If house prices fall another 37% ...

Dan:_4

carolt wrote: »

Why do you always write as if you were about 55 then?

You seem a bit narky today Carol, whats up?

Kenny4315

carolt wrote: »

Why do you always write as if you were about 55 then?

Maybe I've got maturity beyond my years ... probably because I come from a working class background, and have had to do it the hard way ... so have had to be cautious and sensible ...

ukcarper

carolt wrote: »

Does it really not occur to you that your extra free money to pay for your new BMW, school fees etc didn't just come from nowhere? It came because some poor sod who just happened to be born 20 years later has borrowed up to his eyeballs in debt to buy your house.

What you're describing is on one level just a straightforward transfer of wealth through generations, with the younger subbing the older. But on another level, as has become apparent, it's a mirage, because - like all Ponzi schemes, where those at the top of the pyramid only got excellent returns because those at the bottom got nothing, and actually lost the value of what they put in - it couldn't last. It's this that has, writ large, caused the economic mess we're in now. Eventually, too many of the people at the bottom of the pile couldn't afford to pay for what they'd borrowed.

And the whole sorry pyramid came crashing down. Bringing with it, incidentally, most of the world's economic system.

For someone who claims to be so much older and wiser, you seem to have very little grip on economic realities or history.

Yes, free money is nice. But houses don't = free money.

Long-term, what's happened is that we're all (=taxpayers) paying for your free beemers and school fees through our taxes, and will be for many, many years to come.

Not strictly true even if house prices only increase with normal inflation there comes a time when you can release equity. In my view it’s not a good idea to pay for a car over 20 years but if that’s what you want to do it’s up to you.

Kenny4315

carolt wrote: »

Long-term, what's happened is that we're all (=taxpayers) paying for your free beemers and school fees through our taxes, and will be for many, many years to come.

I've had my BMW for a good while now, only done 50k on clock and it still perfect so not changing. Although my wife want my kids to go to private school, I refuse, if I can do it in the state, and having to bust my butt, they can.

Ever heard of VAT, you pay quite a bit on an expensive item, etc. I was a 40% in my mid 20's, i've paid my share and more.

carolt

Dan: wrote: »

You seem a bit narky today Carol, whats up?

Yes, I've had a fairly stressful few days - nearly came and asked for advice, actually. Planning to move house - don't get too excited! it's still rental....

Obviously I know my actual living arrangements shouldn't take precedence over viewing one month's figures from one survey - that viewing and discussing Nationwide figures on here is far, far more important than viewing actual houses and discussing relative merits of said houses.

Anyway - decision made - has to be made by the beginning of calendar month.

Phew. Very stressful. But for various reasons, it was time to move on.

And yes - I do put my money where my mouth it - NOT buying now.

whathavewedone

Well you can hardly blame people for asking given that you were champing at the bit yesterday

It's just a bit of joshing from people that you don't know and never will know

carolt

Champing at the bit?

Eh? To do what?

Confused.

SingleSue

I am wondering when it became 'normal' to release equity? When we purchased our home in 1990, it wasn't something we knew about.

To some, the release of equity is something alien.. I just wondered when it became almost the norm or an acceptable way to go about things (I know there would still be a fair few, if not the majority, who haven't mewed).

I'm genuinely interested in this by the way....

mewbie_2

SingleSue wrote: »

I am wondering when it became 'normal' to release equity?

It's a good question Sue. Equity release, or to decribe it more accurately, borrowing money has fuelled the last decade - the money from huge HPI funding ever more lavish things - like holidays, then cars, then BTL's. And so on.

This is another small problem for the government. People were happily spending more than they earnt, because of the 'free' money in their houses. Those times are not coming back. Whose going to buy those holidays, cars and BTL's now? Apart from Kenny and Chucky of course.

carolt

Absolutely, Sue. To my parents' generation, the concept just doesn't exist - at least, apart from the sort of equity release things you do when you're old and have to pay for expensive care. To the over 70's, a home is for living in, and anything else incomprehensible.