Parents, you're just making it worse! Please STOP!

vishpatel

dougk wrote:

So has the number of "new" people to the UK grown. The UK Population is growing faster than the number of new builds.

Who are these new people though? The birth rate of the indigenous population is certainly not rising. So immigrants? Most of them arrive from poorer countries, and think property is expensive too.

vishpatel

Doozergirl wrote:

Those 'greedy vendors' also have to live somewhere and will be most likely buying somewhere even more expensive and taking on an even bigger mortgage. Price is set more by what people are prepared to pay more than how much the vendor asks.

No one person has any control over the property market.

First time buyers have a lot more power than they think. They could pull the rug from under the property market if they just stopped paying ridiculous amounts to own. At what point does it become too much?

Sadly most of them are influenced too easily by the pro-property brigade, which usually starts at home with mum & dad.

What will actually kill the property market is the credit crunch with rising rates etc..

Jorgan_2

There is a perfectly good system in place, has been for years, for deciding whether a property is overpriced - its called the market place. If the asking price is too high, it won't sell, pure & simple.

dougk_2

vishpatel wrote:

Who are these new people though? The birth rate of the indigenous population is certainly not rising. So immigrants? Most of them arrive from poorer countries, and think property is expensive too.

The majority are not "immigrants" but migrant workers from other EU countries. There are more set to come to the UK when the EU expands further shortly.

They may "think" property is expensive but it doesn't always stop them buying.

The difference is the "poorer" migrant workers think as a group and club together and buying a smaller property which may actually have twice as many residents as bedrooms.

I also know of several Russians (who I worked with) who because of there backgrounds are now saving much more than a "native" UK citizen would because they are used to hardships. They are each putiing away circa £10-15k per annum so it doesn't take long for them (3 or 4 years) to buy a house outright as a group.

vishpatel

Jorgan wrote:

There is a perfectly good system in place, has been for years, for deciding whether a property is overpriced - its called the market place. If the asking price is too high, it won't sell, pure & simple.

Ahh, but within this market place, mortgage lenders have been bending over backwards to keep pumping out mortgages. Many of the deals offered to young first time buyers now are VERY irresponsible.

Carol Vorderman got a witch hunt - when will HSBC?

vishpatel

dougk wrote:

The majority are not "immigrants" but migrant workers from other EU countries. There are more set to come to the UK when the EU expands further shortly.

They may "think" property is expensive but it doesn't always stop them buying.

The difference is the "poorer" migrant workers think as a group and club together and buying a smaller property which may actually have twice as many residents as bedrooms.

I also know of several Russians (who I worked with) who because of there backgrounds are now saving much more than a "native" UK citizen would because they are used to hardships. They are each putiing away circa £10-15k per annum so it doesn't take long for them (3 or 4 years) to buy a house outright as a group.

Have you actually seen any evidence to suggest they are interested in buying property? I would wager the vast majority rent cheaply.

A documentary on Polish workers I saw a while back suggested they just rented with many others and planned on going back in a few years because everything was so expensive here.

Jorgan_2

vishpatel wrote:

Ahh, but within this market place, mortgage lenders have been bending over backwards to keep pumping out mortgages. Many of the deals offered to young first time buyers now are VERY irresponsible.

Carol Vorderman got a witch hunt - when will HSBC?

Irresponsible lending is wrong, no argument with that, however no one is forced to borrow beyond their means. Its a two way street, lenders need to lend responsibley while borrowers need to borrow responsibley.

dougk_2

vishpatel wrote:

Have you actually seen any evidence to suggest they are interested in buying property? I would wager the vast majority rent cheaply.

YES! Like I say I worked with a number of migrant workers and the majority were buying homes because the mortagage payments were no different to the rent. (e.g. A typical 3 bed terrace rent £650 typical 3 bed mortgage at £150k IO £625) As they had large deposist after being here a year or two (50K+) it actually made more sense to buy.

vishpatel

dougk wrote:

YES! Like I say I worked with a number of migrant workers and the majority were buying homes because the mortagage payments were no different to the rent. (e.g. A typical 3 bed terrace rent £650 typical 3 bed mortgage at £150k IO £625) As they had large deposist after being here a year or two (50K+) it actually made more sense to buy.

they are the minority IMO. Most migrant workers rent cheaply with many people in one property.

vishpatel

Jorgan wrote:

Irresponsible lending is wrong, no argument with that, however no one is forced to borrow beyond their means. Its a two way street, lenders need to lend responsibley while borrowers need to borrow responsibley.

The lenders should know better. Young homebuyers often don't.