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Debate House Prices


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The MSE House Price Forum Bull Trap?

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Comments

  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    !!!!!!? wrote: »
    No, I've said I'll consider BTL a few years down the line when the likely yield is more sensible.

    I'm not overly keen to face the hassle and responsibilities of renting a house out so the yield will have to be something considerably better than a decent common or garden investment product, something not generally the case in recent years.

    It's not my fault if tens, maybe hundreds of thousands of greedy innumerate fools have bought into it without working it through first and now face financial ruin. It's certainly not my responsibility to bail them out by funding the governments panic measures (through taxes and loss of interest on my savings).

    Some of your fans on here think you are stealing their houses by going BTL, how could you live with yourself.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    boyse7en wrote: »
    So you're wanting to buy a house so that you can profit from future HPI? Isn't that the reason we ended up in this mess in the first place? You'll be getting a BTL next!

    Where on earth did I say that I wanted to buy into HPI?

    I'm certainly not going to want to buy into a falling market and face losing money if I have to sell up, so naturally when I buy a house I'll want to do so in a market where the value is likely to grow in the future. Inflation certainly isn't going to go away in the long term.

    As would anyone with an ounce of sense. I have no desire to join the negative/shrinking equity club. This is moneySAVINGexpert, not moneyLOSINGexpert for crying out loud. :rolleyes:
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • Dan: wrote: »
    He has openly admitted he will be getting into BTL. The guy is a right piece of work.
    BTL used to stand for buy to let but now it's stands for buy to LOSE
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    !!!!!!? wrote: »
    Where on earth did I say that I wanted to buy into HPI?

    I'm certainly not going to want to buy into a falling market and face losing money if I have to sell up, so naturally when I buy a house I'll want to do so in a market where the value is likely to grow in the future. Inflation certainly isn't going to go away in the long term.

    As would anyone with an ounce of sense. I have no desire to join the negative/shrinking equity club. This is moneySAVINGexpert, not moneyLOSINGexpert for crying out loud. :rolleyes:

    When you do buy will you join the bulls?
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    StevieJ wrote: »
    Some of your fans on here think you are stealing their houses by going BTL, how could you live with yourself.

    I have 'fans'? How terrific! :j

    So far, the only sort of 'fan' I seem to have attracted is the attention of a few creepy posters on this board who want to be as personal and nasty and possible, so this is great news.

    I hope that this fanatical following aren't too devastated by the fact that I might consider making a BTL investment at some point if it's financially sensible.
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    Dan: wrote: »
    When you do buy will you join the bulls?

    By definition, I'll have to be bullish on market prospects before I buy.

    Either that or totally stupid - what sort of cretin would buy into a market they were bearish on? (except possibly as a hedge, but a house is a bit out of my league for hedging).
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    !!!!!!? wrote: »
    By definition, I'll have to be bullish on market prospects before I buy.

    Either that or totally stupid - what sort of cretin would buy into a market they were bearish on? (except possibly as a hedge, but a house is a bit out of my league for hedging).

    I think your becoming a bit more bullish every day.
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    Dan: wrote: »
    I think your becoming a bit more bullish every day.

    Well, the point at which it makes sense for me to buy is coming closer every day. So I guess that qualifies as bullish. :D
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    Dan: wrote: »
    Horribly pear-shaped. By that do you mean people get to keep jobs, people get to keep their homes and we only have a mild recession?

    No - by horribly pear shaped I mean rampant inflation, maybe leading to hyper inflation, with people's savings and incomes being eroded or even destroyed which will conclude with an all-out bust as productivity isn't increasing in line with the money supply.
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • boyse7en
    boyse7en Posts: 883 Forumite
    !!!!!!? wrote: »
    Where on earth did I say that I wanted to buy into HPI?

    I'm certainly not going to want to buy into a falling market and face losing money if I have to sell up, so naturally when I buy a house I'll want to do so in a market where the value is likely to grow in the future. Inflation certainly isn't going to go away in the long term.

    As would anyone with an ounce of sense. I have no desire to join the negative/shrinking equity club. This is moneySAVINGexpert, not moneyLOSINGexpert for crying out loud. :rolleyes:


    Sorry, maybe I'm mis-reading it.

    What is the difference between not wanting to buy into HPI, and wanting to buy a house whose value "is likely to increase in the future" then?

    If you want to buy at the bottom of the market (very sensible) and then see the value of your house/home increase, then surely you'll want that increase to be as fast and big as possible, which I thought was the definition of HPI. :confused:
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