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(Post Link) post #1 of 48 Old 16-04-07 Thread Starter
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House Buyers and property prices again...

I was watching a thing on the TV the other day about new affordable housing being built. This was in a desirable area and the houses were being sold for less than the area average to allow people to buy at a reasonable price and get onto the property ladder.
However there were 80 applications on average for each house, 99% of these were from people trying to buy to let.
WTF is going on in this country? Something needs to be done to stop people buying to let. This is the reason prices are rocketing and people like me and my girlfriend have a cat in hells chance of getting on the property ladder. The landlords also control the rent so we are overpaying for that too.

The few that are in the privileged situation of being able to afford 2 houses are getting better off at the expense of the rest.

My proposal would be to make the landlord pay council tax on properties, not the tenants. The Tax should double for 2 houses owned, treble for four etc... And to prevent the tax being passed on to the tenants there should be a limit imposed on how much rent can be charged for a property, depending on its size and location.

This way people who are struggling to even pay rent would not be burdened with council tax, it would be the privileged few that would pay it.

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Re: House Buyers and property prices again...

A friend of mine missed out on buying a lease extention with the leasehold he bought (a flat in London) two years ago and it's not gone up in price almost 3 fold

The guy's screwed as he can't afford it now
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Re: House Buyers and property prices again...

These things are all market driven so no-one to blame except the buyers themselves.

A stiff bout of higher interest rates will clear things out a bit and bring back to earth those that think property is a cast iron investment.

Truth is current prices and increase levels are unsustainable - prepare for a crash, especially if you live in the South-East of Englandshire.
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Re: House Buyers and property prices again...

I agree with the sentiment symonh2000 if not your proposed solution. And what Will said.
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Re: House Buyers and property prices again...

We have all sorts of government backed schemes
here in France that give you tax deductions for
buying new build property and renting it out for a
minimum of 9 years.

However the house market is not so stupidly high
because banks refuse to give mortgages that
result in repayments much more than x2 your
monthly income.
 
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Re: House Buyers and property prices again...

London in particular has also enjoyed/suffered from a large influx of money from abroad (a friend was renting a flat off a lady who lived in HK).
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Re: House Buyers and property prices again...

Interest rates are going to hit those who have gambled with a second or even third property using largish mortgages to fund their purchases. However this is just going to get passed to tenants in the form of increased rent. They'll only come unstuck if they are unable to find tenants at the rent levels they require to repay their loans and as rents are usually considerably more than monthly mortgage payments something drastic would have to happen. I agree that the likelihood of a price crash or at least a slowdown is pretty good if you consider the recent developments in the US property market.
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Re: House Buyers and property prices again...

Just had my house valued today, in the 6 months I've wasted making my mind up to sell it it's increased in value by nearly £15K it's going on the market in the next 2 weeks
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Re: House Buyers and property prices again...

I'm lucky, I live in a house that I could never afford to buy now.

I'm always a bit nervous of the people who believe that house values should be directly linked to rates payments. My income has actually gone down as the house value has been going up!
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Re: House Buyers and property prices again...

The government should set a limit to how much more than your salary you can borrow. It shouldn't be any more than 3x salary IMO. However think of what they make out of stamp duty (so weird that such a major source of government income is all paid with borrowed money).
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Re: House Buyers and property prices again...

Quote:
Originally Posted by badgers_nadgers View Post
The government should set a limit to how much more than your salary you can borrow. It shouldn't be any more than 3x salary IMO. However think of what they make out of stamp duty (so weird that such a major source of government income is all paid with borrowed money).
Yes agreed - the more xSalary the banks lend the more money there is chasing a house, the more its value increases and the more into debt we all become
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Re: House Buyers and property prices again...

I'm with Will, sitting on the fence, just waiting for it to happen.:
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Re: House Buyers and property prices again...

Quote:
Originally Posted by Kevin Slegg View Post
Yes agreed - the more xSalary the banks lend the more money there is chasing a house, the more its value increases and the more into debt we all become
What he said
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Re: House Buyers and property prices again...

totally agree that house prices have completely got out of control...the problem is, is that your average joe has borrowed, in the main, way more than they can afford... if we see spiraling interest rate rises that we saw in the 70's and late 80's it will only only result in a hugh amount of reposessions which will be disasterious...
we have got to build more houses and as previously mentioned, get these fecking blood sucking landlords out of the mix...bring back quality made local council run houses for low income families...
 
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Re: House Buyers and property prices again...

Agree with Will and MB now as well!:
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Re: House Buyers and property prices again...

I find it ridiculous that 2 bed flats are now going for about 200k in outer London and parts of the SE.

I was lucky enough to be able to get somewhere last year. The only reason I could afford was it was a reposession, a bit under value and needed new carpets and painting. Hopefully I am safe as I haven't stretched myself too much, but what gets me is that my bank were willing to offer me 5x my salary and were pushing me to take the max. As it stands I have a cheap flat pretty much in the industrial part of Dartford, suits my needs though and I am on the ladder.

Hiking rates up and causing another crash is not good, but the whole buy to let thing as symonh2000 said is a problem that needs resolving.
 
(Post Link) post #17 of 48 Old 17-04-07 Thread Starter
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Re: House Buyers and property prices again...

If the bank will lend 5 x the annual salary that means I will be able to borrow around 100K. Hardly enough for a tent in my area...
So I have to rent and line someone else's pocket, so they can have a secure future.
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Re: House Buyers and property prices again...

5x mine and my girlfriend's salary (which they won't do for a joint salary) wouldn't get a two bedroom flat round here. Five years ago, it would have bought a three/four bedroom house. It's absolutely ridiculous.
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Re: House Buyers and property prices again...

Quote:
Originally Posted by symonh2000 View Post
If the bank will lend 5 x the annual salary that means I will be able to borrow around 100K. Hardly enough for a tent in my area...
So I have to rent and line someone else's pocket, so they can have a secure future.
Move to Yorkshire, I'm selling a 2 bed terraced cottage, good sized garden, with good rail and transport links in the aire valley for 115K

P.S there are also 3 mcdonalds within a mile from my house, spoilt for choice
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(Post Link) post #20 of 48 Old 17-04-07 Thread Starter
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Re: House Buyers and property prices again...

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Originally Posted by GhostyDog View Post
Move to Yorkshire, I'm selling a 2 bed terraced cottage, good sized garden, with good rail and transport links in the aire valley for 115K

P.S there are also 3 mcdonalds within a mile from my house, spoilt for choice

Apart from the McDonalds is there any work though?

I have thought about moving away, even moving abroad.
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Re: House Buyers and property prices again...

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Originally Posted by symonh2000 View Post
Apart from the McDonalds is there any work though?

I have thought about moving away, even moving abroad.
Dunno, they're always hiring at McDonalds though...er... spoilt for choice?
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Re: House Buyers and property prices again...

If the government can ban cigarette advertising on the grounds that smoking is bad; and junk food ads aimed at kids on the grounds that it makes them fat and unhealthy, then they should ban those bl**dy awful ads for property investment with all those smug ****s waxing lyrical aout how much money they have made by screwing hard working people who want just one small house to actually live in.

It just encourages the blood sucking parasites....


Hearing this post load and clear. Finally got my first house last week after saving for SIX YEARS to get enough for a deposit.
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Re: House Buyers and property prices again...

I agree with Ghostydog - move to Yorkshire. That's what I did. I lived in Bournemouth until two years ago when the reality dawned that if I didn't buy a house I would never be able to. So I moved to and got a job in Doncaster. I bought a 3 bedroomed house for £55k. Beach huts in Bournemouth go for more than that!
Now it's worth £70k and I've now got enough equity to think about moving somewhere better.
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Re: House Buyers and property prices again...

I'm watching something on the telly and a shed on a beach in poole in dorset sold for £215,000
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Re: House Buyers and property prices again...

I think restricting borrowing is the key to this little problem. Restrict the debt bubble and property prices will sink, as that is what they float on. This would not necessarily help first time buyers though. If you are old enough you might remember mortgage rationing. This was pretty unfair as well, and what any government is frightened witless of is kicking off a recesssion by stalling the economy.

Interest rates will rise this month, but only to get hold of inflation. Mortage payers are just the collateral damage. Next winter could be tough ride for those with big mortgages as I predict a few more bumps as the new chancellor (whoever he) under Von Brown get his feet firmly on the rudders. Oh I can hardly wait (with head in hands and sobbing gently)

AlfaLincs

Ye can come to Yorkshire...but Pateley Bridge is shut to 'incomers'. I may sign myself AlfaLincs..but this is a 'Cunning Plan'. As the tourist buses arrive in Pateley they are greeted with freindly local cries of "Spend yer money and clear off"...and "there's nowt wrong wi that food, your problem is yer not hungry enuff"..yes..all life is there...travelling at two speeds..dead slow and stop. My advice to southerners is not to stray north of Huddersfield,as the M1 is conveniently close for a rapid exit southwards when you realise what truly awful people we are. As Doctor Johnson (1709-84) said "A Yorkshireman is nought but a Scotsman with all the generosity squeezed out of him". be warned.

(Actually I prefer Wareham to Bournemouth, and did you know there are no horses in the Isle of White because most people prefer Cowes to Ryde)

Last edited by AlfaLincs; 17-04-07 at 19:40.
 
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