Halifax -2.6% in November

WTF?_2

Really2 wrote: »

Don't get you knickers in a twist you said
Quote:
Originally Posted by !!!!!!?
In fact, now I'm even considering taking a small mortgage out to buy a better place than I otherwise would have done (i.e. detached vs semi). If I can fix longer term with these mad rates I'll be quids in when inflation hits.


I presumed from that you were trying to arange a mortgage now

If you wait a year you might not get such a good rate.:D

Why would I want to arrange a mortgage now? It's clear that the BoE are heading fast towards zero rates, or damn close to them, as are most of the Western World.

They'll also be chucking lots more public money into the (now mostly nationalised) banking system and instructing their puppet banks to lend it out cheaply.

You said yourself you think rates will stay low for 2 years, 1 think a year to 18 months max but that's long enough for prices and rates to drop further.

I don't agree with the strategy of the government in giving money away but I'm damned if I'm going to stand by and get ripped off by our moronic rulers when I can get my nose in the trough for a cheapo loan along with the rest. We'll all be paying in the longer term for this madness (irrespective of who takes advantage of the cheap money) so I might as well get something out of it while it lasts.

poppy10_2

After the Nationwide figures we had lots of headlines about how the rate of fall was easing, indicating a bottom to the slump. Where are all the headlines about the rate of fall accelerating now?

ShelleyC_2

poppy10 wrote: »

After the Nationwide figures we had lots of headlines about how the rate of fall was easing, indicating a bottom to the slump. Where are all the headlines about the rate of fall accelerating now?

Gordon & his mates are trying to keep it under wraps wouldn't want people thinking his grand plan is a pile of poo!

dopester

Really2 wrote: »

I take it the -0.4% nationwide had you doing the same then.;)

If i was going to buy a house I would use the nationwide, you pay less for it..:D

:rotfl::rotfl::rotfl:

dopester

!!!!!!? wrote: »

They'll also be chucking lots more public money into the (now mostly nationalised) banking system and instructing their puppet banks to lend it out cheaply.

People still have to want to borrow. With job prospects negative... many won't have the appetite to take on more debt..... unless they are desperate and can get credit.

They also have to meet some criteria of ability to pay the cheap rate money back, unless Gordy really forces banks to give money for free - which would be the end, given that banks realise what a risky system they've been involved with during the past 11 years - game over.

Really2

dopester wrote: »

:rotfl::rotfl::rotfl:

Thanks I wondered when someone would get it.;)

dopester

Really2 wrote: »

Thanks I wondered when someone would get it.;)

I got it.

Average house prices:

Aug Nationwide = £164,654
Aug Halifax = £174,178

Sometimes I wonder if the difference is because Nationwide lends writes more mortgages, and does more transactions in lower-cost areas? It can't be that simple. That is probably stupid.

neverdespairgirl

Really2 wrote: »

So Halifax and Nationwide are now conflicting.

.

Not really - as Generali said last week, the monthly variations are more noise than anything else.

WTF?_2

dopester wrote: »

People still have to want to borrow. With job prospects negative... many won't have the appetite to take on more debt..... unless they are desperate and can get credit.

They also have to meet some criteria of ability to pay the cheap rate money back, unless Gordy really forces banks to give money for free - which would be the end, given that banks realise what a risky system they've been involved with during the past 11 years - game over.

Personally I'm quite happy to borrow a modest amount - 1x salary for example - at stupidly low rates in order to get a better house (detached vs semi) than I would otherwise have plumped for, when I know strong inflation is on the way - but my situation isn't typical.

dopester

!!!!!!? wrote: »

Personally I'm quite happy to borrow a modest amount - 1x salary for example - at stupidly low rates in order to get a better house (detached vs semi) than I would otherwise have plumped for, when I know strong inflation is on the way - but my situation isn't typical.

Opposite for me. You've had your long-wave of inflation.

I've heard your arguments in one form and another from others as well, as to why there won't be deflation. .. or any lengthy deflation.. why Governments will do anything to prevent it... but I think you are wrong.

You have heard the reasoning before... Politicians have high-speed printing presses. They can make them run as fast as they please. In a choice, they would always want to inflate. Therefore, there can never be deflation.

It is a sweet, simple argument. If it were true, it would make your job as an investor incredibly easy. All you would have to do to make your fortune is place a whole-hog bet on inflation. Just hock every asset you have, run your credit to the limit, buy some gold, and lie back to wait for the silly politician to float your easy chair to paradise on a river or red ink.

Fact is... full force deflation is here. Go bet on inflation if you like, but ask yourself why many advanced economies have chosen to accept the deflation in the past, rather than cheerily run the presses to your wonder-land solution. Because it isn't that simple is why.