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RosscoPK

Will It Never End?

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Gordon Brown astounds me, he really does.

In 1997 he pledged that he would not allow House Prices to spiral out of control. I think we all know the response to that one!

I was recently looking at properties around my area, a small studio flat - all I can realistically afford. I set my maximum price at 90,000 and found three properties listed at 74,500. Small 1-2 bed flats, less than 3.5x my salary. I found myself seriously considering the idea; until I read the small print at the bottom of the page.

All three were 50% shared ownership. 145,000 for a 1-2 bed flat! My jaw dropped to the floor.

On the BBC news site, an article drills the point further with a report on the burden FTBs are facing by stating that they are now having to seriously over-stretch themselves in order to get onto the property ladder (article).

With IRs threatening to rise further, I find myself asking why the hell the government has let it get to this state. Mr Brown talks out his rear-end about his plans for 'Brown Towns', Stamp-Duty excempt Zero-Carbon emission homes and the like. This is all very well and good, but about about properties outside Cloud-Cuckoo land?

How about increasing the threshold on Stamp Duty or, better yet, scrapping it altogether!

How about building new AFFORDABLE homes and houses that are aimed at FTBs, that are BANNED from the BTL brigade?

I'm not interested in Luxury Shoebox Apartments - every time I drive past a new building apartment block my first thought is to wonder how quickly the BTL or Property Speculator brigade will snap them up. Or indeed, how many of them will be left vacant - owned or otherwise?

All these high prices seem to be doing is rewarding those who bought their homes pre-1999 and completely shafting the next generation - i.e. people like me. When will this madness stop?

Sorry for the waffle, Maybe I'm missing the point somewhere along the line, but I'm just so frustrated with these ever increasing prices!

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With IRs threatening to rise further, I find myself asking why the hell the government has let it get to this state.

Because rising house prices are an easy way to buy election wins. Of course the crash after this boom is going to make Labour unelectable and probably destroy the party for good.

How about increasing the threshold on Stamp Duty or, better yet, scrapping it altogether!

And increase house prices as a result?

There are three things that will rapidly reduce house prices: higher interest rates, lending restrictions and elimination of planning restrictions. Stamp duty changes will increase house prices since people will be able to spend more money on the house.

Edited by MarkG

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Guest Charlie The Tramp

Well we now how have the clever sting, an anecdotal.

Couple in an Inner London Borough sell their 3 bed terrace ( £45k in 1996 ) for £325k. They want to move to a quiter outer area to escape their own crime ridden area.

Visit an EA to go on his books and indicate what their limit is, but no properties were available at the time.

In comes a seller with the ideal property for them, knowing that their type of property was selling in April for £245k ( LR )and they ask that price.

The EA says we are now looking at £290k and I believe we have a potential buyer for you at that price.

The couple view the property, like it, and thinking they have a bargain and that these properties are in short supply agree asking price.

Well seller is happy and the buyer has £35k to pay all the expenses.

Bl**dy unbelievable. :blink: If it goes on at this rate I will be forced to STR. :D

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Guest Cletus VanDamme
Couple in an Inner London Borough sell their 3 bed terrace ( £45k in 1996 ) for £325k. They want to move to a quiter outer area to escape their own crime ridden area.

Makes me wonder what sort of crime-ridden-area loving buyer bought the place for 325K. Can only have been a BTL, probably will divide the place into 2 flats.

I've never understood the concept of high-priced crimeholes. The whole point of crap areas is that they should be cheap.

But then the same goes 1bed flats built on industrial estates or ringroads. No one would mind them being there if they cost 40K. But people queue up to pay 250K for them. Mad.

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Makes me wonder what sort of crime-ridden-area loving buyer bought the place for 325K. Can only have been a BTL, probably will divide the place into 2 flats.

I've never understood the concept of high-priced crimeholes. The whole point of crap areas is that they should be cheap.

But then the same goes 1bed flats built on industrial estates or ringroads. No one would mind them being there if they cost 40K. But people queue up to pay 250K for them. Mad.

Agree,

There's something wrong with someone who wants to spend 200k or more to live in the worst area in town. :blink::blink:

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Guest Charlie The Tramp
I've never understood the concept of high-priced crimeholes. The whole point of crap areas is that they should be cheap.

Amazing isn`t it.

Just search Rightmove for the following areas and you will be amazed.

Canning Town

Custom House

Plaistow

Upton Park

Forest Gate

Stratford

In the 1970s prices were so cheap in these areas you would not believe it.

Here is one of my favourites.

Upton Park

The current owners of this fantastic 4 bedroom corner house have happily lived in residence for the last 25 years.

No longer happy I would say when they got that price, probably off to the suburbs.

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Amazing isn`t it.

Just search Rightmove for the following areas and you will be amazed.

Canning Town

Custom House

Plaistow

Upton Park

Forest Gate

Stratford

In the 1970s prices were so cheap in these areas you would not believe it.

The Jubilee Line and the DLR have a lot to answer for! :P

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Guest Charlie The Tramp
The Jubilee Line and the DLR have a lot to answer for! :P

A lovely experience travelling on them late at night, finally felt safe when I crossed the border. :rolleyes:

If you enjoy the sound of sirens 24 hours a day I would thoroughly recommend these areas to you.

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When will it end? Dont you read this site? We are mid crash right now! Honest.

House price inflation picks up in April

Mon Jun 11, 2007 10:37AM BST

LONDON (Reuters) - House price inflation picked up unexpectedly in April, boosted by continued strength in London's property market, government data showed on Monday.

The Department

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Guest The_Oldie
When will it end? Dont you read this site? We are mid crash right now! Honest.

You are incorrect, we are obviously not in "mid crash right now". However, all the pieces are falling into place and I will be very surprised if house prices are not substantially lower, perhaps 30% or 40% lower, in three or four years time.

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I will be very surprised if house prices are not substantially lower, perhaps 30% or 40% lower, in three or four years time.

By which point, Orbitroll will have vanished like a fart in a breeze...

I wonder if any bulls will hang around to admit they were wrong? Or will they be too busy fighting off the repo men?

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When will it end? Dont you read this site? We are mid crash right now! Honest.

House price inflation picks up in April

Mon Jun 11, 2007 10:37AM BST

LONDON (Reuters) - House price inflation picked up unexpectedly in April, boosted by continued strength in London's property market, government data showed on Monday.

The Department

yep i spotted that as well - onwards and upwards http://uk.reuters.com/article/domesticNews...H00225620070611

"The average house price was 209,454 pounds in April, more than 10,000 pounds higher than November.

House prices in London rose 14 percent year-on-year in April and have risen faster than the national average for the past year"

yes clearly mid crash ;)

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Guest The_Oldie
yes clearly mid crash ;)

You are incorrect, we are obviously not in "mid crash". However, all the pieces are falling into place and I will be very surprised if house prices are not substantially lower, perhaps 30% or 40% lower, in three or four years time.

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When will it end? Dont you read this site? We are mid crash right now! Honest.

House price inflation picks up in April

Mon Jun 11, 2007 10:37AM BST

LONDON (Reuters) - House price inflation picked up unexpectedly in April, boosted by continued strength in London's property market, government data showed on Monday.

The Department

When the spinners rely on news that old to try and support the market, even though reports for May are already negative, it just counts as bear food.

A bit like "last year they went up 12% - buy now"... um, yeah, what about last month?

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Gordon Brown astounds me, he really does.

In 1997 he pledged that he would not allow House Prices to spiral out of control.

Im far from being a GB supporter, but can you tell me how he could have restricted the credit money that has fuelled the price rises. It seems to me this is nearly a world wide problem. The last ten years has seen record highs in many, many countries around the world.

Honest question BTW.

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Im far from being a GB supporter, but can you tell me how he could have restricted the credit money that has fuelled the price rises...

If Gordon "really" wanted to control the boom in houseprices then he should not have handed over control of the country's interest rate to the banks. Regulating interest rates would have been the main way to restrict credit in a way that reflects the population's ability to pay.

Andrew

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LONDON (Reuters) - House price inflation picked up unexpectedly in April, boosted by continued strength in London's property market, government data showed on Monday.

Ah, I think I get it now...house prices are going up...because they're going up...

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If Gordon "really" wanted to control the boom in houseprices then he should not have handed over control of the country's interest rate to the banks. Regulating interest rates would have been the main way to restrict credit in a way that reflects the population's ability to pay.

Andrew

That's an interesting point. We shouldn't forget Gordon Brown didn't come up with the idea to hand over control of interest rate to the MPC on his own. Countries were doing the same around the world already and this period has coincided with a huge global credit expansion. Coincidence?

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Guest barebear
Im far from being a GB supporter, but can you tell me how he could have restricted the credit money that has fuelled the price rises. It seems to me this is nearly a world wide problem. The last ten years has seen record highs in many, many countries around the world.

Honest question BTW.

WHAT ??? 2 points if that was the case why did he pledge to have no more boom and bust,point 2 of course he cant restrict the credit money coming in but he certainly could have maintained interest rates at a higher level to stop a housing boom, THIS IS WHAT HE PLEDGED in 1997,the man is a fooking liar!!!!

Now look where we are? On the verge of misery yet again,because he didnt do what he pledged.

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Guest AuntJess
Agree,

There's something wrong with someone who wants to spend 200k or more to live in the worst area in town. :blink::blink:

I can't help wondering whether it is something to do with believing that you are competing for the property, the old " there-are-8-people-queuing-to-buy-this-house" scenario, fostered by unscrupulous EAs. I think that many people faced with this sort of challenge will pay above the odds to beat the - mythical - others to it.

After all, e-bay was built on this psychological quirk. B)

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