I'm not happy about this.If banks risk their money by giving bad credit due to excess greed, why should tax payers pay it back. It makes no sense. I'm all giddy and confused now. Quick! I need a shot of Winter Pimms & ginger ale!
wheelybird mreee!,
Tue 20 Nov 2007, 12:08,
archived)
HmmmI think the most galling thing is that the idiots running the bank will still walk away with a few million in payoffs and the like....
(
WOLF .™,
Tue 20 Nov 2007, 12:09,
archived)
no, the most galling thing is that the banks will still get off scot-free when the crash does happen - to whatever extent - because our tax-payers money will keep them afloat
The Great Architect is still waiting for his account to be deleted on,
Tue 20 Nov 2007, 12:13,
archived)
The market is now downturning, the problem isn't with enough homes built, or being built, it's about the prices existing houses are fetching which are well out of reach of salaries.
the problem will only get worse, encouraging today's students to leave £15k-£20k in debt, most of them as graduates will only earn £20k-£25k starting salary anyway for the first few years, meaning they'll be saddled
with the debt into getting a mortgage which may well be 10 times the level of debt they are currrently in, meaning they'll need to be earning somewhere in the region of £45K-£50K before they can even start to think about applying for mortgages,
and with the best will in the world there aren't a whole lotta jobs for graduates which go up from £25k to £50k in a few years.
(the problem will only get worse, encouraging today's students to leave £15k-£20k in debt, most of them as graduates will only earn £20k-£25k starting salary anyway for the first few years, meaning they'll be saddled
with the debt into getting a mortgage which may well be 10 times the level of debt they are currrently in, meaning they'll need to be earning somewhere in the region of £45K-£50K before they can even start to think about applying for mortgages,
and with the best will in the world there aren't a whole lotta jobs for graduates which go up from £25k to £50k in a few years.
The Great Architect is still waiting for his account to be deleted on,
Tue 20 Nov 2007, 12:24,
archived)
True.......Having graduated in 1998 I bought my first place in 2006....
Most first time buyers are now in their very late 20's / early 30's.
The other problem is not so much affordable homes, but finding something affordable that's not in a shit area.
Many FTBer's could afford a house but why should they get a good education, decent job only to have to buy a place in a shitty council estate..
(Most first time buyers are now in their very late 20's / early 30's.
The other problem is not so much affordable homes, but finding something affordable that's not in a shit area.
Many FTBer's could afford a house but why should they get a good education, decent job only to have to buy a place in a shitty council estate..
WOLF .™,
Tue 20 Nov 2007, 12:30,
archived)
government statistics place the average age of a first time buyer at 37 these days...most first time buyers can't afford to buy a property, that's the rub of it. Which is why mortgage companies were freely lending money to people well beyond their means, with promises that it'll 'be alright', just to continue the markets, and to freely rake in the interest without check. That's how this sudden rise in the last decade or so happened, unchecked business practices.
It's lending out money which technically doesn't exist, as it can't be accounted for when doing checks back against salaries.
Mortgage companies lend 'false' money out, people are able to bump up prices of houses accordingly with increased offers to get a foothold on the ladder. Estate Agents now see this trend, capatilise on it by taking the higher prices as an average to an area (thus increasing their profits) and you now get to this situation,
unaffordable homes on the market, which are unaffordable due to the existance of 'false' money and finance.
Those that do get on the ladder at this time have mainly done so on false finance which they can't account for now, so in come the credit cards, the loans, the homeowner loans, the consolidation packages, etc etc...
(It's lending out money which technically doesn't exist, as it can't be accounted for when doing checks back against salaries.
Mortgage companies lend 'false' money out, people are able to bump up prices of houses accordingly with increased offers to get a foothold on the ladder. Estate Agents now see this trend, capatilise on it by taking the higher prices as an average to an area (thus increasing their profits) and you now get to this situation,
unaffordable homes on the market, which are unaffordable due to the existance of 'false' money and finance.
Those that do get on the ladder at this time have mainly done so on false finance which they can't account for now, so in come the credit cards, the loans, the homeowner loans, the consolidation packages, etc etc...
The Great Architect is still waiting for his account to be deleted on,
Tue 20 Nov 2007, 12:41,
archived)
I got my houseaged 22. /glee
p.s. im only 25 now mind
(p.s. im only 25 now mind
DLT's Musical Bonanza is totting up the p,
Tue 20 Nov 2007, 12:50,
archived)
the shits really going to hit the fanwhen all the 2 & 5 yr fixed rate deals end...
all those people with crazy 4, 5 and 6 times multiples of borrowing will be well and truly stuffed....
(all those people with crazy 4, 5 and 6 times multiples of borrowing will be well and truly stuffed....
WOLF .™,
Tue 20 Nov 2007, 12:56,
archived)
I know of someone in London who was given 8 times their salary...ludicrous :S
I think the shit is generally hitting the fan now at a low level, it's just going to be interesting to see how big the mess gets...
(I think the shit is generally hitting the fan now at a low level, it's just going to be interesting to see how big the mess gets...
The Great Architect is still waiting for his account to be deleted on,
Tue 20 Nov 2007, 12:59,
archived)
the thing isif people are/were sensible then it's less of an issue. I/we borrowed what we were comfortable with at the time, and payrises and job changes have simply helped the situation get better - so much so that we could now afford to upgrade should we wish too.
If you want to live right in a city centre flat or in a 4 bedroom mansion then be prepared to pay the full whack for it. there are still some realistically priced houses in okay areas (I live in Bristol which is quite an expensive location).
(If you want to live right in a city centre flat or in a 4 bedroom mansion then be prepared to pay the full whack for it. there are still some realistically priced houses in okay areas (I live in Bristol which is quite an expensive location).
DLT's Musical Bonanza is totting up the p,
Tue 20 Nov 2007, 12:59,
archived)
you are assuming that the 'masses' are sensible therethere are a few of us who try and do the 'right thing' - however, there are also those who see others get away with thigns and think 'if they can, so can we' and they do not think about consequences.
More poeple spend time choosing and buying a car then choosing and buying a house.
(More poeple spend time choosing and buying a car then choosing and buying a house.
The Great Architect is still waiting for his account to be deleted on,
Tue 20 Nov 2007, 13:09,
archived)
HmmI'd have to say Bristol is dirt cheap... average house price is £221,159 where I live it's £425,662.
( WOLF .™,
Tue 20 Nov 2007, 13:47,
archived)