How can people be so greedy?

baileysbattlebus

moomin_white wrote: »

oh sorry! but i was under the impression that somebody who earns a higher than average wage and with a big deposit should be able to buy more than a 1 bed flat in the dodgiest part of town? (i don't expect much,just not to have drug addicts hanging around outside) how naive of me...
i really dislike the attitude of so many homeowners who believe it's their 'divine right'(paraphrasing here) to have trebled the prices of their house by doing nothing(just through luck) and then get tetchy when FTBs have the nerve to say they can't afford anywhere!!

House prices in our area have trebled over the last 15 years, we have been in our house that long (live in Berkshire) paid 93.5k in 1994 it's now worth around 300k. So trebling of house prices isn't an overnight thing.
We weren't first time buyers, but buying for the 4th time at the end of a price crash. Our previous house was bought for 80k and sold after 7 years for exactly what we paid for it - 80k. We had 3 children at home at the time and didn't have any savings etc, so after fees etc we walked away with 30% less than we put into the house in the first place.
And bear in mind it's market forces that ultimately decide the price of a house, it will only sell for the amount someone is willing to pay for it.
My daughter and her fiance have recently bought a 2 bed semi for 200k and are FTB, they both lived at home and saved until they had a deposit and their mortgage was based on their ability to pay not on income multiples. So we and her fiance's parents helped pay of the credit card and car loan and they were able to go in their home debt free.
They could have moved in together and rented and there they would have stayed as the rent on a 1 bed property here is about £650 to £750. They are not hard up, they go out, they have holidays, they also have decent but not great paying jobs.
Things for homeowners have not always been rosy, ask anyone who had their house repossessed in the 90's or left with £50k+ of negative equity (as friends of ours were).
So it really annoys me when FTB think they have the "divine right" to buy a nice property on a nice street in a nice part of town. Get real, most FTB have always had to buy their first house in an area they don't particulary want to live in, but they do it, live there for a few years and then move to a bit nicer area when they have a made a bit of money on their house, thus contributing to the trebling of house prices.

neas

miss_corerupted wrote: »

i find the op post quite upsetting, i'm currently selling my house for £110,000 and i really can't accept anything less, as i then wouldn't be able to buy another!!

Well can't you see how many first time buyers have now been more and more priced out of buying your house... to the limit they won't buy.. and instead of a slow reduction in price of say 10k... ot make them buy it... because everyone stops its cyclic in nature so it will bring about larger drops.. to a more realistic level.

Many people will be forced to stay at their house if their house drops price... because you will be in negative equity... house worth 70k... mortgage worth 110k.... shortfall 40k... to pay before you can leave.

Sucks but thats economy for you.

neas

moomin_white wrote: »

oh sorry! but i was under the impression that somebody who earns a higher than average wage and with a big deposit should be able to buy more than a 1 bed flat in the dodgiest part of town? (i don't expect much,just not to have drug addicts hanging around outside) how naive of me...
i really dislike the attitude of so many homeowners who believe it's their 'divine right'(paraphrasing here) to have trebled the prices of their house by doing nothing(just through luck) and then get tetchy when FTBs have the nerve to say they can't afford anywhere!!

Exactly... I can afford... a house but its in the worst area possible, and im on higher than average salary with a partner and a large enough deposit.. but eevn still i'm not wasting my hard earned cash on that pap!.

Davesnave

OK neas, you've convinced me. My house has risen in value over 500% since I bought it, so I'm going to market it now with a nice £25k reduction because I have been so lucky.

I'm sure I can convince my buyer to reduce her house by a similar percentage because she will see what a brilliant deal she is getting. If this continues all the way down the chain, as I'm sure it will, the fifth person, who could be you, might find they have a few bob left over to give to the poor.

Lovely idea; like it a lot.

neas

Davesnave wrote: »

OK neas, you've convinced me. My house has risen in value over 500% since I bought it, so I'm going to market it now with a nice £25k reduction because I have been so lucky.

I'm sure I can convince my buyer to reduce her house by a similar percentage because she will see what a brilliant deal she is getting. If this continues all the way down the chain, as I'm sure it will, the fifth person, who could be you, might find they have a few bob left over to give to the poor.

Lovely idea; like it a lot.

Its funny...

because although you joke about this, this is already happening... just not by choice... people are being forced.. by the buyers to reduce their prices... its knocking down from the floor up.

FTB Refuses to buy
1st chain Has to reduce price so cant afford 2nd chain price
2nd Chain etc etc
3rd Chain
You

Thats a simplistic view, but put in unaffordable for FTB, no credit available, tighter lending criteria and you have the situation you described... can I quote you in 2 years time?

carpetbelly

baileysbattlebus wrote: »

So it really annoys me when FTB think they have the "divine right" to buy a nice property on a nice street in a nice part of town. Get real, most FTB have always had to buy their first house in an area they don't particulary want to live in, but they do it, live there for a few years and then move to a bit nicer area when they have a made a bit of money on their house, thus contributing to the trebling of house prices.

This imo hasn't helped the market at all. I know quite a few FTB'er who've overstretched themselves on 3bed semi's (for a couple with no plans for children) as it was in a nice part of town and in a nice street. We're talking maximum amount of their budget on an interst only mortgage with no plans for paying anything off.

Yes I stretched myself to buy (FTB too) but I made sure I could repay my mortgage. Yes, it's not in the nicest area of town but still an area I am happyish with and could happily live here for years while knowing I am chipping away at the capital on my mortgage.

Not all FTB'ers think they have this divine right. Some of us were brought up being told, start off small but affordable ensuring you can eat into the capital thus making it easier to trade up at a later date if you want to.

I do agree that there are FTB'ers being unrealistic in the property that they're looking at. Comparing to what your parents bought isn't a sensible idea either. Things have changed and moved on since then. For the better or worse is another debate, we have to live now and deal with what's happening now.

sunshinejoclaire

miss_corerupted wrote: »

i find the op post quite upsetting, i'm currently selling my house for £110,000 and i really can't accept anything less, as i then wouldn't be able to buy another!!

and i'm sure you can see that as you cannot afford to go any lower, when you are already on the ladder with a mortage how difficult it must be for FTB?

neas

sunshinejoclaire wrote: »

and i'm sure you can see that as you cannot afford to go any lower, when you are already on the ladder with a mortage how difficult it must be for FTB?

The FTB has been the one taking the brunt of this 'increase'... and now the parties over...

Davesnave

Its funny...

because although you joke about this, this is already happening... just not by choice... people are being forced.. by the buyers to reduce their prices... its knocking down from the floor up.

I don't dispute that for a moment. But your original post was about greed, and I simply don't agree that I'm being greedy by attempting to get the best price I can for my house.

I think there will be a temporary amelioration of the situation spread over a few years, but only governments can alter the big picture significantly in the long term. Regrettably, I don't see any politicians with sufficient vision and guts to tackle the housing crisis head on.

Turnbull2000

moomin_white wrote: »

i really dislike the attitude of so many homeowners who believe it's their 'divine right'(paraphrasing here) to have trebled the prices of their house by doing nothing(just through luck) and then get tetchy when FTBs have the nerve to say they can't afford anywhere!!

Quoted for being such a good quote!

baileysbattlebus wrote: »

So it really annoys me when FTB think they have the "divine right" to buy a nice property on a nice street in a nice part of town. Get real, most FTB have always had to buy their first house in an area they don't particulary want to live in, but they do it, live there for a few years and then move to a bit nicer area when they have a made a bit of money on their house, thus contributing to the trebling of house prices.

Quoted for a staggeringly poor, cliched view and failing to realise that a "move to a bit nicer area" will more than wipe out the "made a bit of money" if house prices treble. There mortgage burden would have been less is priced remained in line with inflation. I suppose that's difficult to comprehend for all those suckered by the property mania.