Nationwide Nov08: -0.4% Mom, -13.9% Yoy

jamescredmond

Generali wrote: »

This will have a peverse impact. I've known a couple of people that get their mortgage interest paid and have done for many years. They both would like to take an entry level job but can't afford to because they lose the interest payments.

Despite the pain, they would have been better off being repossessed and renting as they'd have been able to afford to take a career job later on.

"as he reclined lazily on the lido, the rapidly-tanning generali considered his options.

should he summon mrs. generali, to replenish his recently emptied cocktail glass?

perhaps he should prepare the barbie for tonight's party?

or maybe yet another dip in the crystal-clear pool?

decisions.decisions.

no, he thought. these things can wait.

the antipodean sun smiling down on him was proving simply too much of a draw.

life was good.

but, as he manouvred himself into a more comfortable position, his half-closed eyes settled on the lap-top.

what, he wondered dreamily, was happening on mse?

for the first time in nearly a week, generali felt compelled to do something........


gen: I think you're going to be back in the UK sooner than you think (and prob. just as the market bottoms out....;) ).

Incisor

mitchaa wrote: »

... 50% drops my ar*e. We are still not at 15% with this latest rise:D

Still only 14.84% from peak. That 0.16% must be a substantial margin of comfort!

Cissi

Topcat10 wrote: »

Depends what you want out of life. Not much point in attaining a family sized home when the kids have left and gone to Uni. Most people want a family home when the kids are at home so they can all enjoy it. Same with family holidays. In the end you can't take money with you and the goverment will have most of it in death duties anyway. Life's too short for thinking only in terms of money.

Who said we were thinking only in terms of money? We sold up when our eldest was one year old, precisely in order to attain a proper "family sized home". We moved to a great family home (albeit rented) where we have enough room for family to stay for extended periods (our families live in different countries and regularly stay for weeks at a time) as well as a full-time study (we both work from home a lot). The point is that by renting we've been able to offer our family a much better home!

Having grown up elsewhere in Europe, I admit that I've never understood the British fascination with owning the family home, especially since in 99% of the cases it's really the bank that owns it :rolleyes: Anything more than a 50% mortgage is really renting by a different name. Sure, we'll buy again when we find the right property at the right price (and don't worry, our children are still plenty young enough for us to hopefully enjoy it for many years together) - but only when it makes financial sense. Until then, we'd rather spend our hard-earned money on other things.

Edited to say that I do know that the proportion of houses with a mortgage isn't 99%, I got a bit carried away

neverdespairgirl

Topcat10 wrote: »

. In the end you can't take money with you and the goverment will have most of it in death duties anyway. Life's too short for thinking only in terms of money.

The debt-free wannabe board is packed full of posters who thought like that. Now they are having trouble sleeping because they are worried about debt.

neverdespairgirl

Topcat10 wrote: »

Most family conversations go like this: "Blimey we need more space - we can't move in here especially when the next baby comes" " Let's move then"

And absolutely no chat about job security, affordability, or the state of the housing market?

Generali

jamescredmond wrote: »

"as he reclined lazily on the lido, the rapidly-tanning generali considered his options.

should he summon mrs. generali, to replenish his recently emptied cocktail glass?

perhaps he should prepare the barbie for tonight's party?

or maybe yet another dip in the crystal-clear pool?

decisions.decisions.

no, he thought. these things can wait.

the antipodean sun smiling down on him was proving simply too much of a draw.

life was good.

but, as he manouvred himself into a more comfortable position, his half-closed eyes settled on the lap-top.

what, he wondered dreamily, was happening on mse?

for the first time in nearly a week, generali felt compelled to do something........


gen: I think you're going to be back in the UK sooner than you think (and prob. just as the market bottoms out....;) ).

Well it's 7am. The gallahs* have flown from their roosts across the way, the sun's pretty much up and I think it's going to be another hot day today. I'm breakfasted and the bike awaits to do a few good miles before the family get up.

We're going to have steak for tea tonight, "...because it's pretty cheap". I like this place, steak for dinner is the MSE way!



*Recipe for gallah:

1. Set a fire
2. Throw in a stone and a gallah
3. When the stone is soft, the gallah is cooked

chrisandanne

Thanks for that Gen...guess what...it's cold, dark and it's rained all day, the pigeons have gone to bed and we had stew for tea 'cos it's cheap.

A x

Generali

chrisandanne wrote: »

Thanks for that Gen...guess what...it's cold, dark and it's rained all day, the pigeons have gone to bed and we had stew for tea 'cos it's cheap.

A x

It's about 20C at the mo over here and they reckon it'll get up to about 26C this afternoon. They're forecasting thunderstorms this afternoon - no bad thing as it's a wee bit muggy.

baileysbattlebus

Cissi wrote: »

That's only part of the equation though. The important question is how much equity do you have in that house (something that could be difficult to know in today's market) and how much interest could that equity be earning if invested elsewhere = lost opportunity cost as mentioned by NDG (granted, this is also declining as interest rates go down).

We sold well before the peak (in 2005, because it suited us personally to move at that time). The money that we got from the sale is sitting in a high interest account, and the interest pays for a good part of our current rent in a much larger house. The remainder of our rent is less than the interest part of our previous mortgage payments so renting is definitely cheaper for us. At the time, there is no way we could have afforded to buy an equivalent house - it's looking like we soon will though :T

After the remaining mortgage was paid off - we would have somewhere in the region of £300k - give or take.

the mortgage is around about £500

the house has 5 beds

if we invest the money at 6% it will give us around £1600 a month before tax

after tax about £1300 - which wouldn't be enough to rent a 5 bed house where we live - at a push we might get a 4 bed.

but we would be able to save the £500 mortgage payment

which would give us £6k a year + interest - tax

and our current equity would stay our current equity.

Would I do it - I don't know, it's not something I've ever thought about - I've never looked on the house as an asset that you could realise. The house is where we live, and I'm not emotionally attached to it really, we will sell one day and downsize. Would I rather have the house or the money - I'm not sure.

Really2

King_Of_Fools wrote: »

So in the past year houses have lost half the amount that they gained in 5 years!

How did you change that without an edit?

I quoted you 2 posts later and it was
Quote:
Originally Posted by King Of Fools
So in the past year houses have lost the same amount that they took 4 years to gain!

No they have lost half of what they took 4 years to gain.;)


Wizard.:D