Saturday, June 15, 2019

Hitting all

Soaring second home ownership hitting young people

Its become a business not a place to live

Posted by deepak @ 10:02 AM (2760 views)
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8 thoughts on “Hitting all

  • So legislation can solve the housing ‘crisis’

    What amazes me is people still piling in to property believing prices will always go up interest rates will remain near zero and a tenant will always be found at a high rent

    I’ve never known anything like it bar dot com boom

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  • Also more evidence that there isn’t a shortage of housing in the UK… Its just in the wrong hands.

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  • Round here we have new property with 40% help to buy with 5% deposit on a 4 bed 3 storey semi with no garage just parking space at 500-525k!

    Effectively taking on 500k of debt… At just 8% that’s almost £4000 per month!

    So people obviously just believe that will never happen???

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  • stillthinking says:

    Maybe they pile in because they think the value of the pound will always go down, and that the repayments will never amount to the initial liabilities.

    Imagine you bought your house in 2002 on a 25 year mortgage while earning 30K. You know earn 65K for the same position but still on practically zero interest rates. Is this going to change anytime soon? I don’t think so. I’m a regular poster on a site called housepricecrash but I wouldn’t hesitate to swap it for UK housing.

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  • I disabused my parents of the idea of buying a holiday home in Norfolk or BTL. Political risk is way too high

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  • let’s get a fire icon going

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  • britishblue says:

    Virtually every homeowner i visit now in London that has exchanged on their property has done so at a 15% discount. I cover around a quarter of London and breach the M25. Yet this is not reflected in the press or the housing indices. I hardly ever come across a buy to letter now, but in 2015 they were rampant. In 2015 you had the buy to letters that were looking to get another property as soon as they could remortgage their other properties. Every year property went up, they took equity out and added another property. Prices have not gone up and it has become more difficult to get the buy to let mortgage on high LTV. You can look at a lake and it might appear all calm on the surface, but it is what is going on underneath that really matters. This BBC article is an article for 2015, not 2019. So what is going to happen next? A quiote from Donald Rumsfield springs to mind:
    ‘Reports that say that something hasn’t happened are always interesting to me, because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don’t know we don’t know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.
    An Unknown Unknow was the massive QE and zero percent interest rates. In any other time in history, the housing market would eventually go back to equilibrium but we do not know what our government might do to prop this up for ever.

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  • tenyearstogetmymoneyback says:

    Although he got criticised for it at the time, the Donald Rumsfield quote is one of my favourites. Having had a mortgage the time of Black Wednesday who can tell what the Governments reaction would be.

    Reading the theme of the article, something that low interest rates has changed is the cost of paying off the house. Back in the days of 8% mortgage rates I would have been paying £270 a month interest. In contrast my endowment policy, which did pay out about 90% of the promised amount was costing less than £50 a month. With high prices and low interest rates the figures are reversed. I don’t suppose their is much incentive for a BTLer or second home buyer to pay off the mortgage, while using Taffe’s example the buyers will have to pay back £500K before the age of 65 if they want to keep the house. For a 30 year old that is approaching £1200 a month.

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