We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Buying properties for investment part 2
Jackboy29
Posts: 44 Forumite
It said on the news again today that by 2020 there will be an even bigger shortage of homes, driving house prices up.
Van persie, i'm still relatively new to all this finance stuff so am interested in what your saying. If the BOE is controlling IR's then i assume they are trying to strike a balance. If lots of ppl have huge debts if they increase IR's then peoples disposable income will go down, meaning the cant afford to buy stuff. With no money does that mean there will be no demand and therefore no inflation?? LIke somebody said earlier, if ppl are makign the repayments then it's all good. and if house prices aren't increasing, like your saying, then they dont need to try to reduce a run away property market. If they increae rates much then dont they risk damagin growth generally cos nobody will have any money? You say IR's have nothing to do with personal debt. Surely the two are inextricably linked??
From anecdotal evidence i know of quite a few people recently who have increased their personal debts amssively and if IR's go up much they wouldn't be able to cope.
Van persie, i'm still relatively new to all this finance stuff so am interested in what your saying. If the BOE is controlling IR's then i assume they are trying to strike a balance. If lots of ppl have huge debts if they increase IR's then peoples disposable income will go down, meaning the cant afford to buy stuff. With no money does that mean there will be no demand and therefore no inflation?? LIke somebody said earlier, if ppl are makign the repayments then it's all good. and if house prices aren't increasing, like your saying, then they dont need to try to reduce a run away property market. If they increae rates much then dont they risk damagin growth generally cos nobody will have any money? You say IR's have nothing to do with personal debt. Surely the two are inextricably linked??
From anecdotal evidence i know of quite a few people recently who have increased their personal debts amssively and if IR's go up much they wouldn't be able to cope.
0
Comments
-
Oh, and was just wondering why my first thread was closed?0
-
Jackyboy - think you've got it in one - NuLab have stuffed the UK..
No demand may equal no inflation, but it aso equals no private-sector jobs, which means an ever-increasing tax requirement to fund the public sector.
But not to worry - EAs, Banks etc say everything's ok, it's all booming - personally I'm sticking with the "ready to bail out" position. Depends on whether you believe in "straight-line" economics really.0 -
Jackboy29,
Please see last post on your original thread. Kind of sums up our situation...0 -
This is not my opinion but my findings (some back ground info - I am based in Surrey):
I got my property valued on Friday and even the surveyor is looking to buy as he wants to go the BTL route.
I have been looking for a month, in that time 2 houses have come on the market (in my price range and criteria). All the EA's I am registered with have said there are no new porperties coming on at any price, the houses they are selling are going for a lot closer to the asking price than they have done in a long time and property that have been on the market for a long time (i.e 2+ years) are now getting a lot more interest.
Make of that what you will.Lady Astor: "Winston, if I were your wife I'd put poison in your coffee."
Sir Winston Churchill: "Nancy, if I were your husband I'd drink it."0 -
Some regions are experiencing a spring bounce - one that they perhaps didn't see last year. Sentiment has changed; previously reluctant buyers are returning to the market under the belief that the market is safe.
But are economic conditions better this year than last year to suggest it's worth buying property? I'd say they're a lot worse particularly with IR rises a cert later this year.
This is one almighty bubble and the greater fools are being sucked in right now...0 -
"Some regions are experiencing a spring bounce " - my area is not one of them.. . yet. The EA's expect that to happen in the next 2-3 months.
" I'd say they're a lot worse particularly with IR rises a cert later this year." - the expected .25% is not going to burst the bubble. If any that will help the market with people holding out waiting for the rate rise only to find it is small...
Looks like the bubble is going to keep on rolling....Lady Astor: "Winston, if I were your wife I'd put poison in your coffee."
Sir Winston Churchill: "Nancy, if I were your husband I'd drink it."0 -
Jackboy29 wrote:It said on the news again today that by 2020 there will be an even bigger shortage of homes, driving house prices up.
An equally valid theory is that half the population is going to die from bird flu next year, creating a massive oversupply in the housing market.
Remember, you read it here first!
I can spell - but I can't type0 -
devils_advocate wrote:An equally valid theory is that half the population is going to die from bird flu next year, creating a massive oversupply in the housing market.
Remember, you read it here first!
Would you move into a house where some one had just died of bird flu in??? Nor me.. new houses all round..Lady Astor: "Winston, if I were your wife I'd put poison in your coffee."
Sir Winston Churchill: "Nancy, if I were your husband I'd drink it."0 -
I'd buy it,( at a knock down price ) and rent it out !Wombling £457.410
-
NastyMatt,
A .25% rise is just the start - cheap credit is over and we're heading for further rises.
And it won't take much to burst this bubble. 5% would be catastrophe for many, particularly if they can't just borrow on 0% credit cards anymore, etc.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards