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JohnnyB

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I posted on another threat that I was at a corporate dinner do earlier this week and after talking about the dismal outlook and saying prices will fall by 35% at least, I found out the woman sitting next to me bought a BTL newbuild flat in July 2007. Obviously it got a bit uncomfortable after that.

This is the greatest fool that i've met, buying right at the top of the market and now basically screwed.

Has anyone you know made such a foolish purchase at the top of the bubble? Share your story.

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Guy i know bought it september, is ADAMANT he's made money on it (shared ownership, new build, apartment). Not sure why he thinks this, isnt for sale/hasnt been offered anything, but according to him its risen 10% since then.

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We almost did. I managed to sabotage it at the last moment. Mrs Switters was a non-believer and I could only hold her off for so long. However as soon as the words credit and crunch started to appear on the financial pages I knew the game was up. We would have bought 2 weeks after northern rock first started to shatter.

Phew!

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Guy i know bought it september, is ADAMANT he's made money on it (shared ownership, new build, apartment). Not sure why he thinks this, isnt for sale/hasnt been offered anything, but according to him its risen 10% since then.

wow - punchy call!

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Mate and his girfiend gazumped another buyer in July 2007 to pay over 10% more than asking price. Now they've split up and need to sell...they think its a disgrace that no one will even view the property at the price they paid.

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Chap at my work, bought properties recently in Hull, Florida, and now looking at Brazil, through Inside Smack and other property clubs. Total denial of the facts. He says he doesn't even read the news anymore as he's personally convinced the property market is a good bet long term. Mentalist. Good job he's loaded - he's going to need it.

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This is true. It is hard to believe, I know.

Someone I used to work with (he was actually my manager for a short period) bought in August 2007.

He was a FTB and genuinely asked me:

"The mortgage payments go up and down with what the property is worth don't they?"

I couldn't believe that he and his fiancée was going to make the biggest purchase of their life without even having a basic grasp of what they were doing. His dad had been in "property development" for the previous 2 years, so had probably convinced himself that buying and redecorating was a sure fire way to make money.

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Guest Winnie

My very nice and innocent gay hairdresser and his partner bought in North London at the absolute PEAK - almost to the week. They just wanted to "settle down". As he was telling the customers about it, up came the cry "yes, renting is dead money". I told him to be careful but he ignored me. Alas - he is a lovely bloke.

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I am up there. Bought in Feb 2007. Now full of regret and remorse at what we coudl have afforded if we hd stayed renting for a few years longer. I bought after renting through the growth years aswell. Deffo did it the wrong way round.

Ah well.

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I am up there. Bought in Feb 2007. Now full of regret and remorse at what we coudl have afforded if we hd stayed renting for a few years longer. I bought after renting through the growth years aswell. Deffo did it the wrong way round.

Ah well.

I'm amazed you are on this forum, its an educational place but surely its must be a painful reminder of your bad timing?

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I have two for you boys to mull over!

1) Couple bought 1 Bed flat in Highgate London, £340,000 near council flat. Paid £5k less than crazy asking price. Just looked on houseprices.co.uk and flat above sold in May 08 for £300,000!!! So that is £40k negative equity. But if we are back to Aug 2006 prices, I note one flat in the same building sold for £270,000. £70k in negative equity??!! I told them not to do it, but they were desperate.

2) Physiotherapist friend of mine desperate to buy bought a 1 Bed flat for £220,000 in .....Hounslow!!! This completed TODAY. This girls is really stupid with money....never has any. Her brother gave her a deposit and told her to buy. I fear she will be one of the people who will be repossed in the next 2 years. She is so desperate that she is taking my broken vacumn cleaner and cutlery and plates I was going to chuck away. Somebody gave her a chair for the lounge and only plans to buy a mattress for a bed. No Frame!! That is it! As a physio she could have got social housing for £500 a month. She also wouldn't listen! What is the Bl00dy point of buying and then living like a squatter!!

So do any of these win??

Edited by DONTDOITMAN

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This is true. It is hard to believe, I know.

Someone I used to work with (he was actually my manager for a short period) bought in August 2007.

He was a FTB and genuinely asked me:

"The mortgage payments go up and down with what the property is worth don't they?"

Incredible. Can't we have a basic multiple choice test before giving these people hundreds of thousands of pounds to blow on 'City Living' luxury rabbit hutches?

Question One:

Do house prices always go up? Yes [X] No [ ].

You fail.

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I have two for you boys to mull over!

1) Couple bought 1 Bed flat in Highgate London, £340,000 near council flat. Paid £5k less than crazy asking price. Just looked on houseprices.co.uk and flat above sold in May 08 for £300,000!!! So that is £40k negative equity. But if we are back to Aug 2006 prices, I note one flat in the same building sold for £270,000. £70k in negative equity??!! I told them not to do it, but they were desperate.

2) Physiotherapist friend of mine desperate to buy bought a 1 Bed flat for £220,000 in .....Hounslow!!! This completed TODAY. This girls is really stupid with money....never has any. Her brother gave her a deposit and told her to buy. I fear she will be one of the people who will be repossed in the next 2 years. She is so desperate that she is taking my broken vacumn cleaner and cutlery and plates I was going to chuck away. Somebody gave her a chair for the lounge and only plans to buy a mattress for the bed!! That is it! As a physio she could have got social housing for £500 a month. She also wouldn't listen! What is the Bl00dy point of buying and then living like a squatter!!

So do any of these win??

They're both pretty good, but i'm sure we have many more to come. They are certainly contenders for our Greatest Fool Awards. It will be a star studded and extravagant ceremony paid for by a second charge loan on the house of the winner.

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They're both pretty good, but i'm sure we have many more to come. They are certainly contenders for our Greatest Fool Awards. It will be a star studded and extravagant ceremony paid for by a second charge loan on the house of the winner.

Well it can't be number 2 as definitely is mortgaged to the hilt!

If number 1 comes in the top 10, I would love to send them the link to the website but might compromise our relationship.

Can we have a top ten list??

Edited by DONTDOITMAN

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Well it wont be number 2 as definitely is mortgaged to the hilt!

If number 1 comes in the top 10, I would love to send them the link to the website but might compromise our relationship.

Can we have a top ten list??

Perhaps when we've got a few more i'll edit the first post with details and put a poll up.

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This is a story of three people, lets call them Matt, Amy and Lucy. These three people all work in a new media design job for the same company, and have been friends for a while. Matt and Amy are a couple, but do not live together.

Being strong believers in what the property programmes have told them, Matt and Lucy have agreed to pool their resources to buy a place together, with the express intention of keeping it for a while and selling after a few years to realise the gains on the value of the property. In November 2006 they buy a Victorian terraced 3 bed flat in south London. Approximate price: £280K Not a bad place, but needs a bit of work to make it a dream flat. They pump in about 30K for improvements, including new bathroom, kitchen, garden and fitted bedrooms, using all their savings plus racking up around 5K on credit cards.

In September 2007, Amy buys a 1 bed flat a mile or so away. Approximate price: £207K, and spends around 5K on doing the place out.

All seems to be going well, until March 2008. Lucy is pregnant and plans to stay that way. There's no way that she can raise the child by herself in a one bed flat, so something's going to change. It is decided that Lucy will move out of the flat to move in with her boyfriend, and Amy will sell her 1 bed and take up Lucy's part of the 3 bed place. Amy can't sell, so she decides to rent out the flat. She gets enough in rent to cover the monthly mortgage payment, but not the management charge of £150 a month, but goes ahead with the rental anyway.

The 3 bed place is currently under negotiation as to the exact amount of money that Lucy will get from her half.

I cant see this ending well, can you?

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This is true. It is hard to believe, I know.

Someone I used to work with (he was actually my manager for a short period) bought in August 2007.

He was a FTB and genuinely asked me:

"The mortgage payments go up and down with what the property is worth don't they?"

A bit off-topic, but this also says something about the standard of managers in this wretched country...

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  • 396 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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