U.K. Home Prices Rise After London Reaches Record, Group Says

Harry_Powell

ruggedtoast wrote: »

I've been renting in a lovely part of London. I've had three years of nice memories, barbecues in the garden, doorstep chats with the neighbours and feeding the ducks in the park with my son. My friend has had three years of worrying about break ins and whether his car has been keyed and putting off having kids because he's worried about the mortgage. .

JESUS!!! No one told me that buying would result in me being burgled and having my car keyed! Had I known then I would have stayed in rented accomodation, had BBQ's and fed the ducks with all the other tenants! (You can hardly move in London Parks without falling over BBQing, duck feeding renters living an idylic life)

Why doesn't the BBC tell us anything!!!! No one would buy if they could see the stark differences between the lifestyles of the tenant and the Owner occupier!!!! :mad:

ruggedtoast

IveSeenTheLight wrote: »

Certainly it appears that what you have said comes down to the choices your friend has made.
Indeed you insinuate that you made a far better choice in hindsight and your friend could have lived in a similar nice rented property that you have.
that's their choice and they live with their consequences.

Hopefully for your friend, they will have benefitted from an upturn in the market such that your friend is not in negative equity that he thought he might be and will be able to make a decision on his current circumstance.

Do you hope for this for your friend or do you hope for further drops to leave your friend with no options?

Thanks thats very insightful. People who want affordable housing = evil.

Jonbvn

ruggedtoast wrote: »

Thanks thats very insightful. People who want affordable housing = evil.

You seem very balanced. Chips on both sholuders.;)

ruggedtoast

Harry_Powell wrote: »

JESUS!!! No one told me that buying would result in me being burgled and having my car keyed! Had I known then I would have stayed in rented accomodation, had BBQ's and fed the ducks with all the other tenants! (You can hardly move in London Parks without falling over BBQing, duck feeding renters living an idylic life)

Why doesn't the BBC tell us anything!!!! No one would buy if they could see the stark differences between the lifestyles of the tenant and the Owner occupier!!!! :mad:

What do you have against ducks?

Anyway, I'm merely statting that buying a place you can't afford that isnt suitable because someone who's knowledge isnt quite as large as their opinions tells you its a one way bet, is as bad as delaying buying for the same reason.

Unaffordable housing is a problem, not a solution.

IveSeenTheLight

ruggedtoast wrote: »

Unaffordable housing is a problem, not a solution.

Facts are that on average, a property in London costs 5.82% more today than it did in January 2007.

The market supply and demand sets the market value.
It would therefore appear that there is sufficient demand for increasing prices in London.

Pete111

ruggedtoast wrote: »

I've always said people should buy if its right for them and they can afford it.

As far as risky advice goes. Well I work with a chap, him and his wife sunk all their savings, £40k into a house in London, along with a £210,000 fixed rate interest only mortgage, in 2007.

Now they are about to be booted onto the banks SVR, whch they can't afford. They are having real problem remortgaging onto another product as despite the £40k they put in the lender says they are now almost in negative equity. There are no more interest only products available to them.

I really hope they can keep their home, it is no fun seeing a friend so worried every day.

Hang on...

I took out a 2 year Fixed term interest only mortgage in mid 2007. The best rate I could get (with a decent LTV, great credit rating and no issues with salary multiples ) was 5.19%. When I came off that last year my SVR was 3.5%

From what you post it seems that your friend might have struggled to get 5.19% in 2007 but assuming they did, which bank has an SVR so significantly higher than their old fixed term that they are now struggling to pay the mortgage...?

Doesn't ring true. Sorry.

IveSeenTheLight

Pete111 wrote: »

Hang on...

I took out a 2 year Fixed term interest only mortgage in mid 2007. The best rate I could get (with a decent LTV, great credit rating and no issues with salary multiples ) was 5.19%. When I came off that last year my SVR was 3.5%

Which bank has an SVR significantly higher than 5%?

I did ask for clarification on this anecdotal which has been conveniently ignored

IveSeenTheLight wrote: »

Interesting anecdotal.
When in 07 did they buy?
What fixed interest rate were they on?
What is their current SVR?
Which area of London?
what is their repayment vehicle?

Harry_Powell

ruggedtoast wrote: »

What do you have against ducks?

Anyway, I'm merely statting that buying a place you can't afford that isnt suitable because someone who's knowledge isnt quite as large as their opinions tells you its a one way bet, is as bad as delaying buying for the same reason.

Unaffordable housing is a problem, not a solution.

Nah, you were comparing your idyllic rental life against your 'mates' crappy Owner Occupier life. It would be interesting to see how bad his current situation is now - having seen 11% gains from the bottom and having come off a fixed rate and onto SVR (most people will benefit from this, with boe rates still holding at .5%).

The other point I'd like to make is that you haven't actually bought yet, so how do you know that your house purchase will be any better than your 'mates'?

It's a bit like the HPI cheerleaders bragging about how much 'wealth' they have in their equity without actually being able to release that money or similar to the HPC crowd counting their 'savings' without actually having bought a house.

I know a certain well known bear on here who often posted that she had 'saved' £40k by not buying in 2007, but surely with the +10% gains we have seen over the last 12 month, that 'saving' is now down to £20k and diminishing further by the day. Again, by the time she buys perhaps she will end up paying the same as she would have in 2007, yet having 3 or 4 years more time paying rent instead of paying down her mortgage.

I certainly wouldn't be crowing about how 'bucked the market' before you actually buy in and crystalise your 'profit/saving'.

Conrad

Harry_Powell wrote: »

It's very stange to witness a group of otherwise intelligent people hold rigid onto their viewpoint, regardless of the evidence around them.

Pyschology - it's all psychology and the tragedy for me is that uber bears often go to thier graves robotised by infant imprints that control thier conscious thoughts and reasoning.

What amazes me most, and keeps drawing me here is the notion that many uber pessimists cannot find it within themselves, just to try being optimistic. Just to open thier reality tunnel a little.

Take peter999 - no matter how many times I point out to him that he might have an obscured world view, his subconscios has robotised 'him' to such an extent that he is seemingly clinically braincuffed.

I keep pointing how that he would have be one of those uberbears in the early 80's that was CERTAIN, absolutely certain that UK plc was to become a third wolrd nation due to Japan, HK, Tawan, Korea and co taking 'all our business'.

When I point out his ilk were wriong then and they will be wrong now - all I get is a deafening silence or of course the infamous bear retort that they are only TEMPORARILY a bear, or worse still, a realist!!

Conrad

Harry to add - I read a book called 'Prometheus Rising' and the psychologist author possits that all of us are robotised deep down - we do not consciously 'chose' how we eat, sleep, think - we just do. He goes on to categorise people and those of a pessimistic bent are the most robotised by childhood long forgotton imprints, and that this group find it exceddingly difficlut to widen thier reality tunnel and tend to view the world as the worst possible world. A few escape this robotisation but it takes a concerted effort.