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Debate House Prices
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Large Deposit Requirements Exclude a Generation of FTB's
Comments
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Are you serious? You've never spoken to young people who feel that they can't afford to buy? My office is full of them, rightly or wrongly.
Seriously.
Up here I've never spoken to an FTB that moans about house prices.
Spoken to lots that are complaining the banks won't lend though, and that are frustrated they're wasting vast sums of money by being forced to rent for years until they can save the deposit.
Not surprising when rental yields up here are typically 6% to 8%.
They're quite right to be p1ssed off, as it's costing them a fortune.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »I've yet to see an FTB in the real world, outside of these forums, complain about high house prices.
With rent being more expensive than mortgage payments in most areas, it's obviously affordable to buy. IF you can get a mortgage, which many can't because of mortgage rationing and absurd deposit requirements.
How is an FTB supposed to save 30K, 40K, 50K for a deposit when rent is more expensive than a mortgage payment? I've yet to hear a good answer....
Maybe move back with parents (if possible), and save for a couple of years.
How about not putting down a £30K deposit ? I reckon £15K should be enough to secure a first home.
Some bulls have said that potential FTB`s should stop complaining and give up the iPods, mobile phones, videogames etc, which they never had when they bought their first place. I don`t think that`s the answer, but I`m just repeating the advice given by some existing homeowners.
Of course, the other thing potential FTBs could do is wait for the property market to adjust to the new lending conditions. The market will need FTBs eventually, so prices/lenders will have to adjust accordingly.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Some bulls have said that potential FTB`s should stop complaining and give up the iPods, mobile phones, videogames etc, which they never had when they bought their first place. I don`t think that`s the answer, but I`m just repeating the advice given by some existing homeowners.
What about LED TV's?
Bit of a conundrum isn't it. Get told your a parasite for not buying said things...but get told to give them up should you want a house.0 -
HAMISH_MCTAVISH wrote: »Spoken to lots that are complaining the banks won't lend though
Maybe they should complain to those who have caused the banks to "shut up shop", ie the millions who gorged on the credit feast of the past decade.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Graham_Devon wrote: »What about LED TV's?
Bit of a conundrum isn't it. Get told your a parasite for not buying said things...but get told to give them up should you want a house.
Mmmmm.
Perhaps Hamish should campaign for 96% mortgages. The extra 1% will pay far a nice 40" Samsung, with a bit left over for a DVD Box Set of Location, Location, Location, and a couple of boxes of Kleenex.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Maybe they should complain to those who have caused the banks to "shut up shop",.
I don't think the American sub-prime borrowers would listen.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »I don't think the American sub-prime borrowers would listen.
Are we back to blaming America?
Blimey, we gone full circle
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HAMISH_MCTAVISH wrote: »I don't think the American sub-prime borrowers would listen.
So, nothing to do with us, eh ? You sound like another short-sighted Scot that I know.
NR, B&B, Halifax - all dishing the dosh like there`s no tomorrow (which there nearly wasn`t).
Where were they getting the money from ?
I guess (because I admit I`m no expert on large scal international credit markets) that it may have been derived from what was going on in the US. Our property market was supported by what was going on globally. When it went wrong for the US, it went wrong for the UK. Someone should have seen what was coming, and taken action to protect our banks. They didn`t. Even I knew something was wrong, and predicted we`d be in the mire.
Blame the Yanks all you like, but we put ourselves in a position where we were reliant upon them.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Graham_Devon wrote: »Are we back to blaming America?
Blimey, we gone full circle
Several times. It`s called "spin".30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
So, nothing to do with us, eh ?
No, it really was almost nothing to do with us.NR, B&B, Halifax - all dishing the dosh like there`s no tomorrow (which there nearly wasn`t).
Where were they getting the money from ?
The international wholesale money markets, which completely froze up when the scale of the fraud and mis-selling that happened in America was uncovered.
Because those assets had been rated as AAA, and they clearly were as far from AAA as you could imagine, the contagion spread through the entire banking system.I guess (because I admit I`m no expert on large scal international credit markets) that it may have been derived from what was going on in the US. Our property market was supported by what was going on globally. When it went wrong for the US, it went wrong for the UK.
The American market caused the problem. The global markets suffered the consequences, even though we had nothing to do with causing the problem.
I don't think you realise just how ludicrously bad the mis-selling of mortgages in America was.Someone should have seen what was coming, and taken action to protect our banks. They didn`t.
Indeed.
We should have been as decisive as the Australians were in protecting their banks and stimulating their market to avoid a crash, and subsequent recession.
Brown failed miserably by doing too little, too late.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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