Jump to content
House Price Crash Forum
Bubble Pricker

The Welcome Thread For New Members

Recommended Posts

Hi All,

Just sold to rent

I believe that Big increases in Inflation on top of heavy debt is going to burst the bubble very soon.

Earning Interest on equity and saving hard so hopefully I'm sitting pretty.

If you're expecting high inflation make sure you're not holding 100% cash

Share this post


Link to post
Share on other sites

Hi All,

Here's my token first post. I live on the South London/Surrey border and I'm STR (see, I know the lingo already) more due to circumstance than anticipation of an HPC though. Still a crash would be nice, in fact a complete collapse of the UK economy would be fine by me since my company earns 99% percent of its income from the USA.

A falling dollar, on the other hand, and the looming recession in America is not such a pleasant prospect. :(

Nat.

Share this post


Link to post
Share on other sites

Hi there. I'm new to the site - found it buy chance while looking for properties to buy. We put our house (South Croydon area) on the market early August and expected it to be on the market for a few months. In fact we got virtually the asking price (less £1000) the very next day, which we accepted. Two days later someone else offered just above the asking price. We decided to stay with our first buyers as they seem like really nice people and clearly love the house.

The fact that the house was sold so quickly made me realise how "hot" the market is in certain areas. We thought about £400k would be good. We had three agents to value. One valued at £385k (clueless little boy), another at £410-£420 (more like it) and the final one suggested £450, with a view to accepting around £430. We went with him and bingo (easy bit of commission for him!).

Now I'm looking for something quick (seperation, so now with a much small budget), but in the areas I want it seems that everything is selling like hot cakes and is under offer as soon as it hits the website. Reading some of the posting in this site, I wonder if things have peaked now and would I be better off renting for 6 months in the hope that prices settle down or should I buy, buy, buy as prices may continue to surge. Oh, for a crystal ball!! :blink:

Share this post


Link to post
Share on other sites

would I be better off renting for 6 months in the hope that prices settle down or should I buy, buy, buy as prices may continue to surge. Oh, for a crystal ball!! :blink:

Prices WILL fall. Rent for a few years and you will be able to buy back your old house with your half of the cash... B)

Share this post


Link to post
Share on other sites

First house 1988 purchased with my now wife, 2 bed run down small vic terrace with the 3rd bedroom a 1960s bathroom conversion. £28500 (overpriced) with a £26000 endowment mortgage. Spent about £7000 and took 2 years doing it up into 3 bed with lobby/bathroom off back of kitchen. We moved in in 1990 just as the poll tax riots kicked off. Lot of hard work doing this dump up. It was quite nice but from 90/91 the value of it came down. By 93 we wanted something a little bigger as our first child was now a toddler. We sold in 93 for just £36000. Just £500 profit and a lot of toil. Maybe with hindsight, we should`ve rented but, what the hell. Bought a larger, tidy, bay fronted 3 bed edwardian terrace for just £39000 (slumps are good, actually) with a £32000 mortgage covered with 3 seperate endowments adding up to £37000. In 2006, we`re still here. Sometimes I think we should`ve moved again at the bottom of the trough (1995?). I think we were maybe too careful about getting a bigger mortgage. My job security at the time was a bit ropey so we played it safe. It was only about 2.5 times my income back then but with now 2 children, things were tight. We have about 5/6 years left on the mortgage but the endowments will shortfall, by how much? I`m not sure. But with the endowments being £5000 over the mortgage, it shouldn`t be anything significant.

I love this site. It`s really opened my eyes. I saw the last crash and I can`t believe people have such short memories. It happened almost overnight, or seemed to, and kind of just crept up on us all. Interest rates in double figures for years. Imagine that now. How people these days worry about a quarter% rise makes me laugh. They must be watching every last penny. How can they sleep?

I`m 42 now and I`ve got just a few years left paying what is now quite small change on my interest payments, then it`ll be over.

My advise to potential FTBs is sit tight, save like hell, bide your time, wait for the crash then buy the scruffiest house in the best area for your money for no more than a mortgage of 3x income of main wage earner. Not at the bottom of the trough, but just before prices bottom, then you`ll get a good choice.

Share this post


Link to post
Share on other sites

My advise to potential FTBs is sit tight, save like hell, bide your time, wait for the crash then buy the scruffiest house in the best area for your money for no more than a mortgage of 3x income of main wage earner. Not at the bottom of the trough, but just before prices bottom, then you’ll get a good choice.

Sound advice. Welcome to the site :) . If you dont mind the move and the possibility of having to settle for something you perhaps wouldn’t buy, why not join us STRs (sold to rent) and look forward to a nicer house in a few years' time for no extra outlay? Renting isn’t dead money - dont forget that your equity will generate over 4% net of tax in a good building society account (eg Yorkshire building society 5.1% gross) – enough to pay the rent on a comparable place if you look around. B)

Share this post


Link to post
Share on other sites

Hi

Lurked awhile

Am a home owner with a couple of buy to let flats wondering whether to sell or hang on.

Keep reading this site - you wont need too long to make up your mind - property inflation is just paper - worthless until you get it in the bank!

Save tax - make sure they are in joint names with wife (if you have one) before selling. Move into one of them if you can - this gives you 3 years relief, even if you only live there very briefly (and either sell the one you now live in, or notify H M Revenue & Customs that the other has become your main residence). If you decide to hang on a bit, sell one this side of April 5th, so you use up this year's allowance (£8,800) and any spare basic rate tax band. If you have held them for nearly 3 years (or nearly 4 etc), wait for the anniversary to get the extra 5% taper relief.

What am I doing?! :o - I usually earn good money for this advice and here I am giving it away for free! :D

Share this post


Link to post
Share on other sites

Keep reading this site - you wont need too long to make up your mind - property inflation is just paper - worthless until you get it in the bank!

Save tax - make sure they are in joint names with wife (if you have one) before selling. Move into one of them if you can - this gives you 3 years relief, even if you only live there very briefly (and either sell the one you now live in, or notify H M Revenue & Customs that the other has become your main residence). If you decide to hang on a bit, sell one this side of April 5th, so you use up this year's allowance (£8,800) and any spare basic rate tax band. If you have held them for nearly 3 years (or nearly 4 etc), wait for the anniversary to get the extra 5% taper relief.

What am I doing?! :o - I usually earn good money for this advice and here I am giving it away for free! :D

Thanks for the advice - however, having spent 10 years at PriceWaterhouseCoopers I feel fairly confident about sorting out my own tax affairs.

Share this post


Link to post
Share on other sites

Thanks for the advice - however, having spent 10 years at PriceWaterhouseCoopers I feel fairly confident about sorting out my own tax affairs.

But I bet some of my tips had you reaching for your tax manuals... B)

Share this post


Link to post
Share on other sites

But I bet some of my tips had you reaching for your tax manuals... B)

er no

I bought my buy to lets about 10 years ago so have had planty of time to look at teh tax position.

My interest here is whether prices will continue to soar - which I find difficult to believe - or stay flat or fall. If they fall it makes sense to sell, if they stay flat it's debatable and if prices continue to rise I would be better off holding. I'm going to do one up and then see if I can sell it quickly, failing that I'll rent it out again.

Share this post


Link to post
Share on other sites

Hi. I'm another lurker finally got around to registering.

Welcome aboard, to you and all recent joiners - sit back for the ride of a lifetime. Not quite sure what time it kicks off, but it's a'comin! ;)

Share this post


Link to post
Share on other sites

Hi all, just found this site and after some advice. My wife and i are looking at buying a new build on an up and coming development. The house we're looking at is a 4 bed town house which should be 250k but we've been offered it at 230k. We are just alittle cautious because of the unstable market hype. We've been reading through the posts on the forum but can't seem to find much mentioned about new builds, i.e are they losing value.

Share this post


Link to post
Share on other sites

Hi folks,

well this is my first post, though I've been watching for a while. There's some really good stuff and interesting posters on this site and I can't resist putting in my two happence worth any longer!

Of course The Crash has got to come - should have come some time ago. Now it's so overdue it's going to be diabolical. Like an earthquake, the longer you wait, the greater the forces that build up and the greater the SNAP when things finally give.

Could be next week, next month, next year - no real idea when. Neither has anyone else, truth be told..

Edited by time_and_tide

Share this post


Link to post
Share on other sites

Hi you lot, just taking my seat and very happy to be along for the ride. I think this profitable 'journey' is going to be even more enjoyable in the company of all you fellow bears!

Here's my situation: house sold in August 06, all debts paid off, 150K in the bank at 5%, renting a great 4 bed detached for 1.2K p/m, earning 50K p/y - never been happier.

Anyway happy hunting brother bears - 'I hear fool's on the menu come spring'!

Edited by The Hundred

Share this post


Link to post
Share on other sites

Hello everyone, long time lurker, first time poster.

Here's my 'testimony'...

I'm 35, working in publishing/corporate communications in the construction industry sector.

Lived in London all my life except when a student. Family/friends/most job opportunties in London, so staying here for forseeable future.

I always assumed I would buy a place, and up until about 2000 I was still looking at places, as there were still 1 bed flats available at 3x salary, although not many good ones. The poor quality made me realise that perhaps I wasn't that badly off in my current rented place - tiny (250 sq ft) somewhat shabby one bed flat but with a garden and in super location in one of the nicest parts of London, with a stable landlady in it for the long term, and (relatively) affordable rent.

So I decided to stick with my current place but save like mad for a deposit, and applied to any and every job to get a higher salary, despite liking my current job and it being reasonably well paid. However, prices just kept on rising and rising. From all around I heard 'you've got to get on the ladder' 'renting is dead money' and all the other rubbish, and I thought it was just me, being stupid, or lazy, or not trying hard enough or something.

However, what finally put me off looking was in 2001 when I looked at a tiny, pokey studio in the boiler room of a converted church in East Finchley, looking out onto a carpark. They wanted about £95,000. This was my 'moment of clarity' about it all. The sheer meanness of expecting people to live in something the size of a dog kennel (but with spotlights and neutral decor)- I realised something had gone deeply, deeply wrong in our society!

Then I read an article in the Evening Standard about people in their 20s and 30s in London giving up on 'getting on the ladder' and accepting they'd be in rented accommodation for the foreseeable future. Finally I realised I wasn't alone and decided to search the web a bit, and thank God I found House Price Crash! I have now decided to keep saving in the hope of a crash/downturn, as I couldn't afford to buy even the cheapest crack den now, even if I wanted to.

I find the articles, posts etc really interesting. Call me a doom-monger, but I really don't think there will be a crash in London at any rate. As long as the financial services sector continues to boom, we will have high house prices. Only if that sector begins leaching away will we see a gradual downturn in prices.

Share this post


Link to post
Share on other sites

Evening all.

Having lurked for 3 months, visited various sites - Firstrung, MF, SP etc - listened to all the arguments, done my research etc etc, well, guess what?

I just bought a two bed flat on a shared ownership basis.

I look forward to discussing this with you all!

TGF? (or am I)

Share this post


Link to post
Share on other sites

I'm an Electronics Engineer working for a satellite box manufacturing company and a prospective FTB. I have been lurking for quite a while now. I wish I had joined a lot sooner though.

A recent unpleasent experience with an EA has finally given me the much needed kick up the backside to join this site and share some experiences and ask a few questions too....

<_<

Share this post


Link to post
Share on other sites

I'm an Electronics Engineer working for a satellite box manufacturing company and a prospective FTB. I have been lurking for quite a while now. I wish I had joined a lot sooner though.

A recent unpleasent experience with an EA has finally given me the much needed kick up the backside to join this site and share some experiences and ask a few questions too....

<_<

Amstrad?

So, tell us about this experience...

And.. welcome!

Share this post


Link to post
Share on other sites

Amstrad?

So, tell us about this experience...

And.. welcome!

no Pace...

Regarding the estate agent..This just happened 2 days ago so is a current situation. I wanted to book a viewing date for a house which had just been put up for sale a few days ago. I rang the EA on Friday and was told that there is a viewing day on this coming Tuesday only and there were 9 other people booked in too.

I booked half a day off work in preparation. Later that same day, I told a work colleague about the house and was promptly told that he had had already rang up for the same house on Monday and it's been sold. I didn't believe him so I rang the EA again and queried the woman on the line about what I had heard. She verified that it was 'under offer'. I expressed my dismay about not being told beforehand and asked if the offer had been accepted. she said yes!! :angry:

Needless to say I was furious. I asked why there was a viewing on Tuesday then!!. She said it was a requirement. I gave her a piece of my mind asking her why in hell were they wasting mine and others time when they were clearly not going to sell to anyone else. She didn't utter a word in reply.

I don't know too much about how EA's operate but this situation sure seems fishy... <_<

If anyone can shed some light on what's going on please let me know.

Is there something I could do if something dodgy is going on?

In case you need to know...here is the property ref and link on rightmove...

Property reference SHP101752

http://www.rightmove.co.uk/viewdetails-135...=4&tr_t=buy

Edited by dark$sky

Share this post


Link to post
Share on other sites

oops, my second post not my first but thought I'd say hello anyway... have been browsing these forums for a while and thought I'd register

my situation (as everyone else seems to give theirs above): married, renting, growing deposit, aged 24 (husband is 30), no kids. We don't feel under pressure to buy as we have a great deal on our rent but obviously would rather own... I suppose we're living in hope of the crash :ph34r: (whats stopping us buying really is our salaries, combined currently around £30K which sounds nothing when you look at what you need to get a mortgage...)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 333 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.