UK house prices down 23 percent in real terms.

Thrugelmir

ad9898 wrote: »

Ahh, the 10 year fix I've been talking about, a wise choice, as we come out of recession in 12-18 months time, oil will raise it's head again, and inflation will be on the rise, to say nothing of the 2.5% VAT increase at the end of the year, BoE base rate will be over 4% by the end of 2010, and before anyone asks, yes I do have a crystal ball, you have all be warned:D, get your 10 year fixes in now.

Most 10 year mortgages carry early redemption penalties. Something that has to be considered. Its not as simple as pure interest rate. Also current SVR's are below long term fixed rates so if rates dont rise for another 18 months it would be possible to repay a capital element. Thereby potentially increasing the LTV.

Dithering_Dad

julieq wrote: »

Arguably because almost all of them actually live in it? Just a thought anyway.

If you mean 'The UK', then yes, a large proportion of UK citizens live 'in it'.

If you mean 'housing', then yes, a large proportion of UK citizens live 'in it', but they need not necessarily have to 'own it'. My remarks were obviously concerned with the mania of people having to own a home, rather than being content to rent long-term as they do in other European countries and in the US. Not really sure what your remarks are concerned with I'm afraid.

StevieJ

Dithering_Dad wrote: »

If you mean 'The UK', then yes, a large proportion of UK citizens live 'in it'.

If you mean 'housing', then yes, a large proportion of UK citizens live 'in it', but they need not necessarily have to 'own it'. My remarks were obviously concerned with the mania of people having to own a home, rather than being content to rent long-term as they do in other European countries and in the US. Not really sure what your remarks are concerned with I'm afraid.

Can't see the point in renting unless you have no choice Or you aim to be totaly dependent on the state in your retirement.

PayDay

StevieJ wrote: »

Can't see the point in renting unless you have no choice

In a falling market, it's better to let the landlord take the fall in the value than to take it yourself.

Dithering_Dad

StevieJ wrote: »

Can't see the point in renting unless you have no choice Or you aim to be totaly dependent on the state in your retirement.

Depends on your lifestyle. If you're mobile in work/leisure then having your own home would really tie you down. Obviously there are as many reasons to rent a home as their are to buy one, that's just one. Just a shame that you can't rent privately and have a similar feeling of security of tenure as you can when you buy.

Not sure why you'd be dependant on the state in retirement just because you don't own your own home. Surely that's got more to do with investing in a pension than a home? In some ways, not paying a huge mortgage would mean having more disposible income to invest in a pension.

ukcarper

I've just retired and my Mortgage will be paid off next year I wouldn’t like to be paying private rent out of my pension in fact the rent for a house the same as mine would be more than my pension. I think that’s what he means.

the_ash_and_the_oak

StevieJ wrote: »

Can't see the point in renting unless you have no choice Or you aim to be totaly dependent on the state in your retirement.

Not really feeling this - renting means you have the freedom to invest more wisely than in property imo (and if things change in x years time also gives you freedom to change horses back into property if you're liking it as a better bet right then)

Not really seeing property as the only saving/investment strategy tbh

Plus I'm kinda thinking flats not really going to recover so well and might be a bit of a dodgy step on the ladder. If you save/invest while prices are falling (and then static) (and then rising more slowly than your chosen investments) i'm kinda liking the idea of not stepping on a shaky rung of ladder and getting something a bit more suitable imo

Generali

StevieJ wrote: »

Can't see the point in renting unless you have no choice

The German model works fine for lifetime tenants - they have just about total security of tenure and controlled rents. They are expected to maintain the property - it is far from unusual for a flat to be let without a kitchen for example and the tenant to install one.

It also works fine for Landlords - they get a nice steady income that rises in a predictable way.

I prefer free markets (as you are probably aware ;-)) but the German rental market does seem to work remarkably well for all concerned.

mewbie_2

Generali wrote: »

but the German rental market does seem to work remarkably well for all concerned.

Like most things in Germany. Some lessons there about hard work and focus for the UK maybe.

Generali

mewbie wrote: »

Like most things in Germany. Some lessons there about hard work and focus for the UK maybe.

Germany has many problems of its own. Ok, their engineers are fantastically well qualified. The reason? It's impossible to get a decent job as an 18 y/o, you need at the very least a Masters degree just to compete.

Some lessons could easily be learned from them about expecting the same standards from your neighbours' children as you do from your own. Similarly, they expect hard work while at work but not to work too many hours. It's a contrast to the UK's idea which seems to be 'never mind the quality, feel the width'.

It's an interesting country. Their cooking isn't as good as they think it is though :-(.