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Far Out Bear

Tough For First Time Buyers?

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http://news.bbc.co.uk/1/hi/business/7498404.stm

I would love to know how collapsing prices are 'tough for first time buyers' Call me old fashioned, and all that, but what is so difficult about doing absolutely nothing and earning 3,4,5 K each month simply as a result of the falls.

Perhaps I need to study more garbage like this...

http://www.bloomberg.com/apps/news?pid=206...id=a11PeBn6TV8A

to understand the situation better.

Edited by Far Out Bear

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Broker John Charcol also unveiled a two-year tracker deal on high-value home loans with a record arrangement fee of up to £137,500

137 grand what a bargin .. Ill buy 10 !

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Broker John Charcol also unveiled a two-year tracker deal on high-value home loans with a record arrangement fee of up to £137,500.

Is it those pesky socialists wanting to make a profit at rich peoples expense???

If only socialists didn't chase profit eh??? Everything would be fine and dandy if only we let capitalism work everything would be fine.

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Is it those pesky socialists wanting to make a profit at rich peoples expense???

If only socialists didn't chase profit eh??? Everything would be fine and dandy if only we let capitalism work everything would be fine.

We are discussing this in your other thread. Please do not hijack this one, just to be spiteful.

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Call me old fashioned, and all that, but what is so difficult about doing absolutely nothing and earning 3,4,5 K each month simply as a result of the falls.

Perhaps I need to start shouting loudly around the office, like people did when their houses were rising in value, how much money I'm "making" by doing nothing. ;)

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Call me old fashioned, and all that, but what is so difficult about doing absolutely nothing and earning 3,4,5 K each month simply as a result of the falls.

Well, to be pedantic, doing nothing doesn't make you a first time buyer, it makes you a renter. Times are great for people who want to buy in the future, but could be described as tough for people who want to buy today. Also, spending a year saving up for a deposit, whilst renting or living with parents, can be tough - financially extremely rewarding, but still tough. I find renting tough - working out how much money I've saved each month cushions the blow somewhat, but its still tough.

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Well, to be pedantic, doing nothing doesn't make you a first time buyer, it makes you a renter. Times are great for people who want to buy in the future, but could be described as tough for people who want to buy today. Also, spending a year saving up for a deposit, whilst renting or living with parents, can be tough - financially extremely rewarding, but still tough. I find renting tough - working out how much money I've saved each month cushions the blow somewhat, but its still tough.

Erm, isn't this business of saving up for a deposit, how it used to be - how it should be? You make a commitment to buy somewhere, you save, at the same time learning some economic discipline.

If you are coupling up, the relationship is developing, hopefully growing stronger...

You are saving up, it's not always easy, but the responsibility and discipline of it is a good thing. It teaches you that money doesn't grow on trees and that your work and endeavours have value.

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Erm, isn't this business of saving up for a deposit, how it used to be - how it should be? You make a commitment to buy somewhere, you save, at the same time learning some economic discipline.

If you are coupling up, the relationship is developing, hopefully growing stronger...

You are saving up, it's not always easy, but the responsibility and discipline of it is a good thing. It teaches you that money doesn't grow on trees and that your work and endeavours have value.

erm... that's it, beautifully summed up in three sentences :) what took some of us a waste of 4 years and 15,000 pages :(

Edited by Converted Lurker

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Also, spending a year saving up for a deposit, whilst renting or living with parents, can be tough - financially extremely rewarding, but still tough. I find renting tough - working out how much money I've saved each month cushions the blow somewhat, but its still tough.

I agree with the sentiment.

But the article doesn't say an FTB has to save for a year.

It says (s)he has to save a year's gross income.

(The "gross" is implicit if you look at the figures)

There's a teensy difference.

Edited by Selling up

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Well, to be pedantic, doing nothing doesn't make you a first time buyer, it makes you a renter. Times are great for people who want to buy in the future, but could be described as tough for people who want to buy today. Also, spending a year saving up for a deposit, whilst renting or living with parents, can be tough - financially extremely rewarding, but still tough. I find renting tough - working out how much money I've saved each month cushions the blow somewhat, but its still tough.

i suppose you are right.

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erm... that's it, beautifully summed up in three sentences :) what took some of us a waste of 4 years and 15,000 pages :(

Gee thanks! :P It seems my work here is done.

/*head not able to fit through door */

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It's the only way VI journos can nail the underdog tag onto FTBs & thus try to keep some of them striving.

Vile isn't it.......

this is a very good point and in part one discussed a while back, each time there was/is a news story on house prices the FTB angle/issue is clumsily shoe horned in to fit the argument. HPI rampant; pity the first time buyer who is locked out of the party 'we're all having. Prices falling; pity the FTB who can't get a mortgage :blink:

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CL, it's perverse isn't it...

Not long ago we had FTB priced out of 90% of UK's towns. (Prices too high?).

Now with prices falling - a good thing for FTBs and by and large the average Joe - suddenly FTBs will struggle to get a mortgage! It must be pretty obvious that after years of silly prices these falls are a good thing for FTBs (et al).

The falls, by removing the speculators from the market, should help bring down the cost of living and put a value on the more important things in life like relationships, free time, doing stuff, 'being'...

Instead of obsessing over how much a property is worth or how much it is increasing. Any gain is someone else's debt millstone.

Let's hope property stops being viewed as an investment, pension or get-rich-quick scheme - ergo a commodity.

Bring it on.

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It was never about what was good for first time buyers but what was good for the mewed up boomers.The old order is being washed away by the housing meltdown and future generations may be freed of the shackles of stupidly large mortgage debt.But it wont stop New Labour and the property experts trying to twist things around as bad for FTBs.Bloody hell they need to save their property empires and they need to shaft FTBs to remain solvent.They haven't got Tony Blair's celebrity get out of debt free card.

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I would love to know how collapsing prices are 'tough for first time buyers' Call me old fashioned, and all that, but what is so difficult about doing absolutely nothing and earning 3,4,5 K each month simply as a result of the falls.

I think the press and commentators are scared of offending current homeowners, it was a bit like during the Gulf War in 1991 when radio stations didn't play any wartime music to offend servicemen/women families.

Whatever you say property prices falling are great for FTBs who upto recently have been totally forgotten about with all the brochures and sales geared towards the Buy To Lose (BTL) section of the market.

Kirsty's solution is that they should scrap Stamp Duty, wouldn't an FTB rather a 50K to 80K drop in price that a misely couple of K .

Halifax state a 2% drop last month in prices, with a bit of spin we have great fundamntals, what planet are they on. Our fundamentals were based on borrow borrow borrow.

Edited by joey

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Perhaps I need to start shouting loudly around the office, like people did when their houses were rising in value, how much money I'm "making" by doing nothing. ;)

To go short in the stock market you borrow stock (to get the liability to the stock price) then sell it so that you are not hedged against gains. If you don't have a house you already have the liability because you need a house to live in so you are "short house prices".

Rich people don't grow on trees they're made out of poor people

http://uk.youtube.com/watch?v=IOHBo-uB5GE

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Whatever you say property prices falling are great for FTBs who upto recently have been totally forgotten about with all the brochures and sales geared towards the Buy To Lose (BTL) section of the market.

Depends on how you use the english language.

A first time buyer is a person who has bought or is buying their first home. Likely to have stretched to do so, likely to have little or no equity. Falling prices stuff them - its certainly fair to say it will be "tough" for them.

Its true that any person who aspires to be a buyer in the future eagerly awaits further falls in house prices. However they can't really be called a first time buyer until they start the process of buying by having an offer accepted.

Imho its a reasonable and honest thing for the media to have said.

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  • 401 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%



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