Today's Bear food

ukcarper

p1212 wrote: »

I've already explained it at least two times in the last few days, read it back.

Even if you take equity you still have to borrow and that money isn't free and you seem too think that a very large number of people are doing that when in reality the numbers are small.

cells

P1212 sounds like a recent immigrant to London who doesnt even want to consider moving to another part of the uk and he is scratching his head as to why London prices are expensive. Look in the mirror P1212

The big big big big big factor that the house prices are too high cheerleaders miss is inheritences and gifts. I say it often but it does not sink in. London looks expensive when you look only at incomes v property but it looks affordable when you look at inheritences/gifts v property

~£50 billion a year received in gifts and inheritences in London is enough to run the property show without looking at income. The last 4 under 30s in London that I know that bought all had significant gifts/inheritances.

A £26k income just doesn't cut it in London. If that's all you have you need to accept that you will be outbid and you will either need to move out of London or improve your income or marry into money

economic

cells wrote: »

P1212 sounds like a recent immigrant to London who doesnt even want to consider moving to another part of the uk and he is scratching his head as to why London prices are expensive. Look in the mirror P1212

The big big big big big factor that the house prices are too high cheerleaders miss is inheritences and gifts. I say it often but it does not sink in. London looks expensive when you look only at incomes v property but it looks affordable when you look at inheritences/gifts v property

~£50 billion a year received in gifts and inheritences in London is enough to run the property show without looking at income. The last 4 under 30s in London that I know that bought all had significant gifts/inheritances.

A £26k income just doesn't cut it in London. If that's all you have you need to accept that you will be outbid and you will either need to move out of London or improve your income or marry into money

couldnt agree more and well said. i too find it very very surprising this is not mentioned much at all in the media or research or any analysis on londons property market. i myself received £100k in gift to purchase my property. im looking to receive another £100k to possibly buy another.

p1212

economic wrote: »

couldnt agree more and well said. i too find it very very surprising this is not mentioned much at all in the media or research or any analysis on londons property market. i myself received £100k in gift to purchase my property. im looking to receive another £100k to possibly buy another.

So actually did you manage to save anything at all??? Or is it all gift and capital gains? A "hard working" person...

economic

p1212 wrote: »

So actually did you manage to save anything at all??? Or is it all gift and capital gains? A "hard working" person...

I myself put in 250k. I could have put in the 100k myself but my parents gifted it instead - inhertance planning.

chucknorris

michaels wrote: »

Have you got a buyer yet CN?

It went on the market 6 days ago, we accepted an offer today for the full asking price.

westernpromise

The more you hear from crash trolls the clearer it is that they're poor not because it's a conspiracy, but because they're, well....thick.

Whenever I read anything from P1212 I am reminded of the Dunning Kruger effect:
http://www.patheos.com/blogs/crossexamined/2015/02/the-dunning-kruger-effect-are-the-stupid-too-stupid-to-realize-theyre-stupid/

michaels

chucknorris wrote: »

It went on the market 6 days ago, we accepted an offer today for the full asking price.

:beer::j:T:rotfl:

cells

economic wrote: »

couldnt agree more and well said. i too find it very very surprising this is not mentioned much at all in the media or research or any analysis on londons property market. i myself received £100k in gift to purchase my property. im looking to receive another £100k to possibly buy another.

I think maybe people who do receive gifts and inheritances are sad that others don't so are reluctant to talk about it or highlight it.

I think the inheritences and gifts impact a huge amount in the economy. Not only house prices but also general inflation and savings rates and the rate if return on debt. Maybe most economists have yet to link its vast huge scale and impacts

cells

p1212 wrote: »

So actually did you manage to save anything at all??? Or is it all gift and capital gains? A "hard working" person...

He shouldn't feel guilty at all and say yes sir I received gifts/inheritences and I am free to participate on the housing market with said gifts and I heritences. Therefore you have no choice but to accept that the housing market is not just incomes but also inheritences and gifts.

The idea that the avergae £26k income which includes part time workers and children should buy the average home simply doesn't work. Not when in the real world full time workers earn a lot more and the figure is even higher when you exclude 'children' but also a significant number of people do or will get gifts and inheritances.


What's more the savings rate is still positive which means that gifts and inheritances look to be growing not shrinking