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Funding for Help to Buy being scaled back, now Mr Carney says

 

Mark Carney warns house buyers: can you afford the mortgage?

Home-owners should not rely on being bailed out of any future difficulties by rising house prices, Bank of England governor warns
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That's great if you've just signed up to a massive mortgage......or perhaps he has to say this for the record for future reference.
Be your own look out.
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"Home-owners should not rely on being bailed out of any future difficulties"

 

Huh?

Isn't that what the govt is doing right now?

Does he mean, it may not happen next time?

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Halifax Evening Courier - ‎59 minutes ago‎






House prices surged by 7.7% annually in November, marking the fastest rate seen in six years, Halifax has reported. Halifax said the increase was the biggest seen since October 2007, as strengthened demand in the market combined with a lack of homes for ..

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I have no idea where this money is coming from. It seems the more jobs that are cut, prices just keep going up.

 

They are "helping" people by making the trap bigger and catching more in it

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Check this from the CML...

 

http://www.home.co.uk/guides/news/story.htm?lending_for_house_purchases_bucks_seasonal_slowdown

 

"Supporting potential buyers to take out a 95 per cent mortgage will help the market return to a normalised state..."

 

OMG

 

 

He goes on "...and gives consumers the opportunity to jump on the property ladder without having to scrimp and save for an unrealistic deposit."

 

Honestly, please throw yourself off a cliff and take your empathy with you.

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Oh dear:

As if, buying property with such enormous gearing is Normal or Desirable !

 

What a Con !

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We're going Japanese where low rates and long mortgages are "normal".

 

Perhaps high rates and short mortgages were a historic "luxury" and that window has passed - along with free university education, final salary pensions, jobs for life, etc!

 

This is the "new world order" perhaps people have been talking about that starts in 2012.

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We're going Japanese where low rates and long mortgages are "normal".

 

Perhaps high rates and short mortgages were a historic "luxury" and that window has passed - along with free university education, final salary pensions, jobs for life, etc!

 

This is the "new world order" perhaps people have been talking about that starts in 2012.

 

A historic luxury... you put it so well!

And it's defintiely a new world order... I mean most of us ordinary folk have had our expectations massaged down and accept the new norm:

 

- You should be grateful you have a job and if you have to work harder for a slightly lower standard of living, that's how it is.

- You will work till you're 67 so you are braced for it (assuming you paid off your sudent loan by then)

- Erosion of public services like health - very gradual but definitely there from expereince and what my wife (a nurse) tells me is going on.

- Add on top of that, the fear factor built into our daily lives about things like extremists etc

 

I dont think we'll go back to the old 'good times' anytime soon. The landscape has changed entirely and survival is a much tougher fight than it used to be.

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I am thinking about ways about surviving, thriving and prospering in such an environment. There must be ways!

If the 'Japanese way' of surviving, 'thriving' and 'prospering' is what you are after get a safe job with the government/teacher/fireman/policeman etc. If you have capital get small houses for rental income. Expect to see more single parents, singles, smaller abodes, cars. In essence shrink your life. If you are self employed, make sure you have plenty of custom by relocating to a large urban area. Forget retail, if you havent already, ditto restaurants/bars. Only women spend money on homey/lifestyle style cheap goods.

I'm not sure how good that strategy is really. Japan, generally, has been winding down slowly/genteely for 20 years.

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It works better than the less genteel process the US and the UK is likely to go through

 

In HK, people have already learned how to "live small", except for the very rich.

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This was interesting;

 

"The landlord … watches the busy population around him making the city larger, richer, more convenient. .. and all the while sits and does nothing. Roads are made … services are improved … water is brought from reservoirs one hundred miles off in the mountains and -all the while the landlord sits still … To not one of these improvements does the landlord monopolist contribute and yet by every one of them the value of his land is enhanced … At last the land becomes ripe for sale – that means the price is too tempting to be resisted any longer … In fact you may say that the unearned increment … is reaped by the land monopolist in exact proportion not to the service, but to the disservice done."

- Winston Churchill during debates on the Finance Act 1910

From the comments; New Class of Landlords profiting from Generation Rent http://www.theguardian.com/money/2013/jun/28/new-class-landlords-profiting-generation-rent

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This is so wrong it beggars belief!

 


The Tory minister's son with 40 ex-council homes

An investigation by the GMB union and the Daily Mirror into council house sell-offs in the flagship Tory borough of Wandsworth, south London, earlier this year found that 6,180 of the 15,874 dwellings sold under right-to-buy legislation are now owned by private landlords who rent them to private tenants.

Of the 120 homes in Sherfield Gardens, a council block in Putney, 62 had an owner with a different address – with 35 owned by Charles Gow, while his wife Karin owned a further five, through KCG Property, a lettings and management company. Its website lists maisonettes in the block for rent at £1,556 a month. Flats in the block now sell for about £230,000, suggesting that the Gows' company has assets worth more than £9m in Sherfield Gardens.

 

The GMB also traced other landlords who have bought up right-to-buy properties. Some were owned by farmers in receipt of European farm subsidy payments; others were registered through companies in Guernsey, the British Virgin Islands and Mauritius.

 

Paul Kenny, the union's general secretary, said: "Private businesses are making vast profits from the public purse while the people these homes were built for sit on waiting lists that never move. You could not make it up that the family of one of Mrs Thatcher's aides, who served as housing minister during the high tide of right-to-buy, ends up owning a vast swathe of London's ex-council housing. The 'right to buy' has turned into a rich harvest for greedy farmers and others."

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This is so wrong it beggars belief!

 

Paul Kenny, the union's general secretary, said: "Private businesses are making vast profits from the public purse while the people these homes were built for sit on waiting lists that never move. You could not make it up that the family of one of Mrs Thatcher's aides, who served as housing minister during the high tide of right-to-buy, ends up owning a vast swathe of London's ex-council housing. The 'right to buy' has turned into a rich harvest for greedy farmers and others."

 

how can the tables be turned on these greedy speculators ?

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Why I'm Happy Losing Money as a Landlord

 

http://www.dailyfinance.com/on/landlord-lose-money-rent-house-mortgage/

 

Author; H... C...... is a financial planner and the publisher of the popular personal finance blog, Money Q&A, where he answers readers’ wide-ranging money questions. He often writes about retirement, investing, insurance, saving, and other money matters. With a Masters degree in finance and years of experience, H... brings a wealth of knowledge and practical advice to his readers and is not afraid to tackle the tough financial questions.

 

 

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“I can calculate the motion of heavenly bodies but not the madness of people.” (South Sea Bubble Shares)

Sir Isaac Newton 1850, English Mathematician

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castlecombe_2775713b.jpg

 

a better choice than London, i reckon

 

In London they are "closing the Tax Loophole"

 

Rental round-up

Rental prices are rising more slowly than purchase prices, particularly in the most sought-after areas. In prime central London, rental returns are often below three per cent. But renters feel the strain much more keenly than owners. Rent leaves your bank account every month, while a rise or fall in the value of your house remains theoretical. Sadly, 2014 does not bear many glad tidings for renters. Mark Carney, the Governor of the Bank of England, has said that he will only consider raising interest rates when unemployment falls below seven per cent – unlikely next year.

Capital views

The big news in the Autumn Statement was that capital gains tax is being introduced on foreign owners from 2015. While there is a slight chance that this will have a negative impact on the market, most experts think that London will continue to tick along.

“It’s an easy and populist win for the Chancellor, George Osborne,” adds Turner. “It closes what many will see as a tax loophole. This is unlikely to have much impact on the market.” Fionnuala Earley of Hamptons International agrees. “The Chancellor is keen to be seen to be doing something to cool rapid house price growth in London, but in reality the proportion of foreign buyers is smaller than one might think. Seventy per cent of buyers in London are British nationals, and most of the remainder are resident.”

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From the Guardian:

 

Although he only started in buy-to-let in 2000, he has amassed 672 properties...

About 60% of the rent he receives on the properties, which are clustered around Llanelli in south Wales, comes from tenants on housing benefit and income support.

 

(and another)...

 

Virtually all of his rental income comes via welfare benefits. "Rents are stagnant here. We only charge £60-£65 a week for a furnished room with bills included. We never come across tenants who can't afford to pay. If they can't, it's only because they haven't bothered to claim housing benefit.

 

Sure makes one reconsider the housing privitization, and of course the low interest rates and state benefits.

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