in the West End too.

As a home is most peoples main asset, it's hard not to see it in monetary terms. I only see it as a loss as I will have to borrow that much more to buy that luxury called a home of my own. I don't want to rent forever. My rent increases inline with inflation every year, mortgage payments (including interest) on the other hand and despite interest rate increases, reduce by the rate of inflation every year.

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"I've Lost £150k Waiting For This Crash! "

thanks for letting us know that you are a property-obsessed "genius",

and dont have the knowledge and imagination to find better investments

Why the nastiness?

Maybe I should have been "property-obsessed" and just gone for it.

I would prefer to own my own place as my landlord won't let me paint the outside pink or let me clad my living room ceiling in pine tongue and grove.

And please let me know where I can get a 100% mortgage to buy some gold shares too.

Edited by Realty Cheque
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The £130k property that I almost bought back in 2002 is now worth £250k.

Add the £30k I've spent in rent, that equals £150k and I'm gutted!

On top of that my 7 year old has asked me why we don't own our own home!

I can't bring myself to tell him it's because I'm a dumb a$$.

Anyone feel the same?

You have not lost 150k but are 150k further from owning your own home. Which is a bugg.r

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Why the nastiness?

Maybe I should have been "property-obsessed" and just gone for it.

I would prefer to own my own place as my landlord won't let me paint the outside pink or let me clad my living room ceiling in pine tongue and grove.

And please let me know where I can get a 100% mortgage to buy some gold shares too.

what is the avatar ? hope you are being ironic, the nazis were masters of destruction not construction just like

todays americans.

Edited by kenclarkesshoes
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The £130k property that I almost bought back in 2002 is now worth £250k.

Add the £30k I've spent in rent, that equals £150k and I'm gutted!

On top of that my 7 year old has asked me why we don't own our own home!

I can't bring myself to tell him it's because I'm a dumb a$$.

Anyone feel the same?

Still plenty of time to ride the house price gravy train mate. After all, prices only go up. We're looking at a "soft-landing" at worse.

Hundreds of millions of polish people are flooding in taking out jobs and our Houses. Interest rates are historically low.

Unemployment is low. Estate agents and banks all confirm this to be ABSOLUTELY TRUE.

Go on. Buy your self 6 houses. You can't fail to turn a profit. Go on mate. Go on.

;)

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=> to spell it out plainly - you haven't LOST the £120,000 the house would have gone up in value, you simply haven't STOLEN £120,000 from another human being. Ignoring that, you wouldn't actually MAKE money uless you sell the house at a profit and go back to living in a rental property. Even then you would have had £120,000 less £40,000 tax and c£10,000 costs....

Hmmmm! Stolen from another human being....???

A little extreme...!

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You know I think the original post is a fair enough comment. For anyone that is new to the board then bare these comments in mind.

1) This is only a chat board. Do not take anything disscussed here as professional financial advice.

2) If you are buying a house for a home then: Make sure you would be happy living there for 5 years +. Make sure you can afford all the associated living costs if interest rates go up by 4% and get either a long fixed rate or an offset mortgage that you can overpay into. In this situation there is no reason not to buy and get on with your life.

What I will say is that most things that are being predicted here seem to be happening at a really really really slow pace.

There seem to be a couple of things holding the market up: Cheap credit, BTL Speculation and public sentiment. Now the credit is starting to tighten which is makeing the speculation market dry up. This will have a knock on effect as only FTB will be left to hold the market up and most have been priced out a long time ago. Can shared ownership go any less than 17.5% before people think WTF?

Its had a good bull run but the press can see it finishing and is turning bearish, I would imagine they are itching for some new headlines. This is what will finally change public sentiment.

Personally I did think there was going to be a crash in 2004 but I brought a property that needed a lot of work which I have just about completed. This meant that I didn't buy something that was over priced and have now hedged myself against a crash to around the %50-%60 mark. I did sell a flat around that time which I now regret and a flat last year which I am hoping not to regret :lol: I am now happy playing a waiting game with a nice lump sum a good deal of equity.

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Why the nastiness?

Maybe I should have been "property-obsessed" and just gone for it.

I would prefer to own my own place as my landlord won't let me paint the outside pink or let me clad my living room ceiling in pine tongue and grove.

And please let me know where I can get a 100% mortgage to buy some gold shares too.

I think one of the reasons for the nastiness is probably that allot of respondents here share your pain as well, and so are letting of steam about it.

Probably been telling many people not to buy for the last 3 or 4 years - yeah good advice :rolleyes:

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Guest wrongmove
Yeh, but you're not on a website that is telling you not to buy lottery tickets are you? You're on a website telling you not to buy houses.

While I agree that the lottery analogy is silly, this website is not telling people not to buy houses IMHO.

Certainly most of the posters here are telling you that, but they are not, in general, financial experts, and their advice is not legally binding. Anyone who bases maybe the biggest financial decision of their life on anonymous posts on a single issue website, rather than on their own careful research, is mad.

I believe that this website can form an important part of that research, but we on HPC are VIs as much as the EAs, lenders etc, so our posts to be treated with as much skepticism as their press releases, IMHO.

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The £130k property that I almost bought back in 2002 is now worth £250k.

Add the £30k I've spent in rent, that equals £150k and I'm gutted!

On top of that my 7 year old has asked me why we don't own our own home!

I can't bring myself to tell him it's because I'm a dumb a$$.

Anyone feel the same?

Over that period the average home owner would have burnt at least 4K per year in property improvements just to keep pace with a MEW propelled HPI index which does not factor in any quality adjustment.As previously mentioned the rent is not a factor because an interest only mortgage would cancel the rent out goings.I reckon you have lost 100K at best,and hopefully inroads will be made into that come a correction.

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The £130k property that I almost bought back in 2002 is now worth £250k.

Add the £30k I've spent in rent, that equals £150k and I'm gutted!

On top of that my 7 year old has asked me why we don't own our own home!

I can't bring myself to tell him it's because I'm a dumb a$$.

Anyone feel the same?

My ex-neighbours had a kid about the same age as your's, used to play with all the other kids in the street all the time, I wonder what questions she's asking her parents now? ... http://www.housepricecrash.co.uk/forum/ind...showtopic=48814

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Guest Bart of Darkness
This is only a chat board.

Exactly, and one that didn't even exist in 2002.

Yeh, but you're not on a website that is telling you not to buy lottery tickets are you? You're on a website telling you not to buy houses.

[a] No one is forced to come here. If you should choose visit a site call Housepricecrash, don't be too surprised to find bearish sentiments there.

Individual posters may advise against buying a house, but I can't recall getting a PM from Webmaster or FUBRA "telling" me not to buy. The reason I can't recall that is that it didn't happen.

[c] This site didn't exist in 2002 when the OP made his decision.

Strange as it may seem (and I realise that this sentiment is out of step with modern times) sometimes you are responsible for your own actions. Sometimes you can't transfer the blame to someone else and convince yourself that it was all someone's fault that A or B happened.

Anyone who bases maybe the biggest financial decision of their life on anonymous posts on a single issue website, rather than on their own careful research, is mad.

Or incredibly easily led. In which case they'd better avoid the internet altogether.

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What makes you so certain? US house prices are crashing and they have 'low' interest rates and their houses are about half the price of UK property (a sobering thought indeed).

Well you probably talking about Florida, which attracted 1000's of overseas investors, everyone knew it would crash. The UK might see a small drop but not a crash. Even properties over the channel are now comparative to UK prices, small houses in rural france are likely to fetch 130,000 euros. A crash is very unlikely.

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..small houses in rural france are likely to fetch 130,000 euros. A crash is very unlikely.

Umm thats still only £80,000. You'd be hard pressed to find anything in the UK for that amount. There is still plenty around in france for much less than €100,000.indeed even half that if you are prepared to work on them.

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Even properties over the channel are now comparative to UK prices, small houses in rural france are likely to fetch 130,000 euros.

Wot like this one for 127 800 euros and nearly 1,000 sqM of garden?

These are ASKING prices on UK touting sites, go to the local notaire and it is a different kettle of fish. Tap up the local land/property holding farmer and you'll still likely pick up some thing for a 1/10th of the UK price equivalent for a doer upper.

ERMEL5012.jpg

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