'We've reached a tipping point' Signs of house price weakness

Cloudydaze

Windofchange wrote: »

I knew that one was coming up. I'm not ashamed at all, or why post it up on here? I've already admitted to being a spend-thrift. It has no relevance to a discussion on property prices. I should probably have just gone bankrupt and run away hey? I'm not asking for sympathy for the past - as I said, my debts will be gone in a year and so will I.

When you have a proper argument come back. Until then, happy dreams of bubbles and a London Utopia full of suits and homeless middle classes.

Could you outline the set of circumstances that would leave me homeless and you having the pick of properties?

Windofchange

Cloudydaze wrote: »

Could you outline the set of circumstances that would leave me homeless and you having the pick of properties?

None. That is the point. This isn't a rant about me wanting the pick of the properties. I'm middle class, you (by the sounds of things) are middle class. We all lose other than those running the show.

Windofchange

I'm done - time will tell. What goes up, must come down...

cells

Windofchange wrote: »

I'm done - time will tell. What goes up, must come down...

Moon?

Went up a fee billion years ago still there....and actually getting further with time (moon height inflation)

padington

Windofchange wrote: »

I'm done - time will tell. What goes up, must come down...

In this universe it seems time doesn't go backwards so our age only keeps going up.

Try also playing monopoly where the property is bought on the free market and increase the money supply every week then track house prices. You may just have found another thing that doesn't go down.

Cloudydaze

Windofchange wrote: »

None. That is the point. This isn't a rant about me wanting the pick of the properties. I'm middle class, you (by the sounds of things) are middle class. We all lose other than those running the show.

But I don't feel like I'm loosing. I agree the current situation is ludicrous but I accept what it is and adapt my expectations to suit. I live in flat when I'd like a house but houses in my street are £1M. If I want a house I know I need to move out of London.

I did feel sorry for you until I read your other thread. Whilst you were living it up, travelling (and running up debts) I was scrimping and saving to get my first flat. You even said you had some money left to you. I think you are more angry at yourself that you had the chance to buy somewhere but have blown it. You seem to despise everyone who chose a different path to you.

I probably would be described as middle class but I don't see what that has to do with anything. It doesn't mean I'm entitled to own a property in London over and above anyone else.

lisyloo

you not the girl with a small flat in London that suits your needs, yet you can't afford one

Thanks for your long post windsofchange. I'm sure you have some good points, but I have guests arriving today so I'll look back later.

We are currently renting in London.
At the current time we couldn't afford our flat but that's because we both voluntarily receive a smaller salary and put a lot of money directly into pensions instead (saves around 30-40% in income tax, Ni, employers ni, corp tax).
We could put ourselves into a position to buy by paying ourselves more, but DH would have to do that for at least 1 year as he's self employed and it would need to reflect in his annual accounts and of course there is a cost circa 40%.

I don't know how long we will be in London (best guess 6.5 years) but my calcs show with the buying/selling costs, CGT and the cost of receiving the salary (vs pension) that we'd need to stay for 9.5 years to make it pay. If prices seriously crash then I'd reconsider, but I don't believe there will be a proper crash in centralLondon. Correction, faltering - yes, but I don't think a serious loss of value in on the cards (barring Ebola type event).

We're an example of people who are priced out by choice - in our case tax mitigation - but we could change that with sufficient motivation.
So it seems wrong to me to regard being priced out as a permanent state although I would add that's it's certainly a lot harder than in the past (I've bought twice in the past once with zero deposit and a second time by part exchange and both times it was a synch comaparec with what we'd need to do now).

System

Cloudydaze wrote: »

I did feel sorry for you until I read your other thread. Whilst you were living it up, travelling (and running up debts) I was scrimping and saving to get my first flat. You even said you had some money left to you.

Me too. I have sympathy for people who have been genuinely screwed over by what's happening but that's not the case here. A second generation rich kid who has been gifted more opportunities than the vast majority and wasted it, there is only one reason they don't own a house and it's plain to see what it is.

wotsthat

Crashy_Time wrote: »

I am predicting that many who bought into this bubble will be bankrupt in less than five years.

I predict you'll still be renting in 5 years and making the same predictions.

Crashy_Time

wotsthat wrote: »

I predict you'll still be renting in 5 years and making the same predictions.

I`m predicting that when the next crunch comes you will be sorry Wotsit.