"oh you're far better off buying"

[paolo]

God I hate those cunts. And sadly, they are my friends.

But I have a new tactic to switch off the conversation. They'll justify any profit as oh-well-that's-the-market. Sure. Just don't go believing in it. So, I introduce healthcare as an ideal supply-and-demand system. Their faces turn a little serious. "Yep. I can't afford a deposit on a flat, but I could buy a few operations. Sell them on. I mean it's just supply and demand, right?" The faces fall a bit more. No longer are they are talking about the squillions they've "made".

"Yep, I reckon children's operations would get the most profit. What do you think?"

Cue: No more fucking wanky conversation about property, or how they're going to get rich on the back of "buy to let" mug renters.

Especially if they've got children. The "greedy fuck" penny drops, very harshly.

 

[WouldBe]

House price crash, negative equity.

 

[softybabe]

House price crash, negative equity.

Would never happen! I say never!!

 

[paolo]

Bring it on

 

[Maggot]

God I hate those cunts. And sadly, they are my friends.

But I have a new tactic to switch off the conversation. They'll justify any profit as oh-well-that's-the-market. Sure. Just don't go believing in it. So, I introduce healthcare as an ideal supply-and-demand system. Their faces turn a little serious. "Yep. I can't afford a deposit on a flat, but I could buy a few operations. Sell them on. I mean it's just supply and demand, right?" The faces fall a bit more. No longer are they are talking about the squillions they've "made".

But housing and healthcare aren't really comparable. Are they?

 

[softybabe]

But housing and healthcare aren't really comparable. Are they?

Sort of payment by results and all that. So with PCTs u perform u get money, u dont u get nowt... i think well something like that

 

[Callie]

I think maggot means you might die if you dont have an operation but ......

you wont die if you dont have a roof over your head?

 

[paolo]

But housing and healthcare aren't really comparable. Are they?

No not at all... but it might a good device to stop the smugness.

 

[TopCat]

This is the time to sell up and rent people.

I will be at the auctions in about four years time laughing my head off.

 

[g force]

Ah another expert no doubt...just like all those who said prices woudl crash 2 years ago. It's going to happen but an 80s style crash is still unlikely. When it does happen - even a 5% reduction - a lot of people are going to be screwed though, which is pretty sad because lending practices in the UK are messed up.

8x salary just to buy a house

London's still swimming in foreign money supporting growth, so it's going to need them withdrawing and a recession for a lot of prices to revert to anything like the old 3x salary prices.

The OP's right though...property bores are the worst conversationalists....all "oh this rate rise will screw our 4th mortgage on the Clapham flat, mayeb we can;t buy that other house in Croatia...." *yawn*

 

[Crispy]

London's still swimming in foreign money supporting growth, so it's going to need them withdrawing and a recession for a lot of prices to revert to anything like the old 3x salary prices.

And for their to be a fuckload more supply to meet demand.

 

[dolly's gal]

yes well there are also a lot of people out there who aren't making money out of it all, such as the 1/2 million people who haven't been able to make their mortgage payments in the last six months (source: moneyexpert.com)

 

[gaijingirl]

And not everyone buys somewhere just to make money - there are other reasons for buying. People were buying houses years before it became some kind of default get-rich-quick scheme.

 

[BlackSpecs]

ATM for me renting means being free !

....and as a property expert explained to me recently , even if you make a killing by selling your house/flat - you then need to spend that exact same amount or more to maintain your way of living somewhere else !

Unless you are clever and leave the UK with the money , living like a king !!!!

 

[zenie]

But sometimes you are better off buying

Living somewhere which is way above your means in mortgage terms can be a bit of a problem because if you do want to buy, well you're not gonna be happy with a pokey one bedroom when you've been living the life of riley ey?

 

[Belushi]

I'd like to own somewhere one day for a bit of a security but its completely out of the question in London at the moment.

Rents havent been increasing at anywhere near the rate as house prices fortunately, I can afford to rent my place but wouldnt be able to afford the mortgage repayments if I bought it.

 

[hipipol]

repo rates

Top C has a very valid point, this is NOT they time to buy, unless you are well in the money- ie buying at least 7-10% below the current average for same property locally.
Currently 9 months repo satnds over 6.25% - in other words the market has already priced in another half % interest rate rise by end of Q1 next year - personally, I expect to see that rise nearer 6.5 over the next couple of weeks.
Bonds yields are rising, hence the repos rise, but it does mean that this cost of finance feeds thru to a drop in asset values - yer house be worth less.
However much anyone wants to buy, now really aint the moment

 

[Blagsta]

But housing and healthcare aren't really comparable. Are they?

Yes they are. Housing is a basic human need, same as healthcare.

 

[TopCat]

Two million mortgagees are coming to the end of their fixed price terms this summer. For them, on average, moving to a variable rate will mean an increase of 2.25%

Say bye Bye to 1.5 million buy to letters then!

 

[Callie]

Say bye Bye to 1.5 million buy to letters then!

You think they'll sell on their properties or lose them?

 

[TopCat]

You think they'll sell on their properties or lose them?

They will be desperate to sell and the sudden influx of a milion plus houses/flats onto the market will cause the prices to fall through the floor.

I predict a 40% plus drop in average prices in the next five years. The worst case scenario (but best for me like) is a 65% drop in prices.

My main worry is that loads of banks and building societys will be on the point of collapse, the goverment will step in to protect them and no savers wil be able to acess their cash (argentine stylee) for years.

Hence a safety deposit box for some of my savings.

 

[bouncer_the_dog]

So perhasps its a good time to be utterley skint without a penny to your name

 

[TopCat]

So perhasps its a good time to be utterley skint without a penny to your name

The rich will be ok as they have all the money, the poor will be no worse off as they have fuck all. The middle classes will bleat and bleat and look for a strongman type leader (think Hitler etc) to restore the "proper social order".

 

[g force]

Two million mortgagees are coming to the end of their fixed price terms this summer. For them, on average, moving to a variable rate will mean an increase of 2.25%

Say bye Bye to 1.5 million buy to letters then!

Happens all the time, depends when they bought. Market hasn't been saturated, especially in London.

And the fuckers will just up the rent! Lots of buy-to-lets aren't suddenly going to sell up because the rates have gone up - only the short termers will try and get out.

The problem with buy-to-let (as the Gruniad showed the other week) is a lot of flats have been bought by companies who can absorb those prices. I did a bit of digging on the peeps who owned my flat in Tooting that I rented....I paid a landlord, who was in a group of property "holding companies" that was in turn owned by....HSBC!!! I was giving those bastards all my money

 

[zenie]

The rich will be ok as they have all the money, the poor will be no worse off as they have fuck all. The middle classes will bleat and bleat and look for a strongman type leader (think Hitler etc) to restore the "proper social order".

 

[jæd]

The rich will be ok as they have all the money, the poor will be no worse off as they have fuck all. The middle classes will bleat and bleat and look for a strongman type leader (think Hitler etc) to restore the "proper social order".

Wouldn't the election of the next Thatcher be a bad thing...?

 

[TopCat]

Wouldn't the election of the next Thatcher be a bad thing...?

Think more like Keith Joseph with an army of bastards.

 

[TopCat]

Happens all the time, depends when they bought. Market hasn't been saturated, especially in London.

And the fuckers will just up the rent! Lots of buy-to-lets aren't suddenly going to sell up because the rates have gone up - only the short termers will try and get out.

The problem with buy-to-let (as the Gruniad showed the other week) is a lot of flats have been bought by companies who can absorb those prices. I did a bit of digging on the peeps who owned my flat in Tooting that I rented....I paid a landlord, who was in a group of property "holding companies" that was in turn owned by....HSBC!!! I was giving those bastards all my money

I have not had a rent increase this year. The reason is the massive amount of unlet flats and houses in Croydon. I fully expect to be able to move to e three bed place next summer from my two bed place now and pay no increase at all. We have at least 20% voids in buy to let in Croydon at the moment.

 

[Belushi]

And the fuckers will just up the rent!

But there is only so far you can raise rent and still get tenants.

I mentioned earlier in the thread that I can afford to rent my place but wouldnt be able to afford mortgage payments if I bought it - rents have increased at nowhere near the increase in house prices - the housing market at the moment is a speculative bubble.

 

[bouncer_the_dog]

The rich will be ok as they have all the money, the poor will be no worse off as they have fuck all. The middle classes will bleat and bleat and look for a strongman type leader (think Hitler etc) to restore the "proper social order".

Like David Milliband?