Household saving is down

[grenfell]

Quite embarrassingly I genuinely have no idea what a "late night half squiffy " actually is.

Quite embarrassingly I genuinely have no idea what a "late night half squiffy " actually is.

Between 2300hrs - 0300 hrs

More than a few glasses of wine/spirits/beer imbibed.

HTH

Yup, the wonderful world of drunk is a marvellous place.

Thanks , or should that be cheers , every day a school day

[Paul08]

I am certain there will be another financial crisis in the uk within the next 10 years. In addition to new cars on pcp deals and credit cards as already mentioned, I think new houses will be a large contributing factor. New builds are popping up at alarming rates all over the uk and selling for top wack, in my town often for 30-100% (no mistype with 100%) more than a similar second hand home would cost. They are selling quick due to "incentives" and people's desire to own new, the problem is the people buying in many cases will be in negative equity for many years as they are paying far too much just to own new.

People really do confuse me at times

[Deeps]

I am certain there will be another financial crisis in the uk within the next 10 years. In addition to new cars on pcp deals and credit cards as already mentioned, I think new houses will be a large contributing factor. New builds are popping up at alarming rates all over the uk and selling for top wack, in my town often for 30-100% (no mistype with 100%) more than a similar second hand home would cost. They are selling quick due to "incentives" and people's desire to own new, the problem is the people buying in many cases will be in negative equity for many years as they are paying far too much just to own new.

People really do confuse me at times

I don't know what its like round by you but we bought 'off plan' because of the offers over routine in Scotland. We planned on staying here a couple of years, that was 14 years ago. Our house is worth a good bit more than we paid for it but even if it wasn't, we'd be paying to live somewhere, being a mortgage slave for 25 years is better than being a rent slave forever, if folk are daft enough round your way to pay twice as much to get a brand new gaff then that's up to them, we wanted an older house but have become converts to new(ish now) builds. Each area is different, I still have my old old flat in Edinburgh that i let out, its obscene how much it goes for but horses for courses (although I'm 'part of the problem' I still think its wrong), the housing stock in different areas finds its level although I'd hate to be starting out now.

[Plymtom]

I don't know what its like round by you but we bought 'off plan' because of the offers over routine in Scotland. We planned on staying here a couple of years, that was 14 years ago. Our house is worth a good bit more than we paid for it but even if it wasn't, we'd be paying to live somewhere, being a mortgage slave for 25 years is better than being a rent slave forever, if folk are daft enough round your way to pay twice as much to get a brand new gaff then that's up to them, we wanted an older house but have become converts to new(ish now) builds. Each area is different, I still have my old old flat in Edinburgh that i let out, its obscene how much it goes for but horses for courses (although I'm 'part of the problem' I still think its wrong), the housing stock in different areas finds its level although I'd hate to be starting out now.

That's a terrific post right there, rare you see a level of clarity, and a down to earth honest take on the rental market, topped with " I'd hate to be starting out now" which we've been hearing from older generations towards the end of, or past their mortgage phase for many years, but has never been so true a statement.... and yet "being a mortgage slave for 25 years is better than being a rent slave forever," still applies and you can get one, it makes sense to do it.

[diamond lil]

....But if unemployment or illness hits, then with rented you're protected. That's why I never bought a house - my hubby worked in the docks as a crane driver and the docks seemed to be permanently on strike all through the 70s. We'd have been on the street. I think it's important to have the choice, so people can choose according to their circs. Once the money boys move in then paths seem to close to the low paid.

[Paul08]

I appreciate that it all depends on the area and not all new builds are rip offs. Where I live you can get a nice 4 bed detached built in 70s for about 180k or you can get a small new 4 bed detached less than 200 meters away for 370k. Benefit of the new one is you can't get a car in the garage, no solid internal walls, no grass and you pay annual fees for upkeep of the roads. I know which one I'd rather buy. These new builds in 5 years time won't be worth what the old ones are, I can't see the old ones being worth over 370k so it's clear loads of people are going to be in negative equity.

Also the banks are back to their old ways of lending and if that isn't bad enough you can buy most new houses with 5% deposit and a 20% loan through the house builders so you can stretch yourself even further than ever before.

[Plymtom]

I appreciate that it all depends on the area and not all new builds are rip offs. Where I live you can get a nice 4 bed detached built in 70s for about 180k or you can get a small new 4 bed detached less than 200 meters away for 370k. Benefit of the new one is you can't get a car in the garage, no solid internal walls, no grass and you pay annual fees for upkeep of the roads. I know which one I'd rather buy. These new builds in 5 years time won't be worth what the old ones are, I can't see the old ones being worth over 370k so it's clear loads of people are going to be in negative equity.

Also the banks are back to their old ways of lending and if that isn't bad enough you can buy most new houses with 5% deposit and a 20% loan through the house builders so you can stretch yourself even further than ever before.

Those are horrifying figures for someone who bought in the 80s As for the banks yes, setting people other than themselves up for another fall I suppose Where's our interest on those bail out billions?

[jansman]

My youngest and her chap are saving for a house. Like Plymtom, we bought in the eighties, and the numbers really do look scary! The kids take it in their stride though. Wifey and me have said that they need to build in resilience to deal with interest rate rises ( apparently the lenders do this to a degree). They really do not believe us when we tell them we were mortgaged at 15.25% at one point. And that is a point.

Along with all the willy nilly lending, at some point interest rates will rise. Then you will see pain.