Repo's up and some startling numbers

geneer

RenovationMan wrote: »

Well the boomers were before me and yet I don't moan because they are 'better off' than me.

My kids are the generation you are talking about (the generation ofter you. One has ambitions to become a doctor, even though it means she will be in debt to the tune of about £50k. I have a feeling that their generation will be like your generation and like my generation. Some of them will moan and b itch about their lot. Some of them will just get on with their lives and make the best of it. I'm thinking my daughters will fall into the former, but you never know. Perhaps I didn't hug and kiss them enough and they will hate everyone who is doing 'better' than them?

I wish you could have responded in a way relevant to what I said, which was simply noting that the historical trend of the next generation being better of than the last is very likely at an end for the time being.

You emotive tirade was certainly entertaining, but of little relevance to my own contribution or indeed motiviations.

RenovationMan wrote: »

Please show any post of mine where I revel in HPI? Or where I claim that I have done well from HPI? Or in any way claimed that HPI is 'good fortune'.

You mentioned HPI.
I said you occasionally appear to want credit for simple good fortune.
For example, when you crowed about the fact that you were benefiting from the emergency base rates caused by the economic meltdown you never saw coming.

IveSeenTheLight

shortchanged wrote: »

You don't think that buying your first house in 2000 before the boom and rampant HPI since has put you in a favourable position then. It is likely that you made a massive profit in a very short space of time thanks to when you bought originally.

Say for example you bought your house for 100K in 2000. It's likely that that same property was probably going for 200-250K five or six years later. That's not a bad return in such a short space of time. No wonder many of the bulls who bought pre boom are so keen to push high property prices.

Wow, HPI has not accelerated in that fashion in my vested interest area.
Actually HPI meant that when I upsized in 2004, the house (4 bed) I bought had increased by more than the flat (2 bed) I bought in 2000.

If you want figures, I bought the flat in 2000 for £50k and sold it for £78k, not bad £28k increase in equity as you say (discounting solicitor and estate agent costs), however the 4 bed house had increased from £90k to £146k in the same time.

It therefore cost me more to upsize.
My increased £28k equity was swallowed up by the £56k increase in the 4 bed house.

How does that sit with your figures?

That said I did benefit.
I originally bout on a 100% mortgage and after 4 years had just over £35k equity IIRC.
That meant my deposit on the house pushed my LTV to below 80%, meaning I could get better mortgage options.

So, HPI cost me more nominally, but allowed me to have equity to upsize and to obtain a lower LTV.
Had there not have been HPI, it would have taken many more years before I could have afforded to upsize.

It may seem strange, but HPI allowed me to move up the ladder quicker than I would have been able to do so without it.

IveSeenTheLight

RenovationMan wrote: »

Overpaying, not HPI put ISTL in a favourable position.

When I realised the benefits of overpaying my mortgage is why I have the name "IveSeenTheLight"

Pimperne1

geneer wrote: »

Younger than the average FTB.

He's 38 (only a year older than the average first time buyer - but, as Gneer likes to point out - 37 is only an average).

shortchanged_2

IveSeenTheLight wrote: »

So, HPI cost me more nominally, but allowed me to have equity to upsize and to obtain a lower LTV.
Had there not have been HPI, it would have taken many more years before I could have afforded to upsize.

It may seem strange, but HPI allowed me to move up the ladder quicker than I would have been able to do so without it.

Exactly, you've hit the nail on the head there. Now compare that to someone who has bought a house since 2004. I'm sure they would/will have not such opportunity.

IveSeenTheLight

Pimperne1 wrote: »

He's 38 (only a year older than the average first time buyer - but, as Gneer likes to point out - 37 is only an average).

HeHe, if true, he's older than me

IveSeenTheLight

shortchanged wrote: »

Exactly, you've hit the nail on the head there. Now compare that to someone who has bought a house since 2004. I'm sure they would/will have not such opportunity.

So are you arguing for or against HPI?

shortchanged_2

IveSeenTheLight wrote: »

When I realised the benefits of overpaying my mortgage is why I have the name "IveSeenTheLight"

And that certainly helps when you had such a small mortgage when you originally bought pre boom. I wonder if many of the first time buyers since 2004 have been able to overpay their mortgages to any great extent seeing as their mortgages would be considerably larger than yours would have been thanks to HPI.

shortchanged_2

IveSeenTheLight wrote: »

So are you arguing for or against HPI?

Totally against rampant HPI, as all it does is help one generation and shaft another. I would like to see HPI roughly in line with the UK's inflation rate and that following some correction to house prices to more realistic levels than they still are, although I do see them starting to come down where I live.

IveSeenTheLight

shortchanged wrote: »

And that certainly helps when you had such a small mortgage when you originally bought pre boom. I wonder if many of the first time buyers since 2004 have been able to overpay their mortgages to any great extent seeing as their mortgages would be considerably larger than yours would have been thanks to HPI.

I bought mid boom if you like, however the mortgage multipliers remains similar for me throughout the last 11 years.
As I said, we maxed out to be able to afford back in 2000.
We maxed out again when we upsized.

Indeed, I know people who have bought throughout the last 11 years, including a couple in their early 20's who bought in 2008.

There are properties out there that are affordable to FTBers, if you aim your sights correctly.
Maybe you just live in an area where there are no FTBer's.........