Housepricecrash.co.uk & MSE

Seven7s

setmefree2 wrote: »

In my view having a mortgage is no bigger a committment than finding rent. If you don't pay your rent you are out on the streets.

Just to pick up on this comment - I must admit I'm amazed that you think this. A mortgage is significantly more of a commitment than paying rent - potentially a multi decade/10-100s thousands-of-pounds commitment. To think otherwise suggests a high level of naivety.

For the record I read mostly HPC and occasionally MSE - I prefer the directness of the former, and find the'hugz' in the latter to be, well, false (plus the overmoderation is a big no as far as I'm concerned)

Seven

setmefree2

Durhamborn wrote: »

You have hyperinflation now,its called the money supply and its going up 15% a year.This is no normal downturn.High inflation in the past did not play out in a global economy.Unions were strong.Wages went up in tandem with inflation,hence houses rising.

What you are about to witness is an inflationary depression.Wages will fall against prices.The UK is bankrupt.The currency is on a knifedge.We import and run a massive current account deficit.So prices will rise fast but wages wont.

Food went up last year 10.1%,wages 3.1%.

So you have peoples debt stuck at its nominal sum.Inflation shooting higher and wages falling.Thats before the massive tax rises that must come.Real income is going to get slaughtered.

In theory it will fall to the level of asian countries.BUT we are carrying huge deficits,so it will fall below theirs.

Labour have done the opposite of what was needed.We needed higher interest rates,public spending cuts and tax cuts on earnings.

Anyone with large debts in the UK is in serious trouble,.Youl be running against falling earnings in real terms for a decade.

Labour is banking on crashing sterling and inflation.It will get both,but earnings wont follow this time.That is the folly.Anyone with assets is moving them out of this country,thats why Brown is about to print money.The gilt market will crash soon enough,.Every day the government make it worse not better.

In may 2010 the tories will wipeout labour at the election,within days interest rates will be raised,perhaps to 8% or more.They will do what they had to do in 79,rescue the economy from total collapse.The last big drop will happen in houses as the higher interest rates shake out the last of the over-leveraged.

That will be the time to buy property and other assets priced in sterling IMO.

But that's just your humble opinion and whilst some share your view many others don't;) Personally, I try not to get wedded to one view 'cos it can end up costing you money. With money I think it's best to keep an open mind, but that's just imho.

setmefree2

WibbleSnarf wrote: »

Ultimately it's all about the poster. If you're financially up the creek but are thick skinned and can take criticism on the chin then I've little doubt that the advice doled out on HPC will see you financially recovered sooner and sounder than that doled out here (a hug and a hot soak with some bath salts might soothe the soul in the short-term but it won't fix the cause of the weary soul) but the stereotypical debt-laden working-class Brit doesn't always like to take responsibility for their own actions when they were only doing what all their friends, neighbours and colleagues were doing.

You are talking only about one board. There are plenty of other boards on MSE with plenty of financially savy people on them.

I think HPC is let down by the fact that it focuses almost exclusively on the market value of house i.e. the purchase price. In reality over the life time of a mortgage the interest you pay on a mortgage is likely to be as much and probably more than market value you pay for a house. Why focus so exclusively on only one part of the deal. Doesn't make sense to me?

If any of you ever do buy a property you should visit the MFW board on MSE - it'll be a revelation;)

StevieJ

Seven7s wrote: »

Just to pick up on this comment - I must admit I'm amazed that you think this. A mortgage is significantly more of a commitment than paying rent - potentially a multi decade/10-100s thousands-of-pounds commitment. To think otherwise suggests a high level of naivety.

For the record I read mostly HPC and occasionally MSE - I prefer the directness of the former, and find the'hugz' in the latter to be, well, false (plus the overmoderation is a big no as far as I'm concerned)

Seven

I am naive enough to have a minimum mortgage, I bought heading towards the dizzy heights in the last bubble, I pay no mortgage now (well 87 pence) how much rent do you pay

setmefree2

Seven7s wrote: »

Just to pick up on this comment - I must admit I'm amazed that you think this. A mortgage is significantly more of a commitment than paying rent - potentially a multi decade/10-100s thousands-of-pounds commitment. To think otherwise suggests a high level of naivety.

For the record I read mostly HPC and occasionally MSE - I prefer the directness of the former, and find the'hugz' in the latter to be, well, false (plus the overmoderation is a big no as far as I'm concerned)

Seven

We all have to have a roof over our heads and it has to be paid for, unless of course you are really rich. So we are all committed to housing costs whether in rent or mortgage. If you are buying a place, over time the cost comes down as you pay off the capital. To rent our house now costs a massive amount more than the amount we are paying to buy it.

Furthermore, if you pay off your mortgage you can live eternally rent free. So a mortgage in the longer run can be less of a commiittment than renting. When you rent you are committed to finding an ever increasing amount indefinitely. Not that I have anything against renting. Each to their own.

Finally, naive the cheek of it! How very dare you. I've probably forgotten more than you know

Come back when you've made some money.:D

Seven7s

StevieJ wrote: »

I am naive enough to have a minimum mortgage, I bought heading towards the dizzy heights in the last bubble, I pay no mortgage now (well 87 pence) how much rent do you pay

In answer to your question - a big fat zero.

Seven

setmefree2

Seven7s wrote: »

In answer to your question - a big fat zero.

Seven

Nice:money: Lucky you:T I mean that - I'm not being sarcastic. I can't wait to be mortgage free:D

Edit- Or does that mean you live at home with your Mum & Dad?

StevieJ

Seven7s wrote: »

In answer to your question - a big fat zero.

Seven

How did I know you were going to say that

Seven7s

setmefree2 wrote: »

We all have to have a roof over our heads and it has to be paid for, unless of course you are really rich. So we are all committed to housing costs whether in rent or mortgage. If you are buying a place, over time the cost comes down as you pay off the capital. To rent our house now costs a massive amount more than the amount we are paying to buy it.

Furthermore, if you pay off your mortgage you can live eternally rent free. So a mortgage in the longer run can be less of a commiittment than renting. When you rent you are committed to finding an ever increasing amount indefinitely. Not that I have anything against renting. Each to their own.

Finally, naive the cheek of it! How very dare you. I've probably forgotten more than you know

Come back when you've made some money.:D

I'm back - you can infer what you like from that.

As I stated your comment struck me as being very naive, and if you don't want to be labelled as naive then don't write statements that are.

Finally, you don't know me so don't assume anything about me or our relative levels of real world experience....

Seven

MSE_Martin

Hi I haven't read through the whole thread, but skimmed the first page

First thing to say is that to castigate all the HPC users isn't fair. While not the same scale as these forums, its still a big site with many different people using it - and much as we do here, Im sure there's a wealth of opinion.

It's also been a strong lobbying site against the excesses of mortgage lending and house price overinvestment and deservescredit for that.

The laughing at those in misery element is something I've been aware of for a while; and frankly I find it cruel and unpleasant - yet there will always be people who relish in it.

However to read some of the "happy they've lost their jobs" posts here is a type of tit-for-tat exchange that isn't what this site is about. It's tough times out there for many people and the aim is to try and be supportive.

My hope is the tiny number of people on HPC who continually laugh at those who've made mistakes with their finances will grow tired of it. There's little we can do about posts on another site, though i do hope we don't develop a reverse trend here.

I'm going to shut this thread as I think its run its course and I don't want it tearing into the wrong territory.

Kind regards

Martin