Tuesday, June 27, 2006

Home repossessions treble

Home repossessions treble

THE number of Londoners who face having their homes repossessed has trebled in five years, according to figures released today.

Posted by anon @ 07:27 PM (1973 views)
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3 thoughts on “Home repossessions treble

  • tyrellcorporation says:

    Some interesting and worrying facts in this article:

    In London since 1996 house prices have risen by 300% while wages have risen by roughly 70%!

    Recent figures from the Halifax showed that even in the cheapest borough – Barking and Dagenham – the average first-time buyer would have to borrow almost four times their salary to secure a home.

    In the most expensive borough – Kensington and Chelsea – they would have to borrow more than 10 times their salary. The recommended limit for mortgage lending is three-and-a-half times a buyer’s salary.

    When I read these figures on lending multiples it really hits you that any rise in IRs will be catastrophic for many! This is one almighty cheap credit driven asset bubble!

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  • By buying into a grossly over-valued property market they perpetuate it, they dangerously stretch there finances in order to do so and leave themselves dangerously exposed to even minor changes in circumstance (e.g. interest rates). Do I feel sorry for these people? Do I f**k. Idiots. The question is will potential buyers remain blinded by the emotional desire to ‘own’ (aka rent off the bank) a property or will they seriously consider whether or not they really can afford it? Its quite simple really, just do the maths. But if you do buy into this market, don’t whinge about the price you are paying because by signing on the line you have already chosen to support it. In a year or two watch the negative equity role in, followed by headlines like; ‘Boom in the second hand plasma TV / flash car market…..’

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  • tyrellcorporation says:

    A friend of mine recently said she wanted to buy a flat in London. I spent a good hour explaining the economic reasons why she should consider continuing to rent but she just kept saying ‘but I want my own place’. She had utter disregard for any risk and the mountain of debt she will be lumbered with for years to come. The ‘must get on the ladder’ brainwashing is astonishing and scary in equal measure!

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