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JohnnyB

The Hpc.co.uk Greatest Fool Award 2008

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Hi guys, been gathering people's stories of the fools that bought at the top end of the bubble for silly prices and have compiled ten of the best. We'll be having an award ceremony for the winner in an abandoned block of newbuild flats in Thamesmead, with the costs paid for be remortgaging the winner's home.

The full details are below, please read through them all and vote for your favourite.

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!!

3) 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.

4) 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.

5) 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.

6) For first-time buyers Kate Rosser and James Huntley, there was no option but to add their mortgage fees to their loan. All their extra cash had been eaten up in surveys, and valuation and solicitor’s fees.

The couple, both aged 24, bought a £250,000 one-bedroom flat in East Dulwich in December, and had to raise a £25,000 deposit with the help of her parents to secure the loan with Bank of Ireland.

Rosser, a partnerships executive for an online company, said: “We did not have any cash left over to pay the fee. It was very difficult for us because the wages we are on meant that we had to get five times our joint income and a 10 per cent deposit.

“I did not really know there was a fee as our broker did not mention it until the end of the process, and then he said ‘you can add that to the loan’, so we did. We had no option.”

7) Friend of ours bought a flat (sorry-I keep forgetting it's a luxury 2 bed apartment) brand new, first one in the new development so had his picture in the paper etc. I told him he was mad, he insisted that they were a fantastic investment and was even trying to persuade others to go and view them becuase they would definately make money on them.

He paid £185k then, now there is an ad for them on local radio with deposits paid and mortgage subsidy offers for the last 'few' remaining (we've been to see him and there look like loads empty to us) at £163k.

His only redemption is that he had a huge deposit (something between £40-50k) He told us he wouldn't buy without a large deposit because he was too financially savvy for that!

8) Workmate brought mid 2007 with full knowlege of my STR, discusions about cost of buying Vs. renting, decline of the money markets etc. He actualy asked for my advice about buying, I said somthing along the lines of 'Iwouldn't, but it's your decsion, and if you must buy then make sure you have plenty of room for falling prices/higher interest payments'.

So he went away and on a £45K salary brought his first house in Essex for £295K, I don't know the size of the mortgage but he did let slip that the payments were £1700pm IO. And this on a 2 year fix that presumably will not be repeated in the near future. So I geuss that the payments are about 70% of his salary and he was totaly banking on continued HPI.

9) Someone I know bought two houses in Liverpool city centre for approx £1.2 million at the top of the market last year.

The plan was to cash-in on the "Capital of Culture" by using them as holiday lets, for stag-does, etc.

£2000 a week each he claimed to be pulling in - to begin with...

Oh, and he doesn't declare it for tax, and fiddled the stamp duty (two large houses converted into flats, he registered the flats separately, each just under the threshold) He's got a few other flats around the city centre, doing the same lark.

He's a council employee...

10) The last house in a local road in Poole is a dismal thirties 3 bed detached, in poor condition, with a front garden composed of hardcore. Amenities include:

A busy main railway line at the end of the short overgrown garden. A busy road junction with traffic outside the door. A light industrial estate within 50 yards, offering the permanent aroma of the pie and pastie factory

The house was bought in FEB 2008 for £299,000. This was a record for such a house in the road by a clear £50,000. The seller trousered £100K profit over their purchase price in 2003. Much, much better similar detached 3 bed houses within 100 yards are now for sale (and failing to sell) at 55K-75K less than this, and falling. The house in question is currently let. The owner is losing a pile each month on the rental. If he/she ever sells it there's a £120K plus haircut waiting. Maybe more.

The full thread can be seen here: http://www.housepricecrash.co.uk/forum/ind...t=0&start=0

Edited by JohnnyB

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The full details are below, please read through them all and vote for your favourite.

The full details of second-hand anecdotes that may or may not reflect the true nature of the situations concerned, presented to a soundtrack of mocking laughter for your amusement and disdain...

What utter crap. <_<

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The full details of second-hand anecdotes that may or may not reflect the true nature of the situations concerned, presented to a soundtrack of mocking laughter for your amusement and disdain...

What utter crap. <_<

If you don't want to vote you don't have to but don't complain when Mario wins Big Brother.

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Hmm, hard to vote there, because (in my opinion) anyone who pays anything other than peanuts for a one-bed flat is deranged, as they're amazingly hard things to live in unless you're perma-single, devoid of possessions, and never have visitors.

The last one in Poole (I know the area moderately well) is clearly just straight up barmy. Crash or no crash, that represents (if the description is accurate) absolutely mindblowingly bad value for the area no matter how you look at it. HPI could still be raging, and it would *still* be a really crap deal.

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The full details of second-hand anecdotes that may or may not reflect the true nature of the situations concerned, presented to a soundtrack of mocking laughter for your amusement and disdain...

What utter crap. <_<

Sorry to say mate but they are Number 1 and 2 are true.

I do feel sorry for the physiotherapist but she is currently winning the poll!!!

So if you aint liking it, please support the NHS by making her your "No. 1"

Vote Number 2, because if whe does become bankrupt she will be coming to a Br0thel near you!!!

Edited by DONTDOITMAN

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  • 399 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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