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Penny Is Dropping

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NickJ Posted - 05 Jul 2007 : 12:58:00

the thing is it isnt working. middle england is sitting in its house feeling smug thinking "i ve got 200 grand of equity, what do i care?" but yet, when house prices fall (when not if) they ll panic, try to sell and wont be able to sell at the price they want. 5% of new buyers then hold off and bingo, market crashes, recession.

our economy is in the sh1t and no mistake. we cant compete manufacturing wise and the only reason retail is holding up is in my first para. things are going to be grim in the next 10 years.

Is that you RB? :lol:

They guy seems to know what he is talking about!

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I was on here about a year ago when there was a definite hiccup in house prices in my area (Somerset) and lots of 'reduced' banners on house ads. Since then prices have gone up a bit until recently when they have really taken off again. I don't see any sign of a house price crash in the near future but we have lost so much industry and now services to foreign control and soon oil and gas that might have been coming our way could well find itself in China. We are basically partying up until the eleventh hour and all will come crashing down around us one day. If the crash takes the pound with it it will be the euro-rich and dollar rich who will be be buying up our cheaper properties as Brits still won't be able to afford them.

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I don't see any sign of a house price crash in the near future

Why not? don't tell me 'it is bl**dy different this time'

we have lost so much industry and now services to foreign control and soon oil and gas that might have been coming our way could well find itself in China.

I think you can see something but to see the full picture, you may need to open your eyes & take your 'VI' tinted glasses off. Don't watch Kirsty & Phil, not good for your health.

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From Pink Han-Bag:

"I am completely dim about all this stuff.

Does this mean for once renting (as we do and everyone seems to think is rubbish) actually isn't so bad at the moment and for foreseeable future?"

Maybe not so dim then?

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Do you mean Nick J, he's a bit of a dickhead but at least he's not a sheep, most of the women on there are going to be lambs to the slaughter.

Like this one

" Oh Gawd, are we buying a house at completely the wrong time then? I wouldn't be surprised, we do tend to have extremely bad luck "

Spending hundreds of thousands of pounds on a asset and not even THINKING about how the value might change!

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I was on here about a year ago when there was a definite hiccup in house prices in my area (Somerset) and lots of 'reduced' banners on house ads. Since then prices have gone up a bit until recently when they have really taken off again. I don't see any sign of a house price crash in the near future

Er, what's the difference between August 2006 and July 2007? Tough one. Give me strength!!! :huh:

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Like this one

" Oh Gawd, are we buying a house at completely the wrong time then? I wouldn't be surprised, we do tend to have extremely bad luck "

Spending hundreds of thousands of pounds on a asset and not even THINKING about how the value might change!

Or this one (from Space Cadet 99 !) :

"Well we're on a 100% mortgage at the mo, fixed rate for 5 years (3 left to run) so I assume we're best sticking with it? Although I seem to remember the rate was quite high BECAUSE it was a 100% mortgage, so it may be that the base rate is still below our rate. Will have to look at our docs when I get home, I have a feeling we can get out of the fixed rate after 2 years if we're able to get a better deal. However as we will still need a 100% mortgage (2 years doesn't pay off much of a mortgage!) maybe changing wouldn't do much good.

This whole mortgage thing makes my brain hurt."

Wonder if they are on IO or Repayment? Also they seem to think that mortgage rates and the base rate are the same. Often MR is quite a lot higher than base rate, especially when borrowing more than 90%.

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Or this one (from Space Cadet 99 !) :

"Well we're on a 100% mortgage at the mo, fixed rate for 5 years (3 left to run) so I assume we're best sticking with it? Although I seem to remember the rate was quite high BECAUSE it was a 100% mortgage, so it may be that the base rate is still below our rate. Will have to look at our docs when I get home, I have a feeling we can get out of the fixed rate after 2 years if we're able to get a better deal. However as we will still need a 100% mortgage (2 years doesn't pay off much of a mortgage!) maybe changing wouldn't do much good.

This whole mortgage thing makes my brain hurt."

Wonder if they are on IO or Repayment? Also they seem to think that mortgage rates and the base rate are the same. Often MR is quite a lot higher than base rate, especially when borrowing more than 90%.

Space Cadet 99 will be amazed at how little has been paid off if it's IO! ;)

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Guest DissipatedYouthIsValuable
Space Cadet 99 will be amazed at how little has been paid off if it's IO! ;)

I do hope natural selection kicks in soon

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I can't believe the posts on that site, well worth a read. How people can borrow so much money without thinking through the consequences or even understanding the basic rules they are playing by is amazing!

Phoney

What's the saying about people who put more time and effort into researching buying a DVD player than a house?

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Excepting Nick J's posts, that forum looks like it could more accurately be renamed www.numptyhq.co.uk ...

Yup - some quite amazingly blase attitudes to commiting to hundreds of thousands of pounds worth of debt. Given how a frightening number of people these days have no savings and it's unusual to find someone not in credit card, overdraft or bank loan debt, it's just amazing that people treat borrowing 200k+ with such little levity.

I think I'll bookmark that board, it's cruel to derive entertainment from other people's bad circumstances but that is going to be a primo source of car-crash entertainment a few months down the line ...... :unsure:

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Is that you RB? :lol:

They guy seems to know what he is talking about!

Some of those posters have over 38,000 posts!

Shows how sentiment is turning. IMO the nation is waking up and facing the reality that debt is real and house prices were just opinion.

Q 2 2007. :)

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Did you read this post ?

<quote>

I was speaking to the ex chair of the bank of England this morning(he is my neighbour) and infortunetly he agree's with Nick, things aren't looking great.

</end quote>

I was speaking to a lower down the poll consultant with Barclays on Tuesday and he said the credit market/hedge fund bust is grossly underestimated and has all the hallmarks of a depression trigger. Best case scenario: recession.

I doubt any crash has had as much advance warning as this one has had.

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Its staggering how short sighted these people are. Or many they were lulled into massive mortgages at Low IR's, without realising rates could go up. In the main, I think people like this dont research things well enough or follow the how the economy is performing. Unfortunately its really going to ruin a lot of people, but then you know what they say about a fool at his money!

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Thank **** for that! We'd have been looking at almost £100 extra a month.

If £100 a month is putting you on the line you're in a really bad way surely?

our rate is fixed until december. rates won't come down again before then will they? that's going to be a bit of a shock. I think our current rate is about 4.6%

Shall you tell her or shall I?

:lol::lol:

Make no wonder the country's in such a state with intellects like this. Completely typical of the 'bang it on the credit card' mentality.

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ROFL you guys are just tooooo bad :lol:

If £100 a month is putting you on the line you're in a really bad way surely?

Shall you tell her or shall I?

:lol::lol:

Make no wonder the country's in such a state with intellects like this. Completely typical of the 'bang it on the credit card' mentality.

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