Countdown to the Budget

[Puzzled]

This attitude makes no sense.
If the decision becomes plainly obvious it's the wrong one, then going through with it is madness.

We've got enough brexit threads so don't really want to get into it but no one has a crystal ball that tells us if brexit will be good or bad long term. Just as no-one knows if staying in the EU would have worked out all rosy, both directions have risks.

What we do know is that a decision has been made and that changing our minds and infighting will do us no favours in terms of credibility.

We all know someone who can't make a decision about anything. They wouldn't exactly be your first choice if you needed help getting something done.

As for the budget, I'm stocking up on white cider!

 

[413x]

Same as last year for me. Initially thought the house stamp duty thing would help. But at the price range I'm looking for makes no odds.

I don't drink really so nothing there.

Only thing I am really interested in is housing cost.

 

[Martini1991]

Negative equity is only a bad thing if you want to move. Presumably if you're paying a mortgage you've accounted for any change in payments and can afford to pay it off. House prices falling is a good thing for everybody apart from investors, which unfortunately are the ones that seem to be well catered for in our economy.

You're forgetting FTBs who are on help to buy schemes etc. Negative equity will impact their ability to stick the equity loan on the mortgage when their fix ends.

 

[Glaucus]

Negative equity is only a bad thing if you want to move. Presumably if you're paying a mortgage you've accounted for any change in payments and can afford to pay it off. House prices falling is a good thing for everybody apart from investors, which unfortunately are the ones that seem to be well catered for in our economy.

no, it really isn't.

well he hasn't, if you haven't noticed we haven't left yet.
secondly, a massive drop will help very few people. as teh economy as a whole will be in tatters, people will be losing their jobs, banks wont want to lend, interest rates would be much higher, so careful about what you wish for. So unless you are rich, good luck with that making it work for you.

people don't seem to think about why house prices would fall and the impact it would have on them.
\we need a decade of stagnation.

 

[LeMson]

People going negative equity and houses falling isn't exactly something that is considered good.

I wanted him to deliver on that for that reason

 

[Skillmister]

If young people had no issues buying their first homes at 25 years old.

I'm 26, not in a particularly well paid job (without going in to specifics, considerably less than what google thinks is the "average UK salary") as I'm re-qualifying, and I've just bought a 3 bed house on my own. Sure its not in a great area and it doesn't have a lot of things I'd like, plus I'm going to be spending every evening for the next 3-4 months refurbishing it myself, but I'm "on the ladder". Perhaps your location is part of the problem? But then if you had to move you'd complain about taking a big cut in your no doubt substantial salaries. So swings and roundabouts really..

I'm all for making housing more affordable, I've made some sizeable sacrifices over the last few years to get my funds together to buy. But I can't help but feel people complaining about struggling to buy their first home in London or similar are taking it a bit far.

 

[LeMson]

I'm 26, not in a particularly well paid job (without going in to specifics, considerably less than what google thinks is the "average UK salary") as I'm re-qualifying, and I've just bought a 3 bed house on my own. Sure its not in a great area and it doesn't have a lot of things I'd like, plus I'm going to be spending every evening for the next 3-4 months refurbishing it myself, but I'm "on the ladder". Perhaps your location is part of the problem? But then if you had to move you'd complain about taking a big cut in your no doubt substantial salaries. So swings and roundabouts really..

I'm all for making housing more affordable, I've made some sizeable sacrifices over the last few years to get my funds together to buy. But I can't help but feel people complaining about struggling to buy their first home in London or similar are taking it a bit far.

We can't all move to Wales or Scotland to buy cheap houses though can we, I feel for peeps trying to get on the ladder, when so much more could be done for them. Other than that, let the world burn.

 

[cheesyboy]

What disappointed me most about brexit was when Osbourne said house prices would drop by 20%, he has failed to deliver on that ;(

20% cheaper for foreign investors, to be fair. (exchange rate)

 

[Skillmister]

We can't all move to Wales or Scotland to buy cheap houses though can we, I feel for peeps trying to get on the ladder, when so much more could be done for them. Other than that, let the world burn.

And we can't all move to the City and earn £100k.

I agree with a lot of @Scam's points btw

 

[Martini1991]

I'm 26, not in a particularly well paid job (without going in to specifics, considerably less than what google thinks is the "average UK salary") as I'm re-qualifying, and I've just bought a 3 bed house on my own. Sure its not in a great area and it doesn't have a lot of things I'd like, plus I'm going to be spending every evening for the next 3-4 months refurbishing it myself, but I'm "on the ladder". Perhaps your location is part of the problem? But then if you had to move you'd complain about taking a big cut in your no doubt substantial salaries. So swings and roundabouts really..

I'm all for making housing more affordable, I've made some sizeable sacrifices over the last few years to get my funds together to buy. But I can't help but feel people complaining about struggling to buy their first home in London or similar are taking it a bit far.

Before you bought the house, what were your living arrangements?
I've just turned 26 and bought a house start of the year with my Girlfriend who's 23. She was 22 at the actual time of going forward with buying.

 

[Scam]

no, it really isn't.

Honest question; but take these two households as an example. How does the fact the value of their property decreases actually affect them?

1 - Family, 2 parents, 2 kids. In their "forever home", no willingness to move ever.
2 - Young couple starting their career in their chosen city. No willingness to move for the next 5-8 years.

If you don't want to move, then the value of your property decreasing has zero effect. Nothing. Nil. Nada.

20% cheaper for foreign investors, to be fair. (exchange rate)

lol

I'm all for making housing more affordable, I've made some sizeable sacrifices over the last few years to get my funds together to buy. But I can't help but feel people complaining about struggling to buy their first home in London or similar are taking it a bit far.

This isn't conjecture or a token few low paid Londoners complaining. The stats speak for themselves. There is a housing crisis and it's not just in London. But in case you were wondering;

https://www.theguardian.com/uk-news...p-duty-axe-is-incentive-to-save-house-deposit

Hammond rejected the criticism that saving enough for a deposit was the key barrier to home ownership, rather than stamp duty. First-time buyers need an average deposit of £33,000, which in London typically rises to £106,577, according to Halifax.

Have you tried saving £100k on London rents? The issue for Londoners is that because homes are unaffordable, rents are astronomical. As if it wasn't bad enough being able to buy your home, you're now screwed by your landlords because they can cash in on your inability to buy somewhere. It's disgusting.

Contrary to popular belief; Londoners have the lowest disposable income in the country.
http://www.independent.co.uk/news/b...e-the-poorest-workers-in-the-uk-a6692566.html
We're not all fund managers earning £250k and £1m bonuses every year. Note the average salary in London is only £36k. Like I say, the stats say it all.

 

[Martini1991]

Honest question; but take these two households as an example. How does the fact the value of their property decreases actually affect them?

1 - Family, 2 parents, 2 kids. In their "forever home", no willingness to move ever.
2 - Young couple starting their career in their chosen city. No willingness to move for the next 5-8 years.

1.) If they want to refurbish the house by remortgaging the house, negative equity means they can't.
Also, when their fix ends how will the Mortgage company look at them with an asset in negative equity?

2.) Same as the first.
And when they want to move negative equity means they've probably lost their original deposit so this makes moving for them harder in terms of moving. Also their mortgage, negative equity could mean that their mortgage more than covers what the house is worth. Which would mean they'd be unable to move at all.

For me, our house was overpriced as hell at 100K. So straight away we're negative equity (Although more like 96K, so the deposit takes the hit). If the house dropped to 80K by the time our fix was finished, I don't think we'd be able to settle the HTB (Or if we could we'd basically be mortgaged to the hilt)

 

[Glaucus]

]

1 - Family, 2 parents, 2 kids. In their "forever home", no willingness to move ever.
2 - Young couple starting their career in their chosen city. No willingness to move for the next 5-8 years.

If you don't want to move, then the value of your property decreasing has zero effect. Nothing. Nil. Nada.

lol

].

appart for that annoying thing called a mortgage and when their 5 year, 2 year, or what ever deal ends, then its all sorts of issues.

 

[SpeedFreak]

I'd be delighted if house prices came down 30-40%. Cost to change would be lower even if rates rise significantly.

 

[Scam]

1.) If they want to refurbish the house by remortgaging the house, negative equity means they can't.
Also, when their fix ends how will the Mortgage company look at them with an asset in negative equity?

Boohoo, they can't refurbish. Is that more of an issue than the generation of "young people" (I use that term loosely) that can't buy a home for themselves? That are locked into making the rich landlords richer with no other option? And I don't understand what you mean about the second point. They're still paying the mortgage so what does the bank care?

2.) Same as the first.
And when they want to move negative equity means they've probably lost their original deposit so this makes moving for them harder in terms of moving. Also their mortgage, negative equity could mean that their mortgage more than covers what the house is worth. Which would mean they'd be unable to move at all

Again. Makes it 'harder' but not impossible. Impossible like it is for an entire generation of "young people" to buy themselves any sort of home. The people in negative equity could always sell up and rent instead. Or because they're already on the "ladder" are they entitled to move up it?

appart for that annoying thing called a mortgage and when their 5 year, 2 year, or what ever deal ends, then its all sorts of issues.

Such as? You could at least make an effort to argue your point like Martini.

All I'm reading after a brief Google is that if you're in negative equity and you have to remortgage then the lender will typically put you on their standard variable rate. So, besides adjusting finances (which should have been prepared for this), it will have no impact.

You guys aren't convincing me.

It reminds me of conversations I have with people that have paid a mortgage for so long that they have zero idea of the fact that rent goes incessantly up, and up and up.

 

[Glaucus]

Such as? You could at least make an effort to argue your point like Martini.

All I'm reading after a brief Google is that if you're in negative equity and you have to remortgage then the lender will typically put you on their standard variable rate. So, besides adjusting finances (which should have been prepared for this), it will have no impact.

You guys aren't convincing me.

It's pretty obviuse happens when you have negative equaty and want to remortga
ge But here.
Such as you can't remortgage, you'll be stuck on a poor variable mortgage,at a time interest rates are rising. And said family parent from your example has lost their job, due to economic decline of the country.
Again you totally ignored why houses prices decline and that's economics, people losing their jobs, interest rates rising etc.

 

[Martini1991]

@Scam

We simply disagree on what we consider a problem, which means it wouldn't matter what I say.

Although I disagree it's just about moving up the ladder, being negative equity means you've got a shortfall regardless if you go up or down. If you sold up to rent you've still got a shortfall, you won't have the equity to pay off the mortgage.

 

[Skillmister]

Before you bought the house, what were your living arrangements?
I've just turned 26 and bought a house start of the year with my Girlfriend who's 23. She was 22 at the actual time of going forward with buying.

I was renting privately. I've been renting privately since I moved out from my parents in April 2013. Admittedly last year I was renting from my ex's parents at a reduced rate, but that has been offset by the chunk of money I lost a) by moving out and taking nothing we had bought together with me and b) having to trade in my car as I ran out of time to sell it before my purchase completed

 

[Uther]

I would guess that a lot of MP's have a monetary interest in BTL, so have no real interest in changing things.
As for Hammonds 'bright future' rubbish:

https://news.sky.com/story/britain-on-course-for-longest-fall-in-living-standards-11139742

 

[Scam]

Such as you can't remortgage, you'll be stuck on a poor variable mortgage,at a time interest rates are rising. And said family parent from your example has lost their job, due to economic decline of the country.
Again you totally ignored why houses prices decline and that's economics, people losing their jobs, interest rates rising etc.

House prices declining doesn't necessarily mean people start losing their jobs. Why would it?

As for getting stuck on a "poor" variable mortgage. Well, like I say. Boohoo. Welcome to the world of 50% of the population that rent privately. Living costs go up, that's life for us. And if you lose your job as a private tenant -- you're as good as homeless. So to your point about losing one's job with a mortgage, well again it's exactly the same thing.

@ScamAlthough I disagree it's just about moving up the ladder, being negative equity means you've got a shortfall regardless if you go up or down. If you sold up to rent you've still got a shortfall, you won't have the equity to pay off the mortgage.

I'm not going to argue that paying a mortgage on a property you no longer live in (is that what happens if you sell up still owing money?) is a pretty bad situation to be in, but it's not the end of the world.