Tragic case... "This website has failed"

ess0two

RenovationMan wrote: »

Over Indebtedness seems to be your catchphrase of the moment, but can you define what it actually means mathematically?

Do you have an equation in mind that we could all apply to our own circumstances to see if we are underindebted, indebted or overindebted?

I'd be very interested in applying it to my own finances to see how I rank in the AD9898 indebtedness scale.

You are the very person AD refers to,he needs to step out of his ivory tower.
To some extent your sig probably !!!!es a lot of prople off on here.

tara747

StevieJ wrote: »

Do you live in Northern Ireland?

Yes I do. How did you guess?

Does anyone, even the bulls, think (with the benefit of hindsight) that buying in NI in the last 6-7 years was a good idea??

the.ciscokid

HAMISH_MCTAVISH wrote: »

A cautionary tale on the very real dangers of trying to speculate on timing the markets... And listening to bad advice on the internet.

The real tragic case is you proclaiming cautiousness toward bad advice whilst dishing it out by the truck load.

The fact is the housing market bubbled, and that is a moral hazard. Lost years of not buying a house is a result of said bubble, and with any luck something as severe as we are experiencing (to the detriment of the whole country I might add) will not be allowed to happen again. Whether that is by regulation, or a real free market in finance, and banks being left to go bust is another matter.

the.ciscokid

HAMISH_MCTAVISH wrote: »

No, I said the other day I despise crashaholics.... The "bears" that wish to see the economy burn so that they can "snap up a bargain".

Please don't lose sight of the fact it will be "the bulls" (read bankers, btlers, useless politicians, liar loan takers, dodgy mortgage brokers etc.) that will have CAUSED the economy to burn... regardless of who is cheering it on.

Pobby

I am not sure that some of this makes sense. A pal of mine lives near London, small terrace. At the bottom of the house price recession, it was valued at £44k. At peak. Nearly £200,000. How does that make any sort of sense? I think now at about £150k mark. No one, in the years has explained to me how that has happened. I do wish people would realise what a ponzi market all this has been.

I was a House price crasher. Just could not see what was pushing up prices. Little or no wage inflation, but I agree with above poster. All a bit iffy. As an older person, I am not happy with the annuity rates now and sweet Fanny Adams on savings.

There is no doubt about, the housing boom has clearly screwed things. 0.5% interest rates, do me a favour. I thought that 5% was low. However, there we go. However, if you are unlucky you pay well over that on a mortgage. Credit card borrowings, umm, scary.

Who actually felt rich when there homes increased? If you had more than one then maybe. However the tax payer brings up the slack. All the tax credits and benefits paid out. I have no problems with those that need it. However they were paying out benefits to plus £50k earners as a couple, Highly intelligent.

Hey ho, the joys of modern England.

B_Blank

Pobby wrote: »

I am not sure that some of this makes sense. A pal of mine lives near London, small terrace. At the bottom of the house price recession, it was valued at £44k. At peak. Nearly £200,000. How does that make any sort of sense? I think now at about £150k mark. No one, in the years has explained to me how that has happened. I do wish people would realise what a ponzi market all this has been.

I was a House price crasher. Just could not see what was pushing up prices. Little or no wage inflation, but I agree with above poster. All a bit iffy. As an older person, I am not happy with the annuity rates now and sweet Fanny Adams on savings.

There is no doubt about, the housing boom has clearly screwed things. 0.5% interest rates, do me a favour. I thought that 5% was low. However, there we go. However, if you are unlucky you pay well over that on a mortgage. Credit card borrowings, umm, scary.

Who actually felt rich when there homes increased? If you had more than one then maybe. However the tax payer brings up the slack. All the tax credits and benefits paid out. I have no problems with those that need it. However they were paying out benefits to plus £50k earners as a couple, Highly intelligent.

Hey ho, the joys of modern England.

I agree, the whole thing was just madness (and still is but I think they are trying to deflate slowly after they got rid of some of the price rise in 2008-2009).

Where I live the average flat in 1997 was something like £35k with an average wage of £17k. By 2008 the average flat was about £110k when the average wage was £26k. That was a 50% increase in nominal wages and a shocking 200% rise in house prices.

The average detached house went from £116k to £313k within 10 years. How did this happen without alarm bells going off acorss the country? It is truely amazing that EVERYBODY in any position of power failed to spot this crash, absolutly amazing, and it will be remembered as one of the biggest disasters in british history. It has set this country back to an insane extent.

Britain has always been an economically brilliant country, and this was a big reason why we rose to be arguably the most powerful nation the world has ever seen in the 1800's. Yet somehow, we managed to completely balls up alot of what we do in a 10 year peroid of insane house price rises.

I dont understand how prices can increase from £116k to £313k in 10 years (without massive wage inflation). How can this of happened?? Incredible.

When you think about things like that there is no way that when the supports are taken off the economy the housing wont crash again...there is no supply and demand, or demographic justification for the massive price rises we saw for the decade to 2008.

I still have my doubts whether they will take the supports away anytime soon though.

I dont think this is much point replying to the "Bulls" though. They are simply trolls who either have self interest at heart, or who enjoy mocking those of us who are priced out of the market to make themselves feel better/give themselves some fun. They are simply internet trolls, you get them everywhere online, and its very easy to wind people up by being one of these so called "bulls" when they argue about a subject so many of us are so passionate about.

First and foremost I want my country to be stable and affluent. This house price crash has put this all in jepordy. "The longest peroid of living standards declining since the 1920's" is what mervyn King said (something like that anyway), and this is all from a property bubble - basically. Yet people still champion high house prices - and we all argue with them - but we shouldnt because they are simply trolling us.

doire_2

GHOULS_RENT_FOREVER wrote: »

Well I have my 3 bed detached and 2 BTL's so I make the score Homeowners 3 Ghouls 0

No sibley....you live in a slum in bangkok

RenovationMan

ess0two wrote: »

You are the very person AD refers to,he needs to step out of his ivory tower.
To some extent your sig probably !!!!es a lot of prople off on here.

That wasnt my intention. I joined MSE to post on the MFW board and document my house renovations and mortgage battle (mostly for my own entertainment but some regulars to seem to view it) and the sig is a standard one that many people have there, I just copied them.

I must say that I havent felt any animosity from anyone on this board, apart from when I had the anti-sock puppet idea, and I certainly dont feel that people are hoping that I fail in my challenge. Perhaps I'm naive in this, but being an optimist I always try and see the good in people.

I do really like passing time in here, the regulars are a good laugh and there are some decent, clever posters to debate with.

quantic

tara747 wrote: »

But we are talking 50%+ falls in 3 years here... the stakes are a lot bigger. Would I wait 5 more years to save £20k? No. Would I wait one more year to save £20k? Yes.

My friends paid £190k in 2007 for a house that is now worth £60k. That's tragic. What would you say to them?

I, too, might have bought by now if the alternative was renting sh*tholes for extortionate amounts that left no room to save. OH and I are renting a lovely house (with CT included) for a very reasonable rent in a very nice area, the LL is fantastic and puts up hooks for our pictures anytime we ask (I know that this is a common 'why to buy' argument lol)! He also sorts out any maintenance issues straight away (although the house was newly renovated when we moved in, and to a high standard I must say).

We are lucky, we have good salaries and are able to save a substantial amount each month. We will buy at some stage in the next 2 years I imagine. When the right house in the right area comes along at the right price. We could buy for cash in some areas here but they are too dodgy to live in. I like to feel safe and have nice surroundings, you see.

I see your point, but if prices go down, the next house I buy will do the same, so its swings and roundabouts really.

"My friends paid £190k in 2007 for a house that is now worth £60k. That's tragic. What would you say to them"

That must be very very niche circumstances though. Not a trend by any stretch. All I'm trying to say is, people seem incapable of seeing past losing a bit of money on a house. I (and I'm sure many others have done the same) have lost about £8k in depreciation on my car since I bought it 3 years ago... people don't post on forums about that thought

N1AK

HAMISH_MCTAVISH wrote: »

The truth is if he bought a house 6 years ago he could have got a 100% mortgage

The truth is your pulling 'facts' out of the same orifice as usual. We don't know his circumstances well enough to know whether his decisions so far have been optimal.

What we do know is that you'll us anyone you can finds misery to continue blindly pushing your agenda.