Crash Crash Crash !!!!!!!!!!!!!!!!!!!!!!!!!!!

debtistheft

Conrad wrote: »

You've asked this sevral times, so lets now turn your apparantly valid question back on you.

Why are you so afraid of home ownership? Much less than than 1% were repossesed in the last 30 years. Why so afraid of a small and manageable risk? Driving is risky, should we refrain?

I'm not afraid of home ownership, I just think its a waste of money. I also think it acts as a break on people's freedom and creativity and their opportunities.

sabretoothtigger

Its a strange world we live in where it can make sense to sell a house you use everyday and buy silver coins you will never have a practical use for and actually be better off

I also think it acts as a break on people's freedom and creativity and their opportunities.

The Germans might agree, I believe a much larger proportion rent long term the same houses.
I see ownership as less hassle in the end because of how landlords can be but I think German laws favour the tenant greatly

blisk3

Poshbird wrote: »

They may have to wait until mortgage payments go up so much that auction house will be flooded with property`s that the old owners couldnt keep up with their payments.

They won't change until their pushed.

They'll carry on living in denial because that's what vested interests want.

blisk3

Going to get worse before it gets better. :eek:

Vince Cable warns of economic woe

sabretoothtigger

We're ok so long as USA is ok because they are our largest trading partner and supporter of our currency I think.

Once or if USA starts to topple then we will see the endgame in UK disaster stories and such like. Might be bad as they say or who knows maybe we'll pick up trade somewhere else and be just fine, they say UK recovered well in the thirties comparatively

sabretoothtigger

Yea Ive heard that.

What they will do is passive QE which is with the bonds they already own, they wont let it just expire they will recycle the money into buying more bonds. So instead of winding it down, they'll keep it all going as long as possible. There is probably all sorts of tricks they can perform to do equal of QE3 without officially calling it that

Jimmy_31

Poshbird wrote: »

The other way to look at it is, the LL has the risk of bad tenants and expences of upkeep etc. The tenant can wear out the LL depreciating house while waiting for the the bottom to buy for cash or 5 year tiny mortgage Also by not buying now you dont run the risk of mortgage payments going up a lot more than the rent can. I can see a lot of BTLers thinking rents will go up as much as the mortgage payments. The truth is the yield goes down as mortgage payments go up, if they put up the rent too much the tenant moves out then the real stress starts!

Another 12 months and i might be getting one of those 5 year tiny mortgages:), my deposit is increasing whilst house prices are decreasing:)

chucky

Jimmy_31 wrote: »

Another 12 months and i might be getting one of those 5 year tiny mortgages:), my deposit is increasing whilst house prices are decreasing:)

let's not hope house prices rise in your area unless your area in one of those areas that nobody wants to live so house prices obviously fall...

why buy in 12 months though, why not wait another 12 months until they fall further unless they're going to stop falling exactly when you buy...

tara747

wotsthat wrote: »

It's not a stop loss but if the strategy is not working AND you really want to buy a house then at some point you need a new strategy. From what I see on this forum there are some addicted to waiting seemingly able to call the bottom of the market.

In NI prices are 42% off peak and you're still not buying. How long do you keep the strategy going.

The landlord scenario isn't out of date. If a renter pays off a landlords mortgage for them then at the end of the term the landlord owns a house. They've got it for free - it might be worth more or less than now but so what.

We're still not buying because prices are still falling by way more than our rent. Simples. We will buy at some stage, but for now it makes sense to bide our time and just keep an eye on the market (which we are doing).

All the recent BTLs I know are subsidising the rent heavily (some are paying up to 70% of the mortgage themselves - plus repairs, maintenance, council tax/rates, void periods etc :eek: ), and are in massive negative equity. Do they feel that they made a good investment? No. :cool:

sabretoothtigger wrote: »

and then they live happily ever after. This is a bit like saying people will sell their cars when petrol prices rise. Train fares tend to rise at the same time so what happens to houses will not likely be in isolation.

Im presuming that was your point

5 or even 10% I think will be normal rates but now is abnormal, anyone relying on that to last would suffer I'd agree.

Cost of living will rise but would people not agree general living standards have greatly risen over the last 20 years, its going back some now.
I still see the early nineties unemployment problem as worse then now, maybe that level is where we will end up but right now its not at all bad relatively

Not my point at all. I was saying that, if borrowing costs rise, then the amount of money that people can borrow naturally reduces (it's all about the 'affordability', innit). And house prices will fall. That is not to say that everyone will rush to sell, merely that those who ARE trying to sell will find that their potential buyers have less buying power.

Jimmy_31 wrote: »

Another 12 months and i might be getting one of those 5 year tiny mortgages:), my deposit is increasing whilst house prices are decreasing:)

Same here... I am so very glad to have waited, and we have plenty of time (and savings) on our side. :T We want to buy for cash or have as short a mortgage as possible - I can't imagine anything worse than being heavily mortgaged up and lying awake worrying about interest rates going up. :eek:

Poshbird

chucky wrote: »

let's not hope house prices rise in your area unless your area in one of those areas that nobody wants to live so house prices obviously fall...

why buy in 12 months though, why not wait another 12 months until they fall further unless they're going to stop falling exactly when you buy...

Thats the thing isnt it? No one knows when the bottom will be. Certainly the longer they postpone putting up interest rates the longer they will postpone the crash.

But if they postpone IRs too long it will be an even bigger crash.